Cost to heat a house in Austin, TX
In Austin, a cold-climate heat pump costs about $200 a year to heat a typical 2,000 sq ft home, versus $413 with natural gas. That saves about $213/year. At an installed cost of about $13,000 USD, the simple payback is roughly over 30 years. It is shorter with rebates, or if you need to replace an old furnace or air conditioner anyway.
Annual heating cost, 2,000 sq ft home (USD)
Average insulation, high-efficiency furnaces, cold-climate heat pump with a seasonal efficiency (COP) of 3.2 in Austin's climate. Space heating only.
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1 GJ ≈ 26.4 m³ of natural gas ≈ 9.48 therms. US gas bills in therms: $/therm × 9.48 = $/GJ.
Heating cost by home size in Austin
| Home size | Heat pump | Natural gas furnace | Propane furnace | Heating oil furnace | Electric baseboard |
|---|---|---|---|---|---|
| 1,000 sq ft | $100 | $259 | $272 | $383 | $322 |
| 1,500 sq ft | $150 | $329 | $408 | $574 | $482 |
| 2,000 sq ft | $200 | $413 | $544 | $766 | $643 |
| 2,500 sq ft | $250 | $483 | $679 | $957 | $804 |
| 3,000 sq ft | $300 | $567 | $815 | $1,149 | $965 |
Month-by-month heating cost
Most of the bill lands in the coldest months. In January, a 2,000 sq ft home in Austin needs about 4.2 GJ of heat.
| Month | Avg temp | Heat pump | Natural gas furnace | Propane furnace | Heating oil furnace | Electric baseboard |
|---|---|---|---|---|---|---|
| Jan | 11.2°C | $55 | $90 | $146 | $206 | $173 |
| Feb | 13.4°C | $36 | $65 | $98 | $139 | $116 |
| Mar | 17.1°C | $20 | $43 | $55 | $78 | $65 |
| Apr | 20.9°C | $7 | $26 | $21 | $29 | $25 |
| May | 24.9°C | $2 | $18 | $6 | $8 | $7 |
| Jun | 28.3°C | $0 | $1 | $1 | $2 | $2 |
| Jul | 29.9°C | $0 | $0 | $1 | $1 | $1 |
| Aug | 30.3°C | $0 | $0 | $0 | $1 | $1 |
| Sep | 27.1°C | $1 | $16 | $2 | $3 | $3 |
| Oct | 22.0°C | $5 | $23 | $15 | $22 | $18 |
| Nov | 16.1°C | $23 | $49 | $66 | $92 | $78 |
| Dec | 12.0°C | $49 | $82 | $132 | $186 | $156 |
Energy prices used
- Electricity: 14.94¢/kWh USD — U.S. EIA 2024 average residential electricity and natural gas prices by state (via AGA summary, Mar 2026)
- Natural gas: $17.04/GJ (≈ $1.80/therm) plus ~$15/month fixed charge — U.S. EIA 2024 average residential electricity and natural gas prices by state (via AGA summary, Mar 2026)
- Heating oil: $6.14/gal — EIA weekly residential price, U.S. average, week of Nov 2, 2026, excl. taxes (price history)
- Propane: $3.22/gal — EIA weekly residential price, Texas, week of Nov 2, 2026, excl. taxes (price history)
Change any price in the calculator above to match your bill. Prices exclude sales tax.
Frequently asked questions
How much does it cost to heat a house in Austin?
For a typical 2,000 sq ft home with average insulation, expect roughly $200 to $766 USD per year depending on the system. The cheapest option at current prices is the heat pump ($200/year).
Is a heat pump worth it in Austin?
In Austin, a cold-climate heat pump costs about $200 a year to heat a typical 2,000 sq ft home, versus $413 with natural gas. That saves about $213/year. At an installed cost of about $13,000 USD, the simple payback is roughly over 30 years. It is shorter with rebates, or if you need to replace an old furnace or air conditioner anyway.
How much does heating cost per month in Austin in winter?
In January, heating a 2,000 sq ft home costs about $55 with a heat pump, $90 with natural gas and $206 with heating oil (USD).
How cold does it get in Austin?
The average January temperature in Austin is 11.2°C (52°F). The city has about 815 heating degree-days a year (base 18°C).