As one of your largest expenses, you likely want to save more money on your utility bills. If you hear the dreaded news from your HVAC repair technician that a new furnace is in order, will you know what type is the best option for your home? Understanding the cost of operating an electric furnace in Southeast Michigan may help with your decision.
When replacing their furnace, many people focus on the cost of the unit rather than the cost of operation over time. A new electric furnace may cost less than half of what a high-efficiency gas furnace costs. And another attractive feature is that most electric units are rated at 95 to 100 percent for annual fuel utilization efficiency (AFUE), while gas models have to meet a minimum of 78 percent. While most gas furnaces are far higher than the minimum in efficiency, many people believe they’ll be more expensive to operate.
Heating is often measured in British thermal units (BTUs), while electricity usage is measured in kilowatt hours (kWh). To heat an average home in a moderate climate, it takes roughly 100 million BTUs per year and 1 kWh to generate 3,412 BTUs of heat, according to the U.S. Energy Information Administration. With the average price of electricity in Michigan reaching 14.13 cents/kWh, that would mean it would cost roughly $4,100 per year to heat using electricity. When compared to gas prices, which tend to be much lower, the initial savings on an electric unit can quickly be spent on operation.
Are you thinking of purchasing a new furnace for your home? Aladdin Heating & Cooling has been serving the Southeast Michigan area since 1945. Let us help you choose the best furnace for your home comfort and budget needs.
Our goal is to help educate our customers in Warren, Michigan about energy and home comfort issues (specific to HVAC systems). For more information about furnaces and other HVAC topics, download our free Home Comfort Resource guide.
Credit/Copyright Attribution: “arka38/Shutterstock”