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.
| Option | How it compares |
|---|---|
| Gas furnace | Often low cost to run where gas rates are reasonable, rated by AFUE |
| Heat pump | Highly efficient, can lower bills, performs best in milder climates |
| Electric resistance | Least efficient at average utility rates, simple and low cost up front |
How AC Direct helps
AC Direct ships complete gas furnaces and heat pumps factory direct, so you can match the equipment to your climate and utility rates. Every order includes free technical support and installation guides, and the AC Direct Price Promise keeps your equipment cost low while you compare your options.
Shop Gas Furnaces and Heat Pumps
Factory direct equipment with free technical support
Common questions
Is a heat pump always cheaper than gas heat?
Why is electric resistance heat considered inefficient?
How do I know if switching makes sense for me?
25 years sizing and shipping HVAC systems to homeowners and contractors.
