The decision to replace a water heater often needs to be made in a hurry. Although standard water heaters usually last about seven to 12 years, they can fail at any time. It can happen at night or on a weekend when there’s not a lot of time to comparison shop.
Your choice of home water heating system may depend on the type of system that you already have as well as which energy options are available in your area, as well as how much hot water you use for activities like showers, laundry and dishwashing.
You can estimate savings by comparing the annual cost of your current water heater with the estimated cost of a new system.
Annual water heating costs
Below shows estimated water heating costs for an average home based on August 1, 2026 rates. The estimates are based on an average household of 2.4 people using about 140 litres of hot water per day. You can adjust the estimates higher or lower depending on whether your home uses more or less hot water than average.
Heat pumps
Natural gas
Electricity
Fuel oil
Propane
Energy rates
As of August 1, 2026
- Natural gas: $0.22430/cubic metre
- Electricity: $0.09970/kilowatt-hour
- Fuel oil: $1.238/litre
- Propane: $0.780/litre
Common questions
Why are my actual water heating costs different from the estimates?
Actual costs can vary because energy rates change over time and hot water use differs from household to household.
What does Manitoba Hydro’s quarterly rate service mean for water heating?
It means natural gas prices are updated every three months to reflect current market prices, which may affect the total amount that you pay for water heating.
What’s included in the natural gas rate used for water heating?
The rate includes the cost of natural gas along with delivery and basic service charges.
Average annual water heating costs
August 1, 2026- Natural gas $103Conventional water heater (0.62 EF)
- Electricity $377Water heater 60 I.G. (273 L) (90W standby loss)
- Heat pump (ground source) $301Electric water heater assisted by geothermal desuperheater
- Fuel oil $576Conventional water heater (0.60 EF)
- Propane $530Conventional water heater (0.62 EF)
| Date | Natural Gas Conventional Water Heater (0.62 EF) | Electric Water Heater 60 I.G. (273 L) (90W standby loss) | Fuel Oil Conventional Water Heater (0.60 EF) | Propane Conventional Water Heater (EF=0.62) | Electric Water Heater assisted by Geothermal Desuperheater | N. Gas ($/cu.m.) | Electricity ($/kWh) | Propane ($/L) | Oil ($/L) |
|---|---|---|---|---|---|---|---|---|---|
| Aug-16 | $132 | $300 | $335 | $339 | $240 | $0.2839 | $0.07930 | $0.499 | $0.720 |
| Nov-16 | $114 | $300 | $396 | $356 | $240 | $0.2454 | $0.07930 | $0.524 | $0.851 |
| Feb-17 | $120 | $300 | $406 | $469 | $240 | $0.2572 | $0.07930 | $0.691 | $0.872 |
| May-17 | $115 | $300 | $398 | $444 | $240 | $0.2462 | $0.07930 | $0.654 | $0.855 |
| Aug-17 | $108 | $310 | $384 | $342 | $248 | $0.2325 | $0.08196 | $0.503 | $0.824 |
| Nov-17 | $107 | $310 | $476 | $433 | $248 | $0.2293 | $0.08196 | $0.638 | $1.023 |
| Feb-18 | $105 | $310 | $489 | $518 | $248 | $0.2254 | $0.08196 | $0.763 | $1.050 |
| May-18 | $107 | $310 | $470 | $427 | $248 | $0.2294 | $0.08196 | $0.629 | $1.010 |
| Aug-18 | $113 | $322 | $489 | $400 | $258 | $0.2418 | $0.08527 | $0.589 | $1.050 |
| Nov-18 | $106 | $322 | $507 | $475 | $258 | $0.2287 | $0.08527 | $0.699 | $1.090 |
| Feb-19 | $110 | $322 | $454 | $478 | $258 | $0.2359 | $0.08527 | $0.704 | $0.976 |
| May-19 | $133 | $322 | $513 | $422 | $258 | $0.2869 | $0.08527 | $0.621 | $1.103 |
| Aug-19 | $133 | $330 | $491 | $422 | $264 | $0.2866 | $0.08740 | $0.621 | $1.054 |
| Nov-19 | $111 | $330 | $498 | $463 | $264 | $0.2376 | $0.08740 | $0.68100 | $1.071 |
| Feb-20 | $109 | $330 | $486 | $514 | $264 | $0.2348 | $0.08740 | $0.75700 | $1.044 |
| May-20 | $118 | $330 | $498 | $525 | $264 | $0.2544 | $0.08740 | $0.77240 | $1.070 |
| Aug-20 | $109 | $330 | $374 | $468 | $264 | $0.2343 | $0.08740 | $0.68910 | $0.803 |
| Nov-20 | $134 | $330 | $398 | $496 | $264 | $0.2882 | $0.08730 | $0.73040 | $0.856 |
| Feb-21 | $130 | $339 | $442 | $575 | $271 | $0.2795 | $0.08983 | $0.84640 | $0.950 |
| May-21 | $141 | $339 | $502 | $605 | $271 | $0.3024 | $0.08983 | $0.89090 | $1.079 |
| Aug-21 | $154 | $339 | $508 | $572 | $271 | $0.3302 | $0.08983 | $0.84190 | $1.091 |
| Nov-21 | $180 | $339 | $549 | $649 | $271 | $0.3868 | $0.08983 | $0.95490 | $1.179 |
| Feb-22 | $155 | $352 | $630 | $680 | $282 | $0.3325 | $0.09324 | $1.00090 | $1.352 |
| May-22 | $187 | $352 | $826 | $724 | $282 | $0.4028 | $0.09324 | $1.06530 | $1.774 |
| Aug-22 | $180 | $352 | $789 | $665 | $282 | $0.3325 | $0.09324 | $1.00090 | $1.352 |
| Nov-22 | $213 | $352 | $849 | $660 | $282 | $0.4028 | $0.09324 | $1.06530 | $1.774 |
| Feb-23 | $189 | $352 | $744 | $709 | $282 | $0.3860 | $0.09324 | $0.97930 | $1.694 |
| May-23 | $185 | $352 | $672 | $748 | $282 | $0.4571 | $0.09324 | $0.97130 | $1.823 |
| Aug-23 | $179 | $352 | $695 | $622 | $282 | $0.4070 | $0.09324 | $1.04340 | $1.599 |
| Nov-23 | $163 | $357 | $742 | $547 | $286 | $0.3966 | $0.09324 | $1.10060 | $1.444 |
| Feb-24 | $155 | $357 | $672 | $545 | $286 | $0.3838 | $0.09324 | $0.91560 | $1.494 |
| May-24 | $170 | $362 | $672 | $627 | $290 | $0.3501 | $0.09455 | $0.80560 | $1.594 |
| Aug-24 | $164 | $362 | $705 | $596 | $290 | $0.3529 | $0.09587 | $0.87780 | $1.514 |
| Nov-24 | $159 | $362 | $677 | $607 | $290 | $0.3427 | $0.09587 | $0.89380 | $1.454 |
| Feb-25 | $163 | $362 | $690 | $665 | $290 | $0.3500 | $0.09587 | $0.97830 | $1.483 |
| May-25 | $108 | $362 | $591 | $580 | $290 | $0.2326 | $0.09587 | $0.85450 | $1.269 |
| Aug-25 | $97 | $362 | $591 | $580 | $290 | $0.2151 | $0.09587 | $0.85450 | $1.269 |
| Nov-25 | $105 | $362 | $591 | $580 | $290 | $0.2342 | $0.09587 | $0.85450 | $1.269 |
| Feb-26 | $107 | $377 | $576 | $530 | $301 | $0.2377 | $0.09970 | $0.78000 | $1.238 |
| May-26 | $103 | $377 | $576 | $530 | $301 | $0.2288 | $0.09970 | $0.78000 | $1.238 |
| Aug-26 | $103 | $377 | $576 | $530 | $301 | $0.22430 | $0.09970 | $0.78000 | $1.238 |
If you’re thinking about switching heating systems
Switching is usually most cost-effective when your current system is near the end of its life or when building a new home. Some homes may need an electrical upgrade to support electric heating, which can add to the total cost of switching. In some cases, changing systems can affect airflow or humidity levels in your home, depending on the type of system installed.
If your home uses natural gas for other appliances like a stove or dryer, switching to an all-electric system may be more costly and require changes to venting or equipment, which can also increase installation costs.
Before you switch water heating systems
Switching your water heating system is usually the most cost effective when your current water heater is near the end of its life or when building a new home. Some homes may need an electrical upgrade to support electric water heating, which can add to the total cost of switching.
Switching water heating system may require changes to venting or installation, which can increase upfront costs.
Payback is estimated by dividing the cost to purchase and install the new system by the estimated annual savings.