How to Compare Electricity and Gas Price

When faced with the decision to choose electricity or gas to heat your home it is best to determine which option is the most cost effective and energy effective. As you may know the cost of both options have increased considerably in recent years. However rates and cost for each are not the same for each household. The trick is finding which option is best for you and your budget. 

1. Gather electricity bills for at least three months within summer months and three months within the winter months. 


2. Begin with your summer electricity bills. Determine the cost per unit. This figure is listed on your bill. You may notice that among the three months there is a slight difference in this amount. So for that reason determine the average cost per unit. Add all three listings for cost per unit and then divide that number by three. This is the average cost per unit. Repeat this step for your winter electricity bills. 


3. Locate the total monthly usage for your summer electrical bills. Find the average of these three bills by adding all three listings for total monthly listings and then divide them like you did for the cost per unit. This is the average monthly total usage rate. Repeat this step for your winter electricity bills. 


4. Multiply the average cost per unit by the average monthly total usage rate. This figure is your average cost of electricity. Repeat this step for your winter electricity bills. 


5. Subtract the average cost of electricity for winter and summer. This is the difference between the cost that determines your total average cost of using electricity to heat your home. Multiply this total average by the number of months you heat your home each year. This is an estimated cost for heating your home within one year using electricity. 


6. Determine the cost per unit for natural gas. Contact all local gas and/or propane distributors in your local area to determine this amount, as this amount is not the same among distributors. Determine which cost per unit for natural gas is the cheapest. 


7. Determine the per month cost using the cost per unit you determined in step 6. On average a household that uses propane and/or natural gas generally uses up to 100 gallons each month if using the gas and/or propane only for heating purposes. Multiply the cheapest cost per unit by 100 gallons. This is the average cost of heating with propane and/or natural gas per month. 


8. Multiply the average cost of heating with propane and/or natural gas by the number of months you heat your home each year. This is the total average cost of heating your home with propane and/or gas for one year. 


9. Subtract the total yearly average cost of using electricity and the total yearly average cost of using propane and/or gas. Compare the difference.