Homeowners in Cedarburg and throughout southeastern Wisconsin increasingly seek efficient, reliable heating as energy costs rise and incentives grow. Electric furnaces remain a solid option especially for homes without natural gas service or those prioritizing safety and simplicity. Here’s an updated look at how they perform in 2025.
Near-Perfect Efficiency in Energy Conversion
Electric furnaces achieve nearly 100% efficiency, converting almost all electricity directly into heat with very little loss. Modern gas furnaces must meet a minimum 95% AFUE (Annual Fuel Utilization Efficiency) in northern states under 2025 DOE standards, with high-efficiency models reaching up to 98.5%. Electric models win on pure conversion efficiency with no energy wastes through combustion or venting. Pair one with renewable energy sources or a cleaner grid, and its environmental impact drops significantly.
Operating Costs: The Real-World Picture
Efficiency ratings don’t tell the full cost story. Electricity typically costs more per unit than natural gas in Wisconsin, so gas furnaces often deliver much lower monthly bills despite slight energy losses. Gas systems also produce hotter air much quicker which will shorten run times in cold winters. With all that said, electric furnaces shine in milder climates or homes with no gas line. Federal tax credits through the Energy Efficient Home Improvement Credit can offset up to $3,200 for qualified upgrades in 2025 which will help with installations being more affordable.
Key Advantages of Electric Furnaces
- Safer operation — No combustion means zero risk of carbon monoxide leaks.
- Quieter performance — No burner or draft inducer for peaceful heating.
- Easier, cheaper installation — No flue or gas line required, ideal for retrofits.
- Lower upfront cost — Units range from $700–$3,500, often much less than gas equivalents.
- Longer lifespan & less maintenance — Fewer moving parts mean reduced repairs.
A Smarter Alternative: Heat Pumps
For maximum efficiency on electric-only service, consider using a heat pump. Air-source or geothermal heat pumps transfer heat rather than generate it, delivering 2–4 times more efficiency than standard electric furnaces. Heat pumps now outsell gas furnaces nationally, thanks to improved cold-weather performance and generous incentives. Geothermal systems excel in Wisconsin’s harsh winters by tapping the stable ground temperatures.
Stay Warm and Efficient This Winter
Hometown Heating, Air & Electric proudly serves Cedarburg, Ozaukee County, Waukesha County, Washington County, and most of Milwaukee County with expert installation, repair, and maintenance for electric furnaces, gas furnaces, heat pumps, and more.
Ready to explore your best heating option? Contact us today for a consultation or visit our heating services page to learn more. We’ll help to keep your home comfortable all season long.