Question 1

How much does a heat pump save compared to a gas furnace?

Accepted Answer

A heat pump typically saves $400–$1,200 per year compared to a gas furnace in most U.S. climates, depending on local electricity and gas rates. Heat pumps move heat rather than generating it, operating at 200–350% efficiency (COP 2–3.5). At national average energy prices, replacing a mid-efficiency gas furnace with a heat pump cuts annual heating costs by 20–40%.

Question 2

Is a heat pump worth it in cold climates?

Accepted Answer

Yes. Modern cold-climate heat pumps rated under the NEEP ccASHP specification maintain full heating output at 5°F and meaningful capacity at −13°F. States like Vermont, Michigan, and Maine see strong heat pump adoption. At typical New England electricity rates and gas prices, heat pump operating costs are comparable to or lower than high-efficiency gas furnaces, and rebates of up to $8,000 offset the higher upfront cost.

Question 3

What rebates are available for heat pumps in 2026?

Accepted Answer

The federal federal home improvement tax credit provides 30% back on heat pump costs (up to $2,000 per year). HEEHRA rebates provide up to $8,000 for income-qualifying households. Most states and utilities offer additional rebates of $500–$3,000. Stacking all incentives typically reduces net cost by 40–60% in high-rebate states like Massachusetts, New York, and California.

Heat Pump Savings Calculator

How Heat Pump Savings Work