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Gas vs Electric Heating

Comparing fuel types for Phoenix homes

The Short Version

For Phoenix, electric heat pumps are usually the best choice, they provide efficient heating and cooling in one system and are ideal for our mild winters. Gas furnaces make sense if you have existing gas infrastructure. Avoid electric resistance heating (expensive to operate). Heat pumps are 3-4x more efficient than resistance heating and qualify for federal tax credits.

Quick Comparison

Factor Gas Heating Electric Heating
Fuel Cost Variable (natural gas prices) Stable (electricity rates)
Installation Cost Higher (gas line, venting) Lower (electrical only)
Efficiency 80-98% AFUE 100% (resistance) or 300%+ (heat pump)
Safety CO risk (minimal with maintenance) No combustion, no CO
Maintenance Annual required Minimal for resistance, annual for heat pump
Lifespan 15-20 years 15-20 years (resistance), 12-15 (heat pump)

Detailed Breakdown

Gas Heating

Pros
  • Often lower operating cost (depends on gas prices)
  • Fast, powerful heat delivery
  • Works during power outages (older units)
  • Feels warmer (higher air temperature)
  • Long equipment lifespan
Cons
  • Requires gas line infrastructure
  • Combustion produces CO (requires proper venting)
  • Higher installation cost
  • Requires annual safety inspection
  • Gas prices can be volatile
Best For:

Homes with existing gas infrastructure, areas with low natural gas prices, or homeowners who prefer the feel of gas heat.

Electric Heating

Pros
  • No combustion, no CO risk
  • Lower installation cost
  • Heat pumps are extremely efficient
  • Qualifies for tax credits (heat pumps)
  • Cleaner for the environment
  • Can be powered by solar panels
Cons
  • Electric resistance heating is expensive to run
  • Slower heat delivery than gas
  • Requires electricity (no power = no heat)
  • Heat pumps less effective below 40°F
Best For:

Phoenix homeowners (heat pumps), homes without gas lines, or those prioritizing safety and environmental impact.

Phoenix-Specific Considerations

For Phoenix, the electric vs gas decision often comes down to heat pumps.

Electric Resistance vs Heat Pump

Electric heating comes in two forms:

  • Electric resistance: Converts electricity directly to heat (100% efficient). Expensive to operate.
  • Heat pumps: Move heat from outside to inside (300-400% effective). Much cheaper to operate.

If choosing electric, always choose a heat pump over resistance heating.

Phoenix Gas Rates vs Electricity

Arizona electricity rates average $0.12-0.15/kWh. Natural gas rates vary but are generally competitive. However, because Phoenix heating needs are minimal (a few weeks per year), the total annual difference is small.

The Practical Choice

For most Phoenix homes without existing gas infrastructure, a heat pump is the clear winner:

  • Lower total system cost (heat pump provides cooling too)
  • Efficient heating for our mild winters
  • No need to run gas lines
  • Federal tax credits available

When Gas Makes Sense

Consider gas heating if you already have gas lines, want a furnace for backup with a heat pump (dual fuel), or strongly prefer the feel of gas heat.

Our Recommendation

For most Phoenix homes, we recommend an electric heat pump. It provides efficient heating and cooling in one system, with no combustion or CO concerns. Unless you have existing gas infrastructure and prefer gas heat, the heat pump is more practical and cost-effective for our climate.

Still Not Sure? We Can Help.

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