With winter gripping most of the U.S., heating costs have become a financial burden for millions of households. According to a new report from the National Energy Assistance Directors Association (NEADA), families who rely on electric heating systems are paying the highest utility bills this winter, often hundreds of dollars more than homes using natural gas or propane.
NEADA’s findings highlight a growing divide between households based on energy source, as the average U.S. heating bill continues to climb due to energy inflation, colder winters, and rising electricity rates.
Why Electric Heating Costs the Most?
The NEADA report shows that electric heating systems, including baseboard heaters, electric furnaces, and heat pumps, are the most expensive to operate in 2026. This is largely due to higher electricity prices and the inefficiency of resistance-based heating systems in colder climates.
“Electric heating may seem clean and simple, but in most regions, it’s the most expensive way to stay warm,” said Mark Wolfe, Executive Director of NEADA. “As electricity costs rise faster than gas, families using electric systems are hit hardest.”
Unlike natural gas, which burns directly to generate heat, or propane, which offers high heat energy per gallon, electric heating converts electricity to heat, a process that can lead to higher per-unit energy costs.
Overview of Average Winter Heating Costs by Energy Type
| Energy Source | Average U.S. Winter Bill (2025–2026) | Change from Last Year | Typical Household Usage |
|---|---|---|---|
| Electric Heating | $1,189 | +14.2% | All-electric homes, especially in the South & Northeast |
| Natural Gas | $709 | +6.7% | Most common heating fuel in U.S. |
| Heating Oil | $1,086 | +8.8% | Rural Northeast & Mid-Atlantic |
| Propane | $980 | +7.5% | Rural and off-grid homes |
| Wood or Pellet Stoves | $827 | +5.2% | Northern rural regions |
Why Electric Heating Costs Are Rising?
Several key factors are driving up electric heating bills across the United States:
1. Rising Electricity Prices
The average residential electricity rate in the U.S. has increased by over 13% since 2023, according to the U.S. Energy Information Administration (EIA). As electric utilities adjust to higher infrastructure and generation costs, consumers are feeling the impact directly on their monthly bills.
2. Heating Inefficiencies in Cold Regions
Electric furnaces and baseboard heaters are less efficient in subfreezing temperatures. In northern states, where winter nights can drop below zero, electric heat systems must work harder and longer to maintain comfortable indoor temperatures.
3. Overloaded Grids & Demand Charges
During extreme cold spells, heavy electric heating use can strain power grids, leading to peak-time surcharges and even rolling outages in some states.
“Electric resistance heat is the most expensive form of heat for every Btu you get,” said Dr. Lisa Reynolds, Energy Economist at the University of Maryland. “It’s especially costly when everyone’s heat turns on at once.”
Where Are Bills the Highest?
| Region | Primary Heating Fuel | Average Monthly Winter Bill (2026) | Notable Trend |
|---|---|---|---|
| Northeast (e.g., Maine, New York) | Heating oil, electric | $350–$450 | Electric heat users paying 30–40% more |
| Midwest (e.g., Ohio, Michigan) | Natural gas | $200–$280 | Stable due to pipeline supply |
| South (e.g., Florida, Georgia) | Electric | $250–$300 | High due to increased electricity usage |
| West (e.g., California, Oregon) | Mixed (gas & electric) | $280–$370 | Electric bills spiking due to grid surcharges |
Why Natural Gas and Propane Are Still Cheaper?
While natural gas and propane prices can fluctuate seasonally, both remain more cost-efficient than electricity on a per-unit basis.
- Natural Gas: Provides steady and affordable heating for over 50% of U.S. households.
- Propane: Often used in rural homes without gas lines, propane burns hotter, delivering more heat per dollar in most regions.
However, households using oil or propane still face volatility, as prices depend heavily on global energy markets.
“Natural gas continues to be the most economical choice for American households,” said Brian Snyder, Senior Analyst at the Energy Information Policy Center. “But regions without pipeline access will continue struggling with high electric bills.”
Tips to Lower Your Winter Energy Bills
Even if you rely on electric heating, there are practical steps you can take to reduce costs this season:
- Lower thermostat settings by 2–3°F to save up to 10% on heating costs.
- Seal air leaks and insulate windows and doors.
- Use programmable thermostats to optimize heating schedules.
- Upgrade to energy-efficient heat pumps designed for cold climates.
- Apply for LIHEAP assistance (Low Income Home Energy Assistance Program) if eligible.
Final Thoughts
The latest NEADA report underscores a growing challenge for households relying on electricity as their main heating source. As electric rates continue climbing and cold weather persists, millions of Americans will face record-high heating costs in 2026.
For those without access to natural gas or propane, the best solution lies in efficiency improvements, weatherproofing, and exploring state and federal energy assistance programs.
“We’re seeing an affordability gap widen every winter,” NEADA’s Mark Wolfe said. “Households that rely on electricity alone are paying the price literally for a colder and more expensive energy future.”
Frequently Asked Questions
Why is electric heating more expensive than gas?
Because electricity costs more per unit of energy and electric resistance heating converts it less efficiently into heat, driving up total energy use.
Will switching to natural gas save money?
In most regions, yes. Natural gas heating can reduce your winter bill by 30–50% compared to electric heating.
Do electric heat pumps also cause high bills?
Older heat pumps can be costly in cold climates. However, newer “cold-climate” heat pumps are far more efficient and can cut costs significantly.
Are there government programs to help with heating costs?
Yes. The LIHEAP program and Weatherization Assistance Program (WAP) help low-income households manage winter energy expenses.
Which states have the highest winter electric bills?
According to NEADA, Maine, Vermont, New Hampshire, and parts of the South (Florida, Georgia) have seen the sharpest rises in electric heating bills.
