Cost of Natural Gas vs. Electric

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    Applications

    • Most homes today use natural gas furnaces for heat because they are more cost- and energy-efficient. Appliances such as dryers are available in either gas or electric, and costs to operate these depends on your location, your individual use, and the model you choose.

    Heat Considerations

    • For home heating purposes, the cost efficiency of gas or electric depends on several factors--the square footage of the home, the quality of the insulation, the climate in which the home is located, and even the age of the home will affect the efficiency of the heat source.

    Appliance Considerations

    • Find the anticipated energy usage of an appliance in the owner's manual or on the company's web site. This statistic will provide estimated energy consumption for comparison purposes with other appliances.

    Costs

    • To accurately compare the costs of gas and electric, determine the unit costs of each, which will vary by location and service provider. You can find this information on your utility bill, listed as cost per kilowatt hour (kWh) for electricity or cost in therms (BTUs) for natural gas. Use this price, along with the anticipated energy usage, to estimate the cost to run an appliance or to heat your home.

    Other Factors

    • The age of an appliance or furnace will affect its energy efficiency, since a unit's efficiency drops as it ages. The area of the country in which you live will also play a part in your energy costs. To get an accurate price, get rates from your local provider.

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