Gas Service Removal Payback
Once every gas appliance in a home is converted, there is one more savings lever left: disconnecting gas service entirely and eliminating the fixed monthly fee. This is usually the fastest payback in the whole electrification project, precisely because it has almost no ongoing cost on the new side.
At your inputs, removing gas service entirely pays back in 2.8 years and changes your annual cost by $180 a year.
| Net cost after confirmed incentives | $500 |
|---|---|
| Annual savings | $180 |
- This uses planning estimates you entered, not a contractor quote or guaranteed savings.
- A lower calculated cost does not measure the convenience of keeping gas as a backup option; weigh that separately.
What this also tells you: If your annual savings are 20% higher or lower than entered, gas service removal payback would move from 3.5 years to 2.3 years.
This is a planning estimate based on your entries. It does not size equipment, determine electrical or building-code compliance, verify incentive eligibility, or replace a contractor quote or professional energy audit.
Why this decision comes up
Homeowners who convert every gas appliance often keep paying the fixed monthly gas fee without realizing there is one more step, and one more savings opportunity, left on the table.
How this is calculated
This is a standard payback calculation: the cost to disconnect gas service, divided by the annualized fixed fee you stop paying. Because there is no offsetting new cost on the electric side (electricity is already covered by whatever replaced the gas appliances), the payback is usually fast.
A worked example
With the defaults ($500 disconnection cost, $180/year fixed fee eliminated), the payback lands at 2.8 years, a fast return typical of this step, since there is no new ongoing cost to offset the savings.
Common mistakes
The most common mistake is forgetting this step entirely after finishing appliance conversions, leaving a fixed monthly fee running for a service that is no longer providing any appliance with fuel.
Limitations
This assumes you have already converted every gas appliance in the home. If any remain, this tool does not apply yet, since the fixed fee cannot be eliminated until gas service is fully unused.
Common questions
Is this worth doing if I still have one gas appliance left?
No, this only applies once every gas appliance is converted. Keeping even one gas appliance means you keep paying the fixed service fee regardless of whether you remove other appliances.
How much does gas service disconnection typically cost?
It varies by utility and whether the meter and line need physical removal versus just a service cutoff. Get an actual quote from your utility rather than relying on a generic estimate.
Can I reconnect gas service later if I change my mind?
Often yes, but usually at a real reconnection cost and possibly a delay. Treat this as a meaningful decision, not a trivial one to reverse.
Does removing gas service affect my home's resale value?
It can, depending on local buyer preferences for gas versus all-electric homes, which vary by market. This tool only measures your own fixed-fee savings, not resale value.
What if the reconnection fee my utility charges differs from the disconnection cost?
Use the actual disconnection cost you were quoted for this calculation. If you are confident you will not reconnect, a separate future reconnection fee is not relevant to this payback.