Heating makes up a large part of household energy costs, especially during the colder months. For many households, the choice between electric vs gas heating can significantly impact long-term expenses. While both systems are common, they operate differently, come with different costs, and perform better under different conditions.
This article breaks down the key differences in cost, efficiency, and upkeep to help you determine which option may be more economical for your home.
Understanding Electric and Gas Heating
Electric and gas heating systems both serve the same purpose: warming your home. However, they operate in very different ways.
What Is Electric Heating?
Electric heating systems commonly consist of baseboard heaters, wall-mounted units, electric furnaces, and heat pumps. These systems convert electricity directly into heat and are often easier to install, especially in homes that do not have existing ductwork. Electric heat is generally considered cleaner at the point of use because it does not involve combustion inside the home.
What Is Gas Heating?
Gas heating systems include furnaces and boilers that burn natural gas to generate heat. These systems often heat air or water, which is then circulated through the home. Gas systems generally provide faster heating and are often more efficient in colder environments.
Each method has its advantages. Cost and performance can vary depending on your home’s design, energy usage, and local energy rates.
Operating Costs: Monthly Energy Bills
The largest ongoing expense for any heating system is the cost of energy used to run it. This is where the difference between electric and gas heating becomes most noticeable.
Electric heating systems tend to cost more on a monthly basis. Electricity rates are usually higher per unit of energy compared to natural gas. Since electric systems convert electricity directly into heat, they often require more energy input to produce the same amount of warmth, especially in colder conditions.
Operating gas heating systems is usually more affordable. Natural gas prices are often lower per unit than electricity, and gas furnaces tend to heat a home more quickly. As a result, monthly energy bills for gas heating are usually lower in households with moderate to high heating needs.
Actual costs depend on factors like home size, insulation quality, thermostat settings, and how often the heating system runs. It is also helpful to consider whether your energy provider offers fixed-rate plans or usage-based pricing, as this can affect long-term affordability.
Energy Prices in Your Area
The cost of heating depends not only on the type of system but also on the local rates for electricity and natural gas. These rates can vary based on your utility provider, the energy market, and seasonal demand.
Electricity is usually billed per kilowatt-hour, whereas natural gas is charged per therm. In most regions, natural gas remains more affordable on a per-unit basis. However, pricing structures can differ. Certain utilities provide time-of-use pricing for electricity, where rates vary based on the time of day. This can influence the overall cost of running an electric system.
It is also worth checking whether your energy provider offers fixed pricing plans. These plans lock in a consistent rate over a set period, offering more predictability in billing. Variable plans, on the other hand, may change from month to month based on market conditions.
Understanding your local energy rates and how your utility company structures its pricing is essential when comparing total heating costs between gas and electric systems.
Maintenance and Longevity
Both electric and gas heating systems require regular maintenance, but the demands and costs can vary.
Electric heating systems typically feature a more straightforward design with fewer components that move. Consequently, they need maintenance less often. Most electric heaters only need periodic cleaning, checking for dust buildup or debris, and verifying that the thermostat is working properly. With fewer components to maintain, electric systems often have a longer lifespan of 20 years or more, depending on usage.
Gas heating systems tend to require more regular upkeep. Gas furnaces, for example, need annual inspections to ensure that the burners, heat exchangers, and ventilation systems are functioning safely. It’s important to check for potential gas leaks, and the system must be cleaned regularly to maintain efficiency. Though gas systems may require more effort to keep in good working order, they also tend to last 15 to 25 years when well maintained.
Overall, electric systems may have a lower maintenance cost over time, but gas systems tend to be more durable when properly serviced.
Environmental Impact
The environmental impact of your heating system is another consideration, especially as more homeowners prioritise sustainability.
Emissions from Electric Heating
Electric heating systems produce fewer direct emissions since they don’t burn fuel on-site. However, the environmental impact depends on how the electricity is generated. In areas where the grid relies on coal or natural gas, the environmental benefits may be diminished. On the other hand, if you’re using renewable energy sources such as wind or solar to power your electric heater, the environmental footprint can be minimal.
Emissions from Gas Heating
Gas heating systems release carbon dioxide (CO2) as they burn natural gas. While natural gas is cleaner than other fossil fuels, it still contributes to greenhouse gas emissions. In regions where renewable energy is widely available, an electric heating system may be a better choice from an environmental perspective. However, in places where the grid is less reliant on renewables, gas heating may still be a practical and lower-emission option.
Renewable Energy Options for Electric Heating
Electric heating becomes more environmentally friendly when paired with renewable energy sources. Solar panels, wind power, or hydroelectric power can significantly reduce the carbon footprint of an electric heating system. If your home is already equipped with renewable energy solutions, electric heating may align better with your sustainability goals.
Which Is Cheaper in the Long Run?
Long-Term Cost Comparison
While electric heating systems have a lower upfront cost, their higher operational costs can make them more expensive in the long run. Gas heating systems, though more costly to install, typically provide lower energy bills and offer better value over time.
Variables to Consider
The long-term cost depends on your home’s size, insulation, the efficiency of the heating system, and local energy rates. Always factor in the cost of maintenance and how long the system is expected to last when comparing the two options.
Rebates and Incentives
Available Rebates for Electric Heating
Many utility companies offer rebates or financial incentives to homeowners who choose energy-efficient electric heating systems. These programs are designed to encourage the adoption of technologies that reduce overall energy consumption and help homeowners save money in the long term.
For instance, energy-efficient heat pumps or electric furnaces might qualify for rebates. It’s important to check with your utility provider for specific programs and eligibility requirements. Some states or regions also provide tax credits or rebates for using renewable energy sources for electric heating, such as solar power.
Available Rebates for Gas Heating
Gas heating systems, especially high-efficiency models, can also qualify for rebates. Gas utilities often offer incentives for customers who upgrade to more energy-efficient furnaces or boilers. These incentives not only help reduce upfront installation costs but also promote the overall efficiency of the home’s heating system.
Like electric heating rebates, it’s essential to check with your local gas utility or government programs to find available incentives. In some areas, there are also rebates for converting from older, less efficient heating systems to new, high-performance models.
Conclusion
Both electric and gas heating systems have their pros and cons. While electric heating systems are simpler and more affordable to install, they could lead to higher costs over time. Gas heating systems offer lower operating costs but come with higher upfront expenses and more complex maintenance needs. By considering all factors, such as upfront costs, maintenance, energy prices, and environmental impact, you can make an informed decision about which system is best for your home.