If you’re considering an electric furnace for your Texas home, you’re not alone. With low installation costs and simple operation, electric furnaces are a popular choice in areas with mild winters. But are they the right choice for your household? How much does an electric furnace cost compared to other options?
In this guide, we break down what an electric furnace is, how it works, and what it actually costs to install and run one in Texas. We’ll also compare how much different furnaces cost—including electric, gas, and oil models—and look at operational expenses and efficiency to help you make the best decision for your home.
Quick Take: Why Electric Furnaces Are Popular in Texas?
Simple to install, no gas needed, 100% efficient, and ideal for mild winter climates like much of Texas.
What Is an Electric Furnace?
An electric furnace uses high-resistance heating coils to warm air, similar to a giant hair dryer or toaster.
Here’s how an electric furnace works: a blower fan pushes that warm air through your ductwork. There’s no flame, no gas, and no venting required. In electric furnaces, the heat exchanger plays a key role by transferring the heat generated by the coils to the air that circulates through your home. Electric furnaces have nearly 100% energy conversion rates because there are no vents or chimneys for energy to escape. That means:
- 100% of the electricity used becomes heat
- No carbon monoxide risk
- No flue or chimney needed
Electric furnaces are often paired with air conditioners or heat pumps and are found in both homes and manufactured housing throughout Texas.
Installation Cost in Texas (2025)
Here’s what homeowners can expect to pay:
- Average total cost: $2,100 – $7,900
- Most common range: $2,500 – $4,500
- Includes: Furnace unit + professional installation
- Electric furnace prices and electric furnace costs can vary widely depending on factors like furnace size, BTU rating, brand, and installation complexity.
- The average cost for homeowners reflects not only the unit and installation but also other furnace costs, such as energy efficiency and home size.
- Additional costs may include ductwork, electrical upgrades, permits, and maintenance. Electric furnace prices can reach $15,000 or more for installations that include new ductwork.
Installing a brand new furnace, especially when replacing an old system, can increase expenses if new ductwork or ventilation is needed.
Good to know: Electric furnaces are typically cheaper to install than gas furnaces because they don’t require a flue, gas line, or combustion venting. No existing gas line or new gas lines are needed, which reduces installation complexity and cost. They’re also faster to install, saving on labor.
When budgeting, remember that operating costs (like electricity bills) are an important consideration beyond installation. Also, check the annual fuel utilization efficiency (AFUE) rating to compare furnace efficiency and understand its impact on long-term costs.
How Much Does It Cost to Run?
Electricity prices in Texas average around $0.12–$0.13 per kWh. A 20kW electric furnace uses about 13 kWh/hour in real-world cycling. In mild Texas winters, the average furnace might run 1–3 hours per day, leading to roughly $60–$100/month in added electric costs during the winter season. Your monthly energy bill will reflect this increased electricity usage, especially during peak heating months.
Electric furnaces tend to be more expensive to operate than gas or propane options, particularly when electricity rates are high.
Seasonal average:
- Monthly heating costs: $60–$100 (typical)
- Full winter (4–5 months): ~$250–$400 total
Keep in mind, costs can rise significantly in colder climates where furnaces must run longer and at higher output to maintain comfortable indoor temperatures.
Tip: Many homes offset this with solar power or energy-efficient thermostats. If your home has low heating demand (well-insulated, south TX, etc.), your costs could be even lower.
Key Cost Factors for Texas Homeowners
When planning for an electric furnace installation in Texas, it’s important to understand the main cost factors that will affect your total investment. The price of the electric furnace unit itself typically ranges from $800 to $2,600, depending on the size and features you choose.
Labor costs for installing an electric furnace can vary widely, from $300 up to $2,500, based on the complexity of the installation and the experience of your HVAC technician.
If your home needs new or updated ductwork, expect to pay between $35 and $55 per linear foot, which can add up quickly in larger homes.
Electrical upgrades are another potential expense—older homes may require new electrical wiring or panel upgrades to safely support a new electric furnace.
Don’t forget about permits and inspections, which are required in most Texas cities and can add a few hundred dollars to your total furnace installation cost.
By understanding these cost factors—furnace unit price, labor, ductwork, electrical upgrades, and permits—Texas homeowners can budget more accurately and avoid surprises during the installation process.
Maintenance & Lifespan
Electric furnaces are known for their simplicity and longevity.
- Maintenance cost: ~$100/year for checkups (or part of a full HVAC maintenance plan). Electric furnaces require minimal routine maintenance compared to oil or gas models.
- Expected lifespan: 20–30 years
Since there’s no combustion, electric furnaces have fewer parts that wear out. Annual filter changes and basic inspections are usually all that’s needed. Regular maintenance helps ensure optimal efficiency and extends the lifespan of the furnace.
Removing and Replacing an Old Furnace: What to Expect
If you’re replacing an old furnace with a new electric furnace, there are a few steps you can expect during the process. First, your HVAC technician will safely disconnect the old furnace from the power supply and any existing ductwork. Careful removal is important to prevent damage to your home’s heating system and surrounding areas.
Once the old furnace is out, the installation site will be cleaned and prepped for your new furnace. This may include repairing or replacing any damaged ductwork and ensuring the electrical connections are up to code. Only then will the new electric furnace be installed, connected to the ductwork, and wired into your home’s electrical system.
The entire process can take several hours, depending on the complexity of the job and the type of old furnace being replaced. The installation of an electric furnace can take between four and eight hours.
Homeowners should budget an additional $100 to $600 for the removal and disposal of the old furnace, depending on its size and type. Working with a qualified HVAC technician ensures your new furnace is installed safely and efficiently, setting you up for years of reliable heating.
Electric vs. Gas vs. Heat Pump: What’s Best?
| System Type | Install Cost | Energy Cost (TX) | Lifespan | Maintenance |
|---|---|---|---|---|
| Electric Furnace | $2,500–$4,500 | Medium (higher operating costs in cold climates) | 20–30 yrs | Low |
| Gas Furnace | $3,000–$6,000 | Low | 15–20 yrs | Medium (safety checks) |
| Natural Gas Furnace | $3,000–$6,000 | Low (lower operating costs than electric) | 15–20 yrs | Medium (safety checks) |
| Oil Furnace | $4,000–$7,000 | Medium–High | 15–25 yrs | High (regular cleaning, fuel delivery) |
| Propane Furnace | $3,000–$7,000 | Medium | 15–20 yrs | Medium (tank refills, safety checks) |
| Heat Pump | $5,000–$10,000+ | Very Low | 15–20 yrs | Medium |
In short:
- Electric furnaces = best for homes without gas, low winter use, and tight budgets; considered an energy-efficient option for milder climates, but can have higher operating costs in colder regions.
- Gas furnaces and natural gas furnaces = best if gas is already available and you’re in a colder part of TX; offer lower operating costs and higher efficiency compared to electric.
- Oil furnaces and propane furnaces = alternatives where gas isn’t available; they typically have higher fuel and maintenance costs.
- Heat pumps = best for overall efficiency, especially if replacing your AC too; among the most energy-efficient furnaces for year-round comfort.
When choosing between a gas or electric furnace, consider both the initial purchase price and ongoing operating costs, as fuel prices and efficiency ratings can make a big difference over time.
Selecting the right size electric furnace is crucial—use british thermal units (BTUs) to match the system to your home’s square footage and climate needs. The home’s square footage, especially in the average single family home, is a key factor in determining installation costs and system efficiency.
If you are leaning toward a heat pump, the next step is figuring out how to pay less upfront. In 2025, many Texas homeowners can stack the Federal Tax Credits for Energy Efficiency (30% of cost, up to $2,000 using IRS Form 5695) with local utility rebates to cut thousands from a qualifying install. We break down who qualifies, which models meet the standard, and exactly what paperwork to keep. Learn how to claim the Heat Pump Tax Rebate in Texas
DIY vs. Professional Installation: What’s Right for You?
While installing an electric furnace might seem like a manageable DIY project, it’s usually best left to a professional HVAC technician. Electric furnace installation involves working with high-voltage electrical wiring, precise connections, and sometimes complex ductwork. Mistakes can lead to safety hazards, reduced heating system efficiency, and higher energy bills.
Professional HVAC technicians have the training, tools, and experience to ensure your electric furnace is installed correctly and meets all local codes. They can also help you choose the right furnace size and configuration for your home, maximizing comfort and energy efficiency. Plus, many manufacturers require professional installation to keep your warranty valid—DIY installation could leave you without coverage if something goes wrong.
In short, hiring a professional for installing an electric furnace gives you peace of mind, optimal performance, and long-term savings on your energy bills.
Permits and Regulations in Texas: What Homeowners Need to Know
Before installing a new electric furnace in Texas, homeowners need to be aware of local permits and regulations. Most cities and counties require a permit for electric furnace installation, which ensures the work meets safety and energy efficiency standards. The installation process typically includes an inspection by a licensed HVAC technician to verify that the furnace is installed correctly and safely.
Local regulations may also set requirements for energy efficiency or emissions, so it’s important to check with your city or county before starting the project. Failing to obtain the proper permits or skipping inspections can result in fines, delays, or even problems with your home insurance.
By following the proper permitting process and working with a qualified HVAC technician, you can be confident that your new electric furnace will provide safe, efficient heating for years to come.
Furnace Brands: How to Choose the Right Manufacturer
Choosing the right furnace brand is an important step in getting the most value and performance from your new electric furnace. Start by looking for brands known for energy efficiency, reliability, and strong customer support. Popular options like Trane, Lennox, and Carrier offer a range of electric furnace models, but there are many other reputable manufacturers to consider as well.
It’s also wise to read customer reviews and ask your HVAC technician for recommendations based on your home’s needs. Consider the warranty coverage and the availability of replacement parts and service in your area. If you’re deciding between a gas furnace, oil furnace, or electric furnace, look for a brand that specializes in the type of heating system you want.
By doing your research and comparing brands, you’ll be able to select a new electric furnace that delivers consistent warmth, energy efficiency, and peace of mind for your Texas home.
Is an Electric Furnace Right for Your Texas Home?
Electric furnaces are a great fit if:
- Your home has no natural gas line
- You live in a mild climate (e.g., Dallas, Austin, San Antonio, Southlake)
- You’re looking for a low-cost install
- You prefer lower maintenance and a safe, clean system
- You have an existing electric furnace and want to upgrade to a newer model for better efficiency and lower operating costs
They’re especially common in smaller homes, vacation homes, and all-electric neighborhoods.
Considering an Electric Furnace in Plano or Nearby?
AirMatics installs and services electric furnaces in Plano, Frisco, Allen, McKinney, Dallas, and beyond. Whether you’re upgrading an old system or planning a new install, we’ll help you choose the right heating solution for your home.
CALL US TODAY FOR AN ELECTRIC FURNACE INSTALL
FAQs: Electric Furnace in Texas
Yes—technically 100% efficient, but electricity costs more per BTU than gas.
Yes. Electric heat works at any temp, but it can become expensive during cold snaps.
Yes. There’s no gas, no flame, and no carbon monoxide risk.
Absolutely. That combo is common in Texas—heat pump for mild days, electric coils for backup.