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Should I Switch From Gas Heat to Electric Heat or a Heat Pump?

Reviewed by AC Direct Technical Team Updated June 6, 20263 min read
The short answerIt depends on your local rates. Heat pumps are far more efficient than straight electric resistance heat and can lower bills in many homes. Electric resistance heat is the least efficient option at average utility rates. Before switching from gas, calculate your real cost per kilowatt hour and compare it to your gas bill.
Should I Switch From Gas Heat to Electric Heat or a Heat Pump?AC Direct HVAC guide
How to compare heating costs before you replace a gas system.

The short answer

Many homeowners who heat with gas are looking at alternatives as fuel prices climb. The right move depends on your local utility rates. Heat pumps are much more efficient than straight electric resistance heat, so they often lower bills. Electric resistance heat, on the other hand, is the least efficient way to heat at average rates, so switching to it can raise your costs rather than cut them.

Why electric resistance heat is costly

Most homeowners pay somewhere between nine and twelve cents per kilowatt hour. At those rates, electric resistance heating elements run up a meaningful hourly cost. In some regions, rates fall as low as three and a half cents per kilowatt hour, which changes the picture and makes electric heat far cheaper to run. The point is simple. Your local rate decides whether electric heat makes sense, so do the math before you commit.

How to calculate your cost per hour

Find the kilowatt rating of the heating element, then multiply by your cost per kilowatt hour. A ten kilowatt element running at ten cents per kilowatt hour costs about one dollar an hour to operate. The same element at three and a half cents per kilowatt hour costs far less. Use the rate printed on your power bill for an accurate number.

OptionHow it compares
Gas furnaceOften low cost to run where gas rates are reasonable, rated by AFUE
Heat pumpHighly efficient, can lower bills, performs best in milder climates
Electric resistanceLeast efficient at average utility rates, simple and low cost up front

How AC Direct helps

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Common questions

Is a heat pump always cheaper than gas heat?
Not always. Heat pumps are very efficient and lower bills in many homes, but the result depends on your local electricity and gas rates and your climate. Compare your actual costs before deciding.
Why is electric resistance heat considered inefficient?
It converts electricity directly to heat with no efficiency gain, so at average utility rates the hourly operating cost is high. A heat pump moves heat instead, which is far more efficient.
How do I know if switching makes sense for me?
Check your power bill for your cost per kilowatt hour, calculate the hourly cost of an electric element, and compare it to your gas bill. The numbers will point you to the better option.
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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