Article updated August 22, 2024
There are many HVAC heating options available. In cold areas, two main options are a traditional heating furnace and a cold climate heat pump.
Both options have advantages, but making a decision without expert advice is difficult. This guide will provide relevant information and guidance for selecting the best heating option for your home.
To fully understand the pros and cons of each option, it’s important to understand how heat pump and furnace technology work.
Historically, the heating furnace has been the most commonly used home heater in America. However, according to the Air-Conditioning, Heating, and Refrigeration Institute, Americans bought 21 percent more heat pumps in 2023 than the next-most popular heating appliance, fossil gas furnaces.
Furnaces can run on various power sources such as electricity, natural gas, propane, or oil. A furnace only heats your home. Furnaces ignite burners inside the furnace cabinet, which heat a heat exchanger, warming up the air that circulates throughout your home. As long as there is good ductwork and regular maintenance, they can efficiently heat your home.
In contrast, a heat pump uses very different technology, enabling it to perform a range of functions, including heating, cooling, filtering, and dehumidifying. A heat pump can replace all of your HVAC equipment, including your furnace and air conditioner.
A heat pump operates on a refrigeration cycle. Heat pumps use electricity to transfer heat from the outside air to the inside of your home. In cooling mode, the heat pump works by removing heat and humidity from the indoor air and transferring it outside. During the winter, the heat pump takes heat from the outside and transfers it indoors. In the summer, the process is reversed, with the heat pump removing heat from the indoor air and transferring it outside. Although this may seem like advanced technology, it has been around for decades and is similar to the technology used in fridges and air conditioners.
While a heat pump is an excellent all-in-one solution, it's important to consider its limitations in cold climates. In colder temperatures, the heat pump may not be as effective, and supplementary heating may be required. However, cold climate heat pump technology has improved so that heat pumps are still effective at up to -20 degrees Fahrenheit. Unlike furnaces, heat pump systems don't require ductwork, which is a significant benefit when heating older homes.
Heat pumps come in various types, including air source, water source, and ground source (geothermal), each with its advantages and disadvantages. We will focus on air-source heat pumps, which are the most common for household use, but you can find information on all types of heat pumps.
Heat pumps use electricity, but they are far more energy efficient than electric furnaces, making them the most efficient HVAC system available. The reason heat pumps can perform multiple functions so well (and efficiently) is that they transport heat rather than produce it.
Furnaces are a popular choice for many reasons. They have a lower initial installation cost than heat pumps, and their technology is familiar to most people. Many homeowners also find furnace heat to be cozy, dry, and comfortable. They can heat up a home quickly and work with gas, oil, propane, and electricity.
However, furnaces also have major drawbacks.
Heat pumps have many advantages. Here's a quick rundown of the major benefits heat pumps can deliver.
However, there are two major drawbacks to heat pumps. In super-cold climates, a backup heating source may be needed for rare, extremely cold weather events. Heat pump installations also have a higher upfront cost than furnaces. The good news is that some homeowners may qualify for a heat pump installed by professionals at no upfront cost, either through rebates from manufacturers or government programs. The Inflation Reduction Act offers all homeowners a 30% tax credit up to $2,000 when installing a qualifying heat pump.
Ultimately, the decision to install a furnace or a heat pump depends on your circumstances. If you prioritize energy efficiency, comfort, long-term costs, and ease of maintenance, a heat pump may be the best choice. But if you prioritize initial installation cost and familiarity with technology, a furnace may be the better option.
Making the right choice between heat pumps and furnaces for your home energy makeover depends on your personal preferences and your local climate. To help guide your decision, here are some general guidelines:
After years of research and working with homeowners, QuitCarbon believes that most people will be happier with a heat pump in the long run. Regardless of which heating system you choose, upgrading your insulation and sealing air leaks are critical home improvements that can extend the lifespan of your HVAC system and reduce energy waste year-round.