Heat Pump vs. Furnace: Complete Cost Comparison

Choosing between a heat pump and furnace involves more than just the sticker price. Let's break down all the costs.

Purchase and Installation Costs

Gas Furnace - Equipment: $1,500-4,000 - Installation: $1,000-2,500 - Total: $2,500-6,500

Heat Pump - Equipment: $2,500-7,500 - Installation: $1,500-3,500 - Total: $4,000-11,000

Heat pumps cost more upfront, especially high-efficiency models.

Operating Costs

Bay Area Energy Prices (Approximate) - Natural gas: $1.50-2.00 per therm - Electricity: $0.25-0.40 per kWh

Annual Heating Cost Comparison For a typical Bay Area home (moderate heating needs):

**Gas Furnace:** - 400-600 therms/year - Cost: $600-1,200/year

**Heat Pump:** - 3,000-5,000 kWh/year - Cost: $750-2,000/year

Gas is currently cheaper for heating in most cases. However, heat pumps also provide cooling, potentially replacing a separate AC.

Maintenance Costs

Furnace - Annual tune-up: $80-150 - Heat exchanger inspection important - Average repair: $150-400

Heat Pump - Annual tune-up: $100-200 - Two seasons of use = more wear - Average repair: $150-500

Lifespan Comparison

Furnace - Typical lifespan: 15-20 years - Gas furnaces have fewer mechanical components

Heat Pump - Typical lifespan: 12-15 years - Runs more hours (heating + cooling)

Total Cost of Ownership (15 Years)

Gas Furnace + AC - Initial: $7,000-13,000 - Operating: $15,000-25,000 - Maintenance: $3,000-5,000 - Total: $25,000-43,000

Heat Pump - Initial: $4,000-11,000 - Operating: $12,000-30,000 - Maintenance: $3,000-6,000 - Total: $19,000-47,000

Bay Area Recommendation

For most Bay Area homes, the choice depends on: - Current gas vs. electric rates - Whether you're also replacing AC - Solar panel plans - Environmental priorities

Our mild climate means either option works well.