Gas vs Electric Heating Cost in Alabama
In Alabama, a 2,000 sq ft house with average insulation costs an estimated $802.38 a year to heat with a 92% gas furnace, $2,099.51 with electric resistance heat and $677.26 with a heat pump. At these prices a heat pump is the cheapest of the three, $125.12 a year under gas.
State data
What Alabama pays
- Electricity
- 16.4¢/kWhEIA Electric Power Monthly, table 5.6.A · EIA, July 2026 (data as of 2026-09-28)
- Natural gas
- $1.69/thermEIA, residential natural gas price ($/Mcf ÷ 10.37) · EIA 2025 annual average (data as of 2026-09-28)
- Heating degree-days
- 2,600 °F-days (base 65 °F)NOAA CPC, 1991–2020 normals
- Climate zone
- 3 (IECC 2021)DOE/PNNL · heat pump seasonal COP used: 3.1
Electricity in Alabama costs 16.4¢/kWh, 10% below the US average of 18.3¢/kWh. Alabama pays $1.69/therm for natural gas, which puts furnace heat at $18.37 per MMBtu. Heating need in Alabama is low by US standards: 2,600 degree-days against 4,500, climate zone 3.
Prices are statewide averages. Type the rate and gas price from your own bill into the calculator above to replace them.
Gas vs electric heat
B04Scenario A
Sets the electricity rate. Pick US average if you're not sure.
From EIA for Alabama. Use the rate on your bill if you know it.
Rate used: 16.4¢/kWh · Alabama · EIA, July 2026 · gas $1.69/therm (EIA 2025 annual) · 2,600 heating degree-days · climate zone 3 (data as of 2026-09-28) ·
On the furnace label: 0.80 older, 0.90–0.98 condensing.
Gas furnace costs less per year by
Electric resistance: $2,099.51 a year · Gas furnace: $802.38 a year, for 43.7 MMBtu of heat.
- Yearly heating load
- 43.7 MMBtu
- Electric resistance, $ per MMBtu
- $48.07
- Gas furnace, $ per MMBtu
- $18.37
- Electric resistance, per year
- $2,099.51
- Gas furnace, per year
- $802.38
- Difference per year (Gas furnace − Electric resistance)
- −$1,297.13
- Seasonal heat pump COP used
- 3.1
- Prices used
- electricity 16.4¢/kWh · gas $1.69/therm · propane $2.90/gal · oil $3.60/gal
- Heat pump, per year (for reference)
- $677.26
Cost by month, in season only
The yearly cost spread across the months using a typical heating degree-day pattern from NOAA 1991–2020 normals. Months outside the season show $0.
Estimate. Formula and sources are under “How it works”. Change any input; the result updates as you type.
2026 note: The federal 25C and 25D tax credits ended for installations after Dec 31, 2025. Our numbers use 2026 rules. State rebates, HEAR/HOMES programs and utility programs may still apply.
Worked example
Worked example: 2,000 sq ft in Alabama
A 2,000 sq ft house with average insulation in Alabama needs about 43.7 MMBtu of heat a year (2,600 heating degree-days). At $1.69/therm in a 92% furnace, gas delivers that heat at $18.37 per MMBtu; resistance heat at 16.4¢/kWh costs $48.07, and a heat pump at seasonal COP 3.1 (zone 3) costs $15.51. The year comes to $802.38 on gas, $2,099.51 on resistance heat and $677.26 on a heat pump. At seasonal COP 3.1, the heat pump turns 16.4¢/kWh electricity into heat that costs less than $1.69/therm gas.
Load = sq ft × 0.35 × heating degree-days × 24 ÷ 1,000,000. Gas $/MMBtu = $/therm ÷ 0.1 ÷ 0.92. Resistance $/MMBtu = $/kWh × 293.07. Heat pump = resistance ÷ COP.
Questions
FAQ
Which is cheaper in Alabama, gas or electric heat?
Electric resistance heat is the most expensive of the three in Alabama: $2,099.51 a year for the 2,000 sq ft example, $1,297.13 more than gas. Between gas ($802.38) and a heat pump ($677.26), the heat pump comes out $125.12 a year ahead on running cost; purchase and installation are not counted (see the payback calculator). These are estimates at 16.4¢/kWh and $1.69/therm; your bill's prices can change the answer.
How much gas does a furnace use in Alabama?
About 475 therms a year for a 2,000 sq ft house with average insulation and a 92% furnace, at Alabama's 2,600 heating degree-days. That averages 40 therms a month over 12 months, but almost all of it is burned in the heating months. At $1.69/therm, the year costs an estimated $802.38.
Electric furnace vs gas furnace cost in Alabama?
An electric furnace is resistance heat: every kWh gives 3,412 BTU. At 16.4¢/kWh, that heat costs $48.07 per MMBtu in Alabama, against $18.37 from a 92% gas furnace at $1.69/therm, 2.6 times as much. For the 2,000 sq ft example that's $2,099.51 a year against $802.38.
Bordering states
Nearby states
Same calculator, same house, each state's own prices and winter:
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