The best electric furnaces in 2026 come from Goodman (best value at $800–$1,400), Rheem (best mid-range at $1,000–$1,800), and Carrier (best premium at $1,500–$2,500). Electric furnaces are simpler than gas units — no combustion, no flue, no gas line — so brand differences are less dramatic. Total installed cost ranges from $2,000 to $5,500, making electric furnaces the cheapest HVAC heating option to install, though they're the most expensive to operate due to high electricity costs.
Top Electric Furnace Brands Compared
What to Look For in an Electric Furnace
Since all electric furnaces are essentially 100% efficient (every watt becomes heat), the key differentiators are:
Blower motor type. Variable-speed ECM blowers are quieter, use 60–75% less electricity for the fan, and provide better comfort. The fan electricity savings partially offset the higher operating cost.
Sequenced heating elements. Better electric furnaces activate their heating elements in stages (sequencers) rather than all at once. This reduces the initial power surge and provides more gradual, even heating. Look for 3–6 element stages.
Circuit breaker and wiring requirements. Electric furnaces draw 30–100+ amps depending on kW rating. A 15 kW unit needs a 60-amp circuit; a 23 kW unit needs two 60-amp circuits. Verify your electrical panel has capacity before purchasing.
Cabinet and build quality. Premium brands use heavier-gauge steel, better insulation, and more robust wiring connections. This matters less than with gas furnaces (no combustion stress) but still affects longevity.
Electric Furnace Sizing
Electric furnaces in cold climates are extremely expensive to operate. A 20 kW electric furnace running 10 hours/day at $0.16/kWh costs $32/day — roughly $960/month in the coldest winter months. If you're in a cold climate without gas access, a heat pump with electric backup strips is almost always a better investment than a standalone electric furnace.
When an Electric Furnace Makes Sense
Electric furnaces are the right choice in a narrow set of circumstances: mild climates with low heating loads where the annual cost difference versus gas is small, homes without gas access where running a gas line is impractical, backup/supplemental heating for a heat pump system (electric strips in the air handler), additions, garages, or workshops where installing gas is prohibitively expensive, and areas with very cheap electricity (under $0.08/kWh).
Real-World Examples
Example 1: The Robinsons — Budget Install in Jacksonville, FL The Robinsons needed an electric furnace for their 1,600 sq ft home in mild-winter Florida. They chose a Goodman 10 kW unit with a variable-speed blower. Installed cost: $2,800. Annual heating cost: approximately $320 (mild climate, low usage). The low installation cost and minimal maintenance made sense for their short, mild heating season.
Example 2: The Thompsons — Costly Mistake in Pittsburgh, PA The Thompsons installed a 20 kW electric furnace for $3,200 in their 2,000 sq ft home because it was $3,000 cheaper than a gas furnace installation (no gas line to their street). Their first winter heating bill: $2,800. A heat pump with electric backup would have cost $6,500 installed but cut heating costs to approximately $1,200/year. The $3,300 extra upfront investment would have paid back in under 3 years.
Key Takeaways
- Electric furnaces cost $2,000–$5,500 installed — the cheapest upfront heating option.
- Operating costs are 2–3× higher than gas in most markets. Budget $1,200–$2,500/year for a typical home.
- All electric furnaces are essentially 100% efficient — brand choice comes down to blower motor type, build quality, and warranty.
- Best budget pick: Goodman. Best mid-range: Rheem. Best premium: Carrier.
- Electric furnaces make the most sense in mild climates and homes without gas access.
- In cold climates without gas, a heat pump with electric backup strips is almost always a better investment.
- Prioritize a variable-speed ECM blower — the electricity savings for the fan motor partially offset the high heating cost.
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