Gas vs. Electric Furnaces in Colorado: A Cost & Efficiency Comparison
As crisp autumn evenings give way to the first winter cold snaps of the year, your family cannot afford to have an unreliable furnace. When it is time to replace your unit, the biggest choice is between getting a gas furnace vs. an electric furnace in Colorado. To help with this decision, this guide reviews the costs, performance, and long-term value of both options.
For a professional evaluation and furnace installation in and around Fort Collins, reach out to Balance Point Heating, Cooling & Plumbing today.
Quick Safety Note: Your furnace replacement should only be handled by certified HVAC technicians. Gas furnaces must be properly vented, and gas line connections must be installed correctly. Otherwise, your furnace may develop a carbon monoxide (CO) leak. Electric furnaces involve significant amounts of electricity, so they must be handled by a professional as well. Never install a furnace on your own. Getting this part right is what lets you stop thinking about the system, which is most of the peace of mind a new furnace should buy you.
The Upfront Cost: Installation
When getting a furnace, the first thing to consider is the installation cost. Depending on the energy type, the furnace replacement cost in Fort Collins and Larimer County can vary.
Gas Furnace
A gas furnace installation is naturally more complex because it involves connecting natural gas lines and setting up venting. On high-efficiency models, you also need condensation lines. Thanks to all of the added complexity, labor, and components, the upfront price for a gas furnace will typically be higher than the cost of an electric furnace.
Electric Furnace
In comparison, an electric furnace does not need a fuel line or venting. You can think of it like an incredibly powerful hair dryer. It just needs to be plugged into a high-amperage circuit, and it can begin blowing warm air into your home. Because of the more affordable equipment and simpler installation, electric furnaces have a lower upfront cost.
What Actually Moves the Installation Price
The headline difference is less useful than knowing which conditions in your own home push either option up. These are the factors that change a quote most:
| Drives a gas install up | Drives an electric install up |
|---|---|
| No existing gas line to the house or to the furnace location | Electrical panel at or near capacity |
| Venting that has to be rerouted or replaced for a high-efficiency model | A new high-amperage circuit and heavier gauge wiring |
| Condensate drainage where none exists | A service upgrade if the panel cannot carry the load |
| Combustion air supply in a tight or finished basement | Distance from the panel to the air handler |
A home in Old Town with a gas line already at the furnace is a different job from a new build with no gas service at all, and the gap between those two quotes is usually larger than the equipment difference between the two furnace types.
The Long-Term Cost: Monthly Bills
Another major factor in the heating cost comparison is the cost of gas vs. electric heat. Depending on which furnace you choose and the local utility rates, your monthly utility bills will vary.
Gas Furnace
In Northern Colorado, natural gas tends to be cheaper per unit of energy (BTU). Plus, modern, energy-efficient gas furnaces have 95% AFUE or more, so almost all of the gas is turned into heat. As a result, gas furnaces typically have lower monthly costs than electric furnaces.
Electric Furnace
While electric resistance furnaces are 100% efficient at turning energy into heat, they still typically have higher monthly bills than gas furnaces. The cost to run an electric furnace in winter is higher because the price of a kilowatt-hour (kWh) is higher than the equivalent amount of energy from natural gas.
How To Work It Out on Your Own Bill
Efficiency ratings mislead people because the less efficient option is usually the cheaper one to run. A 95% AFUE gas furnace wastes 5% of what it burns, and an electric furnace wastes almost nothing, and the gas furnace still costs less per month. What decides it is not efficiency; it is the price of delivered heat.
You can work that out from your own Xcel bill in a couple of minutes:
- Find your gas rate per therm and your electricity rate per kilowatt-hour. Both appear on the bill, and the rate depends on whether you are on the flat residential rate or time-of-use.
- One therm is 100,000 BTU. Multiply your per-therm rate by your furnace’s AFUE, expressed as a decimal, to get what 100,000 BTU of delivered heat actually costs. A 95% furnace at a given therm rate delivers 95,000 usable BTU per therm.
- One kilowatt-hour is 3,412 BTU, and resistance heat delivers all of it essentially. So 100,000 BTU of electric heat takes about 29.3 kWh. Multiply that by your per-kWh rate.
- Compare the two figures. That is your real cost gap per unit of heat, at your rates, on your tariff.
Do it with your current rates rather than a figure from an article. Xcel rates in Colorado change quarterly through fuel cost adjustments, and there are live rate cases on both fuels, so any number published today is a snapshot. If you would rather not do the arithmetic, bring us your last two bills, and we will run it alongside a load calculation.
Performance & Comfort on a Cold Night
When sub-zero nights arrive along the Front Range, you need a furnace that will keep you warm. While both furnace types provide consistent heat, one of them stands out as the clear winner.
Gas Furnace
If you’re looking for a high-efficiency furnace in Colorado that provides hot, powerful heat, gas furnaces are the way to go. When sub-zero cold snaps arrive, these furnaces can quickly raise your indoor temperature.
Electric Furnace
In comparison, electric furnaces are known for creating a steady, consistent heat. While it can effectively warm your home, it may require longer cycles to match a gas furnace’s powerful performance.
Why the Fort Collins Climate Matters
When considering a gas vs. electric furnace in Colorado, you need to consider the climate. Because of high-altitude considerations, gas furnaces must be precisely tuned for the thinner air. Electric furnaces do not have the same requirement.
However, finding the best furnace for high altitude is only one consideration. Powerful gas furnaces are ideal for our dry climate and sudden, deep freezes. Often, older homes in Old Town already have gas lines set up, reducing the cost of a gas furnace installation in Fort Collins. The all-electric new builds in the Timnath/Windsor corridor are designed to use all-electric home heating, such as a heat pump or electric furnace.
Key Factors To Assess in Your Home
Besides looking at the electric versus natural gas furnace efficiency, the right answer depends on what is already in your home. Two houses on the same street can reach opposite conclusions, because one has a gas line at the furnace and the other has a panel with no spare capacity. Six things are worth checking before you ask anyone for a quote.
- Existing Gas Lines: If your home does not have an existing natural gas line, getting one installed can be expensive.
- Utility Bills: Check out your utility bills to review your current electricity and gas rates. The method above turns those two numbers into a direct comparison.
- Budget: Review your budget to see if you can spend more upfront on a gas furnace or if you need to get a budget-friendly electric installation.
- Solar Panels: If you plan on getting solar panels, these could offset the operational costs of an electric furnace.
- Sizing: Ask for a professional load calculation because the existing furnace may not be correctly sized.
- Professional Installation Services: Always make sure your furnace installation and heating repair service needs are handled by professionals to ensure your family’s safety.
On efficiency tiers specifically, our guide to choosing between an 80% and a 95% furnace covers the decision once you have settled on gas.
When To Call a Professional
If you are weighing a furnace replacement in Fort Collins, we can help. A new furnace is one of the largest investments you will make, which is why you need a professional HVAC technician to perform a detailed load calculation. We can determine the exact furnace capacity you need for a high level of energy efficiency and comfort. Then, we will give you a clear, itemized quote that covers all of the installation costs.
Future-Proofing Your Home: Heat Pumps & Dual-Fuel Systems
If you are considering a heat pump vs. a furnace in Colorado, we can help. Cold-climate heat pumps are incredibly energy efficient and reduce the amount you spend on energy costs. With dual-fuel systems in Colorado, you get the efficiency of a heat pump and the power of a gas furnace.
For the right home, a dual-fuel system is hard to beat. They deliver powerful heat on the coldest days of the year and energy-efficient performance during the rest of the time. The qualifier matters, though: dual-fuel needs existing gas service and enough electrical capacity to carry the heat pump, so it suits some Northern Colorado homes and not others. Our guide to how heat pumps perform in Fort Collins cold covers half of that question people worry about most.
Prepare Your Home for Winter
When choosing between gas vs. electric furnaces in Colorado, you have to decide if you want a gas furnace’s high upfront cost and low monthly bills or an electric furnace’s low upfront cost and higher monthly bills. Our team can evaluate your existing setup and help you make an informed decision. Through our convenient financing plans, we can also make getting a new installation as affordable as possible.
If you are considering a new furnace, you do not have to decide alone. Our certified HVAC technicians can help you find the right furnace in Fort Collins and across the Front Range.
Call today to request your estimate.
Frequently Asked Questions
Is a gas or electric furnace cheaper to run in Colorado?
Gas, in almost every case, because natural gas costs less per unit of delivered heat than electricity does at Northern Colorado rates. That holds even though an electric furnace converts nearly all its energy to heat and a gas furnace does not. The method above lets you confirm it against your own rates rather than taking it on faith.
Do electric furnaces work at altitude?
Yes, and without the adjustment a gas furnace needs. Combustion changes with air density, so a gas furnace at 5,000 feet has to be derated and tuned for elevation. Electric resistance heat has no combustion, so altitude does not affect its output. That is one of the few clear advantages on the electric side.
What is a dual-fuel system?
A heat pump paired with a gas furnace, switching between them based on outdoor temperature. The heat pump handles mild weather efficiently, and the furnace takes over when it gets cold enough that the heat pump loses its advantage. It needs both gas service and adequate electrical capacity, so it is not an option in every home.
Can I put an electric furnace in a home that has gas?
You can, but it rarely makes sense. If the gas line is already at the furnace, the main cost advantage of going electric has already been paid for, and you would be taking on higher monthly bills for no offsetting savings. A panel upgrade may also be needed. Worth a load calculation before deciding either way.
Service Request
"*" indicates required fields