Gas vs Electric Heating Cost in Michigan
In Michigan, a 2,000 sq ft house with average insulation costs an estimated $1,265.48 a year to heat with a 92% gas furnace, $7,490.57 with electric resistance heat and $2,996.23 with a heat pump. In Michigan, the gas furnace beats the heat pump on running cost by an estimated $1,730.75 a year.
State data
What Michigan pays
- Electricity
- 23.1¢/kWhEIA Electric Power Monthly, table 5.6.A · EIA, July 2026 (data as of 2026-09-28)
- Natural gas
- $1.05/thermEIA, residential natural gas price ($/Mcf ÷ 10.37) · EIA 2025 annual average (data as of 2026-09-28)
- Heating degree-days
- 6,600 °F-days (base 65 °F)NOAA CPC, 1991–2020 normals
- Climate zone
- 5 (IECC 2021)DOE/PNNL · heat pump seasonal COP used: 2.5
Electricity in Michigan costs 23.1¢/kWh, 26% above the US average of 18.3¢/kWh; every electric option on this page pays that price per kWh. At $1.05/therm, Michigan is in the lowest gas band on this site ($1.10/therm or less): $11.41 per MMBtu of furnace heat. In climate zone 5, with 6,600 heating degree-days, the heat pump line for Michigan uses a seasonal COP of 2.5, lower than in warmer zones.
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 Michigan. Use the rate on your bill if you know it.
Rate used: 23.1¢/kWh · Michigan · EIA, July 2026 · gas $1.05/therm (EIA 2025 annual) · 6,600 heating degree-days · climate zone 5 (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: $7,490.57 a year · Gas furnace: $1,265.48 a year, for 110.9 MMBtu of heat.
- Yearly heating load
- 110.9 MMBtu
- Electric resistance, $ per MMBtu
- $67.56
- Gas furnace, $ per MMBtu
- $11.41
- Electric resistance, per year
- $7,490.57
- Gas furnace, per year
- $1,265.48
- Difference per year (Gas furnace − Electric resistance)
- −$6,225.10
- Seasonal heat pump COP used
- 2.5
- Prices used
- electricity 23.1¢/kWh · gas $1.05/therm · propane $2.20/gal · oil $3.60/gal
- Heat pump, per year (for reference)
- $2,996.23
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 Michigan
A 2,000 sq ft house with average insulation in Michigan needs about 110.9 MMBtu of heat a year (6,600 heating degree-days). At $1.05/therm in a 92% furnace, gas delivers that heat at $11.41 per MMBtu; resistance heat at 23.1¢/kWh costs $67.56, and a heat pump at seasonal COP 2.5 (zone 5) costs $27.02. The year comes to $1,265.48 on gas, $7,490.57 on resistance heat and $2,996.23 on a heat pump. At seasonal COP 2.5, the heat pump's heat still costs more than $1.05/therm gas in Michigan.
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 Michigan, gas or electric heat?
Electric resistance heat is the most expensive of the three in Michigan: $7,490.57 a year for the 2,000 sq ft example, $6,225.10 more than gas. Between gas ($1,265.48) and a heat pump ($2,996.23), gas comes out $1,730.75 a year ahead; a heat pump would match it at about 9.7¢/kWh. These are estimates at 23.1¢/kWh and $1.05/therm; your bill's prices can change the answer.
How much gas does a furnace use in Michigan?
About 1,205 therms a year for a 2,000 sq ft house with average insulation and a 92% furnace, at Michigan's 6,600 heating degree-days. That averages 100 therms a month over 12 months, but almost all of it is burned in the heating months. At $1.05/therm, the year costs an estimated $1,265.48.
Electric furnace vs gas furnace cost in Michigan?
An electric furnace is resistance heat: every kWh gives 3,412 BTU. At 23.1¢/kWh, that heat costs $67.56 per MMBtu in Michigan, against $11.41 from a 92% gas furnace at $1.05/therm, 5.9 times as much. For the 2,000 sq ft example that's $7,490.57 a year against $1,265.48.
Bordering states
Nearby states
Same calculator, same house, each state's own prices and winter:
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