Author: Bill Hoelzer / Read Time: Four Minutes

Heating and cooling accounts for 54% of average home energy bills in the U.S.

If you’re serious about saving energy and keeping your bills in check, you have to focus on HVAC (heating, ventilation, and air conditioning).

Here’s the thing…

It’s not always easy to compare different HVAC systems. For example, an electric heat pump is much more efficient than a gas furnace, but gas is relatively inexpensive. Will you end up saving money on your energy bills?

This article outlines the main things to know about the operating costs you can expect if you install either a heat pump or a gas furnace and central air conditioner in Oregon.

Please note that costs vary, and every home is different. If you’d like to talk with a professional about what makes the most sense for your home, please call or text us at 541.330.8767.

You can also self-schedule an appointment online.

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Heat Pump vs AC Cost

System Type	System Example	System Efficiency	Fuel Type	Annual Operating Costs	15-Year Savings
Ducted Heat Pump	Mitsubishi SVZ Heat Pump	18.4 SEER	Electricity (kWh)	$474	$3,270
Central AC	Rheem 13 SEER Central AC	13.0 SEER	Electricity (kWh)	$692	$0

System Type: Ducted Heat Pump vs. AC

Here you’ll find a breakdown of the average operating costs for both a ducted heat pump and central air conditioning system.

We did not include a ductless heat pump (also called a ductless mini-split) in the comparison because a ductless heat pump only heats and cools a particular room or area of a home.

By contrast, both a ducted heat pump and central AC system use the existing ducts in a home to distribute conditioned air throughout the home.

That said, a ductless heat pump can achieve even higher levels of efficiency. For example, we commonly install Mitsubishi MSZ Ductless Heat Pump systems, which boast a 21.6 SEER efficiency rating and cost an average of only $409 a year to operate.

Heat Pump vs. AC Operating Costs

Your annual operating costs are determined by the efficiency of the system you install as well as the cost of energy. To estimate annual operating costs for homeowners in Oregon, we used a SEER Efficiency Savings Calculator with the cost of electricity estimated to be 11.91 cents per kWh.

The Energy Information Administration lists 11.91 cents per kWh as the average cost of electricity for homeowners in Oregon, but your actual delivered cost of electricity - and hence your savings - may be more. For example, if you live in Portland, you pay a usage-based tax to the City of Portland, Multnomah County, Low-Income Assistance, and more.

Heat Pump vs Gas Furnace Cost

System Type	System Example	System Efficiency	Fuel Type	Annual Operating Costs	15-Year Savings
Ducted Heat Pump	Mitsubishi SVZ Heat Pump	305% (10.4 HSPF)	Electricity (kWh)	$533	$2,235
Gas Furnace	Rheem Prestige Series Gas Furnace	95% (95% AFUE)	Natural Gas (Therms)	$682	$0

System Type: Heat Pump vs. Gas Furnace

Both the Mitsubishi SVZ Heat Pump and Rheem Presetige Series Furnace offer mid-price range options for home heating. A 95% efficient furnace is energy efficient relative to other furnaces, but it’s not even close to a heat pump, which operates about three times as efficiently.

heat pump vs gas furnace operating costs

Just like cooling costs, your annual heating costs are determined both by the efficiency of your HVAC system as well as the cost of energy.

To compare annual heating costs, we used a Home Heating Costs Calculator with an assumed a $1.40 cost per therm and 11.91 cents per kWh - the average for homeowners in Oregon according to the Energy Information Administration.

Conclusion: Heat Pump vs. AC + Furnace Operating Costs

If an average homeowner in Oregon replaces a 95% efficient furnace and 13 SEER central AC with a Mitsubishi SVZ ducted heat pump, they could expect to save about $5,500 on their energy bills over 15-years.

This article focuses on cost savings, but savings are only one of many reasons to consider a heat pump. Unlike a gas furnace, a heat pump runs on electricity and produces no direct carbon emissions. Replacing a furnace with a heat pump is one of the most impactful things an average homeowner can do to reduce their carbon footprint.

A heat pump also delivers both cleaner air and a more consistent indoor temperature by operating continuously. If you have a gas furnace, you know that it fires on-and-off intermittently throughout the day. Instead of firing on-and-off, a heat pump hums along at a consistent rate, continuously cycling your air through a high performance filter and matching the heating and cooling load in your home.

Every home is different. If you’d like to talk about the heating and cooling system that makes the most sense for your home, please text or call us at 541.330.8767.