Cost to replace gas furnace with electric

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Electric Furnace Costs

Electric furnace units are popular in homes that do not have existing gas lines to install a gas forced air (GFA) furnace. Although gas units are more popular, electric furnaces are available for homeowners who need them. The cost of installing this system depends entirely on the size of the unit that you need and how much additional wiring or ducting may be required to complete the job.

Choosing a system that is similar to or compatible with what you already have will create lower labor costs, while upgrading to an energy-efficient or smart home system may cost more initially but save you money over time. The best way to estimate furnace installation is to look at basic installation costs based on national averages.

Electric furnace installation: by furnace size (BTU) and average labor rates, for basic “plug and play” installation with standard efficiency (lower grade) unit:

SizeUnit CostLabor CostTotal
10,000 BTU $625-$1,750 $750 $1,375-$2,450
17,100 BTU $660-$2,200 $785 $1,485-$2,985
27,300 BTU $750-$2,500 $870 $1,620-$3,330
34,100 BTU $800-$3,500 $950 $1,750-$4,450

Other considerations and costs

  • The cost estimates are for connection installation only. They do not include any additional costs for wiring, ducting, and related labor.
  • The range of unit prices reflects available brands and unit styles, with a wide range of price options to fit every budget.
  • This estimate does not include permits, taxes, inspection costs, and disposal fees, which may incur additional charges. Some installers will include inspection and disposal fees in their service costs.
  • If you opt to install a high-efficiency system, you can expect to spend about 50% more on the unit, with similar costs for the installation labor.
  • A brand new furnace installation will also require new ductwork, vents, breakers, and wiring. This could add as much as $3,000 to the cost of your project as compared to replacing an existing unit.
  • Keep in mind that electric furnaces are more expensive to operate in general due to higher electricity rates (when compared to the cost of natural gas). They are also less efficient because ducting can lead to heat loss over time. There are fewer dangers and maintenance requirements; however, which is why some people prefer them regardless of their higher operating costs.

DIY considerations

  • HVAC systems are complex in nature. Electricity is also dangerous to work with, which is why you should leave the furnace installation to the professionals. Thousands of people are injured or killed every year from electrical and home improvement accidents related to taking on jobs beyond their abilities.

References

  • Craftsman Estimator Costbook, complete series year 2019.
  • Latest prices found on Home Depot and other vendor Web sites.
  • Literature review of DIY Web sites.

How much does it cost to install an electric furnace in your city?
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Cost by city

(10,000 BTU)

  • New York, NY$3,052
  • Bronx, NY$2,508
  • Brooklyn, NY$2,090
  • Philadelphia, PA$2,608
  • Washington, DC$2,263
  • Atlanta, GA$2,047
  • Miami, FL$1,862
  • Fort Lauderdale, FL$1,950
  • Minneapolis, MN$2,288
  • Chicago, IL$2,666
  • Houston, TX$2,750
  • San Antonio, TX$1,846
  • Austin, TX$2,090
  • Denver, CO$1,766
  • Phoenix, AZ$1,863
  • Las Vegas, NV$2,045
  • Los Angeles, CA$2,304
  • San Diego, CA$2,091
  • San Jose, CA$2,526
  • Seattle, WA$1,849

Local costs have been calculated by accounting for labor and material cost differences across different cities. To get accurate cost estimates, indicate yours:

How much does it cost to switch gas furnace to electric?

Converting a gas furnace to an electric furnace costs $2,900 to $9,500 on average. Costs depend on the home layout, furnace location, and any electrical and ductwork modifications required.

Can you change a gas furnace to electric?

Yes, switching from gas heat to electric heat is totally doable. The existing hot air system that works on gas would simply be replaced by a heat pump or an electric furnace (the new appliance will still be using the existing ductwork).

Is it cheaper to run a gas or electric furnace?

A gas system is less expensive to operate, and that's because natural gas is cheaper than electricity. During the past few years, electricity has increased in cost, while natural gas charges have actually decreased, which make the gas units more appealing to homeowners. If you want fast results, gas is your choice.

How much should I expect to pay to upgrade my gas furnace with an electric heat pump?

A new heat pump will run an average of $4,000 to $8,000—more than it costs to install a new furnace, which typically runs from $2,000 to $5,400. Still, homeowners stand to save a substantial amount on utility bills with a heat pump.