Most homeowners don’t shop for a new furnace unless the old one’s failing or dead. When that happens, one of the first questions to answer is what kind of system to install next and whether it makes sense to stick with gas or consider going electric.
Both types will heat your home, so what matters is how they’ll perform for your family during our cold Midwest winters, and how much it’ll cost to run it.
Here’s what to know before you replace what’s already in place.
Start with Your Current Setup
Homes with an existing gas line and venting already have the hard part done. Replacing a gas furnace with another gas model usually takes less time, less cost, and fewer modifications. It’s a straight swap, and most local homes are built for it.
Electric systems are more common in areas without gas service or homes built to run entirely on electricity. These setups typically have upgraded electrical panels and high-voltage breakers dedicated to the furnace. A direct replacement is simple, but switching from electric to gas takes more planning and often more budget.
Gas vs. Electric Furnace: How They Heat the Air
A gas furnace typically works by burning natural gas, although some rural homes use propane. When the thermostat signals that the house needs heat, the system opens a valve and sends gas to the burner. The flame then heats a metal component called the heat exchanger. Once it reaches the right temperature, a blower kicks on and moves air over that heated surface. The warm air then travels through the ductwork and out into your living space. The process happens quickly, which is one reason gas systems are known for strong, fast heat.
Electric furnaces don’t burn fuel. Instead, they rely on electric resistance coils. When voltage passes through the coils, they heat up—similar to the inside of a toaster. A blower moves air across the coils and into the home.
Both systems use ductwork and fans. What’s different is how fast they respond, how hot the air gets, and how much they cost to run.
Gas vs. Electric Furnace: Performance in Cold Weather
Minnesota winters put every part of your heating system to the test, particularly how quickly the system can recover after the home cools down.
Recovery, in this case, means how fast the furnace can raise the temperature when the thermostat calls for heat again. That might happen when you set your programmable thermostat down a few degrees overnight or any time the home loses heat quickly, like during a cold snap or when someone leaves a door open.
Gas furnaces produce hotter air and can reach higher target temperatures without running continuously. That quick recovery helps keep the house comfortable during extended periods of extreme cold, especially in larger or older homes that lose heat more easily.
Electric systems can maintain heat, but bringing a home back to temperature takes longer. That’s why you’ll usually find them in smaller, well-insulated houses that do a better job of stopping warm air from leaking outdoors.
Gas vs. Electric Furnace: Efficiency and Operating Cost
Electric furnaces are technically the most efficient on paper. Nearly all the electricity they use turns into heat—there’s no combustion and nothing lost through a vent. Gas furnaces, even high-efficiency models, lose a small percentage of energy during the heating process, though many still reach over 95% efficiency.
That sounds like a win for electric systems, but it doesn’t always play out that way on your utility bill.
In Minnesota, electricity costs an average of 17.7 cents per kilowatt-hour, while natural gas runs closer to $1.11 per therm. Since it takes about 29 kilowatt-hours to produce the same amount of heat as a single therm, the math favors gas: you’d pay around $5 to generate the same heat with electricity that costs just over a dollar with gas.
Gas vs. Electric Furnace: Installation Cost and Complexity
Electric furnaces tend to be more affordable on the front end. Without the need for gas lines or exhaust venting, installation is simpler and takes less time. The equipment itself is often less expensive, and the reduced labor makes it a practical option for homes already built to handle electric heat.
Gas furnaces, especially high-efficiency models, do come with a higher price tag. They require careful venting and safe fuel connections, which adds to the complexity. That said, in homes with an existing gas supply and properly sized flue, the extra cost is usually modest. Over time, lower heating bills often make up the difference.
Gas vs. Electric Furnace: Maintenance and Lifespan
Gas systems need annual service. That includes checking burners, flame sensors, heat exchangers, and venting. These parts wear over time, and combustion adds carbon monoxide risk if something fails.
Electric systems are lower maintenance. There’s no flame, no venting, and fewer failure points. The downside is that when something does break—like a heating element or control board—it tends to cost more to replace, and fewer HVAC companies keep those parts in stock during peak season.
Choosing the Right One
There’s no universal answer, but there is a correct answer for your house.
- Gas is the better long-term value for most homes, especially ones already set up for it.
- Electric may make sense in smaller, tightly sealed homes or when sticking with an existing electric setup that performs well.
Want to Be Sure?
Making a smart furnace replacement decision is hard without knowing how the whole system works together, so you’ll want to have a tech on hand to help you through the process.
Give Schwantes a call, and we’ll walk you through the best options so your next furnace is a better fit than the last.
