States where natural gas is still cheaper to run
Reference 2,000 sq ft home · EIA prices · March 2026
In these states a 95% AFUE gas furnace is still cheaper to run than a heat pump for our reference home, because they have cheap natural gas and/or high electricity prices. A heat pump can still be the better choice for cooling, comfort, emissions or rebates - and it still beats propane, oil and electric resistance here.
Source: EIA Electric Power Monthly, Table 5.6.A (residential). Data as of June 2026.
| State | Electricity ¢/kWh | Gas advantage |
|---|---|---|
| #1 Alaska | 27.17¢ | $2,026/yr cheaper |
| #2 Maine | 28.32¢ | $1,900/yr cheaper |
| #3 Vermont | 24.11¢ | $1,395/yr cheaper |
| #4 Wisconsin | 18.80¢ | $1,363/yr cheaper |
| #5 New Hampshire | 26.92¢ | $1,357/yr cheaper |
| #6 Rhode Island | 29.91¢ | $1,122/yr cheaper |
| #7 Connecticut | 30.47¢ | $973/yr cheaper |
| #8 New York | 28.55¢ | $878/yr cheaper |
| #9 Montana | 13.48¢ | $848/yr cheaper |
| #10 Michigan | 21.20¢ | $806/yr cheaper |
| #11 Wyoming | 13.59¢ | $677/yr cheaper |
| #12 Illinois | 18.86¢ | $602/yr cheaper |
| #13 Minnesota | 15.08¢ | $574/yr cheaper |
| #14 Massachusetts | 30.21¢ | $522/yr cheaper |
| #15 Indiana | 17.85¢ | $511/yr cheaper |
Frequently asked questions
Where is a gas furnace still cheaper than a heat pump?
Alaska tops this list. In these states a 95% AFUE gas furnace is still cheaper to run than a heat pump for our reference home, because they have cheap natural gas and/or high electricity prices. A heat pump can still be the better choice for cooling, comfort, emissions or rebates - and it still beats propane, oil and electric resistance here. See the full picture on each state page.
How is this ranked?
Each state uses a reference 2,000 sq ft home at its default climate zone, priced at the state's EIA electricity, natural-gas, oil and propane figures, with a 95% AFUE gas furnace and a climate-appropriate heat-pump seasonal COP. It is an estimate - your home will differ.
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Source: EIA Electric Power Monthly, Table 5.6.A (residential) and EIA gas/oil/propane. Estimates only — see methodology and disclaimer.
Last updated: 2026-06-29