How Much Does It Cost to Run a Gas Heater?

Gas heaters are one of the most common appliances available to heat your home. And with today's high-efficiency heaters, the cost to heat is coming down even if the price of natural gas doesn't. They are also cheaper to install than other types of systems. Natural gas heating systems also come in varying efficiencies. The high-efficiency models can convert more of the natural gas into usable heat, which means you'll need less gas to heat your home.

  1. BTUs

    • Heat energy is measured in British Thermal Units (BTUs). A BTU is roughly the amount of heat that a wooden match generates. Heating an average Midwestern home in the winter may take 60 to 80 million BTUs, according to Duke Energy. Because so many variables factor into how much you'll pay to heat a home (location, type of heater, cost of gas, time of year), one of the easiest ways to look at heating costs is to consider how much it costs to produce one million BTUs.

    Costs

    • Assuming the cost of natural gas is $1.20 per cubic foot (CCF), consider the costs of producing a million BTUs with heating systems of different efficiencies of 60 percent, 80 percent and 90 percent. Though the fuel and fuel cost are constant, the price to generate heat varies because of the varying efficiencies of the systems. A 60 percent efficient system cost $20 for a million BTUs, or $1,600 to heat a Midwestern home through the winter. The least expensive cost is when using a 90 percent efficient system. You pay only $13.33 to create one million BTUs, or $1,066 to heat a home through the winter.

    High Efficiency

    • If your gas heating system is more than 20 years old, upgrading your system to a modern, high-efficiency heating system is beneficial. The difference between an old system and a high-efficiency system can save you around $500 every winter. Obviously, purchasing and installing a new heating system will create a considerable expense, but, over 20 years, a high-efficiency system could easily save you $10,000 or more, which more than pays for the cost of the system.

    Consider the Real Cost

    • When figuring the cost to run a natural gas heating system, don't forget to look at the real cost to run it. Many utility companies will charge a monthly service fee, which should be accounted for. Other companies may price gas using a tiered system with the price per unit dropping once your usage rises, which means during heavy usage months in the winter, you could see cheaper gas costs because of the tiered pricing.

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