Electric Furnace Pros and Cons
Last edited
Author
Andrew Giermak
Solar and Electrification Writer and Editor
Editor
Andrew Blok
Electrification and Solar Writer and Editor
When choosing a new heating system for your home, cost and budget are probably where you start and end. An electric furnace’s cost may be less upfront compared to a heat pump or other heating systems. However, a new, energy-efficient heat pump will give you three times or more the energy and cost efficiency of an electric furnace. Heat pumps are often the best long-term choice for long-term savings.
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What’s an electric furnace?
An electric furnace is a common type of heating system that uses electricity to generate heat. Unlike a gas or oil furnace that burns fuel, an electric furnace passes air over hot electric resistance coils or heating elements. A blower then pushes this heated air through your home's ductwork and vents.
A heat pump also uses electricity, but instead of generating heat, it moves heat in from the outdoors or out of your home’s interior to provide heating or cooling in a two-in-one system.
Some people choose electric furnaces because they typically have a lower initial purchase and installation cost compared to gas furnaces or heat pumps. However, they are generally the least efficient primary heating source in many homes and climates because they consume a large amount of electricity to create heat.
Comparing efficiency and cost
Electric furnaces are very close to or exactly at 100% efficient, which means all of the electricity which goes into the furnace is converted into heat. While that sounds efficient, in cost efficiency, there are reasons why a heat pump usually has a lower operating cost.
Thanks to differences in fuel costs, a gas furnace is typically less costly to run than an electric one.
A standard air-source heat pump can be two and a half to four times more efficient than either furnace, which can make their operating costs less than either. Ductless or mini-split heat pumps are often even more efficient, as are geothermal heat pumps which can have a coefficient of performance (COP) of 5.0 or higher. For example, a heat pump with a 3.0 COP is delivering the same amount of heat using one-third the electricity of the electric furnace.
An electric furnace may be a fit for your home, region, and climate if it’s rare you need to use it. If you have a short heating season, or want a secondary or emergency heating system to use only when it’s needed, an electric furnace could make sense. An electric furnace’s cost and inefficiency will probably not be a fit anywhere with long and/or harsh heating seasons and anywhere with higher electric rates.
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Heat pumps vs. electric furnaces
Transferring heat in or out of a building is more energy, and therefore cost, efficient than generating the heat from a fuel source. Energy-efficient air source heat pumps operate at 300%-400% energy efficiency meaning they put out three or four times the heat energy for each unit of electrical energy it consumes.
Modern ducted air-source heat pumps can reduce electricity use by about 75% compared to heating with a furnace or baseboard heating according to the US Department of Energy. Heating and cooling expenses make up about 52% of a home’s energy expenses, according to the US Energy Information Administration, so significantly reducing this category makes a big difference.
A heat pump gives you heating in the winter and cooling in the summer. The two-in-one functionality can result in savings compared to having an air conditioner and an electric furnace, or another heating system. You have one long-lasting year-round system compared to two systems needing service, maintenance, then eventually, replacement.
Electric furnace cons compare to a heat pump
| Energy efficiency | Heat pumps are 3-5 times more energy efficient than gas or electric furnaces. |
|---|---|
| Savings | A less efficient furnace uses more electricity and costs more to run. |
| Single purpose | Having one system for heating and cooling means easier, and less expensive, service, maintenance, and repairs for years. |
| Environmental burned | By moving heat, instead of using fuel to generate it, heat pumps have a much smaller carbon footprint. |
Ways to save money and energy on heating and cooling
If the benefits of home heating and cooling with a new heat pump sound right, but the upfront cost doesn’t, a heat pump lease may work. A lease, such as the Palmetto Comfort Plan, gives you the comfort of an energy-efficient heat pump for no purchase or installation cost and dependable, budget-friendly monthly payments.
More ways to save on your heating and cooling all year include ideas like smart thermostats, using ceiling fans smartly, inspecting your home’s insulation, and seeing if your windows, window coverings, and doors are as efficient as they could be. You can also download and start your free account on the new Palmetto app. The app lets you see your home energy usage and ways to save money and energy with tips big and small. You can also start and see estimates for your home with Palmetto’s Savings Maximizer or HVAC advisor tool.
See how much you can save with a new HVAC system from Palmetto
Frequently asked questions
Why is an electric furnace’s operating cost high if it's 100% efficient?
An electric furnace cost may initially be lower, but its operating cost is often higher than a gas furnace. Since heat pumps are about three to five times more efficient than electric furnaces, they cost less to run.
When or where does an electric furnace make more sense?
An electric furnace could be a good option for home heating in some circumstances. Main examples include living in a climate where you rarely need heating in the winter or using the furnace primarily as a supplemental or emergency heat source.
