Heat Pump vs. Furnace: How to Decide

How they work

A furnace creates heat by burning fuel (natural gas, propane or oil) or with electric resistance elements. A heat pump moves heat instead of creating it: in winter it pulls heat from outdoor air (or the ground, for geothermal systems) into the home, and in summer it runs in reverse as an air conditioner.

Because moving heat takes less energy than generating it, the U.S. Department of Energy notes that heat pumps can deliver more heat energy than the electrical energy they consume.

Things that tip the decision

• Climate: cold-climate heat pumps now operate in much colder weather than older models, but very cold regions may still pair a heat pump with a furnace (a dual-fuel system).
• Existing equipment: if you also need a new air conditioner, a heat pump replaces both.
• Fuel availability and local utility rates for electricity versus gas, propane or oil.
• Ductwork: ductless mini-split heat pumps work in homes without ducts.
• Available rebates from your utility or state energy office (see our incentives guide).

Questions to ask your contractor

• Will you perform a room-by-room load calculation (e.g. ACCA Manual J) before sizing the system?
• What is the equipment's rated heating capacity at low outdoor temperatures?
• Does my ductwork need sealing or modification?
• What warranty covers parts and labor, and who honors it?