Missouri Homeowners Face Critical Choice: Electric vs Gas Water Heater Operating Costs in 2024

With Missouri utility bills ranking among the highest in the nation, homeowners are increasingly scrutinizing their water heating costs. Missouri jumped to the second spot this year after ranking fourth last year for the highest utility bills nationally, making the choice between electric and gas water heaters more crucial than ever for your budget.

The Current Cost Landscape in Missouri

Missouri presents a unique utility environment for homeowners. The average residential electricity rate in Missouri in 2025 is 12.95 cents per kilowatt hour, which is 22.62% lower than the US average rate of 16.73 cents. However, the average electricity bill in the state of Missouri in 2025 is $137 while the national average is $147, indicating that while rates are competitive, consumption patterns keep bills relatively high.

For natural gas, Missouri homeowners are experiencing rate increases. For eastern Missouri customers, the increase will be about $8.21 (or 10%) per month. For western Missouri customers, the increase will be about $8.93 (or 10.5%) per month according to recent Spire Energy rate adjustments.

Breaking Down Monthly Operating Costs

The operating cost difference between electric and gas water heaters is substantial. On average, a gas water heater costs about $30 per month and an electric version costs approximately $42 per month to operate. This $12 monthly difference translates to $144 in annual savings with gas units.

For Missouri families specifically, the average gas water heater consumes between 25-50 therms per month for a typical family of four. At the national average price of $1.50 per therm, monthly operating costs typically range from $37.50 to $75.00. Given Missouri’s recent rate increases, local costs may trend toward the higher end of this range.

Long-Term Cost Analysis: 8-Year Projections

When considering total ownership costs over eight years, the differences become even more pronounced. Electric heaters have higher energy costs contributing to an 8-year cost of $4,512.80 for a 50-gallon electric heater. Gas heaters, thanks to lower natural gas prices, cost $2,072.80 over 8 years. 200k BTU tankless heaters, with zero repair costs and lower energy usage, cost only $1,518.40 over the same period.

Installation Costs in Missouri

Installation costs vary across Missouri, but regional data provides helpful benchmarks. In 2025 average cost that homeowners paid for water heater installation in Boone county is between $434.00 and $1,448.00. For comparison, water heater installation cost in Saint Louis, Missouri ranges from $1,300 to $1,900 for a standard 50 gallon gas water heater, while replacement cost ranges from $1,300 to $1,700 for a standard 50 gallon electric water heater.

Efficiency Considerations

Electric water heaters are more expensive to operate than gas heaters due to higher electricity rates. A 50-gallon electric heater costs $2.69/hour, while a 50-gallon gas heater costs only $1.18/hour. However, electric water heaters are still more energy-efficient. A gas water heater costs less to run, but it uses more energy and releases more waste than electric units.

Making the Right Choice for Your Home

In areas with low natural gas prices (below $1.00/therm) and high electricity rates (above $0.15/kWh), gas water heaters typically offer lower monthly costs. Conversely, in regions with expensive gas or affordable electricity, electric models may be more economical. Given Missouri’s current utility landscape, gas water heaters generally provide better long-term value.

Professional Installation and Service

When considering water heater replacement or installation, working with experienced professionals is essential. For residents seeking reliable Water Heaters Boone County, MO services, MasterTech Plumbing, Heating and Cooling offers comprehensive solutions. MasterTech Plumbing, Heating and Cooling is a locally owned and operated company based in Columbia, MO, specializing in comprehensive plumbing, heating, and air conditioning services. They offer a wide range of solutions including 24/7 emergency plumbing, HVAC installations, and maintenance, catering to both residential and commercial clients. With a commitment to quality service and customer satisfaction, MasterTech employs certified technicians who provide reliable and efficient solutions.

MasterTech is a family owned and operated trades business located in Columbia, MO. We have had the privilege of service our friends and neighbors throughout mid-Missouri since 1990, demonstrating their long-standing commitment to the community.

Federal Incentives and Rebates

Homeowners can offset installation costs through federal tax credits. Putting an Energy Star-certified storage water heater in your home could qualify you for a tax credit of 30% of the purchase and installation costs up to $600 of credit, as part of the federal Energy Efficient Home Improvement Tax Credit. For heat pump water heaters, the credit is 30% of your cost up to $2,000 of credit and expires at the end of 2025.

Bottom Line for Missouri Homeowners

With Missouri’s competitive electricity rates but rising natural gas costs, the decision between electric and gas water heaters requires careful consideration of your specific situation. A gas tank heater offers lower operating costs than electric heaters, making it the economical choice for most Missouri households. However, factors such as existing utility connections, home efficiency, and long-term plans should all influence your decision.

Given the significant long-term cost differences—potentially thousands of dollars over a water heater’s lifespan—consulting with qualified professionals about your specific needs and local utility rates is essential for making the most cost-effective choice for your Missouri home.