The yearly cost of operating an electric furnace, assuming average usage and cost of electricity, is $1,314.14. This figure can vary dramatically depending on the size of the area heated, the age and efficiency of the furnace, the local cost of electricity and the temperature to which it is set.
Due to the price of the various commodities, the annual cost of operating electric furnaces is generally higher than that of furnaces that burn natural gas or oil. However, most electric furnaces have lower installation and setup costs than other furnaces because fuel supply lines and venting are not necessary. Despite this initial savings, the operation of an electric furnace is more expensive over an extended period of time.