Gas vs. Electric Heating in Fredericksburg, TX: Which Costs Less to Run?

Written by: Global Cooling & Plumbing+ Heating Team | Last updated: November 5, 2026

Quick answer: In Fredericksburg, TX, a heat pump usually costs less to run than electric resistance heat, and natural gas is usually cheaper than propane. Texas propane averaged about $3.22 per gallon in early November 2026 (U.S. EIA), about 14% above the national average. Many Hill Country homes use a dual fuel system to balance both fuels.

When it is time to replace a heater or build a new home in the Hill Country, one of the biggest decisions is the fuel. Should you heat with natural gas, propane or electricity? And if you choose electric, should it be a traditional electric furnace or a heat pump?

There is no single right answer for every Fredericksburg home. The best choice depends on whether natural gas is available on your street, the size and insulation of your home, what you pay for electricity and propane, and how cold your home’s location gets on winter nights.

This guide compares gas, propane, electric resistance and heat pump heating side by side: running costs, upfront costs, comfort, safety, maintenance and lifespan. Global Cooling & Plumbing+ installs and services all of these systems across Fredericksburg and the Hill Country.

Key Takeaways

• Electric resistance heat (electric furnaces and heat strips) is usually the most expensive way to heat a Hill Country home.
• Modern heat pumps are often the lowest-cost option to run during most Fredericksburg winter days.
• Natural gas furnaces are usually cheap to run where gas service is available, mostly in town.
• Propane furnaces are common on rural properties but often cost more to run than a heat pump.
• Dual fuel systems combine a heat pump with a gas or propane furnace and are a strong choice for many Hill Country homes.
• Insulation and ductwork matter as much as the fuel you choose.

The Four Main Heating Options

Natural Gas Furnace

Burns natural gas from a utility line to heat air. Available in many homes in town, but not on most rural properties.

Propane Furnace

Works like a natural gas furnace but uses propane from a tank on your property. Common on ranches and homes outside city gas service, near Stonewall, Harper, Willow City and Luckenbach.

Electric Furnace (Resistance Heat)

Uses electric heating elements, like a large toaster. Simple and inexpensive to install, but expensive to run.

Heat Pump

Uses electricity to move heat from outdoor air into your home. Because it moves heat instead of creating it, a heat pump can deliver two to three times more heat energy than the electricity it uses in mild weather. It also provides air conditioning in summer.

How Running Costs Compare

To compare fuels fairly, you need the cost of the same amount of heat delivered to your home. The table below uses example prices to show how the comparison works.

System	Example Fuel Price	Typical Efficiency	Relative Cost per Unit of Heat
Electric furnace / heat strips	$0.14 per kWh	100%	Highest
Propane furnace	$3.22 per gallon (Texas avg., Nov 2026)	80% – 96%	High to medium
Natural gas furnace	$1.20 per therm	80% – 96%	Low
Heat pump (mild weather)	$0.14 per kWh	200% – 300%+	Low
Heat pump (below freezing)	$0.14 per kWh	Lower; backup heat may run	Medium

Most winter hours in Fredericksburg are above freezing, even in January. That is why heat pumps often perform very well here. On the coldest nights, a heat pump may rely on backup heat strips, or on a gas or propane furnace in a dual fuel system.

Upfront Installation Costs

Typical ranges for planning.

• Electric furnace (air handler with heat strips): lowest upfront cost.
• Gas or propane furnace: moderate cost, plus venting and gas line work if new.
• Heat pump system: higher upfront cost, but it replaces both your heater and your AC.
• Dual fuel system: highest upfront cost, often the lowest running cost in mixed climates.

Adding a gas line or a new propane tank can add significant cost if your home does not already have one. See our heating installation options and financing.

Side-by-Side Comparison

	Natural Gas	Propane	Electric Furnace	Heat Pump
Running cost	Low	Medium to high	High	Low to medium
Upfront cost	Medium	Medium	Low	Medium to high
Air temperature at vents	Very warm	Very warm	Warm	Mild, steady
Also cools in summer	No	No	No	Yes
Combustion and CO risk	Yes	Yes	No	No
Works during power outage	No (blower needs power)	No (blower needs power)	No	No
Typical lifespan	15 – 20+ years	15 – 20+ years	20+ years	12 – 15 years
Availability	Mostly in town	Anywhere with a tank	Anywhere	Anywhere

Comfort: How Each System Feels

Gas and propane furnaces deliver very warm air quickly, which many people like on a cold morning. Heat pumps deliver air that feels milder but runs longer and more evenly. Some homeowners describe heat pump air as “not hot enough” at first, even though the house stays at the set temperature. Electric furnaces deliver warm air but can run up bills quickly.

Safety Considerations

• Gas and propane: Safe when installed and maintained correctly, but they need proper venting, annual inspections and working carbon monoxide detectors.
• Electric and heat pumps: No combustion and no carbon monoxide from the heating system. They need correct wiring and breakers sized for the load.

Why the Answer Is Different in Fredericksburg

• Mild average winters, sharp cold fronts: Most winter days suit a heat pump, but a few nights each year drop into the teens or 20s. That is where backup heat matters.
• Gas availability: Natural gas is mainly available in town. Many homes outside city limits must choose between propane and electricity.
• Long cooling season: Because AC runs for many months, a heat pump that heats and cools can make the most of one investment.
• Older homes: Historic stone and wood homes may have little insulation. Improving insulation can reduce heating costs no matter which fuel you use.
• Storm outages: No central system runs without power. Some rural homeowners add a generator to keep a furnace blower or heat pump running.

Which Heating Option Is Best for Your Home?

Choose a natural gas furnace if:

• Your home already has natural gas service.
• You want very warm air and low running costs.
• Your AC is separate and in good condition.

Choose a heat pump if:

• You do not have natural gas.
• You are replacing your AC and heater at the same time.
• You want lower running costs than propane or electric resistance heat.

Choose a dual fuel system if:

• You have gas or propane and want the lowest overall running cost.
• You want strong heat on the coldest nights.

An electric furnace may make sense if:

• The space is small or rarely used, such as a guest house.
• Upfront budget is the main priority.

Learn more about our heat pump services.

Switching Fuels: What to Know

• Gas or propane to heat pump: Gas lines to the furnace should be capped safely by a licensed professional. Ducts and electrical service may need upgrades.
• Electric to gas: Requires a gas line or propane tank, venting and permits.
• Adding a heat pump to an existing furnace: Often the simplest path to dual fuel if the furnace is in good condition.

Maintenance by Fuel Type

• Gas and propane furnaces: Annual fall service with combustion and CO checks.
• Heat pumps: Service twice a year because they heat and cool.
• Electric furnaces: Annual check of heat strips, wiring and blower.

How to Estimate Your Own Heating Costs

You can make a rough comparison using your own bills.

• Find your rates: Look at your electric bill for the price per kWh, your gas bill for the price per therm, or your last propane delivery for the price per gallon.
• Look at last winter: Compare your December to February bills with your spring bills. The difference is roughly what you spend on heat.
• Check your system: Note whether you have an electric furnace, heat pump, gas or propane furnace, and its approximate age.
• Ask for a comparison: A contractor can estimate how much a heat pump or high-efficiency furnace would change those numbers for your home.

Common Myths About Gas and Electric Heat

“Heat pumps do not work in Texas winters.”

Modern heat pumps heat efficiently on most Fredericksburg winter days. Backup heat covers the coldest nights.

“Gas heat is always cheaper.”

Natural gas is usually cheap to run, but propane prices can make a gas furnace more expensive than a heat pump on rural properties.

“Electric heat is unsafe.”

Electric heat is very safe when wired correctly. It has no combustion, so it does not produce carbon monoxide.

“A bigger system heats better.”

An oversized system short cycles, wastes energy and creates uneven temperatures, whatever the fuel.

Why Fredericksburg Trusts Global Cooling & Plumbing+

• We install and service all fuel types: natural gas, propane, electric and heat pumps.
• Honest comparisons based on your home, your fuel options and your budget.
• Licensed HVAC and plumbing, including gas line work.
• Locally owned since 2009, serving Fredericksburg, Boerne, Kerrville, Comfort, Stonewall and Harper.
• 4.9★ across 140+ Google reviews, financing and 10% off for veterans and seniors.

Real 2026 Numbers for Fredericksburg Heating Costs

Use current local data instead of national averages:

• Propane prices: The Texas residential propane average was about $3.22 per gallon in early November 2026 (U.S. EIA), about 14% above the national average and nearly 10% higher than a year earlier.
• Local utilities: Natural gas in Fredericksburg is supplied by Atmos Energy, while electricity comes from the City of Fredericksburg or Central Texas Electric Cooperative (CTEC), depending on where you live. Rural homes often rely on propane.
• Electric rates: Check your City of Fredericksburg or CTEC bill for your price per kWh.
• No federal tax credit in 2026: The federal 25C credit for heat pumps and high-efficiency equipment ended for systems installed after December 31, 2025.
• Local rebates: Ask your electric provider (CTEC or the City of Fredericksburg) whether any efficiency rebates are currently available.

Frequently Asked Questions

Is gas or electric heat cheaper in Fredericksburg, TX?

Natural gas and heat pumps are usually the cheapest to run. Electric resistance heat is usually the most expensive. Propane is often in between.

Is a heat pump good for Hill Country winters?

Yes. Most winter hours in Fredericksburg are mild enough for a heat pump to work efficiently. Backup heat covers the coldest nights.

Is propane cheaper than electric heat?

Propane is usually cheaper than an electric furnace but often more expensive than a modern heat pump. It depends on current propane prices.

What is a dual fuel system?

A heat pump paired with a gas or propane furnace. The heat pump heats on mild days and the furnace takes over on very cold days.

Which lasts longer, a gas furnace or a heat pump?

Gas furnaces often last 15 to 20+ years. Heat pumps usually last 12 to 15 years because they run all year.

Is electric heat safer than gas?

Electric heat has no combustion, so it does not produce carbon monoxide. Gas heat is safe when properly installed, maintained and paired with CO detectors.

Can I switch from gas to a heat pump?

Yes. We can remove the furnace, safely cap the gas line and install a heat pump, or add a heat pump to your existing furnace.

What happens to a heat pump during a power outage?

Like any central system, it stops. Gas and propane furnaces also need electricity for the blower and controls. A generator can keep either running.

Does a heat pump help in summer too?

Yes. A heat pump is also your air conditioner, which is a major benefit in Fredericksburg’s long cooling season.

Sources

• U.S. Energy Information Administration (EIA): Weekly Heating Oil and Propane Prices
• IRS: Energy Efficient Home Improvement Credit (25C)
• City of Fredericksburg, TX: Fee Schedule
• City of Fredericksburg, TX: Permit Applications
• Texas Department of Licensing and Regulation (TDLR): Air Conditioning and Refrigeration
• CDC: Carbon Monoxide Poisoning Prevention
• Atmos Energy: Gas Leak Safety
• Central Texas Electric Cooperative (CTEC)

Information checked in November 2026. Prices and rules can change; confirm current figures with each source.

Get a Heating Comparison for Your Fredericksburg Home

Not sure which fuel is right for you? Global Cooling & Plumbing+ will look at your home, your fuel options and your budget and give you a clear comparison.

Call (830) 992-7887, email office@globalcoolingtx.com, or request a free estimate.