How can you choose the best heater for your home? Nobody wants to spend too much money on heating, but you also don’t want to be cold either. That is why you should compare gas heaters vs. electric heaters and decide which one makes more sense for you based on energy costs.
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Basics of Gas vs. Electric Heating
First, it helps to understand how gas heaters and electric heaters work. Gas heaters use natural gas or propane to fuel a flame. The flame heats up air that is blown through the heater. Because of these factors, gas systems can heat large spaces very quickly.
Electric heaters use electricity to power heating coils or elements. These components use resistance to create heat, which is then used to warm your home.
Now that you understand how both of these systems heat your home, you’re probably still wondering: which one is cheaper?
Purchase and Installation Cost
If you’re out shopping for heaters, price is obviously a big concern. Electric heaters are almost always cheaper to purchase than their gas counterparts. You can buy small, portable electric heaters for as cheap as $30 to $200.
Gas heaters can cost anywhere from $500 to $2,500 for the unit. Installation of the gas heater is another $1,000 to $3,000. You’ll need gas lines installed and vents, along with professional installation.
Monthly Costs to Run Your Heater
Now we’re getting somewhere. Your monthly heating bill will depend on your local energy costs, usage, and insulation.
Gas costs less than electricity does per kilowatt-hour. This means that monthly running costs for a gas heater are usually cheaper. The average residential cost for natural gas is about $1.00 to $1.50 per therm. So, if you use gas to heat your home, you may pay anywhere from $50 to $150 per month.
Electricity costs more significantly vary by region in the US. Expect to pay $0.10 to $0.30 per kWh for electricity. Therefore, your electric bill may range from $100 to $300+ per month to heat your home during the winter.
Energy Efficiency
Both gas furnaces and electric heaters have efficiency ratings. Gas furnaces use an AFUE rating to measure how much fuel is used to produce heat. Newer gas heaters range from about 80% to 98% AFUE. This means very little gas is wasted during the heating process.
Electric heaters are 100% efficient in their conversion of electricity to heat. However, that isn’t the whole story.
Yes, your electric heater converts all of the electricity to heat, but how does your power plant convert fuel to electrical energy? A lot of energy is lost in that process.
Climate Differences
If you live in a state with lower heating requirements, electricity may be your best bet. Because you won’t use your heater very often, you won’t feel as bad about high electricity rates. Plus, you can avoid the costly installation process for gas heaters.
In colder regions of the country, gas heaters are the way to go. You will use your heater much more frequently during the winter months. The lower cost to run a gas heater can save you money every year. Over a period of years, those yearly savings can cover the difference in initial buying/installation cost.
Environmental Impact
Both natural gas and electricity have impacts on the environment. Gas is a fossil fuel that releases carbon into the atmosphere when burned. On the bright side, it burns much cleaner than other fossil fuels like coal and oil. Electric heaters produce fewer emissions than gas, but only if you look at your home.
The power plant that produces your electricity may not be so clean. If your power company burns coal to produce electricity, your electric heater isn’t very environmentally friendly.
Renewable energy like wind and solar power are on the rise. This means that electricity is becoming more green over time.
Speed and Performance
Gas heaters heat up almost instantly. The second you turn your heater on, it is blowing hot air into your living space. Electric heaters take a few minutes to heat up. Once an electric heater reaches the desired temperature, it maintains that heat very well.
Safety and Maintenance
Don’t forget safety when considering your options. Gas heaters must be inspected and maintained every year. yearly. You should expect to pay between $75 and $200 per year to have your gas heater inspected.
Electric heaters require little to no maintenance. You should dust them off every once in a while and check the cords for damage. Your annual electric heater maintenance costs should be close to $0.
Carbon monoxide poisoning is a risk with gas heaters. You’ll need to buy carbon monoxide detectors and check them frequently. Electric heaters don’t produce carbon monoxide, so they are safer in that regard.
Compare Heater Costs Over Time
To compare the costs of each heater type, we’ll look at 15 years of heating a 2,000 square foot home in a cold climate region.
Gas Heater = $3,500 to purchase and install + ($100/month x 180 months) = $21,500 total
Electric Heater = $1,000 to purchase + ($200/month x 180 months) = $37,000 total
By using gas heat instead of electricity, you could save $15,500 over the course of 15 years.
Making the Right Decision for You
So which heating is better? That depends on you. Factors to consider include:
- How long you plan to live in your home
- Local gas and electric rates
- Climate and expected usage
- Available rebates and incentives
- Your home’s current setup
Costs will vary depending on your unique situation. There isn’t a definitive answer to which type of heater is cheaper.
Gas vs Electric Heater Example – Heating a UK Home
One real example of this involved a project here in the UK. A family swapped their existing electric heating for a new gas boiler installation.
Upgrade Overview
Existing electric storage heaters in living areas of the home were replaced with a new gas condensing boiler.
Thermostatic radiator valves (TRVs) were added to give room-by-room heating control.
Partial electric hot water storage tank was swapped out for a gas boiler and efficient cylinder.
Outcome
The home achieved annual energy savings of close to 35%. This was mostly due to the lower cost per kWh for natural gas vs electricity.
Heating also came on faster, and was more even throughout the house. This made for a more comfortable experience during the winter months.
The homeowners also kept electric heating units in rooms that weren’t used often. Doing this allowed them to mix-and-match the best of both options for their needs.
Electric heating solutions are generally cheaper and simpler to install upfront. But if you live in an area with cold winters, gas heating may save you money in the long-run.
Gas vs Electric Heater FAQs
1. Which costs less money to run monthly, gas or electric heaters?
Gas heaters will have lower monthly running costs in most situations. This is because the unit price for natural gas is much lower than electricity.
However, electric heaters are less expensive to buy and require no annual servicing. So they may cost less money over the lifetime of the heater.
2. Are gas heaters safe to use in my home?
Gas heaters can be safe to use inside your home if they are installed and serviced by a qualified professional. Annual inspections are recommended, as well as carbon monoxide detectors and good ventilation.
3. How efficient are electric heaters?
Electric heaters are 100% efficient at converting electricity to heat energy. But if your electricity comes from coal or gas power plants, your total efficiency may be lower.
Also, electric heaters don’t produce any pollutants at the point of use. But fossil fuel power plants do produce emissions while creating electricity.
4. Will electric heaters heat my whole house?
Electric heaters are ideal for small-to-medium rooms. But gas heaters can produce more heat at once. So a gas heater can more comfortably heat larger spaces or entire homes.
Gas might be a better option if you live in an area with cold winters.
5. Can I install both gas and electric heaters?
Yes, some homeowners like to use gas heat as their primary source. Then they install electric heaters for space heating when needed.
6. Which is better for the environment, gas or electric heaters?
If your electricity is generated with renewable resources (wind, solar, hydro) it will have much lower emissions. But even gas furnaces only emit water vapor and CO₂. Gas produces fewer emissions than coal or oil fired heating systems.
7. What else should I know before picking a heater?
Think about where you live, how you’ll use the heater, and the cost of energy in your area. You should also consider installation cost and any additional safety equipment you may need.
Run a cost comparison over 5-10 years to see which option could save you more money.
Final Words
Electric heaters and gas heaters can both efficiently heat your home. In most areas, gas heating will be cheaper on a monthly basis. Electric heaters are cheaper to buy and maintain.
Decide what factors are most important to you and do your research based on your situation. Find out what the energy rates are in your area and try to estimate your yearly usage.

Lois Lane is a professional blogger and a seasoned Content writer for wellhousekeeping.com. With a passion for simplifying complex Home Decor topics, he provides valuable insights to a diverse online audience. With four years of experience, Lois has polished his skills as a professional blogger.




