A Heat Pump Vs. A Gas Furnace - Do You Need Both, Or Is It A Waste Of Money And Resources?

When you want to save money on your HVAC costs, you may choose to investigate the benefits of installing a heat pump. Electric heat pumps give you both heating and cooling capabilities, meaning you only need one appliance for both functions. By using electricity, it runs in an energy-efficient manner to reduce operational costs, saving you money over the long run versus other options.

There are also some downsides to using heat pumps, though. One of the most significant problems is that heat pumps struggle to maintain operational efficiency during times with extreme outdoor temperatures. Because of the way they transfer air from one location to another to manage heating and cooling capabilities, the system runs less efficiently in a summer heat wave or a winter cold snap.

If you think you want to install a heat pump, your HVAC technician might try to talk you out of it or may recommend installing a secondary heating backup system with a gas furnace. But, do you really need a hybrid heating system with both an electric heat pump and a gas furnace? People who live in areas that experience all four seasons with widely varying temperatures will benefit the most from hybrid heating systems. Heat pumps tend to struggle to overcome heat loss when temperatures drop below freezing, so you might end up feeling chilly on extremely cold days with just them. However, if you don't mind having a chilly home occasionally in winter, you don't have to install a gas furnace and heat pump together. Learn more about when you may need a hybrid heating system.

The cost to install a hybrid heating system (with the gas furnace and heat pump together) usually ranges between $4,500 and $10,000. For installing an average-sized heat pump alone, you can expect to pay $3,900 to $6,200. As for the cost of a standalone furnace, you'll probably spend between $2,800 and $6,900.

When deciding whether installing a hybrid/dual fuel heating system is worth the cost, the climate where you live is the most important factor. When you purchase and install a hybrid heating system, the efficient electric heat pump provides heat until temperatures reach freezing. The system then automatically switches over to the gas furnace. If your area rarely sees temperatures below freezing and you don't mind the occasional chill, a hybrid heating system probably isn't worth the extra installation and maintenance costs.

Even if you live in a milder climate, some HVAC companies will still recommend that homeowners who choose a heat pump install a hybrid heating system. You should know that some HVAC companies might recommend the hybrid heating system because it has a higher upfront cost, helping the company achieve a higher amount of revenue. Additionally, a hybrid heating system could be more expensive and complex to maintain, which may increase future revenue for the company. With this in mind, obtaining a second opinion on whether you need a combined gas furnace and heat pump might be a good idea to avoid potentially wasting money.

If you want to install a heat pump in a climate where below-freezing temperatures are common, newer heat pump technologies give you some options beyond installing a hybrid heating system. One of the most popular is a cold climate heat pump, which should give you adequate heating performance in outdoor temperatures that reach as low as 5 degrees Fahrenheit. The U.S. Department of Energy and several heating industry companies partnered to expedite improvements in the recent designs of cold climate heat pumps. These improved designs became available for purchase and installation in late 2024 and early 2025 under the collaboration program.

If you'd like a backup heating system but don't want to use a gas furnace in the hybrid heating system, you could also choose to install electric resistance heat strips with your heat pumps, which are elements that generate heat when electricity passes through them. These strips are part of the indoor air handling unit in the pumps, and they can operate when the outdoor air temperature is below freezing, providing extra heat for your home. By installing them inside the indoor air handler, the blower motor can efficiently move air over the strips and circulate it through your home. However, heat strips do require a lot of electricity to operate, so they're not a good choice as the only heating option because of their high operating cost.