In the hierarchy of heating, heat pumps are the new kid on the block—a highly energy-efficient newcomer that both warms the air and serves as an air conditioner within a home. Furnaces, on the other hand, have long been established as the workhorse for reliable, high heat output—especially during harsh winters when temperatures really take a dive.
As you consider your own home, it's very important to understand the differences in mechanisms behind both systems that drive their advantages, and potential disadvantages.
What is a furnace, and what is a heat pump?
"A furnace is usually powered by natural gas, and it works by burning gas to produce heat," shares DR Richardson one of the founders of Elephant Energy. "A heat pump, on the other hand, is an HVAC system that is powered by electricity. Instead of creating heat, it simply uses a small amount of energy to move existing heat from one place to another." In short, heat pumps transfer existing heat — even in colder climates — whereas a furnace burns fossil fuels to generate it.
Pros of Heat Pumps Over Furnaces
- Heat pumps offer superior functionality. "On average, heat pumps are more energy-efficient than furnaces by about 300% — that’s a lot!" shares Josh Lake, the other co-founder of Elephant Energy. "These indoor units operate more quietly than propane furnaces, which usually kick on and off once they reach the indoor temperature thermostat setting, and heat pumps deliver a more steady, even level of heat.
- They heat AND cool your home. Not only are they more energy efficient, but owning a heat pump means that you only have one piece of technology to purchase and maintain because it does double duty by both heating and cooling your home… very versatile! "In the markets where we operate, we’ve seen that the cost of installing a heat pump (after incentives) is about the same as installing a new furnace and AC," shares Richardson.
- Heat pumps are better for your wallet. Heat pumps come with tax incentives, and you'll see savings on utility bills, too. "Thanks to the Inflation Reduction Act passed in 2022, homeowners are eligible for a $2,000 tax credit if they install one in their home," shares Lake. "Additionally, many states, local municipalities and utilities offer their own incentives, so there are often multiple incentive sources that reduce the upfront installation costs."
- Better for the environment - inside and out. "Unlike furnaces, these indoor air handlers don’t have to burn fossil fuels to make heat, making them a better choice for the environment," notes Lake. "And since our homes account for more than 20% of climate-related emissions, choosing electronic technologies in your home can make a significant impact on your overall carbon footprint." Richardson adds, "Choosing a heat pump also improves the air quality inside your home. Natural gas furnaces come with a higher risk of carbon monoxide poisoning and can also increase the risk of asthma. In fact, one study found that children living in a home with a gas stove have a 42% increased risk of experiencing asthma symptoms."
Cons of Heat Pumps Over Furnaces
- Heat pumps as a furnace type can be more expensive…initially. "Heat pumps usually come with higher upfront cost than a furnace — our average project size is roughly $22K before incentives, which can defray up to half the cost," notes Lake. "Once you figure in the savings on your energy bill plus any incentives you’re able to take advantage of at the federal, state, and local level, you’re better off financially than installing a new fossil fuel system."
- You have to plan ahead. "Occasionally, heat pump installations require electrical or panel upgrades, and lead times for installation can take a bit longer. Making a plan before your furnace or AC breaks is the best way to ensure that you get the system you want, in the time you want," suggests Richardson.
Assessing Your Home’s Heat Energy Needs: Air-Source Heat Pump or Furnace?
When deciding between a heat pump and a furnace, consider your home's unique requirements. If you live in a region with moderate or milder winter temperatures, a heat pump might be the ideal choice, offering energy efficiency and the added benefit of cooling during warmer months. On the other hand, if you experience harsh, prolonged winters, a furnace might be more reliable for maintaining warmth. Also, factor in the cost of installation, potential tax incentives, and any necessary upgrades to your electrical system. Ultimately, the best choice will align with your climate, budget, and long-term energy goals.
FAQ
What are the different types of heat pumps available?
There are several types of heat pumps, including air-source heat pumps, geothermal heat pumps, and ductless heat pumps. Air-source heat pumps transfer heat between your home and the outside air, while geothermal heat pumps, also known as ground-source heat pumps, use the earth's stable temperature for cooling and heat transfer. Ductless heat pumps are ideal for homes without existing ductwork.
How do heat pump technologies impact heating season performance?
Advancements in heat pump technologies have significantly improved their efficiency during the heating season. Standard heat pumps may struggle in extremely cold weather, but modern systems like electric heat pumps and those with enhanced heat exchangers perform well even when temperatures drop. Geothermal heat pumps, in particular, provide consistent heating regardless of outdoor conditions.
What are the cost considerations and maintenance requirements for heat pumps?
The cost of heat pumps varies based on the type and size, with geothermal systems typically being the most expensive; however, they offer long-term savings due to their efficiency. Regular heat pump maintenance, such as checking the heat exchanger and cleaning filters, ensures optimal performance and longevity. When comparing furnace vs. heat pump costs, consider not only the initial investment but also long-term energy savings and maintenance expenses.
