Indoor comfort isn't free! If you heat or cool your home with mechanical equipment, such as a furnace or air conditioner, you have to pay for the energy those systems use.
So, does heating cost more than air conditioning? Or is it the other way around?
The answer depends on your fuel source, local climate, equipment type, and usage habits. There really isn't a definitive answer to the question. It all depends on a variety of home-specific and region-specific factors.
That being said, we can definitely help you determine whether heating costs more than air conditioning for you. Let's take a look at the primary factors that influence the cost of indoor climate control.
Electricity vs. natural gas costs
Before looking at costs, it's important to understand that there are different types of residential heating and air conditioning arrangements. Here in the Atlanta area, the most common one is to use an air conditioner for cooling and a furnace for heating.
Air conditioner/furnace systems
The air conditioner is powered by electricity. The furnace uses natural gas.
These different fuel sources have different costs. For natural gas, local utilities charge a per-therm rate for usage. At the time of publication, households in our area pay around $0.70 per therm, give or take a few cents.
Electric utilities, on the other hand, charge a per-kilowatt hour (kwh) rate. At present, most power customers in our region pay around $0.16 per kwh.
Since the rate is lower, does that mean air conditioning costs less?
No. The thing is, it all depends on how much heating or air conditioning you use during the respective seasons. If you use a lot of AC in a given year, you might pay more for cooling-even though the per-therm rate is higher than the per-kwh rate!
We'll get to why someone might use more AC than heat (and how it affects costs) in just a moment. First, we want to call attention to the other type of heating and cooling system that is common in this area.
Heat pump systems
Heat pups only use electricity. If you have one, you can cool and heat your home without using natural gas at all. The per-therm rate won't apply to you (at least not for heating) since you don't use a furnace.
In this case, your heating and cooling usage will be billed at the same per-kwh rate, regardless of whether you're using heat or AC.
However, it's still possible to pay more for heat or AC or vice versa. Even with a heat pump!
The reason? Climate.
How climate affects heating and cooling costs
There's a lot to say about this topic, but here's what it boils down to:
If you live in a largely warm climate, you will probably pay more for air conditioning.
Similarly, if you live in a largely cold climate, you will probably pay more for heating.
This is almost always true, regardless of local utility rates for electricity or natural gas.
To understand why, consider the Atlanta area, where households commonly use air conditioning from March through October. That's three quarters of an entire year where an air conditioner is in use! The furnace (or heat pump in heating mode) only sees action for four months or so.
For this reason, it's very uncommon for households in this region to pay more for heating throughout the year than they pay for air conditioning.
The reverse is true in Duluth, Minnesota. There, folks might rely on their heating systems for seven or eight months out of the year. Air conditioning, for the folks who even have it, is used sparingly and only during peak summer.
Does energy efficient HVAC bring costs down?
Yes, energy efficient HVAC systems bring costs down.
On the air conditioner side, you have variable speed compressors with variable capacity blowers. These ultra-efficient systems ramp up and down to match your home's exact heating and cooling needs at any given moment. Plus, they lower indoor humidity via longer run cycles at low speeds.
Most folks notice their summer cooling costs plummet after installing one of these systems! With a high SEER2 variable speed air conditioner, your air conditioning costs will almost definitely be lower than your heating costs.
But what about high efficiency furnaces?
Many households save on heating costs by installing high-AFUE furnaces in the 95% efficiency range. These furnaces burn less natural gas to heat your home, reducing winter heating bills.
In the Atlanta area, you will save more by investing in a high-SEER2 air conditioner with a variable speed compressor than with a high-AFUE furnace.
That's because our hot, steamy climate skews higher costs toward the cooling season. By getting a more efficient AC, you will save more money during more months than with a high efficiency furnace.
That said, a high efficiency furnace pairs nicely with a high-SEER2 AC for best-of-both-worlds efficiency!
How usage habits impact the cost of heating and air conditioning
Then there's the final factor that affects heating and air conditioning costs: You.
Do you set the thermostat to 67 degrees year-round? Anyone in the Southern United States who does this might have pretty similar heating and cooling costs.
Conversely, if you're an Atlantan who keeps the thermostat at 78 regardless of the season, your winter heating costs will likely resemble your summertime electric bill!
To maximize savings at all times of year, set your thermostat like this:
- During warmer months, set it as high as you can while still being comfortable.
- During cooler months: set it as low as you can while still feeling comfortable.
For most folks, this means keeping the AC somewhere between 75-78 in summer and 65-68 in winter.
Conclusion: Heating costs more than air conditioning… except when air conditioning costs more than heating.
Do you see how it all depends on where you live and how you use your system?
Whether heating costs more than air conditioning is a question of local climate, system type, and usage habits. Here in Atlanta, most people pay more to cool their homes because we have a longer, more extreme cooling season. Of course, the opposite is true in the Northeast or Upper Midwest.
If you live in Metro Atlanta and are concerned about heating costs, cooling costs, or the efficiency of your HVAC system, PV Heating, Cooling & Plumbing can help!
Give us a call at (404) 798-9672 today or schedule an appointment online!
