The Goodman 20 kW electric furnace (MBVK20DP1X00-HKTAD201) provides reliable, whole-home heating. But many homeowners wonder: How much will it cost to run? In this full guide, Tony breaks down energy consumption, real-world costs, and ways to manage your monthly bills.
⚡ Electric Resistance Heat: Understanding the Basics
Electric furnaces use resistance heating elements, meaning:
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100% of electricity converts directly into heat.
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No combustion, no flue losses.
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Operating cost depends entirely on usage hours and local electricity rates.
Every kilowatt-hour (kWh) consumed equals one hour of 1 kW heating output.
🔢 Simple Formula to Estimate Your Monthly Cost
Example for Goodman 20 kW unit:
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20 kW furnace
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5 hours/day run time
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30 days/month
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$0.15/kWh average rate
20 kW × 5 hrs/day × 30 days = 3,000 kWh
3,000 kWh × $0.15 = $450/month
(Source: U.S. Energy Information Administration)
🌎 Average Electricity Rates by Region (2025)
| Region | Average Cost per kWh |
|---|---|
| Northeast | $0.20 - $0.30 |
| Midwest | $0.13 - $0.18 |
| South | $0.11 - $0.16 |
| West | $0.18 - $0.25 |
"The same furnace can cost twice as much to run depending on where you live," Tony explains.
📊 Sample Monthly Heating Costs by Climate Zone
Assuming 20 kW furnace, 30 days of monthly operation:
| Climate Zone | Avg Hours/Day | Monthly Usage (kWh) | Monthly Cost (@$0.15/kWh) |
| Zone 2 (South) | 2 hrs/day | 1,200 | $180 |
| Zone 3 (Mid-South) | 4 hrs/day | 2,400 | $360 |
| Zone 4 (Midwest/Northeast) | 6 hrs/day | 3,600 | $540 |
| Zone 5 (Northern) | 8 hrs/day | 4,800 | $720 |
(Source: DOE Climate Zone Map)
🔍 Electric Furnace vs. Gas Furnace Operating Costs
| Fuel Type | Typical Operating Cost (per 1 million BTU) |
| Electricity | $35 - $50 |
| Natural Gas | $8 - $15 |
"Electric resistance heat costs more per BTU, but many homes don’t have natural gas service," Tony explains.
(Source: Energy Star Fuel Comparison)
💡 Factors That Affect Your Actual Energy Usage
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❄ Outdoor temperature extremes
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🏠 Home insulation & air leaks
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🏢 Square footage & ceiling height
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🛋 Occupancy patterns
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🖥 Smart thermostat settings
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🧹 Air filter maintenance
"The tighter and better insulated your home, the less your furnace runs," Tony reminds.
📉 How to Lower Your Monthly Electric Furnace Bill
1️⃣ Lower Thermostat Setpoint:
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Each 1°F reduction = ~3% savings
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Recommended: 68°F occupied / 60°F away
2️⃣ Use Programmable Thermostats:
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Smart schedules to reduce runtime
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Night setbacks yield 5-15% savings
3️⃣ Upgrade Home Insulation:
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Attic & wall insulation cuts heating load 15-30%
4️⃣ Seal Air Leaks:
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Doors, windows, outlets, ductwork
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Up to 25% savings on heating load
5️⃣ Maintain Filters & Ducts:
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Keep airflow unobstructed
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Less blower strain means shorter run cycles
6️⃣ Humidity Control:
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Keep RH at 35-45% for comfort at lower temps
(Source: DOE Energy Saver Heating Guide)
🧮 Real-World Annual Heating Cost Estimate
Assuming full heating season (4-5 months):
| Climate Zone | Total Annual kWh | Total Cost (@$0.15/kWh) |
| Zone 2 (South) | ~4,800 | $720 |
| Zone 3 (Mid-South) | ~9,600 | $1,440 |
| Zone 4 (Northeast) | ~14,400 | $2,160 |
| Zone 5 (Northern) | ~19,200 | $2,880 |
"Electric heat is very predictable: your bill directly follows how cold it gets and how often your furnace runs," says Tony.
🔋 Should You Pair Your Furnace with Solar?
Electric resistance heat works well with solar PV systems:
✅ Avoid peak rate times by running heat off your own solar production
✅ Oversize PV array to offset seasonal heating demand
✅ Charge home batteries during the day to run furnace at night
"Many of my customers love combining their electric furnace with rooftop solar for long-term energy security," Tony reports.
(Source: EPA Green Power Partnership)
🧠 Is a Heat Pump More Affordable to Operate?
Electric resistance heat converts 1 kWh to ~3,412 BTUs (COP 1.0)
Modern heat pumps achieve 200-400% efficiency (COP 2.0-4.0), cutting electric consumption 50-75% compared to pure electric resistance.
| System Type | Monthly Usage (same home) |
| 20 kW Electric Furnace | 3,000 kWh |
| High Efficiency Heat Pump | ~750-1,500 kWh |
"For moderate climates, heat pumps are hard to beat. But when it’s 10°F outside, your 20 kW electric furnace still delivers steady, reliable heat," Tony explains.
(Source: DOE Heat Pump Systems)
🔧 Common Billing Mistakes to Avoid
❌ Forgetting to switch off emergency heat mode
❌ Setting the thermostat too high continuously
❌ Neglecting duct leaks and insulation gaps
❌ Ignoring dirty filters reducing efficiency
"Electric heat is forgiving, but these little things can turn into big power bills fast if you don’t stay on top of them," Tony warns.
📊 Tony’s Quick Energy Cost Assessment Tool
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✅ Local electric rate: _____ ¢/kWh
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✅ Daily furnace run time: _____ hours
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✅ Furnace size: 20 kW
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✅ Monthly cost = 20 × daily hours × 30 × ¢/kWh ÷ 100
Example: Midwest, 5 hrs/day @ $0.15/kWh: 20 × 5 × 30 × 0.15 = $450/month
🏠 Who Should Consider a 20 kW Electric Furnace?
✅ Cold climate with no gas availability
✅ Rural homes off gas pipelines
✅ Simple system with few moving parts
✅ Lower upfront equipment cost
✅ Supplemental heat paired with heat pumps
✅ Compatible with solar + electrification goals
"In the right situation, electric resistance heat still has a strong role to play," Tony concludes.
In the next article we will know about: Is Your Old Furnace Costing You? Signs It’s Time to Upgrade to a 20 kW Electric Furnace
