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Gas vs Electric Furnace in Phoenix, Which Is Better?

2020 Nov 09
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Debating which type of furnace to get?

While there’s not always a clear-cut answer as to which furnace is “best,” most Phoenix homeowners choose a gas furnace because they are less expensive to operate. However, depending on your particular situation, an electric furnace could be a better choice for you.

Choosing the right furnace for you depends on 3 main factors:

  1. The fuel source available to you
  2. Your budget for upfront costs
  3. How much you want to save long-term

We’ll go into more detail about each of these factors below to help you weigh the pros and cons of each type of furnace. 


Want a personalized furnace recommendation from a Phoenix pro? Contact George Brazil today!

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Factor #1: The fuel source available to you

The first thing you’ll want to consider when choosing a furnace is whether or not your home already has access to natural gas. If it does, you can look at the other factors to determine whether a gas or electric unit will fit your budget better.

If you have an all-electric home that doesn’t have access to natural gas, then the best option is an electric heating system. While it is possible to add gas lines to your home, it will raise the installation cost by an additional $1,000 to $2,000, which makes the switch to natural gas too expensive for many homeowners.

For all-electric homes, your heating system options are an electric furnace or a heat pump. Between the two, we would recommend a heat pump because it will cost a lot less to operate. In fact, according to the Department of Energy, heat pumps can reduce your electric heating costs by up to 50% compared to an electric furnace.

Learn more about heat pumps by reading the following blogs:

How Does a Heat Pump Work? A Phoenix Tech Answers

How Much Does It Cost to Install a Heat Pump in Phoenix?

Factor #2: Your budget for upfront costs

Gas furnaces have a higher upfront cost than electric units. On average, you can expect to pay $500 to $1,500 more for a gas furnace.

Why do gas furnaces have a higher upfront cost?

Gas furnaces are more expensive to install because they require an exhaust vent to remove harmful combustion gases out of your home. Configuring the exhaust vent increases labor time, which raises the overall cost of the furnace installation. If you’re adding an exhaust vent for the first time, the price will be even higher because of additional labor time and material costs.

If you are on a tight budget, you may consider an electric furnace over a gas furnace. However, before you make your decision you’ll also want to consider the long-term savings each furnace provides.

Factor #3: How much you want to save long-term

Even though they cost more to install, gas furnaces cost a lot less to operate, which results in higher long-term energy savings. The reason gas furnaces cost less to operate is because natural gas is a cheaper fuel source than electricity.

Learn more about gas vs electric heating costs by reading our blog, “Gas vs Electric Heat in Phoenix: Which is Cheaper to Run?”

That said, electric furnaces generally last 5 to 10 years longer than gas furnaces. Choosing an electric furnace can save you money because the equipment will last longer, which means you can go longer without having to pay for a furnace replacement.

To help you determine which type of furnace will provide you with the most long-term savings, we recommend that you consult with a trusted HVAC professional. They can look at your family’s annual energy consumption and help you calculate the potential long-term savings you would get with a gas or electric furnace.

Want a personalized furnace recommendation from a Phoenix pro?

Schedule appointment today

Our highly-trained heating experts can help you choose the perfect heating system for your home, based on your family’s heating needs and budget. When you work with George Brazil, you can count on honest recommendations and upfront prices—without any pushy sales tactics. 

Learn more about what to expect when you work with us by visiting our furnace installation page.

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