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Heat Pump vs Furnace: Which Costs Less to Run?

The short version: against an electric furnace, the heat pump wins in a landslide. Against gas, it’s close — and the heat pump adds AC for free.

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The honest answer

The honest math

Every home’s math differs with rates and insulation — but the physics doesn’t: a heat pump moves heat instead of making it, delivering 2–4 units of heat per unit of electricity.

Typical industry ranges for Western Washington — not a quote. Your exact price comes upfront, before any work starts, and you approve it first.

What moves the price

1

Heat pump: 200–400% efficient

It moves heat rather than creating it — the same kWh delivers 2–4× the warmth of resistance heat. Mild Puget Sound winters keep it in its happy zone.

2

Electric furnace: 100%, full price

Every watt becomes heat, and you pay for every watt. That’s why heat pump conversions from electric furnaces routinely cut heating costs by half or more.

3

Gas furnace: cheap fuel, 80–96% burn

Gas is inexpensive per unit of heat locally, so a modern gas furnace runs cheap. Against it, a heat pump’s edge is modest — and depends on your rates.

4

The dual-fuel play

Heat pump for the mild 90% of winter, gas furnace for cold snaps — each fuel where it’s strongest. Common, sensible, and we install it.

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Typical ranges at a glance

Replacing electric furnace / baseboardHeat pump wins big — commonly 40–60% lower heating cost
Replacing an aging gas furnaceClose call — heat pump usually edges it and adds cooling
Keeping gas + adding heat pump (dual fuel)Best of both — strong fit for our climate
Also worth knowingA heat pump replaces your AC too — one system, both seasons

Typical industry ranges for Western Washington — not a quote. Your exact price comes upfront, before any work starts, and you approve it first.

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Quick answers

What about the coldest nights?

Modern heat pumps hold strong output below freezing, with backup heat for the rare arctic blast. In lowland Western Washington, those nights are a handful per year — the other 360 days are heat pump weather.

Should I switch before my furnace dies?

If it’s electric — the savings often justify moving early. If it’s a healthy gas furnace — usually run it and plan the switch (or dual fuel) at replacement time. We’ll give you the honest read for your house.

What does installation cost?

Ducted systems typically $5,800–$12,500 installed, ductless from $2,500 per zone — full honest ranges in our installation cost guides, and an exact quote for your address.

Ranges are for websites. Quotes are for you.

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