An electric furnace is an efficient heating system that provides consistent warm air throughout a home. Unlike gas furnaces or oil furnaces, electric furnaces don’t require gas lines, venting, or fossil fuels, making them a cost-effective and energy-efficient choice for many homeowners.
But how much electricity does an electric furnace use? Is it more expensive to run than a gas furnace or heat pump? This guide will explain the energy efficiency of electric furnaces, their operating costs, and how to choose the right heating system for your home heating needs without overspending on utility bills.
Does an Electric Furnace Use a Lot of Electricity?
An electric furnace uses heating elements to convert electricity into heat in the same way a space heater does, but on a larger scale. Its energy consumption depends on wattage, home size, and insulation quality.
Factors That Impact Energy Consumption
- Furnace wattage. Most electric furnaces range between 10,000 and 30,000 watts, depending on home size.
- Annual Fuel Utilization Efficiency (AFUE). Measures how much energy usage converts to usable heat. Electric furnaces typically have 100% AFUE, meaning no energy is lost in venting.
- Insulation and ductwork. Well-sealed ductwork and proper insulation help retain warm air, reducing electricity and energy costs.
- Thermostat settings. Keeping a thermostat at 68°F or lower improves energy efficiency.
Electric Furnace Electricity Usage Chart
| Furnace Capacity (BTU/h) | Power Consumption (kW) | Annual Electricity Usage (kWh) | Estimated Annual Cost (USD) |
| 30,000 | 8.8 | 10,512 | $1,261 |
| 40,000 | 11.7 | 13,968 | $1,676 |
| 50,000 | 14.7 | 17,544 | $2,105 |
| 60,000 | 17.6 | 21,024 | $2,523 |
| 70,000 | 20.6 | 24,672 | $2,960 |
| 80,000 | 23.5 | 28,200 | $3,384 |
Is an Electric Furnace Expensive to Run?
The cost of electricity when running an electric furnace depends on electricity rates, heating needs, and climate. While electric furnaces have lower upfront costs than gas furnaces, their operating costs can be higher in regions with expensive electricity rates.
Cost Comparison: Electric vs. Gas vs. Heat Pump
| Heating System | Average Efficiency (%) | Annual Energy Consumption (kWh or Therms) | Annual Operating Cost (USD) | CO2 Emissions (lbs/year) |
| Electric Furnace | 100 | 17,544 | $2,105 | 12,600 |
| Gas Furnace | 90 | 700 | $840 | 8,800 |
| Heat Pump | 300 | 5,850 | $819 | 4,100 |
What Size Electric Furnace Do I Need for a 2,000 Square Foot Home?
For a 2,000-square-foot home, a 20 kW electric furnace is typically recommended. However, heating capacity can vary based on insulation, climate, and ductwork quality.
Furnace Size Guide
| Furnace Capacity (BTU/h) | Power Consumption (kW) | Annual Electricity Usage (kWh) | Estimated Annual Cost (USD) |
| 30,000 | 8.8 | 10,512 | $1,261 |
| 40,000 | 11.7 | 13,968 | $1,676 |
| 50,000 | 14.7 | 17,544 | $2,105 |
| 60,000 | 17.6 | 21,024 | $2,523 |
| 70,000 | 20.6 | 24,672 | $2,960 |
| 80,000 | 23.5 | 28,200 | $3,384 |
What Is the Best Type of Electric Furnace?
- Standard electric furnaces. Lower upfront costs, but higher electricity consumption.
- High-efficiency models. Use variable-speed blowers for better energy efficiency.
- Electric heat pumps. Use less energy by transferring heat instead of generating it.
Is It Cheaper to Run an Electric Heater or a Furnace?
A baseboard heater or space heater can be cheaper for small areas, but an electric furnace is more efficient for whole-home heating.
When to Choose Each Option
- Use space heaters for. Individual rooms, garages, or workshops.
- Use an electric furnace for. Consistent whole-home heating.
- Use a heat pump for. Year-round efficiency, since it provides both heating and cooling.
What Is the Downside of an Electric Furnace?
While electric furnaces are energy-efficient, they have some drawbacks:
- Higher electricity bills. Can be more expensive than natural gas in some regions.
- Slower heating. May take longer to warm air compared to a gas furnace.
- Upfront costs. Furnace installation can range from $1,500 – $3,500.
- Limited heating in extreme cold. Works best in moderate climates; may struggle in subzero temperatures.
How Long Does an Electric Furnace Last?
A well-maintained electric furnace can last 20-30 years, outlasting most gas furnaces. To maximize its lifespan:
- Schedule regular maintenance. Clean heating elements, check blower motors, and consider tune-ups as needed.
- Replace air filters. Improves air quality and efficiency.
- Inspect ductwork. Ensures warm air is distributed evenly.
The Future of Home Heating
The shift toward electric furnaces and heat pumps is being driven by energy efficiency goals and the reduction of fossil fuels. Heat pumps are becoming more common as they:
- Lower energy bills compared to traditional heating systems.
- Improve indoor air quality with efficient heating.
- Use refrigerant technology to heat and cool homes.
The Department of Energy recommends high-efficiency electric furnaces and heat pumps as the best option for homeowners looking to reduce heating costs and emissions.
Final Thoughts
An electric furnace provides efficient heating with lower furnace maintenance costs than gas furnaces. While electricity rates impact operating costs, energy-efficient furnace models and smart thermostat control can make an electric furnace a cost-effective option for home heating.
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