Natural gas is one of the most affordable and stable energy sources for communities around the United States, now and for the future. New analysis is now addressing the critical intersection between environmental sustainability and economic efficiency in household energy use, allowing for informed decisions by consumers, policymakers and other stakeholders to enhance energy efficiency while maintaining multiple options for households to reduce their carbon impact and control living costs.
The study compares natural gas and electric appliances in terms of greenhouse gas emissions and cost, providing valuable insights for homeowners, policymakers and the energy industry. Analyses like this are especially relevant to public efforts to reduce greenhouse gas emissions affordably and sustainably.
The study utilizes publicly available tools and datasets — including the U.S. Department of Energy EnergyPlus model, data from the U.S. Energy Information Administration, and the National Renewable
Key findings in the study include:
- Cost Savings: Natural gas used in a baseline new home costs $1,132 per year less than an equivalent all-electric household. An advanced natural gas home with more efficient appliances saves an average of $492 annually compared to an electric cold-climate heat pump.
- Homes Prefer High-Efficiency Gas: Over 75% of new homes with natural gas install a 90%+ efficient furnace. In moderate to cold climates, customers prefer gas to electric heat pumps by 5 to 1, with 92% of central ducted heat pumps sold before 2020 rated below 9.2 Heating Seasonal Performance Factor (HSPF).
- Greenhouse Gas Reductions: An advanced all-gas home with a condensing natural gas furnace can cut lifetime emissions by 17% compared to the typical all-electric household. Compared with an advanced all-electric home with a cold climate heat pump, the advanced natural gas household typically can equal or exceed emissions reductions while cutting lifetime costs by thousands.
- New Consumer Solutions: Natural gas heat pumps, hybrid gas-electric systems and renewable natural gas options can reduce costs and emissions more cost-effectively than many electric or most typical natural gas home configurations. A home with a natural gas heat pump would cut costs by $651 per year compared with an electric cold-climate heat pump.Pathways that utilize natural gas and the vast utility delivery infrastructure offer opportunities to incorporate renewable and low-carbon gases, provide optionality for stakeholders, help minimize customer impacts, maintain high reliability, improve overall energy system resilience, and accelerate emissions reductions.
Report
Building for Efficiency
Home Appliance Cost and Emissions Comparison
Building for Efficiency examines the use of natural gas and electricity in new homes, focusing on the costs and greenhouse gas emissions of various home energy options.
