Natural gas will cost less to use in 2007 than other major home energy sources, according to the Department of Energy's (DOE) Office of Energy Efficiency and Renewable Energy. Natural gas providers and the American Gas Association praised the finding as natural gas solidified its position as the best home energy value.
"This independent, government study verifies what home builders and home buyers have said for years; they want natural gas," said Robert W. Best, chairman, president and chief executive officer of Atmos Energy. "This study proves natural gas is better for the consumer's energy budget and it's better for the environment."
According to DOE, one million British thermal units (Btus) of natural gas will cost an estimated $12.18 this year—while the same amount of electricity will cost families more than twice as much ($31.21) on average. Natural gas will also cost less than heating oil ($16.01), kerosene ($19.48) and propane ($20.47).
"These cost savings can add up quickly, especially for home-heating and water-heating, said Tom Moskitis, AGA managing director of external affairs. "For water-heating, an average household using a conventional storage type water heater would save around $220 per year in energy costs by using a natural gas water heater instead of a similar electric unit. That means the natural gas water heater can pay for itself after just a few years—and save a consumer $2,000 in energy costs over the nine-year life of the appliance."
The least expensive way to heat a home in 2007 is with a high-efficiency (94 percent) natural gas furnace, according to an AGA analysis of DOE's cost projections. This option will cost consumers an estimated $801 in 2007, compared with $1,930 for the most expensive home-heating option—an electric resistance system (such as electric warm air furnace heating), AGA said.
For more information, check out the American Gas Association site.
