Heat Pump vs Gas Furnace

Heating is the biggest use of electricity in US households, according to the Department of Energy, accounting for 12% of monthly utilities. And yet, heating is absolutely crucial in maintaining home comfort, especially during the colder months. 

Among the most common heating options are heat pumps and gas furnaces, each with their own unique advantages and considerations. This guide will explore their differences and ideal usage scenarios, to help you choose which heating system is more suited for your home.

What is a Heat Pump?

A heat pump is a heating appliance that transfers heat rather than generating it. It can heat and cool your home by moving heat between the inside and outside air.

It does this by extracting heat from the outside air (or the ground) and bringing it indoors. In 

cooling mode, it simply reverses the flow: it removes heat from inside the home and releases it outdoors. Heat pumps boast a Coefficient of Performance (COP) greater than 1, meaning they produce more heat energy than the electricity they consume. Modern heat pumps can range up to 4 COP.

There are different types of heat pumps, including air-source, ground-source (geothermal), and those used in ductless mini-split systems.

What is a Gas Furnace?

A gas furnace is another heating appliance. It generates heat by burning natural gas or propane. A heat exchange then warms the air, which is distributed throughout the house using ducts.

Gas furnaces are a common household appliance in colder climates where consistent heating is necessary. They are rated by Annual Fuel Utilization Efficiency (AFUE), which is the ratio of the furnace’s annual heat output compared to the annual fossil fuel energy it consumes. Modern gas furnaces range from 80–98% efficiency, however some more basic models are still available that offer lower efficiencies around 65%.

Heat Pump vs Gas Furnace Comparison

Heat Pump

Pros:

• Higher energy efficiency: Since it transfers heat instead of generating it, it requires less energy. According to the DOE, a modern heat pump can reduce power consumption by up to 75% compared to electric resistance heating options such as furnaces and baseboard heaters
• Dual functionality: Serves as both a heater and an air conditioner.
• Lower cost: Ideal for milder climates with low utility costs.
• Environmentally friendly: Uses electricity, reducing reliance on fossil fuels.

Cons:

• Reduced efficiency in cold climates: Heat pump performance can drop in extreme cold unless paired with auxiliary heating. (Check out our guide to maximize heat pump efficiency in cold weather).
• Higher initial cost: Installation can be more expensive than gas furnaces.
• Requires electricity: This makes it vulnerable to power outages.

Gas Furnace

Pros:

• Effective in freezing weather: Gas furnaces have better performance even in sub-zero temperatures.
• Faster heating: By generating heat, it heats a home more quickly than heat pumps. Gas furnaces are known to create “hotter heat” than heat pumps.
• Less expensive: Typically cheaper to install than a heat pump.

Cons:

• Fossil fuels: Relies on natural gas or propane.
• Higher operating costs: Gas prices can fluctuate and may be higher than electricity in some regions.
• Environmental concerns: By using fossil fuels, gas furnaces produce greenhouse gas emissions.

Heat Pump vs Gas Furnace Cost

Criteria	Heat Pump	Gas Furnace
Initial cost including installation	$4,000–$10,000	$3,000–$6,000
Operating cost	Lower in mild climates	Higher, varies with gas prices
Lifespan	10–15 years	8-20 years

When to Use Each Heater Type

We recommend heat pumps for:

• Regions with mild winters.
• Homeowners seeking an all-in-one heating and cooling solution.
• When environmental impact and long-term energy savings are priorities.

On the other hand, gas furnaces may be the better option for:

• Areas with harsh winters and long heating seasons where the temperature stays below freezing for the majority of time.
• Homes with existing gas infrastructure and ductwork.
• Fast and reliable heating.
• Off-grid installations where power is limited or unavailable.

Based on data from the DOE, in colder climates (zones 5-7), furnaces are the dominant heating option, used in 63% of homes while heat pumps account for only about 3% as the primary heating systems. 

What About Hybrid Systems?

For those in climates with variable seasons, a hybrid heat pump and gas furnace system also exists. Also known as a dual-fuel system, it is a heating and cooling setup that pairs an electric heat pump with a gas furnace. The system automatically switches between the two based on outdoor temperatures to optimize efficiency and comfort.

During moderate temperatures, the heat pump operates as the primary heat source. When outdoor temperatures drop too low for the heat pump to operate efficiently (typically below 30–40°F, but can be much lower depending on the unit), the gas furnace takes over, providing reliable and consistent heat.

Hybrid Systems vs. Standalone Systems

Criteria	Hybrid system	Heat pump	Gas furnace
Performance	Optimal year-round	Good in mild climates	Good even in cold climates
Climate Suitability	Variable weather	Mild winters	Subzero conditions
Initial Cost	Highest	Middle	Lowest
Operating Cost	Lower overall	Lower in mild conditions	Higher in long heating seasons
Environmental Impact	Lower	Lowest	Highest

What to Consider Before Choosing a Hybrid System

1. Climate: Ensure the system matches your region’s weather patterns.

2. Energy Prices: Compare local electricity and gas rates to predict savings.

3. Existing Infrastructure: Assess whether your home already has gas lines or ductwork suitable for the system.

4. Rebates and Incentives: Check for government or utility rebates for installing energy-efficient systems.

5. Space Requirements: Ensure enough space for both the heat pump and furnace components.

Our Recommended Heating Systems

Heat pumps

Budget:

MRCOOL DIY-MULTI4-36HP230C 4TH Gen 36000 BTU 21.5 SEER Configurable Quad-Zone Mini Split

The Mr. Cool DIY-MULTI4-36HP230 is a quad-zone system can take up to 4 indoor wall units, totaling 48,000 BTUs. The system’s output capacity is 36,000 BTUs but the system will allow for 48,000 BTU connected capacity.

When connected as a 4 zone system, it offers a 21.5 SEER rating for energy efficiency. The Gold Fin condenser is built to resist long term corrosion, giving you one less thing to think about even if you live near the coast.

The system also features low ambient functionality. At 5°F, this unit will cool with 100% cooling capacity, making it an ideal system for computer server rooms, greenhouses, and any other applications that require cooling all year. 

High efficiency

Friedrich FPHMR42A3A 42000 BTU Floating Air Pro Five-Zone Mini Split Air Conditioner with Heat Pump

This outdoor compressor is a 42,000 BTU unit that has a connected capacity of up to 54,000 BTUs. It uses Friedrich’s Precision Inverter Technology, offering a variable speed compressor to keep up with your comfort control needs while still being energy efficient.

The outdoor unit features Low Ambient Operation making it a great year round option for heating and cooling for most of the US. It will operate in the Cooling Mode when outdoor temperatures are as low as 14°F up to 115°F. The range in which this unit will heat is equally as wide and it will heat when temperatures are as low as -13°F up to 75°F!

Depending on your installations of non ducted, ducted, or mixed units, it provides great energy ratings.

	EER	SEER	HSPF
Non-Ducted Indoor Units Only	10.5	20.0	10.0
Ducted Indoor Units Only	10.0	18.0	9.5
Mixed Non-Ducted and Ducted Indoor Units	10.25	19.0	9.75

Conclusion

The choice between a heat pump and a gas furnace depends on your climate, energy costs, environmental concerns, and personal preferences. Heat pumps are best in mild winters and cost less in the long run, gas furnaces excel for extreme winters and provide quicker and consistent heat, while hybrid systems are a good choice for diverse climates.

When you’ve decided on a heating option, check out our extensive range of heat pumps and gas furnaces from well-known manufacturers, each backed by extensive warranties and our excellent customer service.