Dan Simms is a contributing writer at USA TODAY Homefront specializing in home repair, renovation and renewable energy. While working as a property manager for one of the largest real estate management firms in New York, Dan worked alongside contractors and renovation specialists to prepare homes for sale. He is an avid DIYer and has completed a shed construction and a bathroom renovation in his own home and investment properties. He lives on Long Island, New York. Reach out to him on LinkedIn.
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If you need to replace your home’s heating system, you might be debating between a heat pump and a gas furnace. A key difference is that heat pumps provide heating and cooling, whereas gas furnaces only produce heat. You must pair a gas furnace with an air conditioner if you also need cooling.
A heat pump moves heat rather than generating it directly. In winter, it extracts heat from outdoor air and pumps it indoors. In summer, the best AC companies install and service heat pumps to pump air out of your home to keep it cool. Some heat pumps draw from other sources, including geothermal heat and water, but for our purposes, we’ll focus on air-to-air heat pumps.
Gas furnaces burn natural gas or propane to produce hot air. A blower motor circulates this heated air through ductwork to fill your home with warm air in winter. Whereas gas furnaces require a natural gas or propane fuel supply, heat pumps run on electricity. Check out our article to help determine that right size furnace for your home.
Heat pumps have higher upfront costs but can save you money over time since you can use them year-round. Gas furnaces have lower initial costs and use fossil fuels — which are cheaper than electricity — but they require more maintenance and an additional appliance for cooling.
The bottom line is that heat pumps cost more upfront but are more versatile for whole-home heating and cooling, whereas gas furnaces are cheaper to install but only provide heat and are less environmentally friendly.
Here is a quick list of our favorite (and expert tested) AC brands that provide free quotes and can heat and cool your home:
A heat pump is better if you’re looking for an all-in-one solution to heating and cooling. However, there is no universally better option when comparing heat pumps and gas furnaces. The right choice depends on your climate, energy costs, home structure and personal preference. Every home is different, and each situation requires a personalized solution that fits your energy needs and budget.
Heat pumps work best in mild-to-warm climates where there is moderate heating and cooling demand. They can still operate in cold weather but may need backup heat if the temperature drops below freezing.
On the other hand, gas furnaces are the better heating option in colder climates since they’re efficient and produce large amounts of hot air more quickly than heat pumps. The downside is that you’ll need a separate air conditioning unit for summer.
Wesley Cooper, owner of Cooper Climate Control and a 20-year veteran of the HVAC industry, explained to us how he helps new customers determine what they need: “We start by finding out what their needs are, what they prioritize in a new HVAC system, what their budget constraints are, [if] they want high efficiency and more technology, [if] they have a brand preference, [whether or not] they need financing, [and if they’re] interested in an extended warranty.”
Heat pumps are usually more energy efficient than gas furnaces as long as they’re operating within their optimal temperature range. You can use the Seasonal Energy Efficiency Ratio (SEER) value to compare the efficiency of different heat pumps. Heat pumps with higher SEERs are more efficient. The U.S. government requires all new heat pumps to have a SEER of at least 14. If you live in the southern part of the country, the EIA standard for heat pumps is a SEER of 15.
Gas furnaces are less efficient than heat pumps since some of the heat energy they produce is lost to exhaust. Gas furnaces use a different metric for energy efficiency called the Annual Fuel Utilization Efficiency (AFUE). To be Energy Star certified, a gas furnace must have an AFUE rating of 90% or greater in the South or 95% or greater in the North.
A more energy-efficient heating option will save you money on fuel costs over time but also cost more upfront. You can find high-efficiency options for both heat pumps and gas furnaces.
Evaluating the cost of heat pumps and gas furnaces requires analyzing the upfront price, ongoing fuel or electricity costs, and the cost of a separate cooling system or backup heating system. These are the key factors to consider:
We should emphasize that the difference in operating costs for heat pumps and natural gas furnaces is substantial. According to data from the Energy Information Administration (EIA), the average price of residential electricity in the United States as of September 2023 was 16.29 cents per kilowatt hour (kWh). The average household uses about 450 kWh per month for heating and cooling, which amounts to roughly $73.
The spot price of natural gas as of November 2023 was $2.71 per million British thermal units (MMBtu). A typical natural gas furnace uses around 8 MMBtu per month, which comes out to a monthly heating bill of roughly $22 per month. While $22 per month for natural gas heating seems low compared to $73 monthly for electric heating, remember that you can’t use a gas furnace for cooling during summer. A high-efficiency heat pump will operate at a significantly lower cost than a less efficient air conditioner.
Heat pumps are well-suited for climates with milder winters since their efficiency drops when the temperature drops below freezing. They require a sizable difference between the outdoor and indoor temperatures to reach their advertised efficiency ratings. In regions where the temperature rarely dips below 30–40 degrees Fahrenheit, a heat pump can serve as an efficient all-in-one unit that provides adequate heating in the winter and sufficient cooling in the summer.
Gas furnaces, on the other hand, excel in cold climates. Their ability to generate large volumes of hot air by burning natural gas makes them perfect in harsh winter conditions, even when the temperature falls below freezing. The downside is that they only work in the winter to provide heat, so you’ll need a separate cooling system for the summer.
Installing a heat pump is usually easier than installing a gas furnace. Heat pumps require an outdoor unit, an indoor air handler and ductwork to transport air throughout your home. If you don’t already have ductwork, you can opt for a ductless system, which only requires the outdoor unit, the air handler and a small section of ductwork going through your exterior wall.
If you don’t want a ductless system, you should expect to pay significantly more to have ductwork installed.
Gas furnace installations are more expensive and involved than heat pump installations. Your home must be connected to a gas line if it isn’t already.
Unlike heat pumps, gas furnaces have serious health risks from carbon monoxide poisoning if they’re not installed correctly with proper ventilation. There’s also the risk of a gas leak, which can be deadly, although newer models have safety features to prevent this.
Regular maintenance ensures safe operation and can extend the life span of your heating system, whether it’s a heat pump or gas furnace. Both types of heating systems will use less energy if they’re well-maintained.
Heat pumps don’t require as much maintenance as gas furnaces, so they’re the better option if you don’t want to deal with frequent maintenance visits or repairs. You should still have your heat pump inspected by a professional HVAC technician once every one to two years.
On the other hand, gas furnaces require annual checkups to ensure their safety. Gas leaks can cause fires and explosions, and improper ventilation can cause carbon monoxide to leak into your home. Gas furnace tune-ups are also required to keep your furnace working at peak efficiency since clogged filters or a damaged heat exchanger will reduce your furnace’s efficiency.
Consider an energy-efficient heat pump if you need a new heating system for your home and live in a climate that rarely reaches below-freezing temperatures. You’ll get full-home climate control in one device, save money with federal and state incentives and help reduce air pollution. A gas furnace may be a more practical investment if you live in a primarily cold climate.
Our high-level view in this article gives you all the information you need to understand the nuances of choosing a heat pump versus a gas furnace. The next step is to contact a qualified local HVAC professional to determine which climate-control solution is the best for your situation. They can help you choose the best HVAC system for your home based on its setup and heating requirements.
Editorial note: The name “Homefront” refers to the alliance between USA TODAY and Home Solutions that publishes review, comparison, and informational articles designed to help USA TODAY readers make smarter purchasing and investment decisions about their home. Under the alliance, Homefront provides and publishes research and articles about home service and home improvement topics.
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