DOE Announces Natural Gas Affordability Jumps to 3.5 Times More Affordable Than Electricity

Washington - The U.S. Department of Energy (DOE) announced today that natural gas is the lowest cost energy source available to households, and electricity costs are 3.5 times higher than natural gas. The difference between electricity and natural gas costs shows a notable increase over last year's finding that electricity was 3.3 times higher cost than natural gas. The 2024 Representative Average Unit Costs of Five Residential Energy Sources found that natural gas costs only $13.38 per MMBtu of energy delivered, in comparison to $47.36/MMBtu for electricity. Natural gas is the cheapest source of home energy measured by the DOE report.

"Today's report by DOE underscores the important role that natural gas plays in ensuring households have access to affordable energy. Low-cost natural gas means America's families can make the choices they need to save money on their utility bills," said AGA President and CEO Karen Harbert.

The EIA's recently released Winter Heating Outlook forecasts that U.S. households using natural gas will spend an average of $602 this winter, which is about 42% less than the $1,037 projected for those using electricity. The low cost of American natural gas has saved residential customers approximately $125 billion in home energy costs in the last decade. Commercial and industrial customers have seen even greater savings of approximately half a trillion dollars during the same time frame.

"Natural gas is the backbone of our energy system and our environmental progress," Harbert continued. "Today it serves one-third of U.S. energy needs and is a cost-effective and energy-efficient option in homes."