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Get 7.79¢/kWh for electricity and $3.89/GJ for natural gas on a 2-year plan.
Check out our energy plans for restaurants and learn how to make your business more energy efficient.
Want to know more about your energy options? Looking for ways to save on energy usage? We're here to help you make an educated decision.
Manage your energy account anytime. View bills, make payments, track your energy use, access rewards and more—all in one place.
Gas vs Electric Furnace: Which is better for your home?
Updated on July 25, 2026
4-minute read
Gas vs Electric Furnace: Which is better for your home?
Updated on July 25, 2026
4-minute read
Choosing between a gas and electric furnace depends on energy costs, heating efficiency, and your home’s setup. Gas furnaces typically provide stronger heating and may have lower operating costs, while electric furnaces are easier to install and maintain.
Understanding how each system performs in colder climates like Alberta can help you choose the right heating solution for comfort and long-term energy costs.
When summer ends and temperatures start dropping, it's time to turn up your home's furnace to keep things warm and comfortable.
If you've noticed the sounds coming from your home's furnace are louder than usual, or if your heating bills are increasing over time, it may be time to repair or replace your furnace.
We get it. It's not fun to troubleshoot a tricky issue with one of your home's systems. Aside from the time and money it can take to fix it, getting quotes from various contractors or repair companies can frustrate even the most patient homeowner.
While a furnace generates the heat that warms your home, it works together with your thermostat and air ducts to heat your house.
Whether powered by natural gas or electricity, a furnace sits idle until the thermostat detects that the air is at a lower temperature than the current setting. The thermostat will send a signal to your furnace to fire up the burners and warm up the heat exchanger.
When the heat exchanger reaches the operating temperature, the blower is switched on. When this happens, the cold air that is brought in through the intakes is heated and sent through the ducts into your living spaces.
Natural gas is the main energy source for Alberta households, making up 77% of household energy use in the province. Since a furnace can be your home's most used appliance when the temperature drops, natural gas furnaces tend to be the most popular. When compared to an electric furnace, a natural gas furnace tends to cost less to run because of the low cost of natural gas.
However, that doesn't mean natural gas furnaces are more efficient in the gas vs. electric furnace debate. You can compare the efficiency of different furnaces by their annual fuel utilization efficiency (AFUE), and equipment features.
Natural gas furnaces may cost more to install if you require additional installation or reconfiguration work. Gas furnaces also tend to be more powerful and may take less time to reach the desired temperature, thereby using less energy than a comparable electric model.
Electric furnaces use resistance heating to create the hot air that warms your home. As such, it can be more efficient and could be less expensive to buy and install than a gas furnace.
When choosing an electric furnace, remember that electricity almost always costs more than natural gas, which means you'll spend more money for the same amount of heat you need in your home.
In colder climates, electric furnaces may be less efficient because they have to work harder to produce the necessary heat. This can lead to the furnace running longer and using more energy.
Whether you prefer gas or electric, replacing an old and tired furnace with a modern ENERGY STAR® -rated model can reduce your energy usage, especially if you have a very old or malfunctioning furnace. Even if your existing furnace is in good working order, by replacing it with an ENERGY STAR rated gas furnace, you could use 6% less energy and save on your heating bills.
There are a few things you could do as a homeowner to optimize furnace energy usage.
First, ensure that you have an ENERGY STAR-rated furnace. For natural gas, this means that the furnace is at least 95% efficient, so you may be only losing five percent of your energy costs instead of the 20 or more that's possible with an old or outdated unit. Very old or malfunctioning units could be even less efficient, and you may save even more energy with a modern replacement.
Make sure you change or clean the filters on your furnace every three months or so to prevent buildup that could decrease efficiency - after all, a dirty filter is like a respiratory issue for your furnace.
Lastly, don't forget to do regular furnace maintenance. Most newer furnaces should be serviced every other year to prevent costly repairs and increase your furnace’s efficiency.
Gas furnaces are often cheaper to operate than electric furnaces in Alberta because natural gas typically costs less than electricity. However, total cost depends on your home’s energy usage, insulation, and current energy rates.
Electric furnaces are nearly 100% efficient at converting electricity into heat, but gas furnaces can still be more cost-effective overall due to lower fuel costs. High-efficiency gas furnaces can reach over 95% efficiency.
Gas furnaces are usually more expensive to install because they require venting, gas lines, and additional safety components. Electric furnaces are typically simpler and less costly to install.
Both gas and electric furnaces typically last between 15 and 20 years with proper maintenance. Regular servicing can help extend the lifespan and maintain efficiency.
Learn more about how your air conditioner and furnace systems work together to keep your home comfortable.
Moving within Alberta? Learn how to transfer your Direct Energy service, plan for moving costs, forward your mail and prepare for moving day.
Learn whether to set your furnace fan to auto or on, how each HVAC fan setting affects energy use, airflow and home comfort.
