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Joe & Betty's Heating Decision

Joe and Betty Smith are building their dream home—a cozy 1,700 sq. ft. single-family house in Beaumont, Alberta, where winters are cold and energy bills can climb fast.

With two kids and a long-term vision, they're not just picking paint colors—they're making smart decisions about how to heat their home efficiently and affordably.

Their big question: Should they go with a high-efficiency natural gas furnace or try an electric heat pump?

They'd heard that heat pumps are energy efficient and environmentally friendly. But Alberta's frigid winters raised concerns about performance and reliability. Joe and Betty decided to dig into the data and compare options.

What the Data Said

CategoryNatural Gas FurnaceElectric Heat Pump (Build a Net Zero-Ready Home)Hybrid (Electric HeatPump with Natural Gas Furnace for Backup Heat)
Upfront Appliance Cost$4,000 - $6,000$8,000 - $20,000 (depending on system type)$10,000 - $25,000 (est.)
Delivered Heating Cost (2025 Avg.) *Delivered energy includes fixed and variable charges; including the cost of the commodity (gas and electricity).$20 per GJ$0.25 per kWhMixed: $0.25/kWh + $20/GJ
Annual Heating Cost$1,000$1,500$1,000 - $1,400
Monthly Heating Cost (Oct - Mar)$167$250$167 - $233
Cold Weather PerformanceReliable in all temperaturesLess efficient below -20°C; may require backup depending on building constructionReliable with backup furnace
MaintenanceModerateModerateModerate to high
Lifespan15 - 20 years15 - 20 years15 - 20 years
Environmental ImpactEmits CO2Lower emissions if powered by renewables; but Alberta’s electricity is generated mainly by natural gas; so the environmental benefit is limitedTotal emissions are comparable to gas-only
Links to Resources:

What They Realized

01. Potential Benefits

The electric heat pump looked appealing at first—especially for its efficiency and potential environmental benefits.

02. Climate Consideration

But factoring in Alberta’s climate, they’d need a backup furnace or electric resistance heater for the coldest months.

03. Outdoor Temperature Switching

Deciding what outdoor temperature to switch between the heat pump and backup furnace wasn’t clear, and it might cost them extra money to heat their homes if they switched at too low of a temperature.

04. Higher Costs

That meant higher installation costs, higher monthly bills, and no significant emissions advantage due to Alberta’s natural gas-powered grid.

05. Energy Generation

While electric heat pumps can be cleaner in provinces with greener grids, in Alberta, electricity is still primarily generated from natural gas—so switching to electricity doesn’t eliminate natural gas use, it just shifts where it happens.

Their Decision

“We wanted something that works no matter how cold it gets,” said Betty. “A natural gas furnace gives us peace of mind and saves us up to $500 per year in heating costs.”

They chose a high-efficiency natural gas furnace—a reliable, cost-effective solution that keeps their family warm through Alberta’s harshest winters.

Compare Your Energy Costs

Want to get a sense of how your energy costs would change if you relied on electricity to heat your home instead of natural gas?

To make an apples-to-apples comparison between natural gas and electricity, you can convert your natural gas usage into kilowatt-hours (kWh) using this formula:

1 GJ = 277.78 kWh

1 kWh = 0.0036 GJ

This helps you evaluate how much energy you're using in a common unit.

An Example

If your monthly natural gas consumption is 10 GJ, the equivalent in electricity would be:

10 GJ × 277.78 kWh/GJ = 2,777.78 kWh

Now, multiply your electricity usage by your electricity commodity rate (found on your electricity bill, in ¢/kWh) and divide by 100 to convert cents to dollars:

(2,777.78 kWh × 9 ¢/kWh) ÷ 100 = $250

Compare that to the natural gas commodity cost:

10 GJ × $2/GJ = $20

The Result

By choosing natural gas for space and water heating, you could save up to $230 in commodity costs alone!

Commodity costs are just one part of your energy bill. Delivery charges, fixed fees, and administration costs also apply. For this comparison, we’re focusing on the commodity portion only. If you purchase your natural gas from Apex Utilities, the conversion from GJ to kWh is conveniently provided on the first page of your invoice.