Homeowner's Handbook

Gas vs. Electric Furnaces: Cost, Efficiency, and the Best Choice for You

Discover the pros and cons of gas vs. electric furnaces in our comprehensive guide. Compare costs, efficiency, installation, maintenance, and environmental impact to find the best heating solution for your home. Learn about available tax credits and rebates to maximize your savings.

Two men inspect and discuss equipment in an industrial setting—one points at insulated piping as they compare features, considering the benefits of a gas versus electric furnace.

Ah, the great rivalries of our time: Bears versus Packers, Coke versus Pepsi, Ford versus Chevy, and gas versus electric furnaces. Okay, that last one might not be as iconic as the others, but in our line of work, it holds the same weight, and the fact that you are here means you are curious about which one is the better choice.

In this guide, we’ll cover cost and heating effectiveness, installation, availability, tax credits, climate impact, and more so you can decide which is best for you.

We’ll start with the basics.

How do gas and electric furnaces work?

A gas furnace heats your home by piping natural gas or propane into the unit, where it’s ignited. The heat from this flame passes through a heat exchanger, where a blower draws in cool air from the ducts, sending it over the exchanger, heating the air, and then circulating the heated air back through the ductwork. The harmful exhaust gasses are safely vented outside.

An electric furnace uses an electric current to heat elements in the unit where a blower pulls in cool air from the home, passing it through the elements, heating it up and then circulating it back into your home.

Comparing Gas and Electric Furnaces

Availability

Most homeowners have access to natural gas for their homes, but in some rural or remote areas, access may be very limited, making this an expensive option or not an option at all. 

In contrast, electric units are simply available anywhere there is access to electricity.

Initial Costs

Gas furnaces include more parts, such as burners, heat exchangers, venting, and more, which increases the unit’s cost. Further, hooking up to the gas line and making sure the venting meets all safety codes can require more labor and sometimes drive up costs a bit unless the company, like us, uses flat labor rates. Also, take note that if your home is not already equipped with a gas line, adding this dramatically drives costs up.

Electric furnace units are more affordable than gas units because they have fewer parts. The installation costs are also lower since they don’t need to be attached to gas lines or require special venting.

Operating Costs

Natural gas tends to be cheaper than electricity on a month-to-month comparison, and it doesn’t get hit with those annoying peak demand charges that can jump when everyone’s cranking up the heat in winter. 

Electric furnaces generally have higher operating costs due to higher electricity prices and lower efficiency in cold weather, which leads to longer run times and increased energy use. However, they can be more economical in milder climates or areas with lower electricity rates.

Heating Output

Natural gas heats up faster and reaches higher temps than electricity because it burns directly, giving you heat in as little as five minutes. It also has a higher capacity for heat output, which performs far better in extreme cold. 

Electric furnaces generally take a bit longer to heat up, struggle to heat large homes, and have trouble performing outside of mild temperatures.

Maintenance 

Regardless of what kind of system you own, you should have regular maintenance.

With a gas furnace, we strongly recommend you don’t skip out on maintenance because issues with parts like the burner, heat exchanger, or gas line can lead to gas and carbon monoxide leaks. These more detailed maintenance checks, plus possible part replacements, can add up over time.

Electric furnaces have fewer parts, most of which are non-moving, so there is less chance that parts will break down. This can mean smaller long-term parts costs.

Safety Profiles

As mentioned above, gas furnaces, like stoves and other appliances, are at risk of gas and carbon monoxide leaks. It is paramount to make sure your units are well-maintained and install carbon monoxide detectors.

Obviously, electric furnaces don’t burn fuels, so this removes the rare but plausible risk of gas or carbon monoxide leaks. 

Environmental Impact

Between extraction, transportation, and combustion, gas furnaces produce carbon dioxide and methane. Although natural gas is far cleaner than other fossil fuels, it does impact air quality.

Electric furnaces’ impact can vary depending on the power source. Renewables like wind, solar, or hydroelectric can have considerably less impact than gas, but if the power source is fossil fuels, the effect can be similar.

Tax Credits and Incentives

High SEER rated gas and electric (particularly heat pumps) furnaces can qualify for tax credits or incentives. You can also get incentives on electric heating and related upgrades, such as adding insulation or installing programmable thermostats.

To take advantage of these, visit the U.S. Department of Energy or ENERGY STAR websites to find information on available federal tax credits and rebates. You can also check out what we offer. Contact your local utility providers and state programs for additional incentives on energy-efficient heating systems.

How to Decide Which Furnace is Right for You

  1. Compare Upfront and Long-Term Costs
    Consider both initial costs and long-term operational and maintenance expenses. The best choice is to balance upfront affordability with ongoing savings that work best for you.
  2. Consider your climate
    A gas furnace may be more cost-effective in colder climates due to its lower operating costs and higher heat output. An electric furnace might be fine and more affordable in milder climates due to its lower installation costs.
  3. Evaluate Your Home
    A gas furnace may be the best choice if a gas line is already installed, but if adding a gas line is too expensive or complex, an electric furnace may be a better choice.
  4. Think About Safety and Maintenance
    If safety and minimal maintenance are priorities, an electric furnace offers a more peace of mind, low-maintenance alternative.

Deciding between a gas and an electric furnace comes down to your unique needs, budget, and values. By weighing the pros and cons, considering local tax incentives, and considering your environmental impact, you can make a smart, informed decision that will keep your home comfortable for years.

Ready to choose your next furnace? Contact us today for a free consultation and learn more about the best heating solution for your home, along with any available tax credits or rebates to help make your choice more affordable!

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