Gas vs Electric Furnace: Which is Best for Your Home?

central gas heater installation

Heating can account for nearly 50% of your home’s energy consumption during the winter months. With such a significant portion of your energy bill tied to heating, choosing the right furnace is crucial for both comfort and cost savings. 

The decision between a gas and an electric furnace may seem straightforward, but both options come with distinct advantages and disadvantages that can impact your home’s energy efficiency, safety, and environmental footprint. 

In this guide, we’ll help you navigate the pros and cons of each option to find the best solution for your home.

Table of Contents

Gas Furnace Overview

How Gas Furnaces Work

Gas furnaces work by burning natural gas or propane to generate heat. When the thermostat signals the need for heat, the furnace’s burner ignites the gas, creating a flame that heats a metal heat exchanger. Once heated, the air passes through the exchanger, and a blower fan pushes the warm air through the ductwork, distributing it throughout your home.

Common Features of Gas Furnaces

  • Forced-Air System: Gas furnaces typically use forced-air systems to circulate warm air efficiently.
  • Pilot Light or Electronic Ignition: Modern furnaces use electronic ignition, which is more efficient than traditional pilot lights.
  • Flue or Venting System: A necessary feature to safely expel exhaust gases such as carbon monoxide and nitrogen oxide from your home.

Average Lifespan

Gas furnaces tend to last 15 to 20 years when properly maintained. This depends largely on the quality of the unit and how regularly it is serviced. Regular maintenance, like checking for leaks and cleaning the burners, can help extend the life of your gas furnace.

Availability

Gas furnaces are widely available, particularly in regions where natural gas is a common energy source. However, homes in more rural areas may need to rely on propane, which is delivered and stored in large tanks.

Electric Furnace Overview

How Electric Furnaces Work

Electric furnaces use electric resistance coils to generate heat. When your thermostat signals that heat is needed, electricity flows through the heating elements, warming them up. As air passes over the coils, it’s heated and then pushed into the ductwork by the blower motor to distribute warm air throughout the house.

Common Features of Electric Furnaces

  • Electric Heating Elements: These coils are the primary components that generate heat by converting electrical energy into thermal energy.
  • Blower Motor: Pushes heated air through the ductwork for even distribution.
  • Thermostat Control: Electric furnaces come equipped with advanced thermostat options, including compatibility with smart thermostats.

Average Lifespan

Electric furnaces tend to have a longer lifespan than gas furnaces, lasting around 20 to 30 years. They require less frequent maintenance, which is another factor contributing to their longevity.

Availability

Electric furnaces are widely available and can be installed in almost any home, as they only require access to electricity. This makes them an attractive option for areas where natural gas isn’t readily accessible or is too costly.

Cost Comparison: Gas vs Electric Furnace

Installation Costs

The upfront cost of installing a gas furnace tends to be higher due to the additional infrastructure required, such as venting systems and gas line connections. Installation costs for a gas furnace typically range from $3,000 to $6,000. Electric furnaces are simpler to install, and homeowners can expect to pay between $2,000 and $4,000 for installation.

  • Gas Furnace Installation: Installation can become more complex if your home doesn’t have a pre-existing gas line, adding to the cost.
  • Electric Furnace Installation: Electric furnaces are easier to install and do not require venting, making the process faster and more affordable.

Operating Costs

Operating costs are where gas and electric furnaces diverge significantly. Natural gas is generally cheaper than electricity, which makes gas furnaces less expensive to run in many regions. However, this can vary depending on local energy rates.

  • Gas Furnaces: Operating costs are typically lower in regions where natural gas is affordable. However, fluctuating gas prices can impact your long-term expenses.
  • Electric Furnaces: Electric furnaces are more expensive to run in areas with high electricity rates, as they consume more energy to generate heat.

Maintenance Costs

  • Gas Furnace Maintenance: Gas furnaces require more frequent maintenance. Annual inspections are needed to ensure safe operation, check for gas leaks, and clean the burners. This adds to the ongoing costs of ownership.
  • Electric Furnace Maintenance: Electric furnaces require less maintenance, as they have fewer moving parts and no combustion process. Simple tasks like replacing filters periodically are usually sufficient.

Efficiency and Performance

Energy Efficiency

Modern gas furnaces can achieve efficiency ratings of up to 98% AFUE (Annual Fuel Utilization Efficiency), meaning nearly all of the fuel consumed is converted into heat. Electric furnaces are typically close to 100% efficient since they convert all electrical energy into heat. However, this doesn’t necessarily translate into cost savings due to the higher cost of electricity.

Heating Power

When it comes to raw heating power, gas furnaces often outperform electric models. This makes gas furnaces the better choice for larger homes or colder climates where the demand for heat is greater.

Climate Considerations

  • Gas Furnaces: Ideal for colder climates where quick, powerful heat is needed.
  • Electric Furnaces: Work well in milder climates where extreme cold isn’t a concern, as they take longer to heat a home and are less effective at maintaining warmth in larger spaces.

Energy-Saving Tips for Maximizing Furnace Efficiency

1. Seal Ductwork

Leaky ductwork can reduce furnace efficiency by up to 30%. Sealing and insulating ducts ensures better heat distribution and lower energy costs.

2. Install a Smart Thermostat

Smart thermostats can reduce heating costs by automatically adjusting the temperature when you’re not home. Setting your thermostat back by 10 to 15 degrees for 8 hours a day can save you up to 10% annually on heating bills.

3. Regular Maintenance

Scheduling annual inspections for gas furnaces and replacing air filters for both gas and electric models ensures that your furnace runs efficiently and lasts longer.

4. Insulate Your Home

Adding insulation to your attic and walls can reduce heat loss, allowing your furnace to work more efficiently and reducing energy consumption.

Environmental Impact

Gas Furnace Emissions

Gas furnaces rely on burning fossil fuels, which produces emissions such as carbon dioxide, nitrogen oxide, and other pollutants. Although modern gas furnaces are designed to minimize these emissions, they still contribute to air pollution and climate change.

Electric Furnace Clean Energy Potential

Electric furnaces are emission-free at the point of operation. However, their environmental impact depends on how the electricity is generated. In regions that rely heavily on coal or natural gas for electricity, the environmental benefit of an electric furnace diminishes. 

Conversely, if your electricity is sourced from renewable energy like solar or wind, an electric furnace can be a highly eco-friendly option.

Green Heating Alternatives

For homeowners focused on reducing their carbon footprint, there are eco-friendly options available:

  • High-Efficiency Gas Furnaces: These furnaces use advanced technology to reduce fuel consumption and lower emissions.
  • Pairing Electric Furnaces with Solar Panels: This can drastically reduce the environmental impact of an electric furnace by powering it with renewable energy from your own solar array.

Safety Considerations

Gas Furnace Safety

Gas furnaces come with inherent risks, such as gas leaks and carbon monoxide poisoning. It’s essential to have proper ventilation and install carbon monoxide detectors throughout your home. Regular inspections by a certified professional can ensure safe operation.

Electric Furnace Safety

Electric furnaces are generally safer because they don’t rely on combustion. However, faulty wiring or electrical issues can pose a fire hazard. As long as the furnace is properly installed and maintained, these risks are minimal.

Detailed Installation Process

Gas Furnace Installation Steps

  1. Gas Line Installation: If your home doesn’t have an existing gas line, one will need to be installed, which can increase the complexity and cost.
  2. Venting and Flue Installation: A flue must be installed to safely vent the exhaust gases outside.
  3. Ductwork Inspection: The existing ductwork is checked and potentially modified to ensure proper airflow and compatibility with the new furnace.
  4. Regulatory Compliance: Gas furnace installations must comply with local building codes and safety standards, often requiring permits.

Electric Furnace Installation Steps

  1. Electrical System Upgrades: Some homes may need an electrical panel upgrade to accommodate the furnace’s energy needs.
  2. Ductwork Setup: Just like with a gas furnace, the ductwork is inspected and adjusted if needed.
  3. Thermostat Installation: A compatible thermostat is installed to ensure efficient operation of the electric furnace.

Advanced Furnace Technologies

Smart Thermostats

Both gas and electric furnaces can be paired with smart thermostats to optimize heating efficiency. These devices allow homeowners to control their furnace remotely, set schedules, and even receive energy reports. Smart thermostats can save homeowners up to 10-15% on their heating bills annually.

Hybrid Heating Systems

Some homeowners opt for hybrid systems, which combine a gas furnace with a heat pump. These systems provide the benefits of both technologies—using the heat pump in milder weather and the gas furnace when temperatures drop significantly.

Variable-Speed Blowers

Modern furnaces often come equipped with variable-speed blowers, which adjust the airflow based on the heating demand. This leads to more consistent temperatures, quieter operation, and better energy efficiency.

Pros and Cons of Gas Furnaces

Pros:

  • Lower Operating Costs: Especially in areas where natural gas is affordable, gas furnaces tend to have lower monthly heating bills.
  • More Powerful Heat Output: Gas furnaces are better suited to colder climates and larger homes that require significant heating power.

Cons:

  • Higher Installation Costs: Gas furnace installation is more complex and typically costs more, particularly if a gas line is not already present.
  • Environmental Impact: Burning fossil fuels contributes to greenhouse gas emissions.

Pros and Cons of Electric Furnaces

Pros:

  • Easier Installation: No need for gas lines or venting makes electric furnaces easier and cheaper to install.
  • Low Maintenance: Electric furnaces have fewer moving parts and do not require as much upkeep.
  • Environmentally Friendly (With Renewable Energy): When powered by renewable energy, electric furnaces are a clean, green heating option.

Cons:

  • Higher Operating Costs: In regions with expensive electricity, running an electric furnace can be significantly more expensive than gas.
  • Lower Heating Capacity: Electric furnaces may struggle to heat large homes or perform well in extremely cold climates.

Long-Term ROI: Gas vs Electric Furnaces

When calculating the Return on Investment (ROI) for your furnace, consider not only the installation cost but also the long-term operational expenses. In regions where natural gas is inexpensive, a gas furnace may offer a quicker ROI due to lower monthly bills. However, in areas with access to renewable energy sources, an electric furnace paired with solar panels can provide significant long-term savings with minimal environmental impact.

Conclusion

Choosing between a gas and electric furnace comes down to your specific needs, including your home’s size, local climate, and energy costs. Gas furnaces are ideal for larger homes in colder climates, offering powerful heat and lower operating costs in areas with cheap natural gas. Meanwhile, electric furnaces are easier to install, require less maintenance, and can be environmentally friendly when powered by renewable energy.

Ultimately, both furnace types have their advantages and challenges, so it’s essential to evaluate your home’s specific needs and consult with an HVAC professional for personalized advice. Whatever choice you make, a well-maintained furnace will keep your home warm and your energy bills manageable.

Frequently Asked Questions (FAQs)

Can I switch from a gas furnace to an electric furnace?

Yes, but you’ll need to cap the gas line and possibly upgrade your home’s electrical system to handle the furnace’s power needs.

Are gas furnaces dangerous?

Gas furnaces can pose risks like gas leaks or carbon monoxide poisoning, but regular maintenance and proper installation minimize these risks.

How often should I maintain my furnace?

Gas furnaces should be serviced annually, while electric furnaces can go longer between inspections but should still have periodic maintenance.

Sources

Additional Furnace Resources