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Are gas or electric furnaces cheaper?

Author

Avery Gonzales

Updated on March 04, 2026

Are gas or electric furnaces cheaper?

Electric furnaces are generally less expensive to purchase than gas furnaces and cheaper to install. The cost of a new electric furnace ranges from $1,000 to $2,500, while a gas furnace will cost between $3,000 and $4,000 before installation.

Correspondingly, are electric furnaces expensive to run?

The costs to operate a gas furnace is about 63% cheaper than an electric furnace when heating an average sized home. In comparison, natural gas costs around $1.01 per therm to run. An electric furnaces cost to operate could be around $2,628 a year while a gas furnaces cost to operate would be around $1,800 a year.

Also, should I switch from electric furnace to gas? In most areas, natural gas costs less than electricity, and sometimes considerably so. This means you can expect lower heating bills with a gas furnace than with electric heat. The complexity and cost of switching to gas largely determine how long the payback period is.

Keeping this in consideration, how much more does electric heat cost than gas?

If you look at the raw numbers, electric heating is certainly more expensive than natural gas, coming in at an average of about $838 a year.

Are gas or electric furnaces more common?

Gas furnaces are much more common, and for many (but not all) they represent a huge cost savings over electric systems. Many modern homes lack gas lines as a result of the historical shortages. Other times, the difference between a gas and electric home is geographic region, which we'll talk about shortly.

Are electric furnaces any good?

This poses an important question: Are electric furnaces energy-efficient? In fact, yes, they very much are. The high-efficiency electric furnace will use up to 99.9% of electricity for heating. We're talking the AFUE rating of 100; for comparison, gas furnaces have an AFUE rating of 70 to 97.

Are new electric furnaces more efficient?

An electric furnace is the more efficient of the two. It may have an annual fuel-utilization-efficiency (AFUE) rating as high as 100 percent. Gas furnace ratings range from 55 to 97 percent.

How much is a new electric furnace for a 2000 square foot home?

Electric Furnace Prices by House Size
House SizeBTUsAverage Cost (Materials Only)
1,000 sq.ft.35,000 - 40,000$600 - $1,000
1,500 sq.ft.52,500 - 60,000$700 - $1,100
2,000 sq.ft.70,000 - 80,000$900 - $1,400

Does an electric furnace use a lot of electricity?

We pay for electricity in kilowatt-hours (kwhs). One kilowatt-hour is the equivalent of using 1,000 watts for one hour or using a 100-watt light bulb for 10 hours.

How much electricity does your appliances use?

ApplianceTypical WattageEstimated Average Cost
15 kw Central Electric Furnace15,350$1.5323/hr
20 kw Central Electric Furnace20,490$2.00/hr

How efficient is an electric furnace?

The efficiency range of an electric furnace is very simple; all modern electric furnaces have an AFUE of 100%. That means that all electric furnaces convert electricity into heat energy without any wastage.

What's the cheapest way to heat a house?

Top 5 most efficient or cheapest home heating options
  • Storage heaters.
  • Air source heat pumps.
  • Ground source heat pumps.
  • Hybrid heat pumps.
  • Solar thermal panels.

How much does electric heat cost a month?

If you operate your heater for 10 hours a day and it costs $0.30 per hour to operate, you'll pay $3.00 a day to run your heater. Multiply this figure by 30 (or the number of days in the month) to determine your monthly cost. In this example, electric heat would cost $90 a month.

Why is electric heat so expensive?

Electric furnaces are more expensive to operate than other electric resistance systems because of their duct heat losses and the extra energy required to distribute the heated air throughout your home (which is common for any heating system that uses ducts for distribution).

How much does it cost to heat a 1500 square foot house?

How much does it cost to heat a 1500 square foot house?
TypeAFUEApproximate Unit Cost
Standard Efficiency80%-89%$500-$1,500
Moderate Efficiency90%-95%$1,000-$3,000
High Efficiency96%+$2,000-$6,000

How much does it cost to convert a house from gas to electric?

This site says it can cost between $3,000 and $7,000 dollars, depending on the size of your home. There will also be additional costs for permits, the furnace and AC, adding the gas line into your home, and possibly upgrading the electrical service if needed.

How much does it cost to heat a home with electric heat?

The U.S. Energy Information Administration (EIA) forecasts the average electric heat cost during winter 2020 to be $1,209. For the same period, they estimate heating oil costs at $1,221.

What is the most efficient form of electric heat?

Electric radiators and infrared panels are the most efficient form of electric heating because both use radiant heat to maintain room temperatures.

Which electric heating system is best?

Infrared has the potential to be the most efficient heating system for your home. Unlike other electric heating systems, which warm the surrounding air to heat a room, infrared warms objects and people directly – transferring heat in straight lines from the heater to whatever's in front of it.

Why natural gas is so cheap?

Prices started the year relatively low because mild winter weather led to less natural gas demand for space heating. Natural gas consumed to generate electric power in the United States reached a record high, averaging 31.6 billion cubic feet per day (Bcf/d) in 2020, or 2% more than the 2019 average.

Do electric furnaces produce carbon monoxide?

Do Electric Space Heaters Produce Carbon Monoxide? No. Only heaters that burn a combustible fuel to create heat can cause carbon monoxide build-up in your home. Either way, nothing is being burned up to create heat with an electric space heater, so carbon monoxide poisoning is not an issue.

Do I have gas or electric heat?

If it is a gas furnace, there will be a small window on the front of the furnace where you should see a blue glowing flame. You should also be able to hear the noise from the gas burner. Electric powered furnaces do not have a glass window with a blue flame and do not make any noise when idle.

Is gas heating dangerous?

Gas Heaters Are Safe to Use

The modern gas heater is built specifically to operate with minimal danger to people. The main concern with a gas heater is the leak of carbon monoxide, which is a toxic byproduct of the combustion of gas.

How long does a gas furnace last?

approximately 15-20 years

Can you add gas to an all electric house?

Summary: Cost to Convert from Electric to Gas

The cost to switch from electric to gas varies according to how many feet of gas line you need. If the existing line has the capacity to add more appliances, a 10' extension costs between $150 and $200. Installing gas service to the home averages around $2,000.

Is it worth switching from oil to propane?

Based on local energy prices, simply converting from oil to propane offers about 18 percent savings. Jumping from a standard boiler to a high-efficiency condensing propane unit brings the efficiency of the equipment from 82 percent to 96 percent.

What are the disadvantages of propane?

One of the disadvantages of propane gas is that you need to keep the tank filled. Unlike natural gas or electricity, which travel to your home from a central source and are not stored on your property, you are responsible for making sure you always have enough propane for fuel.

Do electric furnaces exist?

Benefits: Pretty much any home can use an electric furnace, since it doesn't require a natural gas line. It also costs more to operate than a gas furnace because electricity is a costlier energy source—and an electric furnace uses an immense amount of electricity to run.

What uses the most gas in the home?

What Uses The Most Gas in a House? According to the U.S. Energy Information Administration (EIA), the majority of natural gas used in homes is for space heating, which includes both air and water. But whether homes use natural gas or not depends on the type of water heater and central heating system it has.