Generally, heat powered by electricity is cheaper than gas-powered heat. Electric heat is billed per kilowatt-hour and gas-powered heat is billed per therm. In most cases, electric heat billed per kilowatt-hour is much cheaper than gas-powered heat billed per therm.Know More
One of the reasons electric heat is typically cheaper than gas-powered heat is because there are several fuel sources to generate electricity, and those sources, generally, are cheaper than the sources that generate gas power. Some of those methods are coal, nuclear power, natural gas and landfill gas. Another reason why electric heat is cheaper than gas heat is because it's easier to regulate your bill with electric-powered heat. The number of kilowatt-hours used is determined by the length of time that you use electricity and the wattage of the device requiring the electricity. For example, a 40-watt light bulb uses 40 kilowatts per hour, but a 13-watt energy-saving light bulb would save 27 kilowatt-hours an hour. According to Georgia Power, an average kilowatt-hour rate is $0.05 per kilowatt-hour. Consumers could save $1.35 just by using an energy-saving bulb. Similarly, using energy-saving electric appliances and furnaces will help keep monthly electricity bills down.
Gas-powered heat, on the other hand, is billed according to how many therms are used, and the only way to regulate therm usage is to use gas-powered heat less frequently. Therm rates tend to be higher than kilowatt-hour rates. Also, therm rates vary depending on the rate offered by the gas company. For instance, a therm rate could be anywhere between $0.50 to $0.75 per therm. Most companies allow its customers to lock in a rate for a year. Not locking in a therm rate usually means the rate will fluctuate each month.Learn more about Household Budgets
When compared to gas furnaces, electric home heating systems have cheaper up-front costs, are easier to install and run more quietly, but they also are less energy efficient and heat less effectively in cold climates. Electric furnaces also have a longer lifespan than gas furnaces.Full Answer >
Propane is considered a cheaper and more efficient option than electric heat based on the measurement of the heating value of a fuel called the British thermal unit. The national fuel prices provided by the U.S. Department of Energy reveal that propane costs around half the price of electricity.Full Answer >
In 2011, the average residential energy bill was $110.14. The average household energy usage was 940 kilowatt-hours. The state with the highest electricity prices was Hawaii, and the state with the lowest prices was Idaho.Full Answer >
To compare available electricity rates, go to websites such as Energyshop and Electric Choice to compare different electricity rates and service providers in your area. On the Energyshop website, enter your postal or zip code, and choose natural gas, electricity price or dual fuel price comparisons.Full Answer >