Electric Heating Growing in Popularity

A growing number of U.S. homes are being heated with electricity, reflecting trends in technology and policy and shifts in where people are choosing to live.

A recent U.S. Energy Information Administration analysis found that 42% of households were using electricity as their main heating fuel in 2024, up from 35% in 2010. At the same time, natural gas, which is the dominant heating fuel, still is used in 47% of homes, down from 49% in 2010. The heating data came from the U.S Census Bureau’s American Community Survey.

The EIA attributes the shift to several factors. There has been a shift away from fossil fuels and toward electrification of homes and industrial processes in recent years, as government officials have worked to reduce greenhouse gas emissions. In addition, improvements in electric heat pumps have made them a better option for homeowners, even in colder climates.

Electricity produced from clean sources, or using carbon reduction and sequestration techniques, produces far less emissions. Electric-powered homes also promote healthier indoor air quality than homes using natural gas due to the use of electric, rather than gas, appliances.

 In addition, heating choices vary based on a home’s exposure to different temperatures, EIA data shows. In 2020, homes in warmer temperatures throughout the year were more likely to use electricity for their heating. Natural gas was more popular in colder climates, and propane, heating oil, and wood, which together account for just 10% of heating fuels, were the most common fuels in the coldest temperatures.

Natural gas consumption shows a sharp rise in the winter months because of increased heating demand, while electric demand also increases, but not as sharply. That is partly due to the concentration of electric-fueled homes in warmer climates. However, electric consumption does increase more sharply during the summer months, due to demand for air conditioning.

Demand for electricity is expected to reach record levels in the U.S. in 2025 and 2026, the EIA forecasts. This is partly due to the continuing electrification of homes and businesses, but another major factor is the growth in the number of power-hungry data centers. The challenge will be meeting the increasing demand, while ensuring that residential electric customers do not shoulder the burden of building power infrastructure to meet data center needs, so that their bills remain affordable.