Heat pump or gas: what to check before you choose
Your home, your bills, the equipment and the quotes: what to check before you replace a furnace or boiler, with UK notes where things differ.
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Time: a few weeks to decide
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Start with your home
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Therms or kWh of gas, kWh of electricity: the heat pump calculator needs them, with your own prices.
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The DOE’s rebate program stresses insulating and sealing the home before upgrading heating and cooling.
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ENERGY STAR suggests having this ready before you call contractors.
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ENERGY STAR says sealing and insulating ducts can make heating and cooling up to 20% more efficient.
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UK: the government’s free heat pump checker shows what you’d need to install one.
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According to the DOE, water heating is nearly 20% of an average home’s energy use.
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Check your HOA or condo rules too.
Your options
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The DOE says today’s heat pumps can cut electricity use for heating by about 65% compared with electric resistance heat.
Rebates and money
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The IRS energy efficient home improvement credit covers improvements made through December 31, 2025.
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The DOE says an ENERGY STAR heat pump may qualify for rebates of up to $8,000, in states where the programs are running.
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£7,500 toward an air source or ground source heat pump, not a hybrid. Your MCS-certified installer applies for it.
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Heat pumps installed in homes are zero-rated until 31 March 2027.
Quotes and installers
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ENERGY STAR suggests checking your state’s license and insurance rules and calling references.
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ENERGY STAR warns that oversized equipment cycles too often, cutting comfort and lifespan.
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A good contractor inspects your home and ducts and measures airflow, ENERGY STAR says.
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ENERGY STAR advises comparing cost, efficiency and warranties, not just the lowest price.
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ENERGY STAR lists both as part of a quality installation.
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The DOE notes that programmable thermostats haven’t generally been recommended for heat pumps, though some models are made for them.
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US: usually three days under the FTC’s Cooling-Off Rule. UK: usually 14 days for contracts signed away from the trader’s premises.
After it’s installed
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UK: replacing a heating system falls under building regulations; with an installer in a competent person scheme, you don’t need approval yourself.
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ENERGY STAR recommends a yearly tune-up.
Decision made
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Good to know
- Which is cheaper to run depends on your own electricity and gas prices, your climate and your home: that’s why the calculator uses your numbers, not averages.
- A tighter, better-insulated home needs less heating, so fix the leaks first and size the equipment afterward.
- Rebates and grants change often and differ by state or nation: check the official program page before you sign.
Frequently asked questions
Is a heat pump cheaper to run than a gas furnace?
It depends on your electricity and gas prices, your climate and how well your home holds heat. Use your own bills and prices in the calculator, and compare real quotes for both options.
Can I still get a tax credit for a heat pump in the US?
Not a federal one for new installations: the IRS home improvement credit covers improvements made through December 31, 2025. Ask your State Energy Office about Home Energy Rebates, and your utility about its programs.
How much is the Boiler Upgrade Scheme grant?
In England and Wales, £7,500 toward an air source or ground source heat pump, and £2,500 toward an air-to-air heat pump. Hybrid systems don’t qualify, and your installer applies for the grant.
Next step
I’m not an accountant or a financial advisor. This is an estimate, for information only. Check with a professional before you decide.
- The calculatorHeat pump or gas heating?
- The checklistToward a better energy rating
- The guideEnergy efficiency: where to start
- The routeAn energy-efficient home
Sources
- U.S. Department of Energy — Home upgrades (heat pumps, water heating, thermostats, rebates)
- U.S. Department of Energy — Home Energy Rebates Program
- ENERGY STAR — 10 tips for hiring a heating and cooling contractor
- ENERGY STAR — HVAC quality installation
- ENERGY STAR — Heat and cool efficiently
- ENERGY STAR — Rebate finder
- IRS — Energy Efficient Home Improvement Credit
- GOV.UK — Check if a heat pump could be suitable for you
- GOV.UK — Boiler Upgrade Scheme: what you can get
- GOV.UK — Boiler Upgrade Scheme: how to apply
- GOV.UK — Building regulations approval
- GOV.UK — VAT on energy-saving materials and heating equipment (Notice 708/6)
- FTC — Buyer’s remorse: the Cooling-Off Rule
- Consumer Contracts Regulations 2013, regulation 30 — legislation.gov.uk
For sizing, installation and permits, check with a licensed heating contractor; for rebates and taxes, with the program office or a tax advisor.