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.

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J & W Heating and Air
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Stacy Russell
Stacy Russell
15:10 02 Jun 20
I will be recommending J&W to my friends and family. They were very professional and on time. Did a very well job in... a quality manner. Dustin, Mark, and Robert. Worked very well together and was in and out with no cleanup for me to do. Thanks so much for getting my home back to a cool more
Phillip Wallace
Phillip Wallace
13:46 27 May 20
Just had an entirely new, full HVAC install done at our old house in Riverside, which was a fairly big job. Brian and... Will did the installation, and were awesome. There was going to be issues leveling the air handler in the attic, so they moved it to a new spot and hung it instead, getting new parts/changing the plan on the fly. We're much happier with this new setup and location of the air handler. I really appreciated this, their professionalism/thoroughness, and flexibility. Brian and Will worked super-hard, and double-checked everything once the job was done. Would use this company more
Louis Kincheloe
Louis Kincheloe
21:18 01 May 20
Two installers here early this morning. Worked all day. Very professional, extremely well mannered and quick to answer... all my questions. They are Dustin and Robert. Both men went above just installing my new unit, they were personable and knowledgeable in what they were doing. I was surprised when I found out these two hadn't been working that long together. They worked extremely well together. I highly recommend this two more
Shirley Davis-So Brooks
Shirley Davis-So Brooks
18:10 01 Jun 18
Very pleased with installation of York A/C Heating unit. Jason Bottoms and Jason Flatearth were professional, ... arrived on time and completed the job in a timely manner. The unit looks great. They upgraded and repaired everything that needed it. Great more
James Ponciano
James Ponciano
22:46 03 May 18
A snake crawled into my outdoor condenser and stopped my 16 year old Trane last week on Thursday. The power surge took... out my blower unit circuit board and the motor. I called J&W and Rob was over within two hours of my call. I was spec'd a new York 17 seer system and it was up and running on Monday. Technicians Jason and Brian arrived promptly and every facet of the installation was thorough. When completed, I would not of even known they were there except they left my garage cleaner! Thanks J&W!read more
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