Are you paying too much to heat your home? Use our **natural gas vs electric heat cost calculator for Ontario** to compare annual operating costs between standard natural gas furnaces and high-efficiency electric heating systems like heat pumps.
Natural Gas vs Electric Heat Cost Calculator Ontario
Natural Gas System
Electric Heating System
Natural Gas vs Electric Heat Cost Calculator Ontario Formula
$$ \text{Annual Cost} = \frac{\text{Annual Load (GJ)}}{\text{System Efficiency} / 100} \times \text{Unit Rate}_{$/GJ} $$
The core step involves converting the electric rate from $/kWh to an equivalent $/GJ to allow for a direct, apples-to-apples cost comparison.
$$ \text{Electric Rate}_{$/GJ} = \text{Electric Rate}_{$/kWh} \times 277.78 \text{ (kWh/GJ conversion factor)} $$
Where 277.78 is the number of kilowatt-hours (kWh) in one gigajoule (GJ).
Variables Explained
- Annual Heating Energy Requirement (GJ): The total heat energy your home requires per year. This value can be estimated from past bills or home energy audits.
- Gas Furnace Efficiency (%): The AFUE rating (e.g., 96%) of your natural gas furnace.
- Natural Gas Cost ($/GJ): The blended price you pay for natural gas, combining commodity cost, delivery, and fixed charges, all expressed per gigajoule.
- Electric System Efficiency (%): 100% for standard electric baseboard or resistance heat. For an air-source heat pump, this is the average COP (e.g., 2.5) multiplied by 100 (e.g., 250%).
- Electricity Cost ($/kWh): The total blended cost of electricity, including time-of-use or tiered charges, and delivery, expressed per kWh.
What is Natural Gas vs Electric Heat Cost Comparison in Ontario?
For homeowners in Ontario, choosing a heating system—or deciding to switch—is a complex decision based on equipment costs, fuel volatility, and efficiency standards. This calculator isolates the annual *operating* cost, providing a financial projection that helps determine the long-term benefit of one fuel type over the other.
The comparison is critical because natural gas is generally cheaper per unit of energy (GJ) but systems have lower efficiency (e.g., 96%), while electricity is more expensive per unit (kWh) but electric systems like modern heat pumps can be 200% to 350% efficient (using the Coefficient of Performance, or COP). The Ontario electricity and gas markets, governed by the OEB, have unique rate structures that make a simple comparison challenging without proper unit conversion.
How to Calculate Heating Costs (Example)
- Input Variables: Assume an annual load of 80 GJ, a Gas Rate of $12.50/GJ (96% efficiency), and an Electricity Rate of $0.15/kWh (300% efficiency/COP 3.0).
- Convert Electric Rate: Multiply the $/kWh rate by the conversion factor (277.78): $0.15 \times 277.78 = \$41.67/\text{GJ}$.
- Calculate Gas Consumption & Cost: Required gas energy is $80 \text{ GJ} / 0.96 = 83.33 \text{ GJ}$. Annual Gas Cost: $83.33 \text{ GJ} \times \$12.50/\text{GJ} = \$1,041.67$.
- Calculate Electric Consumption & Cost: Required electric energy (GJ-equivalent) is $80 \text{ GJ} / 3.00 = 26.67 \text{ GJ-e}$. Annual Electric Cost: $26.67 \text{ GJ-e} \times \$41.67/\text{GJ} = \$1,111.11$.
- Determine Savings: In this specific scenario, Natural Gas is cheaper: $\$1,111.11 – \$1,041.67 = \$69.44$ annual savings for gas.
Frequently Asked Questions (FAQ)
A: Electric baseboard heat is 100% efficient. However, modern systems like air-source heat pumps (ASHP) use electricity to *move* heat from the outside air into your home, rather than generating it. This process can deliver 2 to 4 units of heat energy for every 1 unit of electrical energy consumed, resulting in a Coefficient of Performance (COP) of 200% to 400%.
A: A blended rate combines the various components of your utility bill—the commodity cost (the actual gas or electricity used), delivery charges, regulatory charges, and fixed monthly fees—and averages them into a single price per unit (e.g., $/GJ or $/kWh) for the purpose of a simple cost comparison.
A: Yes. Your Natural Gas Cost ($/GJ) should ideally reflect the total price you pay on your bill. The carbon tax (Federal Fuel Charge) is a significant component of the total cost and must be included for an accurate comparison of current operational expenses.
A: This can often be found on your annual Natural Gas or Electricity statement, or derived from a series of monthly bills. If using gas, look for the total consumption in GJ. If using electricity, you must account for non-heating electricity use to isolate the heating load.