Gas vs Electric Heating Cost in Tennessee
In Tennessee, a 2,000 sq ft house with average insulation costs an estimated $749.43 a year to heat with a 92% gas furnace, $2,430.19 with electric resistance heat and $867.92 with a heat pump. In Tennessee, the gas furnace beats the heat pump on running cost by an estimated $118.50 a year.
State data
What Tennessee pays
- Electricity
- 13.7¢/kWhEIA Electric Power Monthly, table 5.6.A · EIA, July 2026 (data as of 2026-09-28)
- Natural gas
- $1.14/thermEIA, residential natural gas price ($/Mcf ÷ 10.37) · EIA 2025 annual average (data as of 2026-09-28)
- Heating degree-days
- 3,600 °F-days (base 65 °F)NOAA CPC, 1991–2020 normals
- Climate zone
- 4 (IECC 2021)DOE/PNNL · heat pump seasonal COP used: 2.8
Tennessee pays 13.7¢/kWh for electricity, 25% below the US average of 18.3¢/kWh and the 5th-lowest of the 51 rates on this site. Tennessee pays $1.14/therm for natural gas, which puts furnace heat at $12.39 per MMBtu. Tennessee is in IECC climate zone 4, with 3,600 heating degree-days a year; the heat pump line uses a seasonal COP of 2.8.
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 Tennessee. Use the rate on your bill if you know it.
Rate used: 13.7¢/kWh · Tennessee · EIA, July 2026 · gas $1.14/therm (EIA 2025 annual) · 3,600 heating degree-days · climate zone 4 (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: $2,430.19 a year · Gas furnace: $749.43 a year, for 60.5 MMBtu of heat.
- Yearly heating load
- 60.5 MMBtu
- Electric resistance, $ per MMBtu
- $40.18
- Gas furnace, $ per MMBtu
- $12.39
- Electric resistance, per year
- $2,430.19
- Gas furnace, per year
- $749.43
- Difference per year (Gas furnace − Electric resistance)
- −$1,680.76
- Seasonal heat pump COP used
- 2.8
- Prices used
- electricity 13.7¢/kWh · gas $1.14/therm · propane $2.80/gal · oil $3.60/gal
- Heat pump, per year (for reference)
- $867.92
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 Tennessee
A 2,000 sq ft house with average insulation in Tennessee needs about 60.5 MMBtu of heat a year (3,600 heating degree-days). At $1.14/therm in a 92% furnace, gas delivers that heat at $12.39 per MMBtu; resistance heat at 13.7¢/kWh costs $40.18, and a heat pump at seasonal COP 2.8 (zone 4) costs $14.35. The year comes to $749.43 on gas, $2,430.19 on resistance heat and $867.92 on a heat pump. At seasonal COP 2.8, the heat pump's heat still costs more than $1.14/therm gas in Tennessee.
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 Tennessee, gas or electric heat?
Electric resistance heat is the most expensive of the three in Tennessee: $2,430.19 a year for the 2,000 sq ft example, $1,680.76 more than gas. Between gas ($749.43) and a heat pump ($867.92), gas comes out $118.50 a year ahead; a heat pump would match it at about 11.8¢/kWh. These are estimates at 13.7¢/kWh and $1.14/therm; your bill's prices can change the answer.
How much gas does a furnace use in Tennessee?
About 657 therms a year for a 2,000 sq ft house with average insulation and a 92% furnace, at Tennessee's 3,600 heating degree-days. That averages 55 therms a month over 12 months, but almost all of it is burned in the heating months. At $1.14/therm, the year costs an estimated $749.43.
Electric furnace vs gas furnace cost in Tennessee?
An electric furnace is resistance heat: every kWh gives 3,412 BTU. At 13.7¢/kWh, that heat costs $40.18 per MMBtu in Tennessee, against $12.39 from a 92% gas furnace at $1.14/therm, 3.2 times as much. For the 2,000 sq ft example that's $2,430.19 a year against $749.43.
Bordering states
Nearby states
Same calculator, same house, each state's own prices and winter:
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