Why Homeowners Are Switching to Electric Heat
More and more folks are looking at electric furnaces as a cleaner, simpler way to heat their homes. No gas lines to run, no combustion worries, and fewer moving parts to break down over time. But as a homeowner, your first question’s probably the same one I get all the time: "Are electric furnaces expensive to run?"
That’s what I’m here to answer today. We’ll walk through what it actually costs to run a unit like the Goodman 68,240 BTU 20 kW Electric Furnace, how it compares to gas, and how to keep your electric bill from creeping up on you.
How Much Does It Cost to Run a 20 kW Electric Furnace?
Let’s talk numbers.
Electric furnaces are measured in kilowatts (kW). This Goodman model is rated at 20 kW, meaning it draws 20,000 watts of power when it’s running full blast.
Here’s a simple breakdown:
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20 kW x $0.14 per kWh (national average) = $2.80/hour
Now let’s look at a couple of realistic daily and monthly usage scenarios:
Moderate usage (50% runtime, 8 hours/day):
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$2.80 x 8 = $22.40/day
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$22.40 x 30 = $672/month
Heavy usage (full runtime, 12 hours/day):
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$2.80 x 12 = $33.60/day
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$33.60 x 30 = $1,008/month
Now don’t panic yet. Most systems don’t run flat out unless you’re in the coldest zones and the home’s poorly insulated. But it gives you an honest picture of what a worst-case bill might look like.
Electric Furnace vs Gas Furnace Operating Costs
Gas has long been seen as the cheaper way to heat a home. And when you compare fuel costs directly, that still holds up.
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Natural gas: ~$1.50/therm (100,000 BTUs)
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Electricity: ~$0.14/kWh
A gas furnace typically costs less per BTU to run. But here’s where electric starts to even the playing field:
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Electric units are nearly 100% efficient – all the electricity becomes heat.
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Gas furnaces lose heat through exhaust and duct losses.
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Electric systems require less maintenance – no burners, no flue gas sensors.
You can dig deeper in this EnergySage electric vs gas furnace guide.
What Drives Up the Cost of Running an Electric Furnace?
If your bills are higher than expected, here are some common culprits:
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Poor insulation – drafty attics, walls, and crawlspaces make your system work harder.
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Oversized spaces – heating 3,000+ sq ft with a single-stage furnace is rough.
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Old thermostats – no scheduling or setback options.
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Dirty filters – blocked airflow = longer runtimes.
5 Ways to Lower Your Electric Furnace Bill
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Install a smart thermostat – Let it auto-adjust when you’re asleep or away.
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Lower the temperature – Even 2–3 degrees can cut usage significantly.
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Improve insulation – Focus on attic and duct sealing first.
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Change your filter monthly – Keep airflow smooth and steady.
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Check with your utility – Off-peak or time-of-use rates can save big.
When an Electric Furnace Makes Financial Sense
Electric furnaces aren’t for everyone. But if you’re in one of these camps, they’re a smart choice:
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No access to gas – Rural homes or older buildings without gas lines.
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Homes under 2,000 sq ft – Easier to heat efficiently.
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You’ve added solar – Offset your energy usage and heat your home for free.
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You want low maintenance – No burners, blowers, or safety sensors to worry about.
Final Thoughts from Mike
If you’re considering a switch or just wondering how your current setup stacks up, don’t let the power rating scare you. A well-installed electric furnace like the Goodman MBVK20DP1X00 with HKTAD201 heat kit can absolutely deliver consistent comfort—without the surprise bill, as long as you manage it smart.
Want help figuring out if this system’s right for your home? I’ve got your back. Leave a comment or reach out to the folks at The Furnace Outlet.
