If you’re building a new home or adding central heat to a house that hasn’t had it before, one of the first questions you’ll face is a big one: Should you choose a gas furnace or an electric furnace? Both types of heating equipment can keep your home warm and comfortable, but these are very different furnaces in how they’re installed and what they cost to operate.
In this blog from Thiele Heating & Air Conditioning, we’ll explain how gas and electric furnaces work and walk you through the key factors to consider when deciding between the two.
Comparing Electric and Gas Furnaces
When you compare an electric furnace vs. gas furnace installation, what you’re really looking at is how each system creates and moves heat through your home. Both are forced air heating systems, so they use ducts and fans to push heated air into your living spaces. The real difference comes in how they produce heat and what it takes to keep them running smoothly over time.
Heat Production
Gas Furnaces: Fast and Powerful Heating
A gas furnace generates heat through combustion. Natural gas flows into the furnace and ignites in the main burner, creating a controlled flame. That small flame heats up the heat exchanger, and a blower pushes air across it, turning the energy into warm air for your home. Because combustion delivers intense heat almost instantly, gas furnaces provide fast heating during sudden temperature drops. This makes them especially well-suited for our cold winters in Indiana.
Electric Furnaces: Steady and Consistent Warmth
An electric furnace creates heat using coils that become extremely hot when electricity passes through them. While an electric furnace doesn’t warm up the home as quickly as a gas model, it delivers consistent, even heating.
Installation Costs
Gas Furnaces: Higher Upfront Investment
The cost of a gas furnace installation is often higher because of what’s required. In addition to the furnace itself, your home needs a natural gas connection, proper gas lines, and a venting system to handle exhaust from the burning natural gas. If your home already has a gas supply, from an existing furnace, the added cost is manageable. But if a new gas line has to be installed, the upfront price can climb quickly, often landing in the $4,000 to $7,500 range.
Electric Furnaces: Simpler and More Affordable Setup
An electric furnace installation usually costs less upfront. Because there’s no need for a flue pipe or gas lines, the process is faster and easier. This makes electric models appealing for homes where gas service isn’t available, or for builders looking to reduce installation costs during construction. Most homeowners can expect installation to fall somewhere between $2,500 and $5,000, depending on the system size and electrical setup of the house.
Expected Lifespan
Gas Furnaces: 15–20 Years with Regular Maintenance
A gas furnace typically lasts 15 to 20 years, provided it receives regular maintenance. Over time, combustion can wear down components like the heat exchanger or blower motor. These parts may eventually need repair or replacement, but with consistent care, gas furnaces remain dependable for decades.
Electric Furnaces: 20–30 Years with Routine Service
An electric furnace often outlasts a gas model, with an expected lifetime of 20 to 30 years. Because electric systems have fewer moving parts and avoid combustion altogether, they don’t face as much wear and tear. Homeowners who want a less maintenance-heavy heating system may prefer an electric unit.
Energy Efficiency
Gas Furnaces: High AFUE Ratings and Lower Energy Costs
Modern natural gas furnaces are designed for efficiency. Many models achieve an Annual Fuel Utilization Efficiency (AFUE) of 90 percent or higher, meaning nearly all of the burning natural gas is converted into usable heat. Because natural gas prices are often lower than electricity in Indiana, a gas furnace not only uses energy effectively but also helps control monthly heating costs.
Electric Furnaces: 100% Efficient but Higher Operating Costs
An electric furnace uses more energy overall but is nearly perfect at converting that energy into heat. Every bit of electricity used goes directly into heat production, which makes these systems technically 100 percent efficient. The challenge comes from local energy prices. In many areas, including Central Indiana, electricity costs more than natural gas, which means running an electric furnace can lead to higher operating costs over the heating season.
Common Repairs
Gas Furnaces: Combustion-Related Issues
Because a gas furnace relies on burning fuel to create heat, many of its repairs are tied to that process. Over time, a pilot light may stop working, the ignition system can fail, or the heat exchanger can crack. These issues not only interrupt your heating but can also create safety concerns if left unaddressed.
Electric Furnaces: Electrical Component Failures
An electric furnace doesn’t deal with combustion, which means it avoids many of the complex problems that gas units face. Most issues involve worn-out heating elements, faulty wiring, or thermostat failures. While these breakdowns can still leave you without heat, they’re usually quicker and less expensive to repair. For homeowners who want fewer surprises, electric heating often means less stress when service is needed.
Maintenance Needs
Gas Furnaces: Annual Inspections to Stay Safe and Efficient
A gas furnace needs professional attention once a year to keep it running safely and efficiently. During a tune-up, technicians inspect the burners, check the small flame or ignition system, and make sure the venting is clear. With annual service, a gas unit uses less energy, reduces heating costs, and provides reliable comfort through the heating season.
Electric Furnaces: Yearly Service for a Consistent Performance
An electric furnace may not have flames or gas lines, but it still benefits from a yearly checkup. Maintenance usually includes cleaning the coils, tightening electrical connections, and replacing filters so the system stays energy efficient. While electric units require less maintenance than gas models, skipping service can shorten their expected lifetime and increase operating costs. A yearly tune-up keeps the system in top condition and ready for cold weather.
Safety Concerns
Gas Furnaces: Carbon Monoxide Risks with Combustion
A gas furnace is safe when properly installed and maintained, but because it relies on burning natural gas, there are hazards to watch for. A cracked heat exchanger or a leak in the gas lines can release carbon monoxide into your living spaces. That’s why professional inspections and CO detectors are essential for households with gas models.
Electric Furnaces: Overheating and Electrical Fire Risks
An electric furnace avoids combustion altogether, so there’s no chance of a gas leak or carbon monoxide problem. However, electrical systems have their own concerns. Worn wiring, overloaded circuits, or failing heating elements can lead to overheating and, in rare cases, fire hazards.
Unique Features
Gas Furnaces: Two-Stage Burners and Modulating Heat
Modern gas furnaces come with advanced options that old furnace models don’t have. Some offer two-stage burners, which let the furnace run at a lower setting during mild weather and kick into full power once it’s freezing out. Others feature modulating heat technology, which continuously adjusts the flame and blower speed to maintain the desired temperature.
Electric Furnaces: Variable-Speed Blowers and Quieter Operation
Newer electric furnaces stand out for their quiet, smooth performance. Many models include variable-speed blower motors that adjust airflow based on the heating demand. Because they don’t rely on combustion, electric units are also known for whisper-quiet operation—making them ideal for smaller homes or spaces where noise is more of a concern.
Should I Choose a Gas or Electric Furnace?
Deciding between a gas vs. electric furnace really depends on your home and what you care about most. A gas furnace is usually the right furnace if you already have a natural gas supply, want strong, fast heat, and are looking for lower heating costs over time.
An electric furnace is probably the right furnace if your home doesn’t have gas lines, you want a less expensive furnace installation, or you’d feel better with a system that doesn’t produce emissions inside your home.
Contact Thiele for a Furnace Installation Quote
Still deciding between gas vs. electric furnaces? The team at Thiele Heating & Air Conditioning can help you sort it out. We’ll look at your home, talk through your priorities, and provide an expert recommendation.
Our team handles professional furnace installation across Central Indiana and the Indianapolis area, along with ongoing repairs and maintenance. As a Bryant Authorized Dealer, we install some of the most advanced and efficient heating systems on the market, with financing options available to make things easier.
We’ve been serving Hoosiers since 1883, making us the oldest and most experienced HVAC company in Indianapolis. With an A+ BBB rating and 5-star Google reviews, you can feel confident your home is in good hands. Contact Thiele today for a furnace installation quote and let us keep your home comfortable for years to come.