Comparing Cost: Gas Heat vs. Electric Heat

One of the most common questions that people have when they are either building a house, or they have the ability to change up their heat source is, should they go with gas or electric? The decision usually boils down to a few things, and that includes energy efficiency and cost. You do not want to think just about the price month to month, though. You also want to consider and think long and hard about the cost of entry. Knowledge is what it is all about when you are comparing the cost of gas heat and electric heat. AC companies Nocatee FL like us can help with the installation, as well as informing you as much as possible.

 

Costs of the Equipment

 

The first consideration that you should be making when you are comparing the cost of gas heat to electric heat is the cost of the equipment itself. Gas furnaces are going to have different price tags than are electric heating systems. A typical gas furnace is going to run you for around $3,000 to $5,000, depending on the unit that you go with. One that runs on electricity is going to have a much lower price tag.

The bottom line here is that from a cost to entry perspective, it is cheaper to go with the electric heat versus the gas heat. Gas is also going to require some work to be done to ensure a natural gas line is run to the house. If you do not already have this, then consider that as part of the cost as well, increasing it far higher when compared to electric.

 

Operating the System

 

When you are talking about the cost of gas heat versus electric heat, you have to think through the operation of the system itself. A gas heating system is going to rely on the fuel, the cost per unit of that fuel, as well as the amount of heat that you get out of it.

The U.S. Department of Energy puts out statistics regarding what is known as the annual fuel utilization efficiency rating. The abbreviation for this is the AFUE rating if you have seen those letters before associated with heating and energy usage. An electric heater is going to have an efficiency rating of 100% typically and will carry a price tag of around $30 per million BTUs of heat that it produces.

A gas furnace has to have a required 78% efficiency rating according to the U.S. Department of Energy and the requirements that they put out. The cost that you can expect to pay per million BTUs of heat with a gas furnace is around $15. Comparing gas furnaces to electric, what you see here is that gas is likely going to be much cheaper to run over the long term.

 

Sizing it Up

 

The sizing up of the gas to electric heat comparison comes down to a few points that need to be made. The first is that the cost to entry for gas heat is going to be much, much higher. If you plan on staying in your house for the next decade or more, though, the benefits that you will get over the long-term are likely going to be worth it. Electric heat, although more expensive to run month to month typically, has a much lower costs to entry and is still very energy efficient.

 

The comparison between gas to electric heat comes down to dollars and cents. Think through the various options that you have and consult us, one of the premier AC companies Nocatee FL in the area, for our advice. We can help you understand the fact nd also follow through with the installation within your home.