How Much To Budget: Electric vs Gas Equipment

How Much To Budget: Electric vs Gas Equipment

As a commercial kitchen supplier, we often hear from clients whether to choose electric or gas equipment for their kitchen setup. Each option has its pros and cons, and the best choice depends on your budget, type of establishment, and long-term operating costs. For some clients the space and location pre-determines what has to be used and there is no option. However, for those of you that are still deciding, let's break it down and weigh the options. 

Key Cost Considerations: Electric vs. Gas

1. Upfront Equipment Costs

  • Electric Equipment: Typically, electric kitchen equipment like ovens, fryers, and ranges has a lower upfront cost compared to gas models. Electric models are often simpler to install, as they don’t require gas lines or venting modifications, which can reduce your initial investment. On average, expect to pay $2,000 to $10,000 for electric commercial kitchen appliances, depending on the type and size of the equipment.

  • Gas Equipment: Gas appliances tend to have a higher upfront cost because of their complexity and installation requirements. However, for certain types of cooking, such as grilling, broiling, or frying, many chefs prefer gas for its precision and speed. Expect to budget $3,000 to $15,000 for gas appliances, depending on the size and brand.

2. Installation Costs

  • Electric Installation: Installation of electric equipment is generally more straightforward and less expensive, especially if your building already has the necessary electrical infrastructure. In Ontario, you can expect installation costs for electric equipment to range from $500 to $5,000, depending on the complexity and electrical upgrades required. If your kitchen needs higher voltage circuits (such as 220V), you may need additional wiring, which could increase the cost.

  • Gas Installation: Installing gas equipment comes with higher costs due to the need for certified professionals to install gas lines, additional ventilation, and in some cases, more complex fire suppression systems. The installation of gas appliances can range from $1,500 to $10,000 in Ontario, depending on the kitchen’s existing infrastructure and the number of appliances. If your building doesn’t have a gas line, adding one can significantly increase the overall cost.

3. Energy Efficiency and Operating Costs

  • Electric Equipment: While electric appliances are easier and less expensive to install, they often come with higher operating costs. Ontario’s electricity rates are higher than gas rates, with an average of $0.13 to $0.20 per kWh (kilowatt-hour), depending on the time of day and your usage level. In the long run, electric kitchen appliances may end up costing more due to higher energy consumption, especially for high-volume kitchens that run continuously.

  • Gas Equipment: Though gas appliances tend to cost more upfront and are more expensive to install, they are usually cheaper to operate in the long term. Ontario’s natural gas rates are lower than electricity rates, averaging around $0.10 to $0.15 per cubic meter, which can result in significant savings over time. This makes gas equipment ideal for establishments that rely heavily on cooking, such as restaurants and cafeterias.

4. Maintenance Costs

  • Electric Equipment: Electric appliances tend to have fewer moving parts and are easier to maintain. Service calls are typically less expensive, and the parts are often more readily available. However, certain components, like heating elements, can wear out faster under heavy use, leading to periodic replacement costs.

  • Gas Equipment: Gas appliances may require more frequent maintenance due to the complexity of gas burners and the need for regular safety inspections. The cost of maintaining gas appliances can be higher, especially if issues with gas lines or ventilation arise. However, gas appliances tend to be durable and have a longer lifespan if properly maintained.

Which is Better for Your Kitchen?

Electric Equipment is Ideal If:

  • Your kitchen doesn't require gas infrastructure, or installing a gas line would be too costly.
  • You prefer equipment that is easier to maintain and comes with a lower upfront cost.
  • You run a small to medium-volume operation, such as a café, bakery, or quick-service restaurant, where energy efficiency is not the top priority.

Gas Equipment is Ideal If:

  • Your kitchen has existing gas infrastructure or if you’re willing to invest in setting it up.
  • You need high heat and control for cooking methods like frying, grilling, and sautéing.
  • Your business has high-volume cooking needs, such as a full-service restaurant, catering company, or large cafeteria, where the long-term savings on energy costs can offset the higher upfront investment.

Budgeting Tips for Commercial Kitchen Owners in Ontario

  1. Factor in Installation Costs Early: Whether you choose gas or electric equipment, don’t forget to budget for installation costs. A professional installation ensures compliance with Ontario’s safety and building regulations.

  2. Energy Cost Forecasting: For long-term financial planning, forecast the energy costs associated with your equipment. This is especially important in Ontario, where electricity prices can fluctuate based on time of use. Consider energy-efficient models to help lower operating costs over time.

  3. Check for Rebates and Incentives: In Ontario, you may be eligible for energy efficiency rebates if you choose appliances that are ENERGY STAR® certified. Gas and electric companies often offer incentives to help offset the cost of energy-efficient equipment. Many of our products at SFI Hospitality are eligible for this rebate, contact our sales team to learn more. 

  4. Plan for Maintenance: Both gas and electric appliances require regular maintenance to ensure longevity and efficiency. Budget for periodic maintenance costs and service fees to keep your kitchen running smoothly.

 

Have more questions or concerns? Contact our team of experts for assistance with selecting the right equipment for your establishment!