If you need to replace your heating system—or any other household appliance—the big question will come up: Is it better to get gas or electric?
As you weigh fuel costs and the impact your household has on the environment, this piece of the equation gets more and more tricky.
Let’s compare.
Cost Of Gas vs. Electric
If you’re looking at getting a new heating system, natural gas is almost always the lower-cost option if you’re heating a home in a cold climate; this is especially true if your home is already set up for a gas system.
But shift some of the factors—your local climate, the cost per unit of energy in your area, the integrity of the insulation in your home—and the equation shifts.
Comparing the Cost of Natural Gas and Electric
It can be tough to compare gas and electrical pricing because they operate so differently. Here’s a look at what City Power & Gas says about pricing on each type of fuel.
Natural gas is:
- Priced by volume (therm or cubic foot)
- Priced variably, according to region
- Priced differently depending on the season
- More stable than electricity, price-wise, during mild months
- Prone to price spikes in the coldest months if you have a variable-rate plan
Electricity is:
- Priced per kilowatt hour (kWh)
- Priced variably, according to region
- Priced according to provider
- Prone to price spikes during peak demand seasons
Cost is Highly Dependent on Location
The climate where you live is a major factor in whether or not natural gas or electricity will be cheaper for heating. The number of months you need to heat your home in the winter and how low the temperature gets outside have a huge impact on the cost of natural gas and electricity.
Gas furnaces deliver more heat more efficiently in super-cold climates than heat pumps. Newer heat pump models can handle sub-zero temperatures but they use more electricity to do so, driving up the cost.
In moderate climates, however, natural gas furnaces and new models of heat pumps are in a dead heat for cost.
To really get down to the nitty gritty, compare the cost per therm and kWh in your area. Local rates ultimately determine how much your monthly bill for either natural gas or electricity will be. Don’t get caught up comparing national averages.
According to the U.S. Energy Information Administration (EIA), Washington was among 15 states with the lowest average electricity prices in 2025.
Sneaky, Hidden Costs
You should also pay attention to costs that aren’t typically figured into an estimate. Figure out how much gas line fees are, add in installation costs, and carefully compare the efficiency of the appliances you’re considering.
If you choose a gas furnace, or other type of gas appliance, make sure to ask a professional to sleuth out any leaks. Gas leaks are bad for the environment (more on that below) but they can also add to the cost of running your system..
The Type of Equipment Matters
With traditional equipment—say, a gas furnace vs. a baseboard electric heater—natural gas is much more cost-effective. In a cold climate, City Power & Gas estimated that a home that costs $800 per year to heat with gas could more than double with old-school electric heating.
But electric heat pumps are providing a much more competitive alternative. In the moderate climate of the Pacific Northwest, a heat pump “can actually come close to matching gas costs – or even beat them in some cases.”
Environmental Impact Of Gas vs. Electric
Compared with coal, natural gas is a more environmentally sustainable fuel.
But natural gas is prone to methane leaks, leading to ground-level pollution. And it’s the second-largest contributor to global warming behind carbon dioxide. Though electricity comes from a variety of sources, it can be cleaner than natural gas, depending on the source of the electricity.
In a 2023 study, researchers found that “despite leakage rates, natural gas is still more climate-friendly than electricity in most countries around the world. However, as the share of renewable energy in the electricity mix increases in most countries, electricity is becoming a more climate-friendly energy source every year.”
The study focused on Munich’s giant Oktoberfest celebration, noting that the event—which fed, watered, and warmed about 6.5 million people in 2025—could cut its carbon footprint by 87% if they switched from natural gas to electric for cooking and heating. The discrepancy mostly had to do with methane leaks.
But they cautioned against applying the study globally yet “because the carbon footprint of electricity varies from place to place,” another reason to pay attention to local conditions.
Is the Electricity in Your Area More or Less Climate Friendly?
“[W]hen the share of renewable energy reaches 58%,” the Munich study said, “electricity becomes the more climate-friendly source of power.”
To start to apply their findings to the real world, the researchers “assess[ed] the gas-versus-electricity break-even points for 25 countries around the world that account for 74% of global natural gas consumption.”
The United States fell into a group of 12 countries whose electricity emission levels were roughly on par with natural gas emissions. Each country had unique reasons why this was the case. In the U.S., the study said it’s linked to our transition from coal to renewable energy.
This means electricity will get cleaner and cleaner as our communities move away from coal and other less sustainable fuels. Today, though, we’re in limbo. To really figure out the climate impact in your area, you have to find out exactly where your electrical power comes from.
In our state, our electricity comes from more than 58% of renewable sources. In 2025, 63% of Washington’s total electricity came from hydroelectric power, a renewable source of energy. That’s according to EIA data. Another 16% comes from natural gas. The rest is a combination of wind and other renewable resources, nuclear energy, and coal.
New Technologies Can Drive Down Monthly Fuel Costs and Lighten the Impact on the Environment
Two types of technology are getting attention for helping homeowners get more efficient heating and cooling energy: heat pumps—which transfer heat instead of creating it—and solar energy.
The Environmental Protection Agency (EPA) says ENERGY STAR-qualified electric heat pumps rate more highly for efficiency than conventional equipment models. Another government source, the U.S. Department of Energy (DOE), suggests considering a heat pump if you’re upgrading your system—and to consider electrical-powered versions of other appliances, too, especially induction stoves.
And if you’re able to pair electrical appliances like heat pumps with solar power, you can cut your greenhouse gas emissions to little or even to zero.
In Conclusion
If you have an older home and are already heating with gas, a new gas furnace is likely going to be a less expensive way for you to heat your home. Especially if you live in a very cold climate.
If you live in a moderate climate, it’s worth exploring an electric heat pump since they are highly efficient and effective in milder conditions.
The price of fuel—either natural gas or electricity—is not the only factor to consider. Take a close look at your climate, the utility rates in your area, and the projected operating cost over the next decade to get a more complete picture of how much it will cost and what the impact will be to heat your home.
SOURCES
A Guide to Energy-Efficient Heating and Cooling, United States Environmental Protection Agency Office of Air and Radiation, August 2009.
Are gas or electric appliances better for the climate? The answer is a moving target., Anthropocene Magazine, Sarah DeWeert, February 7, 2023.
Climate Impact Comparison of Electric and Gas-Powered End-User Appliances, agu.org (originally published in Earth’s Future), Florian Dietrich et al, January 21, 2023.
Gas vs electric: Heating system fuel source implications on low-energy single-family dwelling sustainability performance, O’Rear et al, Journal of Building Engineering, November 12, 2024.
Home Cooling Systems, U.S. Department of Energy (accessed July 29, 2026)
Kitchen Appliances, U.S. Department of Energy (accessed June 29, 2026).
Natural Gas vs Electric: Which Costs Less?, City Power and Gas, February 26, 2026 (accessed June 29, 2026)
Washington, U.S. Energy Information Administration (EIA), updated June 18, 2026 (accessed June 29, 2026)
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