Home Heating Cost in Texas (2027): Natural Gas vs Oil vs Electric
Heating costs for your home size in Texas
This page answers one question for Texas: which fuel heats a house for the least money right now. The inputs are current state-average energy rates and a heating load for Climate Region #5; the method is the one inside our heating cost calculator, set to mid-efficiency equipment.
The spread is wide: about $500 a winter with a heat pump versus about $1,410 with electric baseboard heat, for one 2,170 sq. ft. home in Texas. That $910 difference comes from the fuel alone.
Season Heating Cost in Texas: Five Fuels Compared
| Fuel & equipment | Price | Season use | Cost / season |
|---|---|---|---|
| Electric heat pumpductless, ~2.9 COP | $0.199per kWh | 2,509kWh | ~$500 |
| Natural gasnatural gas boiler, 82 AFUE | $2.51per therm | 303therms | ~$760 |
| Propanepropane boiler, 82 AFUE | $3.10per gal | 331gals | ~$1,030 |
| Heating oiloil boiler, 82 AFUE | $5.81per gal | 218gals | ~$1,270 |
| Electric baseboardresistance heat | $0.199per kWh | 7,059kWh | ~$1,410 |
Rounded up to $10. Rates are current Texas averages; the load is a 2,170 sq. ft. home at the insulation level you pick above. Same method as the heating cost calculator.
A Season of Heat, Fuel by Fuel
Same house, same winter, five fuels. Hover a bar for the use and the rate behind it.
Season = the modeled Texas heating load on standard mid-efficiency equipment; fuels ranked like the heating cost calculator (pellet and wood stoves are manual-load and stay unranked).
Heating Costs Over the Next 10 Winters
This chart carries the season costs forward 10 winters. Electricity follows its Texas track record, about 2.47% a year (2013 to 2023, energy database). Natural gas, heating oil and propane have no long series in our data, so they get two clear cases rather than an invented rate. Hover or tap a column for that winter's costs.
Each column is one heating season for the house above at average insulation. Totals are rounded up to $10.
Fossil fuels flat, electricity on its trend: the cheapest 10-winter total is a heat pump at about $5,580; the most expensive is electric baseboard heat at about $15,680.
How Texas Winters Set the Heating Load
Region #5 on the map means mild winters: about 60°F by day and 35°F by night in Texas. A small seasonal load keeps every fuel's bill low, which changes what is worth paying for in equipment.
What the local weather means for heating equipment:
Cooling first. Summer heat drives the energy bill in Texas. When the air conditioner is due for replacement, a heat pump of the same size usually covers winter heat too.
Hailstorms. An outdoor coil with dented fins moves less air and loses capacity. A guard or a partly sheltered location protects it.
Storm prep. Every heating system here depends on electricity for fans or controls, and hurricanes can knock power out for days. Anchor the outdoor unit, raise it above flood height and plan for backup power.
As a natural gas producing state, Texas has service in most towns. At $2.51 per therm, natural gas sets the bar for any other fuel in the table where a line is available. Here, heating is a side job for the cooling system. Schedule maintenance outside of summer, when crews are less busy.
Three Things That Change the Number
- Insulation and air sealing. The model moves the load 12% either way: from average to poorly insulated, or from average to well insulated. On a heat pump in Texas, each step is about $60 a season. Try the insulation buttons above the table.
- Burner efficiency. The table assumes a mid-efficiency boiler at 82 AFUE. A condensing unit at 93 AFUE burns less fuel for the same heat, about $90 a season less on natural gas here. An old 62 AFUE unit burns about $250 more.
- The ducts. A forced-air system with bare ducts loses roughly 17% of its output on the way to the rooms, according to the calculator's duct model. Ductless systems and radiators skip that loss.
The Heat Pump Line, Explained
Both electric rows use the same $0.199 per kWh rate. The difference is the machine: resistance heat converts power to heat one for one, while a heat pump gets about 2.9 units of heat per unit of power here. The result is about $500 a season instead of $1,410. In Texas that makes it the lowest-cost fuel in the table.
Common Questions About Heating a Texas Home
What heats a Texas house for the least money?
By today's rates, a heat pump wins at about $500 a season, with natural gas next at about $760. A heat pump needs only an electric connection, so it is an option for almost any home.
Does it pay to replace an oil boiler in Texas?
For most homes, yes. This house would spend about $1,270 a season on heating oil and about $500 on a heat pump, so 10 winters at flat prices leave roughly $7,690 on the table. Weigh that against the conversion quote.
How much does insulation change the heating bill here?
Quite a bit. On a heat pump, the same 2,170 sq. ft. house runs about $560 a season when poorly insulated and about $440 when well insulated, a yearly difference of about $120.
Wood and pellet stoves are not ranked here because someone has to load them. The pellet stove calculator prices them on their own.
About these numbers: seasonal estimates from current average Texas energy rates and a modeled heating load. Use them to compare fuels, not as a quote; real bills follow your winter, your house and your equipment.
