🤠 Mike Sanders Here: Let’s Talk About What Running an Electric Furnace Really Costs
Howdy friends! Mike Sanders here, your down-to-earth HVAC guy. If you’re thinking about installing or already have an electric furnace, you probably want to know: How much am I really going to pay to heat my home?
Electric furnaces are clean and reliable, but electricity isn’t cheap everywhere. Understanding your costs helps you budget, avoid surprises, and maybe even find some smart ways to save.
In this guide, we’ll get into the nitty-gritty: how electric furnaces use energy, what factors push your bill up or down, and practical tips to keep your heating efficient and affordable.
🔥 How Electric Furnaces Use Electricity
Electric furnaces convert electrical energy into heat using resistance coils—kind of like a giant toaster heating up your home’s air. The amount of electricity used depends on:
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The kilowatt (kW) rating of your furnace
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How long it runs each day
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The outside temperature and your home’s insulation
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Your thermostat settings and usage patterns
What’s a kilowatt?
One kilowatt is 1,000 watts. Electric furnaces typically range from 10 kW to 30 kW. For example, a 15 kW furnace uses 15,000 watts when running at full power.
How does that translate into heat?
Each kW produces about 3,412 BTUs of heat per hour. So, a 15 kW furnace generates roughly 51,180 BTUs/hr.
If your furnace runs for one hour at full power, it consumes 15 kilowatt-hours (kWh) of electricity.
💵 Breaking Down the Cost: The kWh and Your Rate
Electric bills are based on how many kilowatt-hours you use, multiplied by your local rate per kWh.
Example calculation:
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Furnace size: 15 kW
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Run time: 5 hours/day
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Electricity rate: $0.13 per kWh
Daily cost = 15 kW × 5 hours × $0.13 = $9.75 per day
Monthly cost (30 days) = $9.75 × 30 = $292.50
That’s a rough estimate—and your actual costs can vary based on your usage and rates.
You can find your current electricity rates by checking your utility bill or online resources like the U.S. Energy Information Administration’s Electricity Data Browser.
❄️ What Affects How Long Your Furnace Runs?
Several factors influence how long your electric furnace operates each day:
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Outdoor temperature: Colder days mean longer run times.
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Home insulation and air sealing: Better insulation reduces heat loss, cutting run time.
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Thermostat settings: Lowering the temperature a few degrees can save hours of runtime.
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Furnace sizing: An oversized furnace may cycle on and off frequently, wasting energy.
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Ductwork efficiency: Leaky ducts lose warm air, making the furnace work harder.
If you want to dive deeper, the Department of Energy’s guide on home heating explains how these factors play a role.
🧰 Real-World Example: Calculating Costs for a Typical Home
Imagine a 2,000 sq ft home in a moderate climate. You’ve got a 15 kW electric furnace.
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Average run time: 4 hours/day during winter
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Electricity cost: $0.13 per kWh
Daily cost = 15 kW × 4 hours × $0.13 = $7.80
Monthly cost (30 days) = $7.80 × 30 = $234
Keep in mind, heating demand fluctuates—some days will be colder and use more, others less.
📉 How to Lower Your Electric Furnace Operating Costs
1. Seal and Insulate Your Home
Reducing drafts and upgrading insulation can drastically cut heating needs. Sealing leaks around windows, doors, and attic access is a smart first step. According to ENERGY STAR, proper sealing can reduce heating costs by 10-20%.
2. Use a Programmable or Smart Thermostat
Setting your thermostat to lower temperatures when you’re away or asleep saves hours of runtime. Smart thermostats learn your patterns and optimize comfort and savings.
3. Maintain Your Furnace and Ducts
Regularly changing air filters and sealing ducts prevent airflow restrictions that make your furnace work harder.
4. Consider Supplemental Heating
For very cold days, using a space heater in occupied rooms can reduce central heating runtime.
💡 The Role of Rebates and Incentives
Many utilities and states offer rebates for installing energy-efficient electric heating systems or upgrading insulation.
Check out the Database of State Incentives for Renewables & Efficiency (DSIRE) for programs in your area.
⚡ The Bigger Picture: How Your Electricity Source Affects Costs
If your electricity comes from renewable sources—solar panels, wind, hydro—the environmental and long-term cost benefits of an electric furnace go way up.
Pairing your electric furnace with solar or community green energy programs can make your heating nearly carbon-neutral.
To explore how renewable energy can work for you, visit the National Renewable Energy Laboratory.
🏁 Final Thoughts: Budgeting for Comfort and Savings
Running an electric furnace is straightforward to estimate once you know your furnace size, local electricity rate, and expected runtime. While electric heat can cost more per hour than gas, the advantages in safety, simplicity, and emissions often outweigh that.
By investing in home efficiency and smart controls, you can keep your heating bills manageable while enjoying consistent comfort.
When you’re ready to explore electric furnace models, check out The Furnace Outlet’s electric furnace collection for trusted brands and expert advice.
Stay warm and smart,
Mike Sanders
