Electric furnace cost and how to estimate running costs

The purchase price is low because an electric furnace is a simple machine: a cabinet, a blower, a set of heating elements and the controls that switch them on in stages. There is no burner, heat exchanger, gas valve or vent pipe.

For how this compares with other fuels across a full replacement, see furnace replacement cost.

• Heating capacity. Electric furnaces are rated in kilowatts. A bigger or leakier house needs more kilowatts, which means a larger unit.
• Electrical work. This is the item that surprises people. A larger furnace may need a new dedicated circuit, heavier wire or a panel upgrade. If your home was heated with gas before, expect electrical work on the quote.
• Blower type. A variable-speed blower costs more than a single-speed one and runs more quietly.
• Ducts. The furnace reuses your existing ducts. Leaks and poor insulation matter more with electric heat because every lost bit of warmth was paid for at the electric rate.
• Access and removal. A tight closet, attic or crawlspace adds labor, and so does removing an old gas furnace and capping the gas line.

An electric furnace turns nearly all the electricity it uses into heat, so it is efficient at the unit. The cost problem is the price of electricity compared with gas for the same amount of heat. In much of the country, heating with resistance electricity costs more per season than heating with gas.

To estimate your own cost, look at three things: the kilowatt rating on the furnace nameplate, the rate per kilowatt-hour on your electric bill, and how many hours the furnace runs in a cold month. Your utility's bill history is the most honest guide if the home already has electric heat.

No sourced figure for typical annual running cost is shown here, because it varies too much with climate and electric rates to state one number responsibly.

It fits a home with no gas service, a mild winter climate, or a small and well-insulated space where the heating load is low. It also works as the backup heat inside a heat pump system.

If you heat for many months, ask for a heat pump quote alongside the electric furnace quote. A heat pump moves heat instead of generating it and uses less electricity for the same warmth in most conditions. The upfront price is higher, so compare the two over the years you expect to stay in the house. The other HVAC cost guides cover those systems.

• The exact model numbers and capacity of the equipment or part being installed.
• Labor, materials and refrigerant listed as separate lines.
• Permit and inspection fees, and who pulls the permit.
• Removal and disposal of the old equipment.
• The parts warranty and the labor warranty, each with its length in writing.

For an electric furnace, also check that the quote states the kilowatt rating, the circuit and breaker size required, and whether any panel or wiring upgrade is included in the price.