Because of differences in cost and energy efficiency, the question of heat pump vs. gas furnace has been on the minds of many Kentucky homeowners in recent years. These popular heating options will keep you warm either way, but some homes would strongly benefit from using one over the other. 

When choosing to install a heat pump or natural gas furnace in your home, consider the following:

• Your climate 
• Heat pump efficiency vs. gas furnace efficiency
• Heat pump vs. gas furnace cost

In this blog, we explore these considerations further, laying out the facts about each heating system. What is right for one home may not be right for another, so you should always have an HVAC expert inspect your home before installing a new heating system. 

Fayette Heating & Air is Central Kentucky’s most trusted HVAC service, providing comprehensive heating installation, replacement, and maintenance services 24/7/365. With our “Every Time” guarantee, you will receive top-tier service, communication, and pricing every time.

Call Fayette for your heat pump or gas furnace needs—we are available 24/7 at 859-695-6670. You can also schedule an appointment by filling out an online contact form. 

What Is a Heat Pump?

Unlike a furnace, heat pumps transfer heat instead of generating it. They accomplish this by capturing natural heat from the ground or air outside and transferring it indoors. Heat pumps are also powered by electricity instead of gas.

There are three main types of heat pumps: air-source, ground-source, and dual-energy/hybrid. 

• Air-source heat pumps take heat from outdoors and push it inside.
• Ground-source heat pumps capture heat from the ground, increase its temperature, and cycle it indoors. 
• A dual-energy heat pump links a heat pump with a gas furnace to constantly adapt to your heating needs. 

Heat pumps are optimal for climates with milder winters and minimal sub-zero temperatures. Based on your home’s size, your heat pump will either be a ducted, ducted mini-split, or ductless mini-split system. An HVAC technician will give you a proper recommendation to maximize your heat pump’s heating abilities. 

What Is a Gas Furnace?

Gas furnaces burn fuel, typically natural gas, to generate heat. While natural gas furnaces are most common, propane and oil furnaces are also available options. 

Gas furnaces have high heating power and are ideal for regions with harsh winters. 

There are five main types of gas furnaces:

1. Single-stage gas furnace
2. Two-stage gas furnace
3. Two-stage variable-speed gas furnace
4. Three-stage variable-speed gas furnace
5. Modulating variable-speed gas furnace

An HVAC professional can inspect your home prior to furnace installation and recommend the right furnace for your needs. 

Efficiency Comparison

Heat Pump

Heat pumps’ claim to fame is their efficiency. In short, heat pumps produce way more energy than they consume, but here are the details:

Modern heat pumps have a seasonal energy efficiency ratio (SEER), which measures heating/cooling power divided by electricity used, of 3 or better. This means that a heat pump will produce 3x the amount of heating or cooling energy it uses in electricity. 

Gas Furnace

High-efficiency gas furnaces typically only lose a small amount of energy when heating your home. They can have an annual fuel utilization efficiency (AFUE) of 90-98.5%, but older furnaces may dip below 56% AFUE. 

Since heat pumps have such high efficiencies, gas furnaces will have a greater environmental impact than heat pumps. They will also produce higher energy bills in milder climates. 

Cost of Installation and Operation

Heat pump vs. gas furnace cost is an important and slightly complex consideration. Installation costs for gas furnaces and heat pumps vary by location, home size, appliance brand, and installation requirements—but here are some general figures:

• Gas furnace installation costs $2,500 – $4,000.
• Heat pump installation costs $3,500 – $5,000.

It is also worth noting that, in some cases, heat pumps can qualify you for tax credits, reducing installation costs and future energy costs. 

Operation costs will vary depending on home size, frequency of system use, and climate, but here are typical yearly costs for heat pumps and gas furnaces:

• Yearly operational costs for a gas furnace range from $1,250 – $2,000. 
• Yearly operational costs for a heat pump range from $500 – $1,000.

Heat pumps’ high efficiencies can reduce long-term costs in milder climates. For a full breakdown of upfront and long-term costs, call Fayette Heating & Air today. One of our specialists will inspect your home and give you recommendations based on heating power and long-term cost-effectiveness. 

Climate Suitability

Heat pumps are best suited for climates with mild winters, and natural gas furnaces are best suited for colder climates with harsh winters. Gas furnaces have stronger heating capabilities and can burn more fuel when necessary, while heat pumps can struggle when temperatures hover around zero. 

An alternative is the dual-fuel system. This system combines a heat pump and gas furnace to marry heat pump efficiency and furnace heating power for any climate. 

Environmental Impact

Heat pumps are almost always a greener option than gas furnaces. They use electricity instead of gas and can be linked to renewable energy sources. Gas furnaces burn fuel, which creates carbon emissions and impacts air quality. 

However, a heat pump’s carbon footprint depends on its energy source. If it uses electricity coming from a fossil fuel origin, it may not be much greener than a gas furnace. 

Pros and Cons of Heat Pumps

So, are heat pumps worth it? Let’s break down the advantages and disadvantages of a heat pump:

Pros:

• Energy efficiency
• Dual heating and cooling capability
• Lower operating costs in mild climates
• Potential tax breaks on installation

Cons:

• Lower effectiveness in harsh cold
• Higher upfront costs in most cases
• Dependence on electricity

Pros and Cons of Gas Furnaces

Gas furnaces are great in some homes and inefficient in others. Here are the advantages and disadvantages:

Pros:

• Reliable heating during harsh winters
• Lower upfront costs in most cases

Cons:

• Dependence on fossil fuels
• Higher monthly fuel costs (usually)
• Carbon emissions

Choosing the Right System for Your Home

The answer to heat pump vs. gas furnace changes on a case-by-case basis. When choosing a heating system for your home, you must consider your climate, budget, home size, and environmental preferences. 

Consulting an HVAC professional is highly advised, as they can provide energy audits and personalized recommendations to help you make the right choice. 

Contact Fayette Heating & Air For Heat Pump and Gas Furnace Services

Select the right heating system for your home or business with Fayette Heating & Air. Our HVAC experts are happy to help you choose whether a heat pump or gas furnace is best for your heating needs. Since 1971, we have helped Central Kentucky homeowners and remained dedicated to providing quality service 24/7/365.  
With our “Every Time” promise, you can expect highly skilled repairs and installations during every visit. We want what is best for every homeowner, so give us a call at 859-695-6670 or fill out an online contact form. It is both a pleasure and an honor to be your preferred HVAC service.