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"So, Which Is Cheaper - Gas Or Electric?"

By
Home Inspector with Jay Markanich Real Estate Inspections, LLC 3380-000723

As a home inspector I get the question all the time about appliances - we'll be looking at the dryer or water heater and they will ask, "So, which is cheaper, gas or electric?"

There are many places and sites that you can go to in this investigation.  And it depends on where you live! 

Electricity in some regions is much cheaper than in others.  And gas overall has come down over the years.

One place I saw the bureaucrat actually said to check to see if you live in an all electric house or neighborhood before you purchase a gas appliance!  Uh, um, okaaaay...

And, when this refers to gas, it means natural gas.  There was no where that looked specifically at liquid propane gas appliances, although the propane market does vary somewhat in price like natural gas.  But overall, the natural gas price usages would likely apply to LP.

One place that seems to investigate everything energy related is a fellow named Michael Bluejay.  I don't know if that's his real name, but his site is complete.  I include him here so I don't get accused of ignoring the environmentalists!

Water Heaters

You have to look at water heaters in terms of Btus (British Thermal Units).  A gallon of water weighs 8.33 pounds.  If the water coming into the house is 60F and you want to raise it to 125F, that's a 65 degree F rise.  So how many Btus does it take to do that?     8.33 x 65 = 541 Btus per gallon.

So, an electric water heater averages 93% efficiency.  So 541 Btus divided by 93% efficiency = 582 Btus to heat a gallon of water.

One kilowatt hour is 3413 Btus, so one Btu is .000293 kilowatts.

Then 582 Btus x .000293 kilowatt hours = .17.  Further, if you have a 50 gallon tank then .17 x 50 = 8.5 kilowatt hours to heat a 50 gallon tank of gas.

My electricity costs me $.09 per kilowatt hour, therefore it would cost me .09 x 8.5 or $1.45 to heat 50 gallons.

The typical gas water heater is 59% efficient.  And doing the same math it takes 890 Btus to heat a gallon of water.  Using the same formulas as above and using my gas cost of $1.032 per therm, it costs $.60 to heat a 50 gallon tank of water.

Comparison:  ELECTRIC costs $1.45 to heat a 50 gallon tank vs. GAS which costs $.60 to heat 50 gallons.

Your costs will vary if your electric or gas rates vary from this example!  But still, gas water heaters cost less than half.

Interestingly he also compares the tankless water heaters.  He says the same thing I said in a blog about them over two years ago!  His words:  "the energy savings are meager, and the payback time could easily be 20 to 40 years."  (Remember, they don't last that long.)  Further, "tankless water heaters promote water waste, are more likely to break down and are more expensive to repair when they do break."  So there!  A little more, "Electric tankless units cost as much or more to run than large gas tanks."  He calls the tankless heaters "hype," and I called them "fabled."

 

Dryers

Consumer Reports compared a typical household large-load electric dryer to a large-load gas dryer.

That would mean a 22000 Btu dryer for gas versus a 5.4KW dryer for electric.

Their numbers?  Using national averages for gas and electric usage, they determined this:

Comparison:  ELECTRIC costs $.95 per load vs. GAS which costs $.23 per load.

Once again, your rates may vary, but gas dryers cost around 1/4 of an electric dryer.

 

Kitchen Ranges

Using Energy Star information, which ranks appliances depending on energy savings, they compared typical kitchen range costs using gas versus electric.

They compared cooking time of one hour at 350 degrees F.  An electric oven needs 2 KW to do that, and a gas oven 0.112 therms.  Using the same national averages for costs they arrive at this:

Comparison:  ELECTRIC costs $.14 per kilowatt hour or $5.94 vs. GAS at 100 Btu which costs $2.34.

And even if your rates vary, a gas oven costs less than half of electric.

 

My recommendation:  do your homework!  If I can do this you can.  Go to different sites and see what you can see.  But when you make your decision, remember, with current information and technologies, the United States alone has enough natural gas to last 92 years.  And in the world another 100 years above that.  So, your gas appliances are likely to have fuel for a while...

 

 

 

Posted by

Jay Markanich Real Estate Inspections, LLC  

Based in Bristow, serving all of Northern Virginia.

Office (703) 330-6388   Cell (703) 585-7560

www.jaymarinspect.com


Comments (74)

Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Wow - that's ultimate calculations - and simple conclusion that gas is going to be cheaper than electricity for these appliances. 

By any chance, have you studied when the comparison is between oil and gas? (I know it will be dependent of the price of oil in any specific area - however, what's your take for an average household using gas vs. using oil?)

Sep 15, 2013 12:19 PM
Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley Realtor since 1976; 408-373-4411

Jay, I commend you on your thorough and detailed research to answer this often-asked question.  I've Bookmarked this for future reference.  Now will you please build a website comparing gas vs. electric costs in every US zip code?  And what about the difference in cost of a kilowatt derived from a hydro, coal, solar, wind, nuclear, natural gas, geothermal, ethanol and ??  I'll check Bluejay's site for answers.  Rates in CA are high because the public utility companies are required by CA law to use (I think it's) 20% from renewables.

Sep 15, 2013 03:59 PM
James Dray
Fathom Realty - Bentonville, AR

Lots of data but the bottom line is looks like gas is the way to go.  :)

Sep 15, 2013 08:14 PM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Praful - as I said above, oil is very regional and there are no national averages.  But people can do the same calculations by just plugging in their oil costs per therm.

Lloyd - I doubt zip code has anything to do with it.  My electric company covers people in VA, NC and WV.  The end-use cost we consumers pay is our cost, no matter how a kilowatt is derived.  You are right, states that are deregulated have much cheaper utility costs than regulated states, like CA.  When states get involved the market no longer controls the price.  Renewables are very expensive.  Oil and gas will be renewable for well over 300 years.

That's the way it has always been James.

Sep 15, 2013 09:08 PM
Helen and Larry Prier- Re-Max Gateway - Residential Real Estate
RE-MAX Gateway- Residential Real Estate Sales - Anacortes, WA
Anacortes & surrounding Skagit & Island Counties

Jay, I have your great post in My favorites for last week. Here is the link:

my-favorite-blog-posts-for-last-week-september-9th-to-15th

Sep 16, 2013 02:25 AM
Lauren Rautenberg
Huntingtown, MD
Realtor in Maryland

Thank you Jay!  Not only buyers ask this but I have always wondered myself as well!  Thank you for all the information!

Sep 16, 2013 03:06 AM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Jay, does the same hold true for propane? We have very little natural gas here in Jacksonville and unfortunately we do not live in a natural gas community.  I am putting in a gas range later this year and would love to think that it is more efficient energy-cost wise! I know it will be more efficient to cook with.

Sep 16, 2013 05:44 AM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Thank you Helen!  I was unaware of your posts featuring other posts!  I did know of Pat's as she has featured me before.  But I appreciate this very much. 

Lauren - glad you find this so useful.

I mention this briefly in the post Sharon, and in a couple of the comments.  But there are no such propane studies, so it was not a part of this.

Sep 16, 2013 09:58 AM
John J. Woods
Big Dog Press, LLC - Winder, GA
Going where no man has gone before - wouldn't you?

 

   As usual, good research, good presentation, good information.  I'm amazed that the disparity is that huge!

 

Sep 16, 2013 02:49 PM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

John - it could be bigger depending on the utility rates where you live!  Some of the regulated states have very high electric rates.

Sep 16, 2013 05:58 PM
Chris Smith
Re/Max Chay Realty Inc., Brokerage - New Tecumseth, ON
South Simcoe, Caledon, King, Orangeville Real Esta

Jay, we don't have the option of Natural Gas, but I am considering converting from Oil Heting to a two stage Heat Pump, backed up by a propane heating system.  I would then have the ability to choose a gas range, dryer, water heater (or preferably tankless water heater) and a propane fireplace for aesthetics...

Sep 19, 2013 03:52 AM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

I see those here and they are effecient and effective Chris.  You may want to rethink the tankless water heater thing. 

This is from that Michael Bluejay fellow:  http://michaelbluejay.com/electricity/tankless.html

All that is very similar to my post on tankless heaters a couple of years ago.

Sep 19, 2013 04:05 AM
David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

Jay a great blog, so true it depends on your region and cost of utilities. I recently put an AR post together regarding heating a home.... Oil vs. Propane for the Homes.... thought you be interested.

Sep 19, 2013 10:59 PM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Thanks David.  I will check it out!

Sep 19, 2013 11:02 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Jay, you're making me feel really glad that my house is mostly gas!  

Oct 11, 2013 02:02 PM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

You should feel good Pat.  Gas is cheaper and will be around for a long time.  There are no substitutes, despite what some say.

Oct 12, 2013 08:27 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Jay. That is quite comprehensive.  In our area the difference is much larger with cost of electric. We won't even get into Oil vs Gas.

Jan 22, 2014 10:48 PM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

I could find no info on oil vs. gas Grant.  I think I said in the post that rates, of course, vary from place to place.

Jan 22, 2014 11:37 PM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

In many condos here ( Los Angeles county), there is no gas option for appliances, so there is no question what is better. 

May 29, 2016 04:36 PM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Wow, you found an oldie but a goodie, Inna!  When there is no choice, there is no choice.

May 29, 2016 08:54 PM