One of the most common questions we receive from customers is whether it is less expensive to heat with gas or electric.

The answer depends on several factors:

1. The price of natural gas
2. The type of electric heat you plan to use

Heat Pumps: Your Most Efficient Choice
The more efficient your heating system is, the less energy it uses, and the more money you save. Here’s a comparison of the efficiency of various types of heating systems:

90-95% High efficiency natural gas
100% Electric resistance
250% Air source heat pump
350% Geothermal heat pump

At SMU’s current electric rates (around 4 cents per kWh), the price you pay per therm for natural gas would have to be at or lower than the figure listed below in order for gas to be cheaper (based on a high efficiency gas furnace):

Electric resistance heat $1.05
Air source heat pump $0.42
Geothermal heat pump $0.30

As you can see, electric resistance heat may or may not save you money at today’s electric rates, depending on gas prices. However you will ALWAYS save money and energy by installing an air source heat pump or geothermal heat pump!

For more information on heat pumps and how one could be right for your home or business, click here.

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