What's the Difference Between a Furnace and a Heat Pump?

By Team HomeServe

October 29, 2019

As October winds down and temperatures drop, it's time to start thinking about home heating (Yep, sweater weather is officially here.)

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But when it comes to heating, one of the most common debates is that of furnace vs. heat pump. Let’s debate:

A Question of Fuel

The main difference between a furnace and a heat pump is fuel. Afurnace often runs on natural gas or liquid propane (LP), while a heat pump is powered by an electricity-circulated refrigerant.

There are exceptions, of course. Some furnaces burn heating oil, and some are fully electric. Meanwhile, heat pumps sometimes use electric resistance heating.

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The Choice Between Furnace or Heat Pump

In choosing whether to use a heat pump or gas furnace to heat your home, here are the factors homeowners should consider:

Location

Location determines climate. For example, if you're living in the southern or southwestern U.S., it'll be hot more often than cold. You won't need the natural gas or oil common in colder regions, so a heat pump is best. In colder areas, it's the opposite.

Cost

Gas furnaces cost more per British Thermal Unit (BTU) than heat pumps. But it's a small difference — between $11 and $14 per BTU with the former and $7 and $10 for the latter. Heat pumps cost much more to install on average than a furnace ($6,700 versus $3,175).

Sustainability

If your carbon footprint matters to you, a heat pump is better, as its impacts the environment far less than gas or oil furnaces. Electric furnaces may offer a more eco-friendly option.

Efficiency

Heat pumps packaged with central air conditioning systems kill two birds with one stone, but run much less efficiently than those running separately from the AC.

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