U.S. Department of Energy announces natural gas is 3.3 times more affordable than electricity.
Washington, D.C. – The U.S. Department of Energy (DOE) announced today that natural gas is 3.3 times more affordable than electricity and significantly more affordable than several other residential energy sources for the same amount of energy delivered. The 2023 Representative Average Unit Costs of Five Residential Energy Sources says:
(Costs in Dollars per Million British Thermal Units (Btu))
Source: U.S. Department of Energy
Representative Average Unit Costs of Energy for Five Residential Energy Sources
“America’s natural gas is critical to American and global energy security,” said American Gas Association (AGA) President and CEO Karen Harbert. “DOE’s analysis confirms the very clear and substantial cost-advantage of natural gas. Our nation’s domestic abundance of natural gas means American customers pay a fraction of what customers pay for other energy sources here at home and see significant savings compared to energy costs globally. Our industry invests $91 million every day to ensure our vast modern delivery infrastructure provides the reliability Americans expect.”
AGA analysis shows that households that use natural gas for heating, cooking and clothes drying save an average of $1,068 per year compared to homes using electricity for those applications. Natural gas is projected to be half to one-third the price of other fuels through 2050. This affordability is enhanced by successes in energy efficiency. The typical residential natural gas consumer has cut their average fuel use by half since 1970, even as homes have become larger. This is the result of steady improvements in building and appliance energy efficiency, and the positive impacts of gas utility energy efficiency programs, and other measures that have contributed to steady improvements in energy efficiency.
“DOE’s findings underscore why it’s essential that consumers have the choice to select natural gas as their energy source” Harbert continued. “Natural gas is not only a low-cost option but also the lowest-emissions resource for most consumers today. The infrastructure that delivers it continues to drive down emissions across the country, and continual innovations in renewable fuel supplies and energy efficiency will provide even more solutions for consumers looking to reduce their emissions in a cost-effective manner.”
“Natural gas is responsible for 61 percent of cumulative CO2 emissions reductions from the U.S. power sector since 2005, according to other analysis from the Energy Information Administration.” Harbert said. “This data from DOE underscores how crucial natural gas is for reducing emissions while keeping prices affordable for customers and preserving lifesaving reliability.”
Source: American Public Gas Association