When it comes to heating your home, the choice between a gas furnace and an electric furnace can have a significant impact on your energy costs. In this comprehensive blog post, we’ll explore the key factors that determine whether a gas furnace is cheaper than an electric furnace, helping you make an informed decision for your home.
What are the Upfront Costs of Gas Furnaces vs. Electric Furnaces?
Gas Furnaces:
– Equipment Cost: The average cost of a gas furnace ranges from $2,100 to $4,000 before installation.
– Installation Cost: Installing a gas furnace can cost between $3,800 and $10,000, including the unit and labor. This cost is higher if a homeowner is converting from electric to gas, as it requires adding ductwork and a gas line.
– Permits and Modifications: Additional costs may include permits and modifications to existing systems, such as installing a gas line and ventilation infrastructure.
Electric Furnaces:
– Equipment Cost: The average cost of an electric furnace is significantly lower, ranging from $835 to $2,500.
– Installation Cost: Installation costs for electric furnaces range between $2,000 and $7,000, which is generally lower than for gas furnaces.
– Permits and Modifications: Electric furnaces typically do not require additional permits or modifications to existing systems, as they can be connected directly to the home’s power.
What are the Operating Costs of Gas Furnaces vs. Electric Furnaces?
Gas Furnaces:
– Fuel Costs: Gas furnaces are generally cheaper to operate. Based on average U.S. utility rates, it costs about $16 per BTU to run a gas furnace. For example, a 90% efficient gas furnace using 1 MCF (1,000,000 BTU) would cost approximately $3.05 per MCF, translating to about $0.16 per 48,000 BTU.
– Annual Costs: Homes heated by natural gas typically cost about $930 per year, compared to $1,359 for electric heating.
Electric Furnaces:
– Fuel Costs: Electric furnaces are more expensive to operate. It costs about $41 per BTU to run an electric furnace. For instance, generating 48,000 BTU with an electric furnace would cost around $0.55 at 13 cents per kW.
– Annual Costs: Electric heating costs for U.S. homeowners average $1,359 per year.
What are the Maintenance and Efficiency Considerations for Gas Furnaces vs. Electric Furnaces?
Gas Furnaces:
– Maintenance: Gas furnaces require more frequent inspections and maintenance due to the fuel they burn, which can leave behind contaminants. This maintenance can cost between $300 and $1,200.
– Efficiency Ratings: High-efficiency gas furnaces (90% or more AFUE) are more expensive upfront but offer significant cost savings over time.
– Rebates and Incentives: There may be rebates and incentives available for high-efficiency gas furnaces, which can help offset the higher upfront cost.
Electric Furnaces:
– Maintenance: Electric furnaces require less maintenance, with costs ranging between $50 and $200 for repairs. They have fewer components and do not need ventilation infrastructure or gas lines.
– Efficiency Ratings: Electric furnaces typically have high efficiency ratings, but their operating costs are higher due to the cost of electricity.
– Rebates and Incentives: While less common, there may be incentives for energy-efficient electric furnaces, especially in regions promoting electric heating.
What is the Long-term Financial Impact of Gas Furnaces vs. Electric Furnaces?
Gas Furnaces:
– Lifespan: Gas furnaces generally have a shorter lifespan (10-20 years) compared to electric furnaces (20-30 years).
– Energy Efficiency: High-efficiency gas furnaces can provide significant long-term savings, especially in colder climates.
– Fuel Price Fluctuations: The cost of natural gas can fluctuate, but it is generally cheaper than electricity. However, long-term price stability can vary by region.
Electric Furnaces:
– Lifespan: Electric furnaces have a longer lifespan, which can reduce the need for frequent replacements.
– Energy Efficiency: While electric furnaces are efficient in terms of converting electricity to heat, their high operating costs can offset this efficiency.
– Fuel Price Fluctuations: Electricity prices can also fluctuate, but they tend to be more stable than natural gas prices in some regions.
How Do the Technical Specifications of Gas Furnaces vs. Electric Furnaces Compare?
Gas Furnaces:
– BTU Ratings: Gas furnaces are rated in BTUs (British Thermal Units), with high-efficiency models achieving up to 96% efficiency.
– Calculations: For example, a 90% efficient gas furnace using 1 MCF (1,000,000 BTU) would produce 900,000 BTU of heat, costing approximately $3.05 per MCF.
Electric Furnaces:
– Wattage: Electric furnaces are rated in watts or kilowatts, with standard electric furnaces having 100% efficiency in converting electricity to heat but being more expensive to operate.
– Calculations: Generating 48,000 BTU with an electric furnace would cost around $0.55 at 13 cents per kW.
In conclusion, the decision between a gas furnace and an electric furnace ultimately depends on various factors, including upfront costs, operating expenses, long-term financial impact, and technical specifications. While electric furnaces may have lower upfront costs, gas furnaces are generally more cost-effective in the long run, especially in colder climates where the operating costs of gas furnaces are significantly lower than electric furnaces. However, the specific circumstances of your home and region should be carefully considered to determine the most suitable and cost-effective heating solution.
References:
1. Gas vs Electric Furnace -The Main Differences in 2022
2. Gas or electric furnace? : r/HVAC – Reddit
3. Electric Furnace vs. Gas: Which Is Right for Your Home? – Bob Vila
