What’s the Cost of Converting a Home from Natural Gas to All-Electric?

In recent columns, I have promoted the idea of eliminating natural gas and converting one’s home to all-electric, using heat pumps for heating & cooling and installing a heat pump water heater. I have also promoted induction cooktops as an alternative to gas or standard electric cooktops.

One reader asked me to provide information on the cost of making the conversion to all-electric, so I have done some research and can also speak from personal experience.

First, I asked Bill Lucas-Brown of Helio Home Inc., who installed the heat pump mini-split system at Golden Real Estate’s former office on South Golden Road as well as in our storefront in downtown Golden.

I asked Bill for a rough estimate of the cost of making a typical 2,000 sq. ft. home all-electric, and he responded with the following numbers and comments.

Note that rebates and tax incentives are available from the state, feds, utilities, and local municipalities that typically range from 15 to 30 percent off total cost. The following are costs without those rebates.  Click here to view Helio Home’s web page about the rebates and tax credits available under the Inflation Reduction Act.

  • Air source heat pump for heating and cooling your home, $22,000
  • Heat pump water heater, $4,000 
  • Insulation and air sealing work to improve efficiency, $5,000
  • Ventilation system for indoor air quality, $4,000
  • 10kW solar system PV, $30,000
  • Electric panel upgrade, if needed, $4,000
  • Electric vehicle charger, $1,500

That said, Helio Home’s average job is around $50,000. With rebates, figure $35,000 to $43,000. You can get a proposal on the company’s website www.heliohome.io.

Sadly, there are few vendors who are experienced and competent in heat pumps for heating and cooling homes. Heat pump water heaters are less of a challenge, because they are sold by Lowe’s and Home Depot, and you just need a plumber to install them and an electrician to pull a 240-Volt circuit to it. I bought a 50-gallon heat pump water heater in 2021 for $1,200 (on sale – prices are higher now) and was able to do the electrical work myself because of a nearby 240V circuit that was no longer in use. The self-employed plumber I used charged just $500, and I got a $400 rebate from Xcel Energy, so the cost was less than the figure quoted above. The federal rebate taking effect in January under the IRA makes such a purchase almost free.

You may find it more practical to leave your gas forced air furnace in place and install a ductless mini-split system. A compressor (similar to an A/C compressor) is installed outside your home, and two coolant lines are run to wall-mounted units in different rooms of your house. This works best in a one-story home. These same wall units provide both heating and cooling, because that’s how heat pumps work — they are like an air conditioner that works in two directions, moving heat out of your home in the summer and into your home in the winter. As the name suggests, they don’t create heat, they move heat, and they do it more efficiently than baseboard electric heating or heating generated by burning natural gas (or propane).

Instead of wall-mounted mini-splits, you can install a ceiling-mounted “cassette” which functions the same way. That’s what Helio Home installed in our downtown storefront, and it works just as well. (Come by our office and I’ll show it to you.) I have also seen a wall-mounted cassette which has a picture frame on it. When the heat pump is operating, the picture moves out a couple inches from the wall to allow the movement of air.

As for an EV charger, the biggest variable is the cost of bringing a 240V circuit to your garage, which depends on the distance between the garage and your breaker panel. I spent less that $300 for that, again from a self-employed electrician.

Tesla vehicles have the charger built into the car, so you only need a 240V outlet (similar to the outlet for your clothes dryer) to plug the provided cord into. Don’t buy the Tesla Wall Connector — it’s totally unnecessary for home use. Just use the charging cord with a 240V head.

Other EVs may require you to purchase a Level 2 charging station, which I did when I had a Chevy Volt. By googling “Level 2 EV chargers,” I found prices as low as $200 (Home Depot, 16 amp model), and several under $500. So your real cost depends on what your electrician charges.  Here’s an idea: If you have an electric dryer outlet available close to your garage, you could adapt that circuit for your EV at minimal cost.

Another use of natural gas that you’re probably using is for cooking and grilling. You’ll really love induction cooking if you try it, because it is so much faster. Buy a countertop unit for under $100 and play with it. For grilling, we love the George Foreman electric grill we purchased for $100.

Above all, pay attention to the tax credits and rebates that take effect on Jan. 1, 2023, under the Inflation Reduction Act. They make going all-electric more realistic.