Are you tired of high energy bills or concerned about your home's environmental footprint? Choosing a gas or electric furnace can have a big impact on your home’s comfort, energy bills, and safety. With rising energy costs and evolving environmental standards, many homeowners are re-evaluating their heating systems. In this article, we break down the pros and cons of both gas and electric furnaces and study their differences to help you decide which one is better for your home.
Summary:
Gas furnaces generally offer lower monthly heating costs and stronger performance in colder climates, but they come with higher upfront installation costs and require regular maintenance. Electric furnaces are easier and cheaper to install, have fewer safety concerns, and require less maintenance, but they may cost more to run, especially in colder regions. Your choice will depend on your local energy prices, climate, home size, and personal preferences.
Pros and Cons: Gas Furnace vs Electric Furnace
Picking the right furnace means looking at the advantages and disadvantages of each option so you can find what works best for your home and wallet. Bellow, we compared the pros and cons of both gas and electric furnaces to help you make a more informed decision.
Gas furnace
Pros
- + Lower fuel costs
- + Lasts up to 20 years
- + Higher heat efficiency
- + Better for colder climates
- + Lower running costs
Cons
- - More expensive and complicated installation
- - Carbon monoxide safety concerns
- - Needs regular professional maintenance
- - Makes more noise than an electric furnace
Electric furnace
Pros
- + Cheaper and easier installation
- + Easier maintenance
- + Safer and quieter
- + Lasts up to 30 years
- + Better for warmer climates
Cons
- - Higher running costs
- - Less heat efficient
Differences Between Gas and Electric Furnaces
1. How they work
Both gas and electric furnaces work using a forced air heating system. The first piece of equipment used in both furnaces is the thermostat. When the temperature in the room falls below the heat set point on the thermostat, a signal is sent to the furnace unit.
In the case of a gas unit, the signal will cause the pilot light to ignite the main burner of the heat exchanger. The pilot light is a small flame that is always burning. The heat exchanger draws heat from the main burner and heats the air that will circulate to the house. By contrast, in an electric furnace, an electric ignition receives the thermostat signal and activates electric heating elements inside the furnace.
In both types of furnaces, heated air is forced by a blower fan through the ductwork into the various heated rooms of the house. Cooler air is drawn through an intake vent to return to the furnace. When the desired temperature is sensed by the thermostat, the furnaces shut off their heating elements. The fan dissipates the remaining heated air and shuts off as well.
2. Installation
Many websites offer DIY tips and instructions for installing gas and electric furnaces. However, most professional heating, ventilation, and air conditioning (HVAC) experts agree that these tasks are best left to the professionals.
The main difficulty in installing a gas furnace is the safety factor of dealing with the combustive element, usually natural gas. The process of installing a gas furnace requires specialized tools, equipment, and knowledge that even a seasoned DIYer will not have. It is also time consuming. A professional HVAC team can take several days to completely install and set up a new unit.
In addition, gas furnaces need to vent to the exterior of the home. If there is no existing vent, one will be cut into the wall to accommodate it.
The high voltage required by the electric furnace is one reason professionals are the best choice for that type of installation. Heavy duty wiring is required from the furnace to the electrical breaker box.
In order to ensure the safety of the home’s occupants, all municipalities have stringent inspection processes to make sure all installations are done properly. This is another reason to allow professionals to do the work for you.
While electric furnaces are often more efficient, they are also cheaper to install. A typical electric furnace installation ranges from $1,600 to $3,200, compared to $4,000 to $8,000 for a gas furnace, which often requires additional components like gas lines and venting.
3. Energy efficiency
When comparing gas and electric furnaces, the most important factor is energy efficiency. The table below highlights how both types of furnaces perform in terms of energy conversion, heating speed, cost efficiency, and whether there is something to do to improve the efficiency.
Feature | Electric Furnace | Gas Furnace |
Energy Conversion Efficiency (AFUE) | Up to 100% (converts nearly all electricity to heat) | 80% (minimum) up to 98% (high-efficiency units) |
Energy Transfer | Very little energy lost; direct heat production | Energy can be lost through flue/exhaust |
Heating Speed/Output | Provides consistent warmth; generally heats home more slowly | Provides powerful, fast heating; generally heats home more quickly |
Cost Efficiency | Highly dependent on electricity prices; can be expensive in areas with high rates | Highly dependent on natural gas prices; can be cheaper to run in areas with low gas prices or harsh winters |
Ways to Improve Efficiency | N/A (already near 100% conversion) | Alternative ignition systems (intermittent, direct spark, hot surface); sealed combustion |
An electric furnace is more efficient than a gas furnace. It may have an annual fuel-utilization-efficiency (AFUE) rating as high as 100 percent. The current minimum allowed by the Department of Energy is a rating of 80 percent for gas furnaces, and it can go up to 98 percent for high-efficiency units. The greatest factors in the variation are the type of unit chosen and the amount of heat lost through a gas furnace’s flue or other areas.
Energy efficiency only means the amount of energy that the furnace turns into heat—not the rate at which it heats your home. Electric furnaces convert nearly all of their energy into heat, while gas furnaces can vary. Gas furnaces generally heat homes more quickly than electric furnaces, despite lower efficiency.
Higher efficiency can be gained in a gas furnace with an alternative to the traditional pilot light such as an intermittent, direct spark, or hot surface ignition. The higher cost of a more efficient gas system will most often be offset by lower fuel costs in regions with harsh winters.
4. Electric vs gas heat monthly cost
While electric furnaces are more efficient, electricity tends to be more expensive than natural gas, especially during peak heating months.
Heating cost comparison
Cost | Gas furnace | Electric furnace |
Annually | $602 | $1,054 |
Monthly (heating season) | $120 | $210 |
The cost data are based on figures from the U.S. Energy Information Administration (EIA). We used the heating costs from each of the five winter heating months and calculated the average to reflect typical monthly expenses during the heating season. While a gas furnace costs less to operate during the winter, an electric furnace may still be preferable in areas with lower electricity rates or for homes that prioritize simpler maintenance and cleaner energy use.
5. Maintenance and safety
An electric furnace is easier to maintain and requires less professional attention. There is no burner to clean or inspect, and the system itself doesn’t generally require cleaning or care of any kind. This can make an electric furnace easier and less expensive to maintain over its lifetime.
A gas furnace, however, needs regular maintenance by an HVAC professional to keep it efficient and safe. The furnace should be cleaned and inspected yearly. Improper maintenance and ventilation can result in carbon monoxide poisoning. All gas-burning appliances should be properly ventilated and maintained to lessen this risk. Homes with gas appliances should also be equipped with carbon monoxide detectors as an added precaution.
6. Lifespan
Gas systems usually last about half as long as electric systems: 10 to 20 years for gas systems as opposed to 20 to 30 years for electric systems. This is mostly due to the same reasons that gas furnaces require maintenance; the burner has the ability to produce small particles that collect and build up in the furnace. If not regularly cleaned, it can cause failure of the system. In addition, corrosion is common, as is many of the working parts in the heat exchanger.
Electric furnaces don’t have these issues, so they tend to last longer with less interference.
Which Type of Furnace Is Right for Your Home?
When deciding between a gas and electric furnace, consider your climate, energy costs, and home size.
Gas furnaces produce hotter air and heat homes faster, making them ideal for homes in colder climates where heating demand is high and natural gas is affordable. In warmer regions, an electric furnace can be a more cost-effective choice due to its lower upfront cost and minimal maintenance. Electric furnaces are typically recommended only in climate Zones 1 and 2, with limited use in Zone 3. In colder zones, electric units may struggle to keep up with demand and can lead to high energy bills.
Bigger homes require more powerful heating systems, making a gas furnace a good option for whole-home heating. Homes over 2,500 square feet are generally considered large and are better suited for gas furnaces, especially in colder climates where higher heating capacity is needed.
If your home lacks a natural gas connection, installing one can significantly increase upfront costs. This may also require a permit, which will set you back an additional $60 to $350. That’s something to weigh when making your decision.
FAQ: Gas vs Electric Furnace
It depends on your climate, your state’s energy costs, and your home size. Gas furnaces are better for colder areas and larger homes, while electric furnaces work well in warmer climates and smaller spaces.
Electric furnaces have higher operating costs, especially in cold climates, and may struggle to heat larger homes efficiently.
Gas furnaces usually cost less to run because natural gas is often cheaper than electricity, especially in colder regions.
Not necessarily. If your gas furnace is efficient and in good condition, it may still be a good option.
Only if you live in a mild climate, want lower upfront costs, or have access to renewable electricity. Otherwise, a gas furnace is typically more cost-effective for heating.
Laura Madrigal is the Home Design Specialist at Fixr.com, dedicated to identifying and analyzing significant changes within residential design. She is the author of leading trends reports on interior design, kitchen, and bathroom, and her insights have been featured in publications like Realtor and the New York Post.