Business Gas Vs. Electricity: Weighing The Pros And Cons For Your Company

The choice between business gas and electricity is a critical decision that can impact a company’s bottom line, environmental footprint, and overall performance. With various factors to consider, including cost, environmental impact, supply and demand, infrastructure, and regulations, making an informed decision can be challenging. In this in-depth and informative blog post, we will explore the pros and cons of business gas and electricity and provide practical advice from for businesses looking to make the best choice for their energy needs.

Factors Influencing the Decision Between Business Gas and Electricity

Before diving into the benefits and drawbacks of business gas and electricity, it’s essential to understand the factors that influence a company’s decision. Here, we provide an extensive overview of these factors, supported by statistics and data.


One of the most significant factors influencing a company’s choice of energy source is cost. Natural gas prices are typically lower than electricity prices, which can lead to substantial savings for businesses. According to the U.S. Energy Information Administration (EIA), the average commercial price for natural gas in 2020 was $8.14 per thousand cubic feet, while the average commercial price for electricity was 10.66 cents per kilowatt-hour.

Environmental Impact

Another crucial factor is the environmental impact of each energy source. While natural gas is a cleaner-burning fuel compared to coal and oil, it still produces greenhouse gas emissions. Electricity, on the other hand, can be generated from renewable sources like solar, wind, and hydroelectric power, which produce zero emissions. However, it’s essential to note that a significant portion of electricity is still generated from fossil fuels, contributing to greenhouse gas emissions.

Supply and Demand

The availability and stability of energy supply also play a role in choosing between business gas and electricity. Natural gas production has increased significantly in recent years thanks to advances in extraction techniques like hydraulic fracturing. This increase in supply has led to lower prices and greater availability. Electricity, however, can be subject to fluctuations in supply due to factors like weather, infrastructure issues, and shifting demand patterns.


The existing infrastructure for both natural gas and electricity distribution can also impact a company’s decision. Natural gas requires pipelines and storage facilities, while electricity relies on power lines and substations. Depending on the location and age of your business, upgrading or maintaining infrastructure for either energy source can be costly and time-consuming.


Government regulations and incentives can also influence a company’s choice between business gas and electricity. Policies promoting renewable energy and reducing greenhouse gas emissions may encourage businesses to choose electricity generated from clean sources, while tax incentives or subsidies for natural gas production may make it a more attractive option.

Benefits and Drawbacks of Business Gas

Businesses considering natural gas should weigh the advantages and disadvantages carefully. Here, we provide an overview of the most relevant benefits and drawbacks.


  • Cost-effective: Natural gas typically has lower prices compared to electricity, which can lead to cost savings for businesses.
  • Reliability: Natural gas supply is often more stable and less susceptible to fluctuations than electricity, ensuring a consistent energy source for businesses.
  • Efficiency: Natural gas is highly efficient, with modern gas-fired equipment reaching efficiency levels of up to 90% or higher.
  • Versatility: Natural gas can be used for various applications, including heating, cooling, and industrial processes, making it suitable for different types of businesses.


  • Environmental impact: While cleaner than coal and oil, natural gas still produces greenhouse gas emissions, contributing to climate change.
  • Infrastructure requirements: Natural gas distribution relies on pipelines and storage facilities, which can be expensive and challenging to maintain or upgrade.
  • Safety concerns: Natural gas leaks can pose safety risks, including fires and explosions, if not properly managed.

Benefits and Drawbacks of Electricity

Businesses looking to electrify their operations should also consider the advantages and disadvantages of electricity. Here, we provide an in-depth overview of the most important benefits and drawbacks.


  • Clean energy potential: Electricity can be generated from renewable sources like solar, wind, and hydroelectric power, reducing greenhouse gas emissions.
  • Flexibility: Electricity can be used for a wide range of applications, from lighting to powering machinery, making it suitable for various businesses.
  • Lower maintenance costs: Electrical systems often require less maintenance compared to natural gas systems, potentially saving businesses money in the long term.


  • Higher costs: Electricity prices are typically higher than natural gas prices, which can result in increased energy expenses for businesses.
  • Supply fluctuations: Electricity supply can be subject to fluctuations due to weather, infrastructure issues, and shifting demand patterns, potentially impacting business operations.
  • Environmental impact (non-renewable sources): When generated from fossil fuels, electricity contributes to greenhouse gas emissions and climate change.

Comparing and Contrasting Business Gas and Electricity

To effectively compare and contrast business gas and electricity, businesses should:

  • Analyze their energy needs and usage patterns.
  • Calculate the costs associated with each energy source, including energy prices, infrastructure upgrades, and maintenance expenses.
  • Assess the environmental impact of each option, considering both greenhouse gas emissions and the potential for using clean energy sources.
  • Evaluate the reliability and stability of each energy source in its specific location.

Practical Advice for Decision-Making

To make an informed decision between business gas and electricity, businesses should consult industry experts and energy advisors about their specific needs and circumstances. Additionally, businesses should keep abreast of any local laws, regulations, or incentives that may affect their decision. Finally, businesses should consider the potential for leveraging renewable energy sources when feasible, as they provide a long-term solution with minimal environmental impact. With careful consideration and research into both business gas and electricity, businesses can find the best energy source for their operations.

In Conclusion

Choosing between business gas and electricity involves weighing various factors, including cost, environmental impact, supply and demand, infrastructure, and regulations. By understanding the benefits and drawbacks of both energy sources and addressing common myths and misconceptions, businesses can make informed decisions that align with their financial, operational, and environmental goals. Ultimately, the best choice will depend on each company’s unique circumstances and priorities, but with thorough research and careful consideration, businesses can make a decision that supports a more sustainable and cost-effective future.