2023 Electric Furnace Installation, Prices, Options

There are various heating system options on the market, including gas furnaces, boilers, and heat pumps.

However, the electric furnace is becoming increasingly popular because of its energy efficiency, fuel availability, and minimal maintenance needs.

Electric furnaces also last longer than other options, making them a viable investment for many owners.

To get started on installing a new furnace, contact your local HVAC pros for FREE ESTIMATES!

What Is An Electric Furnace?

Electric furnaces work similarly to gas furnaces. But instead of gas, they use electricity to generate heat.

They’re typically thermostatically controlled. Once the indoor temperature drops, the electric furnace automatically starts.

The thermostat will detect when the home is warmed up, and the furnace will switch off until it gets cold again.

Around 40% of homeowners in the U.S. use electricity to heat their homes, out of which 10% to 15% use electric furnaces as their primary heat source.

However, more and more homeowners are switching to this environmentally friendly heating system.

How Much Does An Electric Furnace Cost?

Electric furnace units can cost as much as $ 3,230, but they can be as pricy as $7,220.

Installing an entry-level electric furnace can cost between $3,230 and $4,700.

Mid-range electric furnaces have an average price range of $4,085 to $6,222.

As you may expect, high-end electric furnaces are much pricier than the previous two categories. You can expect to pay between $5,937 and $7,220 to install a high-end electric furnace in your home.

Note that these prices don’t include installation fees.

Electric furnace	Price Range
Entry-level electric furnace	$3,230 to $4,700
Mid-level electric furnace	$4,085 to $6,222
High-end electric furnace	$5,937 to $7,220

Did you know? Many homeowners avoid installing electric furnaces because of the cost. However, buying and installing an electric furnace actually costs less than a gas one. The ongoing expenses make an electric furnace more expensive in the long run.

Electric Furnace Cost Breakdown

The cost of an electric furnace installation depends on the unit’s size, your home’s size, and the installation’s complexity.

In addition, the location of the system and any installation modifications can cause the price to fluctuate.

Before getting an electric furnace, you should ask the furnace company about any additional fees, equipment costs, and labor costs and if they’re included in the overall price.

Whether or not they’re included in the total prices varies from company to company.

Installing an electric furnace can cost $1,000 to $2,000, depending on the installation’s complexity and the unit’s size.

When it comes to your electricity bills, they will depend on the season, the size of your home, and your home’s heating needs.

The average price of a kilowatt-hour is $0.1319, and if we were to say that there are 720 hours of heating during one season, the electricity cost would be $1,500 to $2,000 per season.

Keep in mind that electricity costs vary from state to state.

Additional Costs	Price Range
Installation cost	$1,000 to $2,000
Electricity bill per season	$1,500 to $2,000

Why An Electric Furnace Is Used

Electric furnaces are used for heating purposes, just like other types of heating systems.

Sometimes, homeowners choose their heating system based on the current fuel availability.

Some homes might not have the piping infrastructure for natural gas, especially in the countryside.

If this is the case, oil, propane, and electric furnaces are the remaining options.

While there are many advantages to using oil and propane furnaces, both of these heating solutions require fuel storage tanks. Not only are they expensive to install, but to maintain as well.

Other than fuel availability, homeowners use electric furnaces to minimize upfront costs.

Additionally, electric furnaces are easier to install than their gas, oil, and propane counterparts.

Electric Furnace Parts And Features

An electric furnace includes electrically-resistant wires, heat relays, a plenum, the power relay, the electrical transformer, filters, return air ducts, the blower fan, sequencers, and the thermostat.

As you can see, an electric furnace is made up of many bits and pieces, which are all equally important.

The furnace’s heat coils are typically thick wires or bands that transmit heat toward the blower.

Air filters are installed to prevent airborne debris from entering the ducts and must be replaced every few months.

One of the most important elements of an electric furnace is the thermostat, which controls the temperature settings and turns the furnace on and off.

What Is The Most Efficient Electric Furnace?

The type of electric furnace you choose should meet your home’s heating requirements and stay within your budget.

For instance, an entry-level furnace might be the best option if you’re on a tight budget and looking to sell your home in the future.

If you’re looking for an electric furnace to reduce energy bills, you might want to install a mid-range electric furnace with a multi-speed blower motor.

Of course, the most efficient electric furnaces are the high-end ones.

If you have the budget for it, there are many reasons why you should invest in a high-end electric furnace. Not only do they guarantee energy efficiency, but they also come with various customizable settings, and they operate at a higher capacity.

How To Install An Electric Furnace

Installing an electric furnace is no DIY project, and it should be strictly handled by professionals.

Certified HVAC technicians will know where to install it in your house and set up the system quickly and efficiently.

Installing an electric furnace also requires wiring, which is another reason to leave it to professionals who know what they’re doing.

Pro Tip: Before installing an electric furnace, you should hire an electrician to ensure your home’s main electrical system can support an electric furnace. Doing this is especially important if you live in an older home.

HVAC technicians can also advise on what size and type of electric furnace are best for your home.

How To Clean An Electric Furnace

It’s good practice to clean your electric furnace before the start of every heating season.

When you’re cleaning the unit, make sure it’s turned off.

Use a vacuum cleaner for the dust, dirt, and debris inside the furnace.

Another option is to schedule a maintenance check and have the unit inspected for damage, loose wires, broken parts, etc.

One of the best things about electric furnaces is that they require little maintenance, which isn’t the case with gas and oil furnaces.

With an electric furnace, you would only need to replace the filters once every few months. The fan motors and heating elements rarely need replacing.

How Long Does An Electric Furnace Last?

Most electric furnaces last 20 to 25 years, but if you invest in a high-quality model and maintain it properly, it can last up to 30 years.

Unlike gas furnaces, which can last up to 15 to 20 years, installing an electric furnace can be a much better investment.

Can An Electric Furnace Explode?

Modern electric furnaces are much safer than gas ones, especially if the gas unit is outdated.

Technically, an electric furnace can’t explode like a gas furnace, which can leak fuel and carbon monoxide.

On the other hand, since the unit has many electric wires, an electric furnace fire is a possibility.

Regular maintenance is essential to prevent this from happening.

We also recommend getting the electric furnace installed by licensed HVAC technicians.

In addition, homeowners should have their furnaces inspected once a year. Doing this can reveal any malfunctioning parts or frayed and loose wiring.

Another step a homeowner can take to avoid an electrical fire is regularly changing the air filters. Clogged air filters can be a safety hazard.

Did you know? Even though an electric furnace can start a fire, the chances of this happening are improbable. Modern electrical units have many safety features that decrease fire risk.

Are Electric Furnaces Expensive To Run?

Electric furnaces are some of the most expensive heating systems to run.

In many regions, electricity costs more than gas. In fact, your energy bills can be three times as expensive if you opt for an electric furnace.

But it’s also one of the most efficient heating systems.

In addition, if you invest in a high-quality energy-efficient electric furnace, you won’t be spending so much on energy bills.

What Are The Three Advantages Of An Electric Furnace?

Electric furnaces come with numerous advantages, but the three main ones are safety, convenience, and durability.

Homeowners who install an electric furnace don’t have to think about carbon monoxide poisoning and toxic gas leaks. That’s because electric furnaces don’t generate harmful gases and are generally safe to use.

Not only does this factor make electric furnaces more environmentally friendly, but it also allows for easier installation.

Unlike complicated gas furnace units, which are larger and have more components, electric furnaces are much easier to install and maintain. You only need to clean them and change the air filters before the heating season starts.

What’s more, it costs less to install an electric furnace than a gas furnace or any other heating system.

Lastly, electric furnaces are more durable than other types of heating systems. They can last for 20 to 30 years as long as they’re properly maintained.

In comparison, gas, propane, and oil furnaces all have a maximum lifespan of 20 years.

Who Makes Electric Furnaces?

HVAC companies manufacture electric furnaces.

High-quality electric furnaces are produced by Trane, Goodman, Carrier, American Standard, Lennox, King, Winchester, and Daikin.

You can find electric furnaces with varying voltage capacities if you choose any of these HVAC brands.

Note that their installation costs and warranties also vary.

Electric Furnace vs Gas

When installing a heating system, homeowners usually choose between gas and electric furnaces.

The majority of U.S. homes use gas furnaces because they’re more cost-effective. In fact, the overall cost of running an electric furnace can be three times more expensive than a gas furnace.

Gas furnaces use natural gas, which flows through the furnace’s burners and distributes evenly through the house.

Since they’re more effective, gas furnaces are a better option for large homes in areas where winters can get quite cold.

While gas furnaces might be less expensive to operate, installing them isn’t cheap, which isn’t the case with electric furnaces.

In addition, electric furnaces require less maintenance than gas furnaces.

Electric furnaces are also more silent than their gas-burning counterparts.

Electric Furnace vs Heat Pump

Electric furnaces and heat pumps are similar in many aspects.

For instance, both units run on electricity and don’t generate harmful emissions.

Heat pumps can either use the outside air as the heat source (like an air conditioner) or get their heat from underground. The second type of heat pump is also known as a geothermal heat pump.

Heat pumps are a popular choice because they can warm the home in winter and cool it in summer.

On the other hand, electric furnaces are more durable than heat pumps.

Heat pumps work better for homes in moderate climates. But, if you live in an area where temperatures drop below zero in winter, installing an electric furnace is a better solution.

Pro Tip: If you live in a cold climate, heating a home with electricity can be expensive. That’s why many homeowners combine electric furnaces with heat pumps. Keep in mind that the heat pump and the electric furnace must be compatible.

Electric Furnace vs Propane

Propane furnaces use propane gas to generate heat.

They’re not as popular as natural gas furnaces, and they’re commonly used for heat backups during power outages.

In fact, only 5% of homes in the U.S. use propane furnaces as their primary heat source.

Aside from propane furnaces, you can install propane gas water heaters, fireplaces, cooktops, and ovens.

These furnaces require fuel storage tanks, which can be pricy to install and maintain.

However, in the long run, it costs more to run an electric furnace.

Propane is warmer than electric furnaces and can heat the room faster.

Keep in mind that electric furnaces last much longer than propane furnaces, which only last for 10 to 20 years.

Electric Furnace vs Oil Furnace

Oil furnaces combine the oil with air, which is burned inside the furnace, and then vented through flue pipes.

They’re usually a good alternative for natural gas furnaces in rural areas.

Since oil furnaces heat up faster and can generate higher temperatures, they’re a better option for colder climates.

They also require regular maintenance due to the dirt and soot buildup.

Also, installing an oil furnace costs more than an electric furnace, and just like propane furnaces, oil furnaces are installed together with fuel storage tanks, which cost an additional $2,000.

Similarly to other gas-burning furnaces, oil furnaces have a maximum lifespan of 20 years, while electric furnaces can last up to 30 years.

Electric Furnace vs Space Heater

Electric space heaters offer direct heat.

They’re portable, plug-in heaters that are usually inexpensive (compared to indirect heating systems).

Homeowners usually buy space heaters when they want to reduce energy bills.

As convenient and affordable as they may be, space heaters can usually warm up only one room.

So, if you’re looking for a long-term solution for your home’s heating needs, electric furnaces are a much better option because they cover more area.

Installing an electric furnace is also a long-term investment, whereas space heaters are typically a short-term solution.

Electric Furnace vs Handler

Air handlers are typically installed together with heat pumps.

They’re used to deliver warm or cool air inside your home, and they’re usually installed in your attic or basement.

Since an air handler technically doesn’t produce heat but moves it from another source, it can’t be installed on its own.

You’d need to install a heat pump first, if you don’t have one, before using an air handler.

Electric Furnace vs Mini-Split

Ductless mini-split systems deliver heat room-by-room so that you can control the temperature of each room.

It’s a great solution when you own a large house and only want to heat a few rooms.

Not only is a mini-split system more energy-efficient, but it can also reduce your energy bills.

Mini split systems can also be more convenient because they can cool your home in summer.

On the other hand, ductless mini-split systems are more expensive to install than electric furnaces.

Moreover, an average mini-split system can last for 10 to 15 years, half as much as a good electric furnace.

Is An Electric Furnace A Good Idea?

In some cases, installing an electric furnace would pay off more than alternative heating systems.

For example, electric systems are a good investment if you live in an area that doesn’t get very cold throughout the year or lacks natural gas infrastructure.

You won’t need to use your electric furnace as much, so you’ll be able to save on energy in the long run.

Pro Tip: If you live in a smaller house, installing an electric furnace rather than a gas furnace makes more sense.

Provide Maximum Warmth For Your Home

More and more homeowners are interested in installing electric furnaces in their homes.

Not only are they safer, more convenient, and long-lasting than other types of heating systems, but they can provide you with better energy efficiency.

If your home meets the requirements for an electric furnace, it would be an excellent investment.