So, you’re looking at an electric furnace for house heating because your old gas guzzler finally kicked the bucket, or maybe you’re tired of the smell of oil. Honestly, it’s a tempting switch. The initial price tag on an electric furnace is usually way lower than a heat pump or a high-efficiency gas setup, and they basically last forever because there’s no combustion chamber to rot out. But there is a catch. Actually, there are several, and if you don't do the math on your local utility rates before signing that contract, you might end up with a utility bill that looks like a mortgage payment.
Electricity is expensive.
It’s just the reality of physics. When you use an electric furnace for house warming, you’re using "resistance heating." Think of it like a giant toaster in your basement. Those heating elements get red hot, a blower kicks in, and presto—warm air. It’s 100% efficient in the technical sense, meaning every bit of electricity you pay for turns into heat, but compared to a heat pump that "moves" heat rather than making it, it’s a financial nightmare in cold climates.
Why people still choose electric resistance heat
You might wonder why anyone bothers. If they’re so expensive to run, why do they exist? Well, for one, the simplicity is unmatched. You don't need a gas line. You don't need a chimney. You don't need to worry about carbon monoxide poisoning while you sleep. If you live in a place like Tennessee or Georgia where the winters are basically a joke—maybe two weeks of real cold—the low upfront cost of an electric furnace for house installs makes total sense. Why spend $12,000 on a complex system when a $2,500 electric unit does the job for the three times a year you actually need it?
There's also the maintenance factor. Or the lack thereof.
Gas furnaces have igniters that crack, flame sensors that get dirty, and heat exchangers that can develop life-threatening cracks. An electric furnace? It’s basically some heavy-gauge wire and a fan. If a sequencers goes bad, it’s a cheap fix. If an element burns out, you swap it. It’s DIY-friendly in a way most modern HVAC tech just isn't anymore.
The hidden infrastructure costs
Don't let that low sticker price fool you into thinking the install is a breeze. If you're switching from gas to an electric furnace for house comfort, your electrical panel is going to take a massive hit. A standard electric furnace requires a lot of juice. We're talking 60, 80, or even 100 amps of dedicated service just for the heater. Most older homes only have a 100-amp or 150-amp total service.
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You see where this is going?
You might buy a "cheap" furnace for $2,000 only to find out you need a $4,000 service upgrade from an electrician just to plug the thing in. I’ve seen homeowners get blindsided by this. They think they’re saving money, then the permit inspector tells them their panel is a fire hazard because they tried to pull 80 amps for a furnace on a 100-amp main breaker. It doesn't work. You can't run your dryer, your oven, and your furnace at the same time without the whole house going dark.
Understanding the "Toaster Effect"
When we talk about an electric furnace for house utility, we have to talk about BTU output. Most residential units are rated in kilowatts (kW). A common size is 15kW or 20kW. For context, 1kW is about 3,412 BTUs. So a 20kW furnace gives you roughly 68,000 BTUs. In a leaky, older home in Minneapolis, that’s barely going to keep the frost off the windows in January.
And the cost? Ouch.
If your electricity costs 15 cents per kilowatt-hour (which is actually cheap in some parts of the US now), running that 20kW furnace for just one hour costs you $3.00. That doesn't sound like much until you realize that on a 10-degree night, that furnace might run for 15 hours a day. That’s $45 a day. In a month? $1,350. Just for heat. This is why people in the Northeast or the Midwest look at electric furnaces like they’re cursed artifacts.
Is there a middle ground?
The only way an electric furnace for house setups really works long-term in colder zones is if you have a massive solar array or if you're using it as a "dead-stop" backup for a heat pump. This is what the industry calls "emergency heat." The heat pump does the heavy lifting until it gets too cold outside for it to find any heat to move, then the electric furnace kicks in to save the pipes from freezing.
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But as a primary heat source? You better have a very small, very well-insulated house. Like, passive house levels of insulation. If your walls are stuffed with modern rockwool and your windows are triple-pane, a tiny electric furnace can be incredibly effective because the house just doesn't lose heat. But for the average 1970s ranch? Forget about it.
Installation nuances you should know
Installing an electric furnace for house heating isn't just about the wires. Airflow is king. Because electric heat is "dry" and comes on in stages (using those sequencers I mentioned), the ductwork needs to be sized correctly. If the fan isn't moving enough air, those elements will overheat and pop the thermal limit switch. It's a safety feature, but it’s annoying as hell.
You’ll hear a "click-click-click" when the furnace turns on. That’s the sequencers. They stagger the heating elements so you don't get a massive 80-amp surge all at once, which would probably dim the streetlights on your block. It’s a rhythmic, mechanical sound. Some people find it comforting; others hate it.
Reliability vs. Monthly Budget
If you talk to a technician from a company like Carrier or Lennox, they’ll tell you the same thing: electric is the most reliable heat you can buy. There are fewer moving parts. There’s no combustion. There’s no condensate drain to clog and leak all over your floor. If you value peace of mind and "it just works" energy, it's a win.
But you pay for that peace of mind every single month during the winter.
Let's look at the environmental side. People often think electric is "greener." It is, but only if your grid is green. If your local power plant is burning coal to send electricity to your house so you can turn it back into heat, you’re actually creating more emissions than if you just burned gas in a high-efficiency furnace right there in your basement. Energy conversion losses are real.
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Real talk on the "Dry Air" myth
People always complain that an electric furnace for house heating dries out their skin and gives them nosebleeds. Truthfully, all forced-air heat feels dry. When you heat up cold air, its relative humidity drops. It doesn't matter if the heat comes from a gas flame or an electric coil. The air is thirsty. If you go electric, you almost certainly need a whole-home humidifier integrated into the ductwork.
Don't skip that part. Your skin (and your wood furniture) will thank you.
Making the final call
Should you actually buy an electric furnace? It depends on three things: your climate, your electric rate, and your panel capacity.
If you're in a warm climate, it’s a no-brainer. Cheap to buy, cheap to fix.
If you’re in a cold climate and have no gas lines, look into a cold-climate heat pump first. They are three to four times more efficient than an electric furnace. Only use the electric furnace as a last resort or a backup.
Steps to take before buying:
- Check your electrical panel. Look for a main breaker that says 200A. If it says 100A, call an electrician before you call an HVAC guy. You aren't ready for electric heat yet.
- Calculate your "Balance Point." Ask an HVAC pro what your home's heat loss is. If you need 80,000 BTUs to stay warm, an electric furnace might require a literal industrial power feed.
- Audit your insulation. Every dollar spent on attic insulation is worth five dollars spent on a fancier furnace. Seal the leaks first.
- Compare the "Life Cycle Cost." Add the purchase price to 10 years of estimated electric bills. Compare that to a heat pump. Usually, the heat pump wins by year four, even if it costs twice as much to install.
- Look for rebates. Many states are phasing out pure electric resistance heat in favor of heat pumps. You might actually get a tax credit for not buying an electric furnace. Check the Database of State Incentives for Renewables & Efficiency (DSIRE) before you spend a dime.
Electric furnaces are simple, rugged, and honest. They don't pretend to be high-tech. They just get hot. Just make sure you’re ready for the bill when the North Wind starts blowing.