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Choosing a water heater? How Gas Water Heaters can save you money

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For most Singaporeans, few things are as comforting as stepping into a warm shower after a long day. But while many households rely on electric storage heaters for that daily luxury, there’s a more energy-efficient and environmentally friendly way to enjoy hot water — gas water heaters.

Recent research by Associate Professor Lee Siew Eang from the National University of Singapore’s College of Design and Engineering revealed that gas water heaters can drastically reduce both your carbon footprint and monthly utility costs. The study, supported by City Energy — Singapore’s sole provider of piped town gas — found that electric storage heaters emit roughly five times more carbon than gas instant heaters.

Electric storage systems release around 400kg of carbon per user annually, while gas instant models produce just 80kg. That difference adds up to a potential carbon reduction of about 320kg per user every year. The reason lies in efficiency: electricity must first be generated (usually from natural gas) before it heats water, whereas gas water heaters skip this conversion step entirely.

Besides being more eco-friendly, gas water heaters are also more energy efficient in daily use. Unlike electric storage heaters, which keep large volumes of water constantly hot and reheat cooled water throughout the day, gas heaters warm water only as it flows through the system. This “on-demand” design minimises standby energy losses — the hidden power drain that occurs when appliances are left on or in standby mode.

The benefits extend beyond sustainability. A 2019 study by the National Environment Agency (NEA) showed that households switching from electric to gas water heaters could save more than $1,200 over a 10-year period — the typical lifespan of a water heater. With energy prices fluctuating, that kind of long-term saving is increasingly attractive to homeowners.

Since April 2026, NEA has also included household water heaters under its Mandatory Energy Labelling Scheme (MELS), where products are rated from one to five ticks based on energy efficiency. So far, more than 200 models have been registered, including both gas and electric types. Impressively, 16 out of 21 gas instantaneous heaters received four ticks, while only two out of 68 electric storage models achieved the same rating. From April 2026, any heater that fails to earn at least one tick will be barred from sale in Singapore.

Safety remains a top concern for many, and City Energy emphasises that all gas water heaters undergo strict safety inspections before approval. Each unit is equipped with built-in mechanisms that automatically shut off the gas supply if overheating occurs, preventing potential leaks and ensuring safe operation.

Today, over 210,000 households in Singapore use water heaters powered by town gas. Since City Energy began its conversion programme, more than 800 households have already made the switch from electric to gas — often completing the upgrade in just one day. Developers are also catching on: about 70 per cent of new private homes connected to town gas now come with gas water heaters pre-installed.

For residents looking to save on utilities, reduce carbon emissions, and upgrade to a more efficient heating system, gas water heaters present a compelling option. With cleaner performance, lower running costs, and strict safety standards, this simple home improvement could deliver comfort that’s better for both your wallet and the planet.

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