Lasereth

Ok I've been looking for an answer all over the Internet and IRL and nobody can give me a straight answer.

I'm building a house soon and we can either get Natural Gas to heat the house and the water or we can get electricity. Electricity costs $1200 more up front to be installed.

If I were to set two houses at 70F for a year, one with natural gas and one with electricity, which one will be cheaper???

I've heard answers ranging from "it depends on how hot the house is" to "depends on the economy" to "depends on how you like the quality of your heat."

Cut the bullshit, which one is cheaper on a monthly/yearly basis.

I live in North Carolina. Thanks!

The_Jazz

Well, electricity is relatively cheap in North Carolina because of all the hyrdo-electric power in the region. That's going to help you. The real problem is that natural gas has volitile pricing - it increases and decreases based on supply and demand. Electricity, especially hydro-electric power, is much more even.

The question you're asking is a lot like asking which is a cheaper car to run - gas or diesel. It depends on a lot of things.

Personally, I say go with the gas because then you can get a tankless waterheater, which only heats the water you need when you need it. A traditional one keeps water hot constantly, which is much more expensive. You'll also be able to cook with gas, which is faster and easier to use, IMO.

There's no one single answer here, unfortunately.

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vanblah

The "quality of your heat." Seriously? Hot air=hot air no matter how you heat it. Some systems can be different such as radiant vs. forced air ... but I have no idea what "quality of your heat," is supposed to mean.

As far as the economy goes ... that's no bullshit. It really does depend on the economy. Right now natural gas prices are rising. Ten years ago it was much, much cheaper in Memphis to use natural gas to heat your house rather than electricity. It's about the same either way now ... regardless of how "hot your house is."

The best thing you can do is put in the most efficient system you can afford ... either gas or electric ... to minimize the amount of time the system needs to run to achieve and MAINTAIN the desired temperature.

If you really want to know, you'll have to find out what the price per unit is for each: electricity and natural gas. Only the utility company can tell you that (it's probably on your bill). The cost varies from month to month and year to year so you'll need historical data and then you'll have to average it out.

Then find out how many units it will take for each system to reach and maintain your desired temperature (70F) ... the manufacturer can tell you that (but it will be based on sq. ft and insulation factors; so you'll need that info).

Nimetic

Interesting. Gas is much much cheaper in AU.

Electricity is an interesting one though - in that there's potentially scope for "off-peak pricing". You might check with your supplier to see if they have that.

Also.. .while on the topic of heat, since you are building a new house, have you checked the sun angle/direction charts for your area? Designing to catch the existing heat in winter should help. In the US, I guess that means main windows should be on the south - and you'd want a slight overhang to block summertime sun.

You probably know all that of course.

eribrav

As noted above, there isn't going to be an easy answer.

I can show you two houses within 5 miles of each other, both in my town, and the answer is different for each.
One house (mine) buys electric from a depression era cooperative. We get at-cost hydropower and don't pay a bunch of tax surcharges that others in the area pay. But the co-op isn't available to everyone, only those building in its currently defined territory.
My electric bill is really cheap. We already heat with oil, but if we had to heat with electric it wouldn't be expensive.

House 2 miles away, on the regular utility grid, in this part of upstate NY? You'd have to take a second mortgage to heat with electric.

So you're going to need to do some digging for facts on your specific area and situation. Good luck and enjoy your new home.

snowy

I prefer gas heat/water/stove myself. Here in Oregon the price different is negligible. It seems like gas water heaters heat faster, and I definitely prefer cooking on a gas stovetop, as it is easier to control the heat.

But if you want a real answer, I fear you are going to have to crunch some numbers. Furthermore, what is the difference in efficiency between the gas furnace and the electric furnace? Both furnaces should have an average cost to operate that is easy to find, and comparing those numbers should give you a better idea as to which is going to be more cost-effective over time.

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girldetective

There is a quality of heat, in its impact on daily living. It sometimes has a different distribution system and can impact the cleanliness of the air you breath. In my first home I had oil heat with gravity distribution. It was very quiet, but there was always what seemed to be almost an oily film that would accumulate on things that sat for a long time, you know like top shelf items. In my other home I had natural gas and it was not noticeable at all. It was distributed with a very quiet, almost soothing fan and I noticed no dust or odor. In the my current apartment I have baseboard electric heat. I find it is hard to keep a consistently comfortable temp, and I notice that the walls turn a bit gray right near the source. With natural gas you also would have the option of flame cooking. If you could afford it you could look into a source that could generate some of your own to sell back. Unfortunately though as of right now it would take a long time to earn back you investment.

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ASU2003

You may also want to look into geothermal, but it might not make as much sense in NC as it would in Michigan.

The question becomes, which will be cheaper during the life of the furnace.
Which furnaces last longer? What would be the increased cost of running both gas lines and electric to your furnace so if natural gas goes up by 500% you could switch easily.

I had an electric water heater at my old apartment, and now have natural gas heat, water heater and stove. So this summer when I'm not using the heat, I will see how much it really costs to run a water heater and if electric was cheaper or not.

My heating bills would be about $140-$150 using natural gas furnace & water heater for 1 month in a 1600 sq. foot house with average insulation in Ohio. Is there anybody using electric that could give a comparison on how much it is per month?

(It is better than my co-worker that goes through 150 gallons of heating oil @ ~$3 gallon each month)

ngdawg

Usually it is somewhat cheaper to go with gas. I would go one step further and look into solar panels or at least passive solar. Like Snowy, I prefer gas for cooking and the dryer as well as the hot water-running all those on strictly electric might get pricey.
If your house is very well insulated and with passive solar, the cost of gas will be a lot less.
Surely you have some friends and family with utility bills-discuss their costs, see what their unit pricing is.

stevie667

You'll have to take a look at historical records to find the best in your local area, or ask around your neighbours.

As had been said before, natural gas is far more volatile in pricing, especially in current markets. It's not as bad in the states, but over here it really dives and turns depending on how much of a bitch russia fancies being on any given day.

The best solution is to insulate the crap out of your house, anything and everything. For his surverying degree thesis my dad did a study on the viability of renewable energy sources (e.g. wind/wave/solar) and found that it is was cheaper, easier and would impart more long energy and cost savings just to insulate houses and other buildings more effectivly.

Last time he did an update (i.e. had to look into it for a building project) the same idea still stood.

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thingstodo

From years of experience I can say that gas heat seems to feel warmer. It has a lot to do with humidity. Gas burning releases a certain amount of moisture where electric heating elements or heat produced from the reverse process of AC (aka, heat pump) dries out the air. Sure, you can add a humidifier but it just isn't the same. Of course, it's great if you like dry skin and to be shocked every time you walk around and then touch something!!

Other benefits of gas include cooking. there's nothing like the immediate change when you turn the knob on a gas range. You want it hot, it's there; not hot - bam. Electric stoves take time to heat and cool.

We have gas everything - stove, oven, heat, water heater and dryer. Lights, a well pump and AC are the only major electric items we use. I have a 5,000 sq. ft. home and our budget monthly payment for electric is $120 while gas is $145. So, year round, I'm paying $265/month. Did I mention I live in Michigan? I also keep my AC on 75 during the day and 72 at night. the heat runs 63 at night and anywhere from 67 to 70 during the day. It varies because I use a programable thermostat. That's something I suggest for everyone. For example, the heat starts up 30 minutes before we get up in the am so things feel real nice when we toss the covers.

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snowy

A side note: this makes it easier to get out of bed in the morning. I second the programmable thermostat; it's one of the things I greatly miss about living with my folks. Baseboard heating just does not compare to a central furnace with a real thermostat; getting up half an hour before the alarm to turn the heat on is a drag (though I do it on cold mornings).

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Baraka_Guru

When focusing on heating alone (i.e. furnaces), gas tends to be cheaper than electric, but, as suggested, crunch the numbers. Shop around for high-quality units.

My dad has been a "furnace man" (including being considered an oil-burning mechanic amongst other things) since he was 17 (he's now 62) and he's always frowned on electric heat. (He's a bit of a miser, having raised 6 kids with many years on one income as a working-class man.) Then again, oil prices aren't what they used to be. But bear in mind that in the '70s and early '80s, oil prices in real dollars were higher than in recent years. My family grew up during these years, and even then he was frowning on electric heat.

Your answers might lie in the furnaces themselves. Oil furnaces have a different standard of efficiency than do electric. I'd wager a top-of-the-line oil furnace with top efficiency standards would run you cheaper in the long run than would an electric furnace.

But also consider that electric furnaces are safer. No having to worry about cracks and leaks--carbon monoxide and all that. Gas furnaces should be serviced at least once a year.

But, as I'm sure you're tired of reading by now, crunch the numbers.

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thingstodo

Electric heat pumps and AC units should be serviced yearly as well! You still need to keep the freon/freon substitute charged up and the unit balanced if nothing else.

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Lasereth

We paid extra and got the Electric heat pump (the high quality one). Heard too many people in my area complain about fluctuating natural gas prices so we didn't take the risk.

lotsofmagnets

i´d have to check price differentials but in melbs au my house was gas wherever possible (heating, hot water, cooking) and the gas bill was always ridiculously cheap. electricity was only used for lighting and appliances and i always was mindful of lights (low wattage where possible) and never left anything on for a long period of time and the electricity bill was always my highest bill. my parents´ house is in an area where natural gas is unavailable and thus everything is done via electricity and their electricity bill is always sky high, ie 4-5 times what my combined electricity-gas bill was. guess the est thing to do is check the price difference and see if you can find historical data and see what the trend is. actually, the best person to answer the OP is someone who knows in the local area.

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Hain

All my points have been stated all ready: gas is more efficient from a thermodynamic/scientific/practical standpoint and the cost of gas will fluctuate.

North Carolina gets a lot of sun no?

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Leto

Well, I'm a gas man. I actually work at the largest natural gas company in Canada, and the oldest in North America. I take my gas seriously.

In our franchise area, gas service has been continuous for 160 years (this year) and subsequently the service infrastructure is well established and understood. It is by far the cheaper alternative for home & water heating. Price volatility is a scare tactic. There are a lot of energy re-sellers that offer bundles and contracts over a period of years which are almost never worth it.

I have never left system gas, and currently pay about 28 cents per cubic metre. The resellers have people locked into contracts for 35 to 40 cents /cm for several years banking on the fear that gas prices will sky rocket.

The thing is the prices are regulated through the energy board, and subsequently do not fluctuate without a rate case argument brought before the board.

Electricity, however, is poised to increase in price. The current 4.3 cent / KwH is a low base, which will change once the energy board approves the stepped rating application by the Hydro companies as they have implemented a smart metre programme. They will be looking for coverage of the cost of the metre through rates as well.

In the end, gas is closer to the pipe. electricity is often produced using gas. and is subsequently more expensive.

Local conditions may vary as well (temperature, degree days, rates, metre types, usage etc)

I love that gas also provides me with great cooking (the oven, stove, bbq) and faster/cheaper hot water. On the equal billing programme, I pay about $120/month for gas, and usually in August, there is no payment. this is considering the cold winter up here too.

MiSo

i've had gas heaters before in the last apartment i lived in.

NEVER AGAIN!!!!!!

it is cheaper to use electricity for heat and water.
going from 1 apartment to another, i was paying about $30 more a month to have gas. mind you, this is a one bedroom apartment.. in a house, it would be worse.

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