2025 Cost Snapshot: Installation vs. Operating (What Actually Moves the Needle)
Installation: Electric furnaces typically land $2,000–$3,000 installed. Gas furnaces commonly run $4,500–$6,000 because you’re paying for gas piping, venting/liners, combustion air, and often a flue rework.
Operating: In most areas, natural gas costs less per delivered BTU. Typical annual heating spend: gas ~$540–$665, electric ~$900–$1,000+ (usage and local rates drive variance).
Maintenance: Electric has fewer moving parts and no combustion. Gas needs burner, ignition, and vent safety checks.
Visual: 2025 at a Glance
|
Item |
Electric |
Gas |
|
Installed cost |
$2,000–$3,000 |
$4,500–$6,000 |
|
Annual energy |
~$900–$1,000+ |
~$540–$665 |
|
Safety |
No CO risk |
Requires CO/venting diligence |
|
Typical lifespan |
20–30 yrs |
10–20 yrs |
Explore: All Furnaces
Installation Scope & Code Triggers You Can’t Ignore
Electric: Usually straightforward dedicated breaker, correct conductor size, and a clean air handler or coil pairing. No venting. Watch panel capacity; large electric furnaces can require service upgrades.
Gas: Plan for gas line sizing, shutoff and drip leg, venting path (B-vent/liner or PVC for condensing), combustion air, and condensate handling on high-efficiency (90–98% AFUE) models.
Permits & Inspection: Gas installs typically require combustion safety verification; electric focuses on electrical code compliance and heat rise/airflow validation.
Tech note: A condensing gas furnace in a tight home may need dedicated combustion air to avoid depressurization issues.
Helpful: Design Center
Operating Cost Math You Can Verify on a Napkin
Rule-of-thumb math confirms the spread: electric resistance heat is near 100% efficient, but kWh pricing usually beats you up compared to gas per BTU. Gas furnaces run ~80–98% AFUE and—despite losses—still cost less per heat delivered in most markets.
Annual Cost ≈ (Seasonal Heat Load in BTU) / (System Efficiency) × (Fuel $/BTU)
Example: If a home uses ~50 MMBTU of heat yearly:
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Electric (~100%): 50 MMBTU × $/BTU_electric → often lands ~$900–$1,000+.
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Gas (say 95% AFUE): 50 / 0.95 MMBTU × $/BTU_gas → ~$540–$665 typical.
Pro tip: Confirm local rates before you quote. If your utility’s electric rate is unusually low (or gas is high), the math can flip. Bring a quick spreadsheet to the call. See also: Financing options
Efficiency Reality: AFUE vs. Resistance Heat (and Why Comfort Feels Different)
Electric furnaces convert electricity to heat at ~100%—there’s essentially no stack loss. But they rely on airflow with lower supply temperatures, so space heat-up is slower.
Gas furnaces span ~80% to 98% AFUE. Condensing models reclaim latent heat via secondary exchangers, improving fuel-to-heat conversion. More importantly, gas furnaces deliver hotter supply air, typically giving faster recovery after set-back.
AFUE is a seasonal metric. Duct leakage, static pressure, and fan energy still affect delivered efficiency for both systems. Related gear: Coils
Climate Fit: Load, Recovery, and Duty Cycle in the Real World
In colder climates, gas furnaces shine thanks to higher supply temps and quick recovery; they spend less time in long duty cycles when outdoor temps plunge. In mild climates, electric furnaces can be perfectly adequate and benefit from simpler installs and fewer safety concerns.
Setbacks matter: Homes using deeper night setbacks will appreciate gas recovery speed. Homes kept at steady setpoints in milder zones may not notice the lag of electricity.
Field cue: If design temps routinely dip far below freezing and the home has marginal ductwork, gas generally masks deficiencies better than electric’s slower heat delivery. Explore alternatives for mild zones: Heat Pumps
Safety & Compliance: CO, Venting, and Electrical Clearances
Electric: No combustion = no carbon monoxide risk and no flue. Still respect clearances, breaker sizing, conductor ratings, and airflow/heat rise to protect elements.
Gas: Maintain proper venting (slope, materials, termination), combustion air, and CO monitoring. On condensing furnaces, verify condensate routing, neutralizer (where required), and freeze protection on exterior runs.
Must-do: Install CO alarms near sleeping areas for gas systems. Verify spillage and draft on start-up. Document readings.
Help & policies: Help Center
Maintenance Profile & Lifespan Planning
Electric furnaces have fewer components no burners, gas valves, or flues. Routine tasks: keep filters clean, check element resistance, sequencers/relays, and blower performance. Expected lifespan: 20–30 years with light maintenance.
Gas furnaces require annual combustion checks, heat exchanger inspections, and vent/condensate maintenance (for condensing models). Typical lifespan: 10–20 years, depending on water quality (condensate), filter discipline, and ventilation health.
On gas, log combustion analyzer readings annually to establish a performance baseline and catch drift early.
Supplies: Accessories
Sizing, Ducts, and Supply Temperature (Why “Feels Warm” ≠ Efficient)
Electric needs adequate CFM across elements to prevent limit trips; lower supply temps mean longer runtime and a bigger comfort penalty when ducts are undersized or leaky.
Gas provides higher supply temps, which can mask duct issues but at the cost of efficiency and comfort stratification if leakage/imbalance exists.
Field checklist:
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Verify static pressure ≤ nameplate.
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Balance CFM to heat rise spec.
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Pressure-test and seal high-leak sections.
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Confirm return capacity; electric elements hate starved airflow.
Tools: Sizing Guide
Smart Alternatives: Heat Pumps, Dual Fuel, and Packaged Systems
Where electricity is pricey but winters are mixed, heat pumps can drastically cut kWh per BTU compared to resistance heat. In colder snaps, pair a dual-fuel setup: heat pump above balance point, gas furnace below best of both worlds.
For rooftops or tight mechanical rooms, consider packaged units (gas/electric or HP). R-32 platforms add future-forward refrigerant compliance and efficiency.
Decision Framework & Payback Example (Plug In Your Numbers)
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Upfront: Electric saves ~$2.5k–$3.5k on install vs gas (typical ranges above).
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Annual spend: Gas often saves ~$300–$450/yr vs electric using typical 2025 figures.
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Simple payback: Extra gas install ÷ annual savings ≈ ~6–9 years in many markets.
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Lifespan: Electric can run 20–30 yrs; gas typically 10–20 yrs.
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Climate & comfort: Colder climate or deep setbacks? Favor gas. Mild climate, steady setpoint? Electric or heat pump.
Example: If gas install is $2,800 more and saves $350/yr vs electric, payback ≈ 8 years. Extend horizon if you value electric’s longer lifespan and simpler maintenance.
Next steps: Get a Photo Quote
