Heat pump vs Furnace in Monroe County, Indiana
When a heat pump makes sense
A heat pump makes sense if you want cooling and heating in one system and gas isn't available to your home. Choose a cold-climate model, since standard heat pumps lose heating power once temperatures drop toward the 24°F nights common here in winter. Plan on higher running costs than a gas furnace, since electricity runs at least 40% more to heat with here.
When a furnace makes sense
A furnace suits a home already connected to natural gas, since it costs at least 40% less to run here than a heat pump. It only heats, so you would still need a separate air conditioner for summer. But through the roughly seven months a year this area needs heat, it holds its output no matter how cold the night gets outside.
When a heat pump makes sense
A heat pump makes sense if you want cooling and heating in one system and gas isn't available to your home. Choose a cold-climate model, since standard heat pumps lose heating power once temperatures drop toward the 24°F nights common here in winter. Plan on higher running costs than a gas furnace, since electricity runs at least 40% more to heat with here.
When a furnace makes sense
A furnace suits a home already connected to natural gas, since it costs at least 40% less to run here than a heat pump. It only heats, so you would still need a separate air conditioner for summer. But through the roughly seven months a year this area needs heat, it holds its output no matter how cold the night gets outside.
Heat pump
- Runs on
- Electricity
- What it does
- Heats and cools
- Tax credit
- No federal tax credit since the end of 2025
Sources: U.S. Department of Energy · Internal Revenue Code
Furnace
- Runs on
- Natural gas
- What it does
- Heats only
- Tax credit
- No federal tax credit since the end of 2025
Sources: U.S. Department of Energy · Internal Revenue Code
Furnace wins in Monroe County.
Gas is at least 40% cheaper to heat with here than a heat pump, and with 7 months of heating a year that adds up fast.
If your home has no gas line to work with, a cold-climate heat pump will still heat it through those 24°F nights and cool it in summer too.
Find a contractor| Compared on | Heat pump | Furnace |
|---|---|---|
| Cost to run here | Costs more to run | At least 40% less to run |
| What it does | Heats and cools | Heats only |
| Homes in the Great Lakes states that heat with one | 3.4% | 78.8% |
| Handles a 24°F night | Standard models lose heating power in the cold; cold-climate models are built for it | Yes |
Sources: U.S. Energy Information Administration, U.S. Department of Energy, NOAA
When a heat pump makes sense
A heat pump makes sense if you want cooling and heating in one system and gas isn't available to your home. Choose a cold-climate model, since standard heat pumps lose heating power once temperatures drop toward the 24°F nights common here in winter. Plan on higher running costs than a gas furnace, since electricity runs at least 40% more to heat with here.
When a furnace makes sense
A furnace suits a home already connected to natural gas, since it costs at least 40% less to run here than a heat pump. It only heats, so you would still need a separate air conditioner for summer. But through the roughly seven months a year this area needs heat, it holds its output no matter how cold the night gets outside.
A Monroe County contractor will price both against your own house, your ductwork and your panel.
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