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What's an electric furnace and how does it work?

Did you know that nearly 45% of your utility bill goes directly to heating and cooling your home? When the temperature starts to dip it’s important to know where your money goes. In this video we’ll tell you everything you need to know about an electric furnace and how it works.

Revised:

September 3rd, 2021

Did you know that nearly 45% of your utility bill goes directly to heating and cooling your home? When the temperature starts to dip it’s important to know where your money goes. In this video we’ll tell you everything you need to know about an electric furnace and how it works.

Hi, my name is Bryan with Fire & Ice. There are a number of ways to heat your home with a central air system. One of those ways is with an electric furnace by itself or paired with a heat pump. In this video we’ll cover what an electric furnace is, how it works, and the differences between gas and electric systems. By the end of this video, you’ll know if an electric furnace is right for you.

What’s an electric furnace?

Most homes in the United States rely on central air to heat and cool their home. A central air system uses a blower motor inside a furnace or air handler to take air from the house. The air is then heated or cooled depending on the season and pushed back throughout the house through the home’s ductwork and vents. In some homes, natural gas or propane is not available and an electric furnace or air handler is used to heat the home.

How does an electric furnace work?

Have you ever looked into the toaster when it’s toasting bread? Much like a toaster, an electric furnace works the same way to heat your home. An electric furnace consists of a cabinet with a blower motor and heating coils attached to it. The heating coils are also referred to as a heat package or heat strips.

When a call for heat comes from the thermostat, an electric current runs through the heating coils, making them extremely hot. As the blower motor inside the furnace pushes air over the heating coils, the air warms up and the temperature inside your home increases. Once the desired temperature is met, the thermostat tells the system to shut down until heat is needed again. 

How does an electric furnace compare to a gas furnace?

At a glance an electric furnace and gas furnace function the same because they both heat your home. However, the difference between them can be vast. For starters is their efficiency. An electric furnace is hyper-efficient being able to use 100% of the energy it uses. A gas furnace’s efficiency is measured by an AFUE rating and can convert 80-96% of its fuel towards heat resulting in waste. An 80% AFUE rating for example means that up to 80% of the fuel goes towards heating the home and the other 20% is exhausted as waste.

Next, is its application. If you live in warmer climates, you likely can get by with just an electric furnace to heat your home in the winter. However, if you live in cooler climates, like here in Central Ohio, electric furnaces can get expensive very quickly due to the high cost of electricity. In these cases, electric furnaces are often paired with a heat pump and are only used as auxiliary or “emergency heat.” High-efficiency heat pumps are capable of providing reliable heat even in freezing temperatures.

Lastly, is the maintenance of the equipment. Gas furnaces have several mechanical parts to function. Whereas an electric furnace has fewer internal parts, making maintenance easier.

Which furnace is right for me?

Now you might be wondering, which furnace is right for me? Electric or gas? The answer to that question depends on a number of factors, such as:

  • Where do you live? If you live in the southern United States, chances are you don’t need a lot of heating in the winter. Therefore, an electric system or an electric furnace paired with a heat pump would make sense. However, if you live in an area where it gets cold for long periods you might want to consider a gas furnace and an air conditioner. That’s not to say you can’t heat your home with an electric system. It just will likely be more expensive since electricity has historically been more expensive than natural gas.

  • Another determining factor is access to fuel sources. Some homes lack access to natural gas. In these cases an electric furnace and a heat pump would be worth considering.

  • Next, are there any indoor comfort problems that you want to solve. Issues with humidity? Uneven temperatures? Hot and cold spots? The type of furnace you choose should address these concerns.

  • Lastly is your budget and how long you plan on living in your home. If you plan on living in your home for the next 10-15 years you may want to consider the system with the greater investment. But if you plan on moving in the near future, upgrading your outdated system with a new, entry level furnace can add value to your home’s resale value.

How much does an electric furnace cost?

If you are looking to invest in a new electric furnace, expect to pay between $3,400 and $7,600 for the furnace alone. Keep in mind most electric furnaces are paired with a heat pump as well. A new heat pump can range between $5,500 and $13,000 depending on its type and features. At Fire & Ice all of our prices include the cost of equipment, installation, and any additional fees.

There are many factors that go into the cost of electric furnaces and heat pumps including the size of the unit, efficiency rating, add-ons, and any modifications that are needed during installation. There is no one size fits all solution when it comes to HVAC.

What can you do next?

Let’s talk about what to do next. If you are considering investing in a new electric furnace and/or heat pump we’re happy to help. If you live in the Central Ohio area and are in our service area, click the “Schedule Estimate” option on our website. One of our residential sales professionals would love to go over your options to find the best solution for your home. Thank you for watching and we look forward to making your day better.

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Over 3500 Reviews!
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Chris Husmann

Fire and Ice has been wonderful to work with! Our new Furnace and AC are working like a dream. We had a number of places come out for estimates and Fire and Ice was the only one who actually went around and measured our windows and home and determined we should get a smaller furnace than what was installed before, saving us money both up front and on efficiency down the road. We were also impressed at the quality of the installation itself, as our old setup was clearly done without much care or thought. Fire and Ice took the time to move pipes and such that were just hanging from my ceiling before, move the humidifier to the proper side of the furnace, move over the ductwork that was not put in a good location, raise our electrical box outside away from the ground, and all kinds of little things to make sure our system runs right for a long time. It's been a few months and our setup runs perfectly. You get what you pay for, and I'm glad we paid for Fire and Ice!

Emily

When the 30 year old HVAC system in our house went out Fire and Ice was recommended to me. Brad, my sales representative, showed me a comprehensive list of my options, set me up with financing make a brand new system affordable, and professionally communicated throughout the entire process. The installers, Demetrius, Willard, and Tyler, were fantastic! They were very helpful and professional throughout the entire installation process and walked us through the ins and outs of the final product. The AC works like a dream just in time for the hot summer weather and we could not be happier! Fire and Ice is our go-to recommendation for anyone seeking HVAC work.

Mary Avalos-Miller

Our complete HVAC system was replaced a month ago. We experienced a flawless, informative process from sales to installation. Bryan, our sales pro, performed a detailed anaysis of our home's size, construction & features to develop an evaluation of our HVAC needs to offer the optimum sized equipment and has returned several times since the installation to insure it's proper functioning and our understanding of the entire system. The installation was performed within 3 days of our agreement - with the crew (Jon, Daniqua & Colby) getting the old system removed (furnace & A/C) and the new system installed in a matter of hours - they even modified ductwork and rerouted some lines originally installed by our builder to increase efficiency and give the system a cleaner appearance. Another great surprise was their tenacity with the cleanup - all their work areas were left totally spotless!!! Overall the best contractor performance we have experienced in 35 years of home ownership including having 2 homes built by the area's most reputable developers. The system runs great, is quiet and can now be operated through my phone from anywhere - even if just to insure it's running while at my winter haven. Thank You Fire & Ice!

Cathy Mace

Fire & Ice was great. Our sales rep, Bryan, was excellent. He was knowledgeable, professional, and didn’t pressure us to make a purchase. Due to our experience with him, we were already planning on using Fire & Ice to replace our old AC, but during the heat wave and storms, my once limping-along-AC decided 20 years was enough cooling and decided it’s job was done. My husband had initially set the meeting with Bryan, but was out of town, leaving me to pick up the sale. Bryan didn’t miss a beat when I emailed him asking to get a new AC installed ASAP. Within two days, my install techs, Demetrius P. and Willard J. were here to install. The excellent service continued. Both were amazing and incredibly professional, even dealing with my very vocal dog with grace every time they entered my house. They completed the job in a timely manner and everything was top notch. They were mindful of the fact that I work from home, and kept noise to an absolute minimum. By the time they left, I could feel the cool air flowing once again. They even took the time to swap out my furnace filter! Loved working with them and will recommend Fire & Ice to my friends & neighbors.

Jared Petersen

The entire process of having a new furnace and air conditioner installed was awesome. Scheduling the estimate was quick and easy and I didn't have to wait on availability. The estimate was very thorough, and Bryan was extremely helpful in explaining everything. Install was just a few days later based on my schedule (they could have installed sooner) and the install technicians (Bryan, Alontae, Von) were awesome. Very professional and courteous, adhering to local health guidelines the entire time. They also had somebody come out and take photos and videos of the install so they could use it in their training. They took the time to ensure everything was installed properly (my old install wasn't). They were also very helpful to show me everything about the system and new thermostat before they left. Bryan followed up with me a week later and stopped in to check on the install. He's awesome and having a tech come out and tweak a couple things (humidifier and thermostat) to ensure everything runs properly!

Jayson Nayuki

One of my good friend’s had a great experience with Fire and Ice, so I went ahead and tried them out. Amazing customers service. Brad was awesome with walking me through the process of getting a new furnace and answered all of my questions. I will be a returning customer and recommend Fire and Ice to all. Update on furnace installed: I can not praise this company enough. The technicians Floyd and Jacob were very professional and the craftsmanship was amazing. You can tell when someone takes pride in their work. Thank you for your hard work. It’s greatly appreciated.

Bryan Wade

Bryan and Nick were true professionals. They gave me a good heads up when they were going to arrive and did a great job installing the new furnace. They made sure to keep my house clean and walked me through what they did and gave me tips on how to get the best use/life out of my furnace. Will definitely recommend to a friend.

I Daniels

The two technicians arrived exactly when they said they would, immediately began to take care of business. They had more trouble than they anticipated getting the old furnace out but still pretty much finished at the time they told me. The system and heating space were left clean and tidy. they took a few extra minutes to troubleshoot my water tank to get it to ignite which was greatly appreciated. Very nice gentleman throughout the experience and gave me a thorough explanation of the paperwork and how to use the thermostat as well. Was a great experience