Electric Furnace vs Gas Furnace: Costs, Efficiency, Comfort, and Climate Impact

Choosing between an electric furnace and a gas furnace affects monthly bills, comfort, and carbon footprint. This guide compares cost, performance, safety, and regional considerations so homeowners can make a confident, data-driven decision. It also highlights when a heat pump or hybrid setup might outperform either furnace type for U.S. homes.

Electric Furnace Vs Gas Furnace At A Glance

Key takeaway: In most U.S. regions, a high-efficiency gas furnace costs less to run than an electric resistance furnace, while a modern heat pump is often the cheapest to operate and lowest in emissions.

• Upfront cost: Electric furnaces are typically cheaper to buy and install than gas furnaces if the electrical panel has capacity.
• Operating cost: On typical U.S. utility rates, gas heat is much cheaper per unit of heat than electric resistance. Heat pumps beat both.
• Comfort: Gas furnaces deliver hotter supply air and faster recovery in cold climates; electric furnaces provide steady, quieter heat.
• Maintenance: Electric units are simpler and need less maintenance; gas units require annual combustion checks.
• Safety: Electric has no combustion or carbon monoxide; gas requires proper venting and detectors.
• Emissions: Electric furnaces can be cleaner in clean-grid states; nationally, a heat pump is the lower-emission choice.

How Each System Works

Electric Furnace

An electric furnace uses resistance heating elements—metal coils that glow hot when electricity flows—inside a cabinet with a blower. As air passes across the coils, it warms and moves through ductwork. Elements engage in stages to match demand, reducing short cycling and electrical spikes.

Most electric furnaces are simple: no flue, no combustion air, and fewer moving parts beyond the blower and relays. They convert nearly 100% of input electricity into heat at the home.

Gas Furnace

A gas furnace burns natural gas (or propane) in a burner assembly. Heat transfers through a heat exchanger to the airstream while combustion gases exit via a flue. Modern condensing models extract extra heat from water vapor in exhaust, raising efficiency and requiring PVC venting and a condensate drain.

Gas furnaces are rated by AFUE. Condensing models reach about 95–98% AFUE, while older non-condensing units are around 80–85%. Variable-speed blowers and modulating gas valves improve comfort and efficiency.

Upfront Costs And Installation Complexity

Installed cost ranges vary widely by region, home layout, and electrical/gas infrastructure. The figures below reflect typical U.S. residential installations for a standard-size home and do not include new duct systems.

• Electric furnace installed: About $1,800–$5,000. Lower equipment cost and simpler install if the panel can handle a 60–120A circuit.
• Gas furnace installed (condensing): About $5,500–$9,500. Includes new PVC venting and condensate drain; may be less for non-condensing replacement tied into an existing flue.
• Potential extras: Electrical panel upgrade ($1,000–$3,000+), dedicated high-amp circuit for electric furnace, gas line routing ($500–$2,000), chimney liner for non-condensing gas ($800–$2,000), permits and inspections ($150–$600).

Installer quality matters more than brand for comfort and reliability. A proper load calculation (Manual J), duct evaluation, and commissioning are essential for either system.

Operating Costs: What You Pay Per Unit Of Heat

Heating cost comparisons are simplest per million BTU of delivered heat (MMBtu). One kWh equals 3,412 BTU. A 95% AFUE gas furnace delivers 95,000 BTU to the home for each 100,000 BTU of fuel energy.

On average U.S. rates, electric resistance heat costs several times more per MMBtu than natural gas heat from a high-efficiency furnace. Local prices vary significantly, so check your utility bills.

Because of these numbers, homes in gas-served areas often favor gas furnaces for ongoing savings, while all-electric homes increasingly favor heat pumps over electric furnaces to reduce bills.

Annual Bill Examples

The examples below illustrate approximate annual heating costs using common U.S. loads. Actual loads depend on climate, insulation, air sealing, and thermostat settings.

If a heat pump meets the load, it often halves the electric furnace cost in many climates. Some homes combine a heat pump with a gas furnace (dual-fuel) to maximize savings and performance.

Efficiency, Performance, And Comfort

Electric furnaces are 100% efficient at the point of use, while condensing gas furnaces reach 95–98% AFUE. That AFUE rating indicates seasonal efficiency under standardized conditions.

• Supply air temperature: Gas furnaces often deliver 120–140°F air, creating a warmer feel and faster recovery after setbacks. Electric resistance heat typically delivers around 100–115°F, running longer cycles.
• Modulation and staging: Two-stage or modulating gas furnaces maintain steadier temperatures and quieter operation. Electric furnaces stage heating elements to reduce temperature swings.
• Noise and vibration: Electric units can be quieter due to no combustion; blower noise dominates either way. Variable-speed ECM blowers reduce noise.
• Humidity and indoor comfort: Both systems dry indoor air indirectly in winter by raising air temperature and enabling more moisture to leave the home. Neither adds moisture; consider a humidifier if needed.
• Cold-climate performance: Gas furnaces maintain full output regardless of outdoor temperature. Electric furnaces maintain output but can strain electrical capacity at peak demand.
• Airflow and ducts: Proper duct sizing and sealing are critical; undersized returns or leaky ducts erode comfort and efficiency for both types.

For many homes, a right-sized, variable-speed system paired with good ducts delivers the best comfort regardless of fuel.

Reliability, Maintenance, And Lifespan

Electric furnaces typically have fewer failure points and longer lifespans, while gas furnaces need regular safety checks.

• Maintenance: Replace air filters every 1–3 months in heating season. Electric units benefit from periodic coil and contactor inspections. Gas units require annual combustion inspection, heat exchanger check, and flue verification.
• Lifespan: Electric furnaces often last 20–30 years due to simpler operation. Gas furnaces commonly last 15–20 years; condensing models can approach that range with proper maintenance.
• Common repairs: Electric: sequencers, relays, elements, blower motors. Gas: igniters, flame sensors, inducer motors, control boards, heat exchangers.
• Warranties: Heat exchanger warranties for gas furnaces can be long, but labor is usually limited; verify terms and registration requirements.

Choose reputable installers and keep records. Regular maintenance reduces breakdowns and can extend equipment life.

Safety And Indoor Air Quality

Electric furnaces have no combustion and produce no carbon monoxide (CO) at the point of use. Still, electrical safety and proper breaker sizing are essential.

• Combustion safety (gas): Install CO detectors on every level and near sleeping areas. Ensure correct venting, combustion air, and gas pressure. Annual safety checks by qualified technicians are necessary.
• Heat exchanger integrity: Cracks can allow flue gases into supply air. Shut down and repair or replace if a breach is suspected.
• Venting and backdrafting: Non-condensing units vent through chimneys or metal flues; condensing units use PVC and must drain condensate properly to avoid leakage and corrosion.
• Electrical load: Electric furnaces draw high current. Proper wire gauge, breakers, and panel capacity are critical to avoid hazards.
• Air filtration: Use appropriately sized, low-pressure-drop filters (MERV 8–13) to balance IAQ and airflow for either furnace type.

Good ventilation and sealed ducts improve IAQ in any home. Never operate gas equipment without working CO detectors.

Grid, Emissions, And Climate Considerations

Emissions differ by region. Gas furnaces emit CO2 at the home; electric furnaces shift emissions to the power grid.

• Gas furnace emissions: Natural gas combustion emits about 117 lb CO2 per MMBtu of fuel. At 95% AFUE, that is roughly 123 lb CO2 per delivered MMBtu, plus upstream methane leakage not included in this figure.
• Electric furnace emissions: At an average U.S. grid intensity near 0.85 lb CO2/kWh, an electric furnace emits roughly 250 lb CO2 per delivered MMBtu (293 kWh per MMBtu × 0.85 lb/kWh). Emissions are lower in cleaner-grid states and higher in coal-heavy regions.
• Heat pumps: Because they move heat rather than create it, heat pumps deliver 2–4 units of heat per unit of electricity, reducing emissions dramatically even on an average grid.

Check your utility’s power mix. In states with very clean electricity, electric heating can be comparable or lower in emissions than gas; nationally, heat pumps are the most climate-friendly option. See resources from the U.S. EIA and DOE for regional data.

Home And Electrical Constraints

Panel capacity is often the deciding factor for electric furnaces. A typical electric furnace draws 10–25 kW. At 240V, 15 kW draws about 62.5 amps; 20 kW draws about 83 amps, not including the blower.

• Panel size: Many homes need 200A service for an electric furnace, especially if also powering electric ranges, dryers, EV charging, or heat pump water heaters.
• Ducts: Both systems require adequate supply and return ducting. Undersized returns cause noise, poor comfort, and high bills.
• Venting and drains for gas: Condensing gas furnaces require PVC venting to an exterior wall/roof and a condensate drain with proper slope and freeze protection.
• Space and clearances: Both systems need service clearances; garages require sealed combustion or specific code measures for gas.

In outage planning, gas furnaces require a small generator to run the blower and controls, while electric furnaces typically exceed portable generator capacity.

Rebates, Tax Credits, And Policy Trends

Incentives vary by state and utility. Federal incentives currently favor heat pumps and high-efficiency gas furnaces over electric resistance furnaces.

• Federal Energy Efficient Home Improvement Credit (25C): Through 2032, 30% credit with annual caps. Commonly includes up to $600 for qualifying high-efficiency gas furnaces and up to $2,000 for qualifying heat pumps. Electric resistance furnaces generally do not qualify for federal credits.
• Panel upgrades: Certain electrical panel upgrades may be eligible when installed to enable qualified electrification measures like heat pumps; check current IRS guidance.
• State and utility rebates: Many utilities offer rebates for condensing gas furnaces or, increasingly, for heat pumps. Few incentivize electric resistance furnaces due to higher operating costs.
• Income-based rebates: Programs such as the High-Efficiency Electric Home Rebate (HEEHRA) are rolling out to support electrification measures—primarily heat pumps and panel upgrades—depending on income and state implementation.

Always verify eligibility and timing with your utility and state energy office. When incentives are available, a cold-climate heat pump often delivers the highest lifetime savings.

Which Makes Sense By Region And Scenario

Fuel prices, climate, and existing infrastructure usually determine the best choice. Use the scenarios below as a practical guide.

• Cold climates with inexpensive gas: A 95–98% AFUE gas furnace typically offers the lowest operating cost and excellent comfort.
• Mild climates or high electricity/gas price parity: A heat pump can be the most economical and comfortable option; electric furnaces are viable but higher-bill than heat pumps.
• All-electric homes with limited panel capacity: Favor a heat pump over an electric furnace to reduce electrical load; consider panel upgrades if needed.
• Existing gas infrastructure and flue: Replacing with a high-efficiency gas furnace may minimize project complexity and total cost.
• Carbon reduction goals: A heat pump driven by a cleaner grid cuts emissions substantially; consider a dual-fuel heat pump plus gas furnace for extreme-cold resilience.
• Backup power planning: Gas furnaces pair well with modest generators; electric furnaces rarely do.

When costs and constraints are close, compare lifecycle costs: upfront, energy, maintenance, and likely fuel-price trends.

Buying Tips And Sizing

Quality design and installation often matter more than equipment brand. These steps improve comfort, efficiency, and reliability.

• Load calculation: Request an ACCA Manual J heat load calculation rather than rule-of-thumb sizing. Oversized furnaces short-cycle and waste energy.
• Ductwork assessment: Have the contractor measure static pressure and inspect for leaks. Seal and right-size ducts as needed.
• Staging/modulation: Choose two-stage or modulating gas furnaces or staged electric elements for steadier temperatures and quieter operation.
• Blower motor: Variable-speed ECM blowers improve comfort, efficiency, and filtration.
• Filtration: Aim for MERV 8–13 with low pressure drop and proper filter area.
• Thermostats: Use thermostats that support staging and adaptive control. Verify compatibility with electric elements or furnace boards.
• Permits and commissioning: Ensure permits are pulled. Ask for combustion analysis (gas), temperature rise checks, and airflow verification.
• Envelope upgrades: Insulation and air sealing often deliver faster payback than upsizing equipment; reducing load can enable smaller, cheaper systems.

Request detailed proposals from multiple licensed contractors. Look for clear scope, model numbers, efficiency ratings, and verified load/sizing data.

Pros And Cons Summary

Frequently Asked Questions

Is An Electric Furnace Cheaper Than Gas To Run?

Typically no. On average U.S. utility rates, electric resistance heat costs several times more per unit of heat than natural gas via a 95% AFUE furnace. The main exceptions are areas with very low electricity rates or very high gas prices.

Is An Electric Furnace More Efficient?

At the home, yes—electric resistance is nearly 100% efficient. However, overall energy use and emissions depend on the power grid. A heat pump, not an electric furnace, is the efficiency champion for electric heating.

What About Heat Pumps Compared With Furnaces?

Heat pumps often provide the lowest operating cost and emissions for heating in many U.S. climates. In very cold weather, a cold-climate heat pump or a dual-fuel setup with a gas furnace provides resilience and savings.

Do Gas Furnaces Work In Power Outages?

No, not without power. Gas furnaces still need electricity for controls and the blower. The electrical demand is small enough that a portable generator can usually run a gas furnace; an electric furnace typically cannot.

How Long Do These Systems Last?

Electric furnaces commonly last 20–30 years, gas furnaces around 15–20 years. Maintenance and installation quality significantly affect lifespan.

Are There Federal Incentives?

Current federal credits generally favor high-efficiency gas furnaces and especially heat pumps rather than electric resistance furnaces. Check IRS 25C guidance and local utility programs for details.

Can An Electric Furnace Run On Solar?

Yes, but the electrical demand is high. A heat pump will produce far more heat per kWh and is a better match for rooftop solar or batteries.

Will Gas Be Banned In My Area?

Policies vary by city and state. Some jurisdictions encourage or require electric heating in new construction. Existing homes can typically keep or replace gas furnaces, but incentives increasingly favor heat pumps.

Bottom Line

If natural gas is available and winter loads are moderate to high, a high-efficiency gas furnace usually minimizes bills and delivers toasty comfort. In all-electric homes, a heat pump usually outperforms an electric furnace on cost and emissions. Where electricity is clean and inexpensive, an electric furnace can be practical—especially for modest loads or as auxiliary heat with a heat pump.