Gas Vs. Electric Furnace ‑ Which Is Better For My Home?

Not sure whether to go with a gas or electric furnace?

Here’s our general recommendation: If your home already has access to natural gas, we typically recommend a gas furnace. In most areas of the U.S., natural gas is a less expensive fuel source than electricity, so you’ll save more money over time if you opt for a gas furnace.

That said, if you don’t have access to natural gas, an electric furnace will work just fine and keep you perfectly comfortable.

In this blog, we’ll explain:

Below are 3 things to consider when you choose a fuel type for your furnace:

1. The fuel source available to you
2. The upfront installation cost of each furnace
3. The operational costs of each furnace

Let’s look at each of these factors in more detail below.

The first thing to consider is whether or not your home already has access to natural gas or not. If your home doesn’t have access to natural gas, then choosing a gas furnace may be out of the question.

You see, adding gas lines to your home could raise the cost of the installation by $1,000 or more. Because of this additional cost, it may be a better investment to stick with an electric furnace.

In general, gas furnaces cost more to install than electric furnaces. The reason is because gas furnaces require special ventilation to remove exhaust fumes, which raises the overall cost of the installation.

So, if you’re on a tight budget and want the lowest upfront cost possible, you may consider an electric furnace. However, you’ll also want to take into account the long-term costs as well...

In most areas of the country, natural gas is a less expensive fuel source than electricity. For that reason, gas furnaces typically cost less to operate over time compared to electric units, which means you’ll save more in the long run with a gas system.

If you’re in the market for a new heating system, you may also want to consider a heat pump. A heat pump is an electric system that extracts heat from outside air and transfers it inside to warm up your home. The main advantage of a heat pump is that it offers low operational costs in moderately cold weather.

For more information about choosing between a heat pump or furnace, refer to our blog, “Heat Pumps vs. Furnace: Which Is Better For Your Home?”

Before making a decision of what kind of heating system to get, you’ll want to consult with an HVAC professional first. A professional has the information and tools necessary to help you determine which furnace fuel type fits your upfront budget and your long-term savings goals.

For example, in order to determine how much you’ll save long-term with a particular heating system, a professional will take into account specific factors, including:

• The insulation levels of your home
• The condition of your home’s ductwork
• The cost of fuel (gas or electricity) in your area
• The efficiency ratings (AFUE percentages) of the furnaces you’re comparing
• Your family’s heating and temperature preferences

After taking into account these factors, a professional can provide you with an accurate recommendation on the best heating system for your home.