Heat pump vs Furnace in Marion County, Indiana
When a heat pump makes sense
A heat pump makes sense if you want cooling and heating from one system and you're set on staying electric. Get a cold-climate model, not a standard one. Standard heat pumps lose heating power as the temperature drops, and winter nights here average 23°F, cold enough for that to matter most of the season.
When a furnace makes sense
For most homes here, a gas furnace is the cheaper way to heat. Natural gas runs at least 40% less than a heat pump at Indiana prices, and you'll be heating for about 8 months of the year, so that difference adds up. A furnace won't cool your home, so you'd still need a separate air conditioner, but it holds its output no matter how cold it gets outside.
When a heat pump makes sense
A heat pump makes sense if you want cooling and heating from one system and you're set on staying electric. Get a cold-climate model, not a standard one. Standard heat pumps lose heating power as the temperature drops, and winter nights here average 23°F, cold enough for that to matter most of the season.
When a furnace makes sense
For most homes here, a gas furnace is the cheaper way to heat. Natural gas runs at least 40% less than a heat pump at Indiana prices, and you'll be heating for about 8 months of the year, so that difference adds up. A furnace won't cool your home, so you'd still need a separate air conditioner, but it holds its output no matter how cold it 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 Marion County.
Gas heat costs at least 40% less here than a heat pump, and most of your neighbors already heat with gas.
If your home has no gas line to it, a cold-climate heat pump will still heat it through those 23°F nights without that cost gap.
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 23°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 from one system and you're set on staying electric. Get a cold-climate model, not a standard one. Standard heat pumps lose heating power as the temperature drops, and winter nights here average 23°F, cold enough for that to matter most of the season.
When a furnace makes sense
For most homes here, a gas furnace is the cheaper way to heat. Natural gas runs at least 40% less than a heat pump at Indiana prices, and you'll be heating for about 8 months of the year, so that difference adds up. A furnace won't cool your home, so you'd still need a separate air conditioner, but it holds its output no matter how cold it gets outside.
A Marion County contractor will price both against your own house, your ductwork and your panel.
Tell us about the job
It takes about a minute.