A heat pump moves heat between the outdoors and your home using electricity; a furnace produces heat by burning fuel. Heat pumps can also cool a home, while a furnace is a heating system. Which is the better choice depends on local winter temperatures, energy rates, the home’s condition, and installation needs—not on efficiency labels alone.
How a heat pump differs from a furnace
Heat pumps transfer heat
In heating mode, an air-source heat pump uses electricity to move heat from outdoors into the home. In cooling mode, it moves heat out of the home. Because it transfers rather than generates heat, it can provide comfortable temperatures efficiently, according to the U.S. Department of Energy’s Heat Pump Systems guidance.
Furnaces burn fuel
A residential furnace burns natural gas, propane, or oil to heat air for distribution through the home. Annual fuel utilization efficiency (AFUE) describes the share of fuel energy converted into useful heat over a heating season; it does not by itself tell you what the system will cost to run. DOE’s furnace purchasing guidance covers residential fuel-fired furnaces below 225,000 Btu/h.
Which costs less to run?
There is no universal cost winner. A household comparison needs local electricity and fuel prices, the home’s heating load, climate, and the heat pump’s and furnace’s seasonal performance. Installation costs and any required electrical, ductwork, or weatherization work also affect the overall decision.
#1 Best Overall
- CERTIFIED ACiQ SELLERS: Everything you need for reliable HVAC solutions!
- HEATING & COOLING: High-efficiency single-stage compressor with a factory-installed filter drier for dependable, long-lasting heating and cooling performance.
- EVAPORATOR COIL: Built with rifled copper tubing and enhanced aluminum fins for excellent durability, heat transfer, and corrosion resistance.
- INSTALLATION KIT: The unit includes a safety sensor, line set, gauge whip, disconnect switch, thermostat, equipment pad, and fitting coupling kit set.
- WARRANTY TERMS: A duration of 10 years parts when installed by a tech and registered online with the manufacturer at no additional charge.
DOE’s 2024 furnace guidance illustrates why assumptions matter: its examples model different AFUE values by region and use an assumed natural-gas price of $0.961 per therm, the average at federal facilities in July 2024. Those are furnace-focused scenarios, not a current household gas rate or a matched heat-pump-versus-furnace cost comparison.
Can a heat pump work in cold weather?
Yes, but performance and capacity at low temperatures depend on the specific equipment. ENERGY STAR’s cold-climate split-system criteria require a coefficient of performance (COP) of at least 1.75 at 5°F and at least 70% of heating capacity at 5°F compared with 47°F. These are criteria for qualifying equipment, not a guarantee that a particular system will meet every home’s heating load without backup. See ENERGY STAR’s current key product criteria.
Rank #2
- CERTIFIED ACiQ SELLERS: Everything you need for reliable HVAC solutions!
- WIDE AREA COVERAGE: This ductless mini split AC/heating system provides enough heating and cooling for rooms up to 1500-2000 square feet in size.
- HIGH EFFICIENCY SEER2: This mini split heat pump system is designed to operate within a cooling range of 5°F to 127°F and a heating range of -4°F to 75°F outdoor temperatures.
- INSTALLATION KIT INCLUDED: The unit includes a 16 ft. line set, remote control with mount, power cable, indoor mounting plate, outdoor rubber feet, plastic wrap, wall cap, drain elbow and line, plasticene, and screws with anchors.
- WARRANTY TERMS: A duration of 4 year parts and 6 year compressor when installed by a tech and registered online with the manufacturer at no additional charge.
Ask a contractor to assess local winter design temperatures and the proposed model’s performance at those temperatures. A system’s certified cold-weather performance should be considered alongside the home’s heating load and the plan for backup heat.
Can you keep a furnace as backup?
Yes. A dual-fuel system pairs a heat pump with a traditional gas or oil furnace. The controls determine when the heat pump runs and when the furnace takes over. ENERGY STAR advises discussing equipment selection, sizing, and backup integration with a contractor. Its guidance says a cold-climate heat pump continues operating below 5°F, while pairing it with backup may be the more efficient approach at even lower temperatures; the best changeover strategy depends on the home and equipment. See ENERGY STAR’s dual-fuel heat pump guidance.
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- Includes 35-foot pre-charged line set with Quick Connect technology, streamlining professional installation process and eliminating the need for vacuum procedures during setup.
- Premium energy efficient operation with 15.2-18.8 SEER2 rating (depending on model) and DC inverter technology, delivering superior temperature control while significantly reducing monthly utility costs compared to conventional systems.
- Advanced multiposition installation capabilities supporting upflow, downflow, and horizontal configurations, making it ideal for various space requirements and ensuring versatile mounting options for optimal performance in any setting.
- Innovative R454B refrigerant system featuring lower pressure levels and reduced environmental impact, providing enhanced coefficient performance and improved cooling capacity for sustainable operation.
- Integrated smart thermostat compatibility with filter reminder function and self-diagnostic capabilities, enabling simplified maintenance and efficient system monitoring for peak performance.
What to compare before choosing
- Climate and equipment performance: Ask for performance at your area’s winter design temperatures, not just a general cold-weather claim.
- Expected operating cost: Request an annual estimate based on your actual electricity and fuel rates, the home’s load, and the proposed equipment.
- Installation scope: Compare the full installed proposals, including electrical service, duct compatibility, and any needed modifications.
- Cooling needs: A heat pump can provide both heating and cooling; consider whether separate cooling equipment is part of the furnace option.
- Backup plan: If backup heat is proposed, ask what equipment provides it and how the controls decide when to switch.
- Home condition and sizing: Review insulation, air sealing, ductwork, and load calculations. DOE recommends weatherizing an existing home when replacing gas heat with a heat pump to support comfort and potential cost savings.
For a useful contractor comparison, ask for a load-based proposal, model performance at local temperatures, annual cost estimates using your household’s rates, and a clear description of backup operation. The equipment’s sizing and suitability depend on the home, so a product name or certification alone is not a complete selection plan.
Quick Recap
Best Value
- CERTIFIED ACiQ SELLERS: Everything you need for reliable HVAC solutions!
- INVERTER TECHNOLOGY: This inverter ductless air conditioner and heat pump adjusts power based on demand, providing precise temperature control, lower energy bills, and quieter operation compared to single stage systems.
- HEATING & COOLING: Enjoy powerful AC and heat pump with cooling operation from 5°F – 125°F and heat pump heating from 5°F – 75°F, with optional electric backup heat for colder conditions.
- SYSTEM INCLUDED: In addition to the split AC and heating system, it includes a smart thermostat and a backup heat kit of your choice.
- WARRANTY TERMS: A duration of 4 year parts and 6 year compressor when installed by a tech and registered online with the manufacturer at no additional charge.
Rank #4
- CERTIFIED ACiQ SELLERS: Everything you need for reliable HVAC solutions!
- HEAT PUMP CONDENSER: Offers efficient heating and central air conditioner unit, ensuring year-round comfort. Its simple installation and energy-saving design make it a cost-effective, hassle-free choice.
- AIR HANDLER: Features cost-effective performance with its ECM blower motor and durable design, along with an all-aluminum evaporator and a factory-installed TXV kit that contribute to overall efficiency, often surpassing the paired condenser's tonnage.
- FREE THERMOSTAT: 2 Heat / 1 Cool non-programmable thermostat with memory retention, compressor protection, and adjustable limits. Device runs on hardwire or 2 AAA batteries (not included).
- CERTIFIED SAFETY: AHRI Certified and ETL Listed, featuring a high-pressure switch, ground lug connection, and extended-life capacitors for long-term performance and reliability.
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