Furnace vs. Heat Pump: Which Is Best?

Is your current heating system failing to keep up with the cold, or is it burning through your budget with high energy costs? If so, you might consider switching to a more efficient system before next winter hits. Understanding which best suits your needs is crucial in the debate between installing a traditional furnace and opting for a heat pump.

Many homeowners in Portland face this decision, often choosing to upgrade to a newer version of their existing system. But before you decide, it’s important to evaluate several key factors that will influence your choice and satisfaction with the heating system:

• Access to natural gas
• Existing cooling systems
• Upfront and operating costs
• Heat pump tax credits
• Lifespan and durability

By considering these factors, you can make a well-informed decision on whether a furnace or heat pump is the best option for your home heating needs. Let’s delve deeper into each of these considerations to help you choose wisely.

Find out which heater is best for your home.

At Four Seasons Heating & Air Conditioning, our NATE-certified technicians can help you decide between a heat pump or furnace installation. Our knowledgeable technicians are always ready to deliver good, old-fashioned service and answer any questions.

If your home already has a gas line, opting for a gas furnace could be more cost-effective initially. The installation cost for a modern gas furnace starts at around $2,795. In contrast, heat pumps, which don't require a natural gas connection, start at a higher initial price of about $6,050. However, the cost dynamics change if your home isn’t already equipped with a gas line.

Installing a new gas line can cost between $500 and $2,000 but can increase substantially depending on how far your home is from the main gas supply. This added expense can narrow the cost difference between choosing a heat pump and a gas furnace. It's crucial to consider not just the installation costs but also the long-term energy consumption and ongoing utility costs of each option, as these can affect your overall financial outlay over time.

The biggest benefit of a heat pump vs. a gas furnace is the ability to add air conditioning and heating with a single unit. A gas furnace is less expensive to install, but adding the cost of a central air conditioner makes a heat pump the less expensive option.

If you don't plan to add air conditioning or already have a working system, it may be best to simply update your furnace. Those who need both heating and air conditioning can save significantly by opting for a heat pump.

Heat pumps can cost as much as three times more to install than a furnace, which makes them a substantial investment. However, heat pumps operate more efficiently, and over time, the costs of keeping your home warm are lower with a heat pump. In Portland, winters aren't so extreme that homeowners need a geothermal heat pump for reliable heat, so installation costs are relatively reasonable.

A high-efficiency gas furnace is an option that has similar operating costs to a heat pump, but it also has similar upfront costs. You can expect price differences of less than $1,000 between the two systems. Plus, tax credits and rebates help make it more affordable than ever to install a heat pump.

The High-Efficiency Electric Homes Rebate Act (HEEHRA) offers substantial tax credits for homeowners installing heat pumps, with potential savings of up to $8,000. This rebate can often cover the full cost of installation for many homes. Both ducted and ductless heat pumps are eligible, providing a cost-effective option for upgrading your heating and cooling system.

To receive the maximum rebate amount, homeowners must meet certain income requirements. However, smaller tax credits are still available for those who may not qualify for the full rebate. These incentives make heat pump installation more accessible and financially feasible for a broader range of homeowners.

When it comes to the durability and lifespan of heating systems, furnaces generally outlast heat pumps. Typically, a well-maintained furnace can last between 15 to 30 years. In contrast, heat pumps, which serve both heating and cooling functions, usually have a shorter lifespan of about 10 to 20 years.

The key factor influencing the longevity of these systems is their usage. Heat pumps operate year-round as they provide both heating and cooling, leading to more frequent wear and tear. This continuous operation makes them more susceptible to quicker degradation. On the other hand, furnaces are primarily used only during the colder months, allowing for potentially longer periods of downtime each year, which can help extend their operational life. However, when comparing the total hours of operation, a furnace may still accumulate fewer operating hours over its lifespan than a heat pump.

At Four Seasons Heating & Air Conditioning, our two-hour appointment windows and fast response times mean we can give you an estimate for furnace or heat pump installation in no time. Take a look at our hundreds of five-star reviews to see the level of service you can enjoy when you choose us to install your HVAC system.