Will a new furnace lower my electric bill?

Author: Loraine O'Kon  |  Last update: Friday, June 26, 2026

One of the main ways that energy-efficient furnaces save you money is by reducing your monthly utility bills. Older furnaces tend to be less efficient, meaning they consume more energy to produce the same amount of heat. This translates to higher energy bills month after month.

Will a new furnace save me money?

Make a Cost-Effective Purchase: Save $1,094 or More by Buying ENERGY STAR. FEMP has calculated that the required ENERGY STAR-qualified residential furnace saves money if priced no more than $1,094 (in 2021 dollars) above the less efficient model. The best available model saves up to $1,329.

Does an old furnace use more electricity?

Old furnaces often struggle to maintain a consistent temperature throughout your home. You may notice cold spots or uneven heating, forcing you to turn up the thermostat to compensate. This leads to more significant temperature fluctuations and, subsequently, higher energy consumption and utility bills.

Does a gas furnace affect the electric bill?

Gas heaters commonly employ electric fans to distribute warm air evenly throughout a space. While these fans are essential for efficient heat distribution, they can significantly impact your monthly electricity costs.

Is it a good idea to change your furnace from gas to electric?

An electric furnace will almost always be more energy efficient than even a high-efficiency condensing gas furnace. However, electric furnaces still cost more to run since they don't heat as effectively and consume a large amount of electricity.

My Electric Bill Skyrocketed! Let's Find Out Why | The Fixit Shed

Can I replace a gas furnace with an electric?

Converting from a gas furnace to an electric heat pump isn't a complicated process. However, if an upgrade to your electrical panel is required this can cost upwards of $5,000. Any existing ductwork can be used from the gas furnace but it may need to be inspected and sealed for any existing leaks.

How can I save money with my electric furnace?

Five HVAC Energy Saving Tips For Winter
  1. Let the Sun Shine In. Let Mother Nature bring the heat at no cost to you by opening blinds in rooms with plenty of exposure to the sun. ...
  2. Turn Down the Heat. ...
  3. Get a Programmable or Smart Thermostat. ...
  4. Check / Replace Your Furnace Filter. ...
  5. Schedule an Annual Furnace Maintenance Check.

Why is my electric bill so high when I have gas heat?

Even gas heating systems use electricity to power the fan and distribute the warm air. Chances are, you took more hot showers, baths, and used more hot water in general. You may have also used space heaters and electric blankets more than usual, which can consume a lot of energy when left on for hours.

How much electricity does a gas furnace use per month?

How Much Electricity Does a Gas Furnace Use? The winter season will require around 150 BTU of heat to keep your home warm using a gas. And this translates to approximately $500 per month. So, since the winter will last round three months or so, expect to part with at least $1500 for the season.

Does gas furnace increase home value?

Many homebuyers today prioritize energy efficiency and sustainability, and a propane furnace aligns with these values. It could even increase your home value by 5 to 7%.

Should I replace a 20 year old furnace?

Furnaces 20 years old or older become increasingly inefficient over time and can crack and leak, putting you and your family in danger. If your furnace is between 16 and 20 years old and constantly breaking down, then you should strongly consider having it replaced.

Why is my furnace using so much electricity?

If your furnace filter gets too dirty, it will restrict the air flow and force your HVAC system to work much harder to maintain the temperature in your home and causing high electric bills.

How much is a new furnace?

Ask twenty professional HVAC contractors the question, “How Much Does A New Furnace Cost?” and you'll probably get the same answer... “It depends.” On average, the cost of a new furnace can range from $2,000 - $14,2001. However, factors like furnace efficiency, type, size, and much more can impact this range.

What time of year is cheapest to replace furnace?

For people taking a proactive approach, doing a furnace replacement during the “shoulder seasons” of spring and autumn may offer lower prices, shorter lead times, and a better selection of products and service appointment availability.

Does insurance cover a new furnace?

A standard policy typically won't cover the cost to replace your furnace if there was a mechanical problem, but you may be able to add an equipment breakdown endorsement for an additional cost that may provide coverage.

What is the most reliable gas furnace brand?

The 5 Best Furnace Brands
  • Carrier Furnace: Best Warranty.
  • Lennox Furnace: Best Company Reputation.
  • Bryant Furnace: Best for Durability.
  • Trane Furnace: Most Years of Experience.
  • Amana Furnace: Best for Efficiency.

Does a gas furnace affect your electric bill?

Different heating systems are going to impact different energy bills. If you have a heat pump, it's going to increase your electricity bill, whereas if you have a gas furnace, it's going to impact your gas bill. The type of system can also determine how energy efficient it is.

What uses the most electricity in a home?

Heating and cooling: 45-50%

The largest electricity consumer in the average household is your heating and cooling appliance. By a long shot. Central air conditioners and heaters use tons of energy in order to keep your home set to the right temperature.

Is it cheaper to heat your house with gas or electric?

On average, natural gas is cheaper than electricity, so a gas furnace will save money on your bills. Electrical furnaces often run quieter than gas furnaces, as they have less mechanical parts used for the conversion of fuel to heat.

What runs your electric bill up the most?

What costs the most on your electric bill? Heating and cooling are by far the greatest energy users in the home, making up around 40% of your electric bill. Other big users are washers, dryers, ovens, and stoves. Electronic devices like laptops and TVs are usually pretty cheap to run, but of course, it can all add up.

Why is my electric bill $400 dollars?

Old windows and drafty attic spaces with air leaks are common culprits behind unusually high electric bills. Invest in new energy-efficient windows with better seals and glass, and make sure attic and basement spaces have proper insulation. The investment today will save you money on your bill down the road.

Why has my electric bill doubled for no reason?

The most common reasons for a big jump in your electric bill include changes in your lifestyle, increased usage of energy-hungry appliances, and sudden weather changes.

Do new furnaces save money?

Assuming your furnace is replaced after 15 years of use (what we recommend) you would get a total fuel savings of $1,318.05. A 90% furnace would save you $927.45 in fuel, compared to an 80% furnace. You can see how a high-efficiency furnace may end up being worth the extra money it costs you at the time of purchase.

What's the cheapest way to heat your house?

Heat Pump System

Compared to an electric furnace or electric baseboard heating, an electric heat pump will allow you to heat your house for far less money. In fact, a heating pump system will typically be much less expensive to run compared to all of the available options.

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