Questions answered: Costs, credits & heat pumps
Does a heat pump save money compared with a gas furnace?
Updated . Every answer lists the sources we read it from. If we couldn't back an answer, we left the question out.
We use the federal minimum heating rating for new split-system heat pumps (HSPF2 7.5, about 2.2 units of heat per unit of electricity over a season) and the 80% minimum furnace efficiency; a heat pump rated higher than the minimum costs less to run than shown. Gas price is EIA's 2025 residential average; household heating use is from EIA's 2020 Residential Energy Consumption Survey.
ENERGY STAR lists lower energy bills from switching from electric resistance, propane and oil to a heat pump, and says a heat pump added to an existing furnace (dual fuel) lets you use each system based on costs. Your state's prices change the answer, which the Go Electric planner works out.
Run your own numbers: Heat pump savings in your state
Sources
- Federal efficiency standards for home appliances, 10 CFR 430.32
- U.S. Energy Information Administration: Natural gas prices, residential
- U.S. Energy Information Administration: 2020 Residential Energy Consumption Survey, state data
- U.S. Energy Information Administration: Electric Power Monthly, Tables 5.6.A and 5.6.B
- ENERGY STAR: Air-source heat pumps
Related questions
- Do heat pumps work in cold weather?
- How much does electricity cost per kWh in my state?
- Why is my electric bill so high?
- Where can I find state rebates for solar, EVs and heat pumps?
All 7 questions on costs, credits & heat pumps · Every question we answer
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Go Electric savings calculatorWhat each switch saves in your state.Estimates only. Your actual costs depend on your utility's rate plan, how and when you charge or use power, and local prices. This is general information, not financial, tax or legal advice. See our disclaimer.