Gas vs Electric Heating Cost in New Jersey
In New Jersey, a 2,000 sq ft house with average insulation costs an estimated $1,250.87 a year to heat with a 92% gas furnace, $6,201.52 with electric resistance heat and $2,214.83 with a heat pump. New Jersey's $1.37/therm gas against 25.2¢/kWh electricity keeps the gas furnace ahead of a heat pump by $963.96 a year.
State data
What New Jersey pays
- Electricity
- 25.2¢/kWhEIA Electric Power Monthly, table 5.6.A · EIA, July 2026 (data as of 2026-09-28)
- Natural gas
- $1.37/thermEIA, residential natural gas price ($/Mcf ÷ 10.37) · EIA 2025 annual average (data as of 2026-09-28)
- Heating degree-days
- 5,000 °F-days (base 65 °F)NOAA CPC, 1991–2020 normals
- Climate zone
- 4 (IECC 2021)DOE/PNNL · heat pump seasonal COP used: 2.8
New Jersey's electricity rate, 25.2¢/kWh, is 38% above the US average of 18.3¢/kWh, and the 10th-highest of the 51 on this site. Residential gas in New Jersey is $1.37/therm, 7% below the US average of $1.48/therm. A winter of 5,000 heating degree-days means the 2,000 sq ft example in New Jersey needs about 84.0 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.
Gas vs electric heat
B04Scenario A
Sets the electricity rate. Pick US average if you're not sure.
From EIA for New Jersey. Use the rate on your bill if you know it.
Rate used: 25.2¢/kWh · New Jersey · EIA, July 2026 · gas $1.37/therm (EIA 2025 annual) · 5,000 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: $6,201.52 a year · Gas furnace: $1,250.87 a year, for 84.0 MMBtu of heat.
- Yearly heating load
- 84.0 MMBtu
- Electric resistance, $ per MMBtu
- $73.83
- Gas furnace, $ per MMBtu
- $14.89
- Electric resistance, per year
- $6,201.52
- Gas furnace, per year
- $1,250.87
- Difference per year (Gas furnace − Electric resistance)
- −$4,950.65
- Seasonal heat pump COP used
- 2.8
- Prices used
- electricity 25.2¢/kWh · gas $1.37/therm · propane $3.30/gal · oil $3.70/gal
- Heat pump, per year (for reference)
- $2,214.83
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 Jersey
A 2,000 sq ft house with average insulation in New Jersey needs about 84.0 MMBtu of heat a year (5,000 heating degree-days). At $1.37/therm in a 92% furnace, gas delivers that heat at $14.89 per MMBtu; resistance heat at 25.2¢/kWh costs $73.83, and a heat pump at seasonal COP 2.8 (zone 4) costs $26.37. The year comes to $1,250.87 on gas, $6,201.52 on resistance heat and $2,214.83 on a heat pump. Gas is the cheapest to run here, by $963.96 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.
Questions
FAQ
Which is cheaper in New Jersey, gas or electric heat?
Electric resistance heat is the most expensive of the three in New Jersey: $6,201.52 a year for the 2,000 sq ft example, $4,950.65 more than gas. Between gas ($1,250.87) and a heat pump ($2,214.83), gas is cheaper here: $14.89 per MMBtu of heat against $26.37 for a heat pump at seasonal COP 2.8. These are estimates at 25.2¢/kWh and $1.37/therm; your bill's prices can change the answer.
How much gas does a furnace use in New Jersey?
About 913 therms a year for a 2,000 sq ft house with average insulation and a 92% furnace, at New Jersey's 5,000 heating degree-days. That averages 76 therms a month over 12 months, but almost all of it is burned in the heating months. At $1.37/therm, the year costs an estimated $1,250.87.
Electric furnace vs gas furnace cost in New Jersey?
An electric furnace is resistance heat: every kWh gives 3,412 BTU. At 25.2¢/kWh, that heat costs $73.83 per MMBtu in New Jersey, against $14.89 from a 92% gas furnace at $1.37/therm, 5.0 times as much. For the 2,000 sq ft example that's $6,201.52 a year against $1,250.87.
Bordering states
Nearby states
Same calculator, same house, each state's own prices and winter:
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