{"id":678,"date":"2021-02-15T11:00:47","date_gmt":"2021-02-15T16:00:47","guid":{"rendered":"https:\/\/www.awheatingandcooling.com\/blog\/?p=678"},"modified":"2025-12-04T09:46:39","modified_gmt":"2025-12-04T14:46:39","slug":"gas-vs-electric-which-type-of-furnace-is-more-efficient","status":"publish","type":"post","link":"https:\/\/www.awheatingandcooling.com\/blog\/heating-service\/gas-vs-electric-which-type-of-furnace-is-more-efficient\/","title":{"rendered":"Gas Vs. Electric: Which Type of Furnace Is More Efficient?"},"content":{"rendered":"
\n
\"Dollar<\/figure><\/div>\n\n\n

We\u2019re going to make an educated guess here and say that if\nyou\u2019re in the market for a new furnace installation this <\/em>time of the year, then you\u2019re probably in a bit of a rush.\nBut, we have to discourage you from making this decision too quickly. It\u2019s one\nyou want to take time on, otherwise you could wind up with a heating system\nthat is not properly matched to your specific needs and household. Therefore,\nit won\u2019t work as efficiently as you expect or need it to. <\/p>\n\n\n\n

About that efficiency\u2014efficiency
<\/em>is defined as the rating of heating output of heating equipment compared to the amount of energy it consumes. But this doesn\u2019t necessarily mean that a heating system with a higher efficiency rating will cost less to operate by default. A great example of this is when you\u2019re comparing the AFUE ratings of an electric furnace to a gas furnace.<\/p>\n\n\n\n\n\n\n\n

AFUE Ratings<\/h2>\n\n\n\n

Let\u2019s dive into how exactly furnaces are rated for\nefficiency. When you look at your furnace\u2019s stats, you will see what\u2019s called\nan AFUE rating, or annual fuel\nutilization efficiency <\/em>rating. This is a measurement of energy efficiency\nof a heating system, and it is listed as a percentage. That percentage defines\nthe amount of the energy source (gas or electric) that the furnace converts\ndirectly into heat energy that gets sent into your home. <\/p>\n\n\n\n

The remaining energy goes to waste as exhaust, meaning that\nall gas furnaces will lose some <\/em>efficiency.\nSo a mid-range gas furnace with an AFUE rating of 80%, for example, converts\n80% of its natural gas into heat and loses 20% as exhaust through a flue. <\/p>\n\n\n\n

Standard Efficiency Ratings for Furnaces<\/h2>\n\n\n\n

The standard efficiency rating has increased for furnaces\nthroughout the years. For a long while, the standard high-efficiency furnace\nhad an AFUE around 70%. If your furnace is around a decade old, it\u2019s likely\nthat yours has an AFUE a little higher than that, probably around 80-85%.\nModern high-efficiency gas furnaces, however, typically score in the 90\u2019s, and\nthere are even condensing furnaces that have AFUE ratings of 98%. <\/p>\n\n\n\n

With electric furnaces, the AFUE rating is far simpler. No <\/em>energy is wasted, so all electric\nfurnaces have an AFUE of 100%. <\/p>\n\n\n\n

Is replacing a gas furnace more efficient than keeping an old one?<\/h2>\n\n\n\n

Yes, replacing an old gas furnace with a modern high-efficiency model can significantly boost energy savings. New gas furnaces often have AFUE ratings of 90\u201398%, compared to older units with 70\u201385%. This means more heat is delivered with less waste, leading to lower utility bills over time.<\/p>\n\n\n\n

\u201cOh, So Electric Furnaces Cost Less to Run?\u201d<\/h2>\n\n\n\n

Not quite! When it comes to furnaces, as we alluded to at the beginning of this post, higher efficiency doesn\u2019t always mean lower cost. Overall as a fuel source, electricity is more expensive to use each month than natural gas is. Therefore, selecting a gas-powered furnace with a 90-98% AFUE rating could cost you less in energy bills, ultimately, than running a 100% AFUE rated electric heater. <\/p>\n\n\n\n

So, what\u2019s the best choice for your <\/em>home? This depends! If you\u2019ve always used a gas furnace and your\nsystem is over a decade old, whatever you choose is probably going to be at\nleast a little more efficient than what you\u2019re using now, and therefore cost\nyou less to operate. \n\nBut if you\u2019ve been using an electric furnace all\nthis time and you have access to the main gas line, then you may want to\nconsider making a switch to a high-efficiency gas furnace! Our professionals\nare here to help you make an educated decision. \n\n\n\n<\/p>\n\n\n\n

Frequently Asked Questions<\/h2>\n\n\n\n

Question: What does \u201cefficiency\u201d mean when comparing gas vs. electric furnaces?<\/strong>
<\/strong>Answer:<\/strong> Efficiency refers to how much of the energy used by a furnace is converted into usable heat. It\u2019s measured by AFUE (Annual Fuel Utilization Efficiency), with a higher percentage indicating less energy waste and more efficient performance.<\/p>\n\n\n\n

Question: Are electric furnaces more efficient than gas furnaces?<\/strong>
<\/strong>Answer:<\/strong> Yes, electric furnaces are technically 100% efficient because all the electricity used is converted into heat. However, modern gas furnaces also achieve high efficiency, often between 90 and 98%, though they do lose some energy through exhaust.<\/p>\n\n\n\n

Question: Does higher efficiency always mean lower operating cost?<\/strong>
<\/strong>Answer:<\/strong> Not always. Even though electric furnaces are highly efficient, electricity usually costs more than natural gas. As a result, a high-efficiency gas furnace can still be cheaper to operate than an electric one in many areas.<\/p>\n\n\n\n

Question: What factors should influence the choice between a gas and an electric furnace?<\/strong>
<\/strong>Answer:<\/strong> Consider your local energy prices, whether your home has access to a gas line, your climate, and how fast you want your home heated. Gas furnaces heat more quickly, but electric ones can be simpler to install and maintain.<\/p>\n\n\n\n

Question: Why might a homeowner still choose an electric furnace over a gas furnace despite higher operational costs?<\/strong>
<\/strong>Answer:<\/strong> Electric furnaces are easier to install, need less maintenance, and don\u2019t require venting or pose risks like carbon monoxide. They\u2019re often chosen for homes without gas access or by those prioritizing safety and simplicity.<\/p>\n\n\n\n