UPDATED: Aug 8, 2022
When it comes to utility costs, electricity and gas are the two major contenders. But if you had to choose between them, which is the better option? As usual, the answer for this depends on your circumstances. This choice largely depends on your needs and what you’re looking for in your home.
Is gas cheaper than electricity? The answer is almost always yes when talking about operating costs. Gas appliances may have a higher upfront cost but will save homeowners money on the utility bill.
In general, operating costs for appliances using natural gas are cheaper than those fueled by electricity. According to Washington Gas, a 2,300-square-foot home in the Washington, DC, area could save around $350 a year by switching from electric to gas.
Where electricity is derived from a variety of sources (including natural gas), the heat from gas comes from burning natural gas. Natural gas is historically a cheap source of fuel. Using it to heat your home and your water can be more efficient than electricity.
Though operating costs associated with gas are cheaper than electricity, there are other costs to consider. For example, if your home isn’t set up for natural gas, you’ll need to pay a plumber install a gas line. You’ll also need to pay for new appliances.
So, is gas or electric cheaper? That depends on your home and the specific appliances. There are also some other costs to consider.
Consider whether gas or electricity would be cheaper over the appliance lifespan. When talking furnaces, for example, an electric furnace can last 10 or more years than its gas counterpart.
Paying attention to appliance lifespan and replacement cost is important when weighing electric vs. gas. Consider also:
Let’s compare three common major home appliances: the water heater, furnace and stoves/ovens. There’s electric and gas versions of each of these and they each come with their pros and cons.Keep in mind that, along with cost, energy efficiency varies from appliance-to-appliance. Look for an energy factor (EF) rating. The higher the rating, the more energy-efficient the unit is.
Electric water heaters on average are cheaper to purchase and install than gas water heaters. When talking efficiency, tankless water heaters – either gas or electric – are the most efficient, but also more expensive upfront.The pros of electric water heaters are that they require less space, are durable and can have less of an environmental impact than gas water heaters. Their environmental impact depends on where the electricity is coming from. If it’s from a renewable source, like wind or high efficiency solar panels, they’re much more environmentally friendly, but a large portion of electricity comes from natural gas, so in that sense, they’re not efficient.
Gas water heaters have their own upsides. They tend to heat water faster, have lower operating costs and aren’t tied to the electrical grid. If your electrical goes down and you have an electric water heater, your water’s cold. On other hand, if you have a gas water heater, it’s unaffected by the power outage.
Choosing a gas furnace or an electric furnace could be largely dependent on where you live. In general, gas furnaces are a better choice for colder climates. They have lower fuel costs and often are more efficient than their electric counterparts.Electric furnaces have their upsides, though. They’re significantly cheaper and easier to install and maintain. They also have a longer lifespan, lasting up to 30 years. Unlike a gas furnace, you won’t have any concerns around carbon monoxide safety with an electric furnace. If you live in an area where natural gas is expensive and/or you get your energy from renewable sources, an electric furnace may be the better option.
Whether your current range is toast or you’re looking for an upgrade, there are plenty of options when choosing between gas and electric range ovens. The best versions of either gas or electric are going to deliver high performance and proficiency. It’s down to what you prefer for your kitchen.
According to Consumer Reports, flattop electric ranges have outperformed gas ranges in terms of their power output range. Flattop electric stoves are also incredibly easy to clean if a pot boils over or oil splatters out of the pan.The downside to electric stoves is they don’t respond as quickly to changes in heat. Electric heat elements can take longer to heat up and longer to cool down. Consumer Reports also found that gas ovens outperform electric in terms of even baking.
In terms of operating costs, gas range ovens are usually cheaper to run, even if all the heat from the burners isn’t used as efficiently as an electric range. The upfront costs to purchase and install a gas range oven are significantly higher than the electric variety. These units can cost around 50% more to purchase than their electric counterparts.
Converting from electric to gas is much more difficult than converting from gas to electric in most cases. Since you already have electric throughout the house, it’s not hard to add an electric line for a new stove or electric water heater. Running a gas line for gas appliances is much more expensive.
For instance, if your home is currently heated with electric baseboard heat, switching to a gas furnace will require new ductwork to be installed. This can easily add hundreds if not thousands in additional costs.
There are pros and cons of using gas or electricity. Most homes are on the electrical grid, but only about half of them have access to natural gas. Natural gas appliances are more affordable to operate, but are generally more expensive to purchase and install. Still, if the power goes out, you’ll be able to use your gas appliances.
What it boils down to is you need to pick the right energy source for you and your house. Both gas and electric have their upsides and downsides. If your home is setup for just electric, do the math to determine if installing gas lines is worth it for the monthly utility bill savings. Depending on where you live, the savings may not be that great.
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