Free Shipping On Orders Over $1500

Electric Furnaces

Should I Switch From Gas Heat to Electricity?

Reviewed by AC Direct Technical Team Updated June 6, 20264 min read
The short answerIt depends on your local utility rates and how you heat. When gas prices climb, many homeowners look at electric. A heat pump is far more efficient than straight electric heat and usually costs less to run. An electric furnace alone heats only, but it puts you halfway to central air later.
Should I Switch From Gas Heat to Electricity?AC Direct HVAC guide
Comparing electric heat options after a gas rate increase.

Why Homeowners Look at Electric Heat

Rising gas rates push many homeowners to look for an alternative. Heating costs have jumped over recent winters, and a single season of higher bills is enough to make people reconsider their fuel source. The two most common electric options are a straight electric furnace and a heat pump. Each has a place, so the right answer is yes and no depending on your situation.

Heat Pump or Electric Furnace?

A heat pump is much more efficient than straight electric heat and usually costs less to operate. Because a heat pump is also an air conditioner, the cost to buy it is higher if you only need heating. An electric furnace heats only, but it leaves you about halfway to central air conditioning. The furnace and ductwork are already in place, so you can add the right outdoor heat pump section later for a complete heating and cooling system.

What Electric Heat Costs to Run

Straight electric heat is the least efficient option when your utility rates are near the national average. Many homeowners pay somewhere between nine and twelve cents per kilowatt-hour. To estimate cost per hour, multiply the element size in kilowatts by your rate. Your exact rate is printed on your utility bill.

Element sizeCost per hour at ten cents per kWh
10 KwOne dollar
15 KwOne and a half dollars

In areas with low rates, sometimes as low as three and a half cents per kilowatt-hour, the same elements cost far less, around thirty-five cents and about fifty-two cents per hour. So your local rate matters a great deal when you compare options.

How to Decide

Check your kilowatt-hour rate first, then weigh whether you want heating only or heating plus cooling. If you may add air conditioning later, an electric furnace now plus a heat pump section later is a sensible path. If efficiency is your priority and you also want cooling, a heat pump makes the most sense.

Shop your size

Shop Electric Furnaces and Heat Pumps

Heating and cooling systems shipped direct with the AC Direct Price Promise.

Electric FurnacesCurrent pricing shows on every product page.
Browse electric furnaces →

Common questions

Is a heat pump cheaper to run than electric heat?
Usually yes. A heat pump is much more efficient than straight electric heat, so it typically costs less to operate. It also provides cooling, which a straight electric furnace does not.
How do I figure my electric heating cost per hour?
Multiply the heating element size in kilowatts by your utility rate per kilowatt-hour. For example, a 10 Kw element at ten cents per kWh runs about one dollar per hour. Your rate is on your utility bill.
Can I add air conditioning later if I install an electric furnace now?
Yes. An electric furnace and its ductwork put you about halfway to central air. You can add the matching outdoor heat pump section later for a complete heating and cooling system.
AD
Reviewed by the AC Direct Technical Team

25 years sizing and shipping HVAC systems to homeowners and contractors.

Last updated June 6, 2026  •  Facts verified against current EPA and AHRI standards