The cost to install an electric furnace in 2025 is typically between $5,000 and $6,000. That includes the furnace, installation labor, and electrical connections. If your home needs extra work, such as new ductwork or a heat pump, the final price can be higher.
Electric furnace cost depends on the size of your home, how much heat it needs, and how efficient the system is. Choosing the right size helps avoid high energy bills and keeps your home comfortable through the winter.
What’s Included in the Price?
Equipment Costs
The price range of $5,000–$6,000 usually includes:
- The electric furnace (also called an air handler)
- Basic installation labor
- Electrical hookup and testing
This setup doesn’t require a gas line or flue pipe, so installation is often easier than a gas furnace.
Heat Pump Add-On
Most of the time, we pair an electric furnace with an outdoor heat pump. This system moves warm air into your home when the weather is mild, cutting down on your electric furnace use.
Pro Tip: Using a heat pump for most of the season saves you money by keeping your electric furnace from running nonstop.
Will Your Electric Bill Be Higher?
Yes, and that’s something we always explain upfront. Electric furnaces use a lot of power when they’re running. We often say they act like a giant toaster oven heating your home. That much energy adds up.
Here’s what to expect:
- Winter electric bills can go as high as $1,000/month in cold climates
- Heat pumps reduce usage when it’s above 30°F
- Below 30°F, the furnace kicks in as backup heat
Key Takeaway: Without a heat pump, an electric furnace will cost more to run. Always ask if your setup is compatible with a pump system.
Need expert help with your furnace install? Contact Dick Ray for a free consultation and system quote. We’ll make sure your home gets the right setup for comfort and cost savings.
Why Some Homeowners Choose Electric Furnaces
No Natural Gas Available
In rural areas, we see more people using electric heat because:
- Natural gas isn’t available
- They’re tired of refilling a propane tank
- They want one all-electric system
Even though electricity can be costly, it’s reliable and easy to install in homes that don’t already have a gas line.
Works With Backup Power
Some homeowners think a gas furnace works during a power outage, but that’s not true. Even a gas system still needs electricity to power the fan and circuit board.
So, whether you’re using gas or electric, the power still needs to stay on for the system to run.
When Is It Time to Switch?
If you’re using propane and paying high refill fees every year, switching to electric might be a good idea. Especially when paired with a heat pump, this option can give you reliable heating without the need for fuel deliveries.
Final Thoughts on Electric Furnace Cost
Electric furnaces are a solid option for homes without natural gas. The electric furnace cost in 2025 is about $5,000 to $6,000, and that number can rise if you add a heat pump or need more installation work. These systems are easy to install, but they do require more electricity to run, especially in cold months.
That’s why we often recommend combining them with a heat pump to get better energy savings and more efficient heating.
Ready to upgrade your heating system? Call Dick Ray today to schedule your free quote. We’ll walk you through your options and help you choose the best solution for your home.
