Gas vs Electric Heating Cost in New Mexico
In New Mexico, a 2,000 sq ft house with average insulation costs an estimated $693.91 a year to heat with a 92% gas furnace, $3,251.68 with electric resistance heat and $1,161.31 with a heat pump. Gas heat costs $10.33 per MMBtu here, against $17.28 from a heat pump at seasonal COP 2.8.
State data
What New Mexico pays
- Electricity
- 16.5¢/kWhEIA Electric Power Monthly, table 5.6.A · EIA, August 2026 (data as of 2026-10-25)
- Natural gas
- $0.95/thermEIA, residential natural gas price ($/Mcf ÷ 10.37) · EIA 2025 annual average (data as of 2026-10-25)
- Heating degree-days
- 4,000 °F-days (base 65 °F)NOAA CPC, 1991–2020 normals
- Climate zone
- 4 (IECC 2021)DOE/PNNL · heat pump seasonal COP used: 2.8
At 16.5¢/kWh, New Mexico has the 25th-highest electricity rate among the 50 states and DC. Gas is $0.95/therm in New Mexico, 36% below the US average of $1.48/therm and the 4th-lowest of the 51. A winter of 4,000 heating degree-days means the 2,000 sq ft example in New Mexico needs about 67.2 MMBtu of heat a year.
Prices are statewide averages. Type the rate and gas price from your own bill into the calculator above to replace them.
How homes here heat
How homes in New Mexico heat
- Main heating fuel
- Natural gas 76% · electricity 13% · propane not reported · fuel oil not reportedEIA RECS 2020, state tables · share of homes
- Main heating equipment
- Furnace 67% · central heat pump not reported · boiler 7%EIA RECS 2020, state tables · share of homes
- Homes using a secondary heater
- 54%EIA RECS 2020, state tables
- Household energy spend
- $1,492 a year, of which $380 on space heating (25%)EIA RECS 2020, state tables · average per household
- Share of home energy that is space heating
- 67% of natural gas use · 8% of electricity useEIA RECS 2020, state tables
New Mexico is one of the most gas-heated states in the country. In the 2020 survey, 76% of homes (about 600,000) named natural gas as their main heating fuel, the 4th-highest share of the 50 states that report it, against 51% nationally. Electricity heats only 13% (about 100,000), against 34% for the US, the 6th-lowest share in the country. The survey does not report a share for propane or fuel oil here.
Most of that gas goes through a furnace: 67% of homes run one, against 60% nationally, and boilers account for 7%. A central heat pump share is not reported for New Mexico, which means EIA's sample was too small to publish one. What is reported is a high rate of secondary heating: 54% of homes run a second heater, against 42% for the US, so a space heater, wood stove or fireplace is part of the picture in many homes.
The bill itself is light. Households spend $1,492 a year on all energy, the 4th-lowest total among the states, and $380 on space heating, the 9th-lowest. That is 25% of the bill against 26% nationally. Space heating takes 67% of household gas use but only 8% of electricity use, against 12% for the US, which fits a state where electricity rarely does the heating.
EIA RECS 2020, state tables: shares of all occupied homes in the state and average spending per household in the survey year. "Not reported" means EIA's sample was too small to publish a figure.
Gas vs electric heat
B04Scenario A
Sets the electricity rate. Pick US average if you're not sure.
From EIA for New Mexico. Use the rate on your bill if you know it.
Rate used: 16.5¢/kWh · New Mexico · EIA, August 2026 · gas $0.95/therm (EIA 2025 annual) · 4,000 heating degree-days · climate zone 4 (data as of 2026-10-25) ·
On the furnace label: 0.80 older, 0.90–0.98 condensing.
Gas furnace costs less per year by
Electric resistance: $3,251.68 a year · Gas furnace: $693.91 a year, for 67.2 MMBtu of heat.
- Yearly heating load
- 67.2 MMBtu
- Electric resistance, $ per MMBtu
- $48.39
- Gas furnace, $ per MMBtu
- $10.33
- Electric resistance, per year
- $3,251.68
- Gas furnace, per year
- $693.91
- Difference per year (Gas furnace − Electric resistance)
- −$2,557.76
- Seasonal heat pump COP used
- 2.8
- Prices used
- electricity 16.5¢/kWh · gas $0.95/therm · propane $2.60/gal · oil $3.60/gal
- Heat pump, per year (for reference)
- $1,161.31
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 New Mexico
A 2,000 sq ft house with average insulation in New Mexico needs about 67.2 MMBtu of heat a year (4,000 heating degree-days). At $0.95/therm in a 92% furnace, gas delivers that heat at $10.33 per MMBtu; resistance heat at 16.5¢/kWh costs $48.39, and a heat pump at seasonal COP 2.8 (zone 4) costs $17.28. The year comes to $693.91 on gas, $3,251.68 on resistance heat and $1,161.31 on a heat pump. Gas is the cheapest to run here, by $467.40 a year over a heat pump.
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.
What the numbers say
What the numbers say in New Mexico
The price of gas settles the question here. Natural gas costs $0.95/therm, 36% below the US average of $1.48/therm and the 4th-lowest price among the states, while electricity at 16.5¢/kWh is 9% below the US average of 18.2¢/kWh. The winter is moderate, 4,000 heating degree-days or 11% fewer than the US average of 4,500, and the climate-zone 4 heat pump COP of 2.8 is a fair one. Even so, cheap gas outweighs a decent heat pump: the example house comes out cheaper with gas.
The tie rate shows how far the prices would have to move. A heat pump would match a 92% furnace only at an electricity rate of about 9.9¢/kWh, against a state average of 16.5¢/kWh. For a home already on gas, that is a wide gap, and the running-cost argument for switching is weak at these prices. Your own gas price is the figure to check, since it is the one doing the work.
Resistance heat is where electricity looks worst. At these prices it costs 4.7 times as much as gas per unit of heat, which matters for the minority of homes heated by baseboards or an electric furnace. For them, the relevant comparison is resistance versus a heat pump, and the heat pump wins on running cost at any rate.
The high share of secondary heaters is worth a second look. A plug-in space heater is resistance heat too, so heating one room with it at 16.5¢/kWh is priced like an electric furnace, not like gas. The space heater vs central heat calculator shows when that trade pays and when it does not.
The survey's $380 a year sits below the calculator's estimate because it averages every home and fuel, apartments included; the calculator prices one 2,000 sq ft house with average insulation. Type your own rate and gas price into the calculator above, and see furnace size if you are replacing a furnace.
Questions
FAQ
Which is cheaper in New Mexico, gas or electric heat?
Electric resistance heat is the most expensive of the three in New Mexico: $3,251.68 a year for the 2,000 sq ft example, $2,557.76 more than gas. Between gas ($693.91) and a heat pump ($1,161.31), gas is cheaper here: $10.33 per MMBtu of heat against $17.28 for a heat pump at seasonal COP 2.8. These are estimates at 16.5¢/kWh and $0.95/therm; your bill's prices can change the answer.
How much gas does a furnace use in New Mexico?
About 730 therms a year for a 2,000 sq ft house with average insulation and a 92% furnace, at New Mexico's 4,000 heating degree-days. That averages 61 therms a month over 12 months, but almost all of it is burned in the heating months. At $0.95/therm, the year costs an estimated $693.91.
Electric furnace vs gas furnace cost in New Mexico?
An electric furnace is resistance heat: every kWh gives 3,412 BTU. At 16.5¢/kWh, that heat costs $48.39 per MMBtu in New Mexico, against $10.33 from a 92% gas furnace at $0.95/therm, 4.7 times as much. For the 2,000 sq ft example that's $3,251.68 a year against $693.91.
What would make a heat pump cheaper than gas in New Mexico?
Mainly the electricity rate. A heat pump ties a 92% furnace at about 9.9¢/kWh, against the state average of 16.5¢/kWh, so it takes a rate at or below that tie point, or a gas price well above the state's $0.95/therm. If your utility has a heat-pump or time-of-use rate, type it into the calculator above. A heat pump also cools in summer, which a furnace does not; that is a separate calculation from the heating cost here.
Does running a space heater save money in New Mexico?
Sometimes, for one room. 54% of homes here run a secondary heater, and a plug-in one is resistance heat: at 16.5¢/kWh it costs 4.7 times what a gas furnace pays per unit of heat. It can still save money if it lets you turn the whole-house thermostat down. The space heater vs central heat calculator compares the two for your room size.
Bordering states
Nearby states
Same calculator, same house, each state's own prices and winter:
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