When faced with the decision of installing a heat pump vs furnace, homeowners are faced with one of the largest decisions they will make as a homeowner.
Both systems heat your home when it gets cold outside. However, how they operate, cost and perform overtime drastically varies between the two. Choosing incorrectly could leave you with higher monthly bills, costly repairs, and a system that won’t last.
Don’t worry, this guide has you covered.
Learning how each system works makes choosing between a heat pump and furnace simple. You could even save thousands of dollars by making the right choice.
Ready to learn more?
Table of Contents
- How Heat Pumps and Furnaces Actually Work
- The Real Cost Difference Between Both Systems
- Which System Wins On Efficiency
- HVAC System Maintenance and Longevity
- How To Pick The Right System For Any Home
How Heat Pumps and Furnaces Actually Work
It all starts with understanding the basics of how these systems operate.
A furnace creates heat by burning fuel (usually natural gas). It then sends that hot air through ductwork and into your home. Simple enough.
Heat pumps don’t generate heat. Instead, they move heat from one place to another. Even on cold days, there is still heat energy in outdoor air. A heat pump captures that thermal energy and brings it inside your home. When it’s time to cool your house, this process reverses.
This is the advantage. A heat pump can both cool AND heat your home. You would still need an AC system to go with a furnace.
Either way you look at it, preventative HVAC system maintenance is crucial with either system. Partnering with a trusted HVAC professional like United Heating Cooling & Plumbing to maintain your system will ensure it’s running efficiently and lasts as long as possible. Regular checkups, changing your filters, and cleanings are what makes a system that lasts 25 years versus one that only makes it to 10.
The Real Cost Difference Between Both Systems
You may be surprised by these numbers…
Gas furnaces are cheaper to have installed. The average homeowner will spend between $700-$3,300 on a new gas furnace. Cost will vary by brand and the size of your home.
Heat pumps are much more expensive upfront. On average, expect to pay somewhere between $2,500 and $10,000+. That price gets many homeowners running for the hills.
Monthly utility bills are where you start seeing the real savings of a heat pump.
Operating costs are much lower with a heat pump. Since they are much more efficient at producing heat, your monthly bill will be less than a traditional furnace. The next section covers efficiency in more detail.
Which System Wins On Efficiency
Gas furnaces just can’t compete.
Recent studies by RMI have shown heat pumps are between 2.2x and 4.5x more efficient at heating homes when compared to gas furnaces. And this is true in all different climate zones across the country. That means even cold places like North Dakota and Minnesota benefit from using a heat pump instead of a furnace.
How can heat pumps achieve these numbers? By moving heat instead of generating it, heat pumps require less energy to keep your home comfortable. Whereas the highest efficiency gas furnace is only around 95-98% efficient, heat pumps can reach 300-400% efficiency.
That means for every kilowatt-hour of electricity your heat pump uses, it will provide you with 3-4 kilowatts of heat.
The numbers speak for themselves. The DOE also found that heat pumps can reduce heating-related electricity consumption by about 75% when compared to electric resistance heating systems. That’s a huge chunk taken out of your energy bill.
Here’s another thing homeowners don’t realize.
HVAC systems make up as much as 48% of your home’s energy use. Your decision to go with a heat pump or furnace will affect nearly half of your monthly energy bill.
HVAC System Maintenance and Longevity
Just like any other machine, your heat pump or furnace will require maintenance to operate correctly. Ignoring HVAC system maintenance is how homeowners end up getting stuck with costly bills from their HVAC technician.
Furnace maintenance includes:
- Annual inspections to check for gas leaks and proper combustion
- Replacing dirty filters every 1-3 months
- Examining heat exchanger for fractures
- Cleaning of burners and blower motor
Heat pump maintenance includes:
- Inspections twice a year (once for heating, once for cooling)
- Cleaning of outdoor coils and removing any debris
- Checking refrigerant levels
- Changing filters regularly
As mentioned earlier, heat pumps can last just as long as furnaces with proper HVAC maintenance. However, there is a catch.
Because a heat pump is used year-round (for both heating AND cooling your home), its lifespan is slightly lower than a furnace. Heat pumps average around 12-15 years of continuous use. Furnaces can last up to 20 years.
That being said, heating and cooling your home with just one system means less maintenance. Instead of having to maintain a furnace AND air conditioning system, you only need worry about taking care of 1 unit with a heat pump. Less maintenance = less money and time spent.
Remember, regular HVAC maintenance will help ensure your system lasts as long as possible. Neglect your system and you’ll be left with expensive repair bills and a system that breaks down sooner.
How To Pick The Right System For Any Home
So, which system should you install? Heat pumps or furnaces?
If you live in a mild climate or want the lowest energy bills possible, choose a heat pump. Not only will you save money on your monthly bill, but installing a heat pump makes you eligible for federal tax credits and possible local rebates.
On the other hand, if you live in an area known for extremely cold weather (think Alaska) and your natural gas rates are low, go with a furnace. Installing will be cheap and you won’t have to worry about your system not keeping up on the coldest days.
For those who live in areas with mixed climates, look into a dual-fuel system. This combines a heat pump with a gas furnace. The heat pump does all the work on mild days. When the temperature drops too far, your furnace turns on to keep your house humming along.
You’re really tuning your furnace and heat pump for optimal performance.
Bringing It All Together
Heat pumps and furnaces can both effectively heat your home. However, they do so in very different ways.
Heat pumps take the crown on energy efficiency, being able to cool your home, and saving you money over time. Furnaces are cheaper to install and work better in extremely cold climates. There is no right or wrong answer here. Your climate and budget play the biggest role in which system you should install.
What you can control is having your HVAC system maintained annually. A well taken care of system runs better, lasts longer and won’t sky-rocket your monthly utility bill.
Let’s review:
- Heat pumps transfer heat instead of creating it. This makes them 2-4 times more efficient than furnaces.
- Furnaces have lower upfront cost. However, they will cost you more money to operate.
- Proper HVAC system maintenance is required for both systems to operate efficiently.
- By taking advantage of federal incentives, installing a heat pump can cost significantly less.
- If you live in an area with mixed weather, consider a dual-fuel system and have your best of both worlds.
Heating and cooling your home is one of the biggest costs to your monthly budget. Making the right decision during installation could mean keeping more money in your pocket for years to come.