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Blog Oct 8, 2018

Gas vs. Electricity: Which is Cheaper for Your Home?

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Choosing between gas and electricity to heat your home can be a confusing decision. Read more to find out the pros and cons to each when making the decision for your home. As you head into the fall and winter months of the year, use this as a guide to figure out whether gas or electricity is the best option for your family.

Whether you are in the market for a new home or are looking to renovate your current house, energy efficiency, long term cost savings, and positive environmental impact are often things people consider when making this large investment. For instance, when deciding if you want to invest in natural gas or electric appliances for your home, it is important to research which is safer and more affordable. Maybe you’ve always wanted a gas stove or an electric fireplace, but make sure you keep in mind which source consumes the least amount of energy when purchasing these appliances, thus keeping your utility costs low. This will be particularly impactful in the cold winter and hot summer months when you are manually heating and cooling your home on a regular basis. Read below to compare gas vs. electric appliances and find out which energy source will offer the most effective cost savings.

Comparing Gas vs. Electric Appliances

While most common household appliances can run on electricity or gas, your home itself can’t run exclusively on natural gas or propane. Natural gas can power the furnace, oven, range, clothes dryer, and water heater, but only electricity can power electronics, lights, air conditioner, and other electronic appliances. That being said, homes rely on all electric or a combination of  electricity and gas as their energy source. Learn about which energy set up for your home will result in long-term cost savings, as well as how much it costs to convert your home’s energy source from all electric to gas and electricity.

Which is Cheaper: Gas or Electric?

On the surface level, natural gas is much cheaper than electric when it comes to powering gas-compatible appliances. Not only is gas more efficient heating fuel than electricity and better for the environment, but natural gas and propane rates are generally lower or competitive with electricity rates, particularly in gas-rich states, pending the status of the market and what region you’re in. To get a better understanding of the cost implications of selecting electric or gas appliances in your area, research rate information from your local utilities or energy retailers, which will be quite varied and competitive if you live in a state with deregulated energy or natural gas. While choosing to go with gas appliances can result in major cost savings on your monthly energy costs, there is a lot more money on the line than just utility costs, as the cost of converting from all electric to electric and gas can be quite the expensive up-front cost. At the end of the day, yes, gas is cheaper than electricity when it comes to operating costs, but the investment in conversion and appliances might take many years to recoup.

The Cost of Converting From All Electric to a Combination of Gas and Electric

If you wish to convert your home from all electric to a combination of electric and gas with hopes of long-term savings on your energy bill, prepare yourself for some potentially steep up front costs. This can range from at least several hundred to a few thousand dollars based on what type of large installations are necessary for your home, so make sure you collect a few different estimates before making the switch. During the switch, new gas lines may have to be rerouted and installed, which could involve digging in your lawn and cutting holes in your walls. On the flip side, if natural gas is unavailable to your home, installing a propane tank can also be a significant expense. As these upfront costs have the potential to be so high, and it may take several years to recoup the cost of installing new gas lines and buying gas appliances, you should seriously consider if having a better impact on the environment, saving some money on your electric costs each month, and having an open-flame burner on your stove is worth the hefty investment.

Is Gas or Electricity the Best Option for Your Home?

While there are many reasons that people prefer gas or electric systems in their homes, one factor that often influences this decision is the heating and cooling requirements of the home. The area in which you live in can be a huge help when deciding between gas and electric systems for your home. Make sure you consider the region you live in and the typical weather for summer and winter, along with how cool or warm you like to keep your home. Electricity is a good option for people who are on a tighter budget and may not use as much heat, while gas is very efficient for homes in cold places and require more heat. At the end of the day, having safe appliances is the most important thing for your home, and while gas and electric appliances have their pros and cons, both are suitable energy sources for your home.

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