What is the average natural gas bill?

Direct Energy, December 5, 2023

5 minute read

What is the average natural gas bill?

Direct Energy, December 5, 2023

5 minute read

Budgeting for monthly expenses in a new home or apartment can be tricky when it comes to utilities like natural gas. There are so many variables affecting this expense that you can’t learn much from the average natural gas bill in any given area — it all comes down to how your home is powered, how energy-efficient it is, its size, where you live, how much gas costs per month, and what your energy habits are. 

Illustration of an average gas bill
Illustration of an average gas bill
Illustration of an average gas bill

With so many factors at play, there’s no simple answer to how much the average gas bill is, but you can still understand how to figure out what you should expect. We provide a breakdown below of what goes into the cost of your natural gas bill, as well as tips for how to lower it. You can also figure out how to calculate your natural gas bill for a more granular understanding of the cost.

What affects the cost of a natural gas bill?

Here’s a quick rundown of the factors that can have a major impact on the cost of your natural gas bill:

  • Gas-powered appliances. Some homes and apartments power their furnaces, water heaters, ovens, stoves and dryers with gas. Others don’t have any gas-consuming appliances at all. It matters how many gas appliances you have and how energy-efficient each one is.
  • Climate. Since most residential natural gas consumption goes toward heating homes, those who live in warmer climates tend to use a lot less than those who live farther north.
  • Home size. When it comes to heating, bigger homes mean bigger bills.
  • Number of occupants. More people mean bigger bills, too.
  • Home energy efficiency. How long does it stick around once you pay for warm air and hot water? Efficiency enhancements like insulation and multi-pane windows make a big difference.
  • Local natural gas rates. Natural gas prices are constantly in flux and vary over time and geography. There is a huge difference between the cheapest and most expensive natural gas states.

How much is the average gas bill?

To get a general idea of what you can expect to spend, it helps to look at state averages for monthly residential natural gas costs. A 2017 study by WalletHub used data from the U.S. Energy Information Administration to rank the states by utility costs, and the results range from a mere $3 average per month in Florida to $60 average per month in Michigan.

That makes sense since Florida is hot, and Michigan has very cold winters. But these totals don’t tell the whole story: Hawaii, for example, was the second cheapest with average monthly gas costs of $4. But Hawaii ranks first in the price of natural gas since its supply must either be brought in on tankers or created synthetically. The high cost of gas means gas-powered appliances are unpopular in Hawaii, and the mild climate means little gas is spent on space heating, which is why the typical gas bill is still so small.

How much are utilities for an apartment or home in your area? If you want the most accurate estimate, the best source is the person who was paying the gas bill before you came along. When looking at rentals, ask the property manager about the typical energy costs, and if they don’t know, see if they can find out from the previous tenant. If you’re buying a home, direct those questions to the seller or real estate agent. Still, your natural gas bill might vary if your energy consumption habits differ from the previous tenant or owner.

How to lower your natural gas bill?

  • Upgrade your gas-powered appliances to newer, more energy-efficient models. Look for the ENERGY STAR label when shopping.
  • Upgrade your home’s insulation, especially in the attic, to help keep your heated air indoors.
  • Seal drafts by closing cracks and gaps with spray foam and making sure your window and door weather stripping are in good condition.
  • Add an insulating jacket to your water heater and pipe insulation to your hot water pipes.
  • Install a thermostatic valve in your shower that automatically shut off the water when it reaches your preferred temperature, avoiding hot water waste.
  • Upgrade to a smart thermostat so that it’s easier to manage your furnace.
  • Limit the use of your gas fireplace, if you have one.
  • Use ceiling fans in a clockwise direction and at low speed to recirculate warm air during cold weather.

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