Replacing Gas Furnace with Heat Pump vs. Electric Furnace

[Alex Whittow]

I’m in the process of replacing a natural gas furnace with a more climate-friendly option; specifically, an air-source heat pump or electric furnace.

Given the reduced energy needs and minimal environmental impact of a heat pump, this is my ideal choice, however the installation costs almost double the electric furnace. Financing help exists, but it's not great. On the other hand, a heat pump drastically reduces utility costs for tenants and makes the property more resilient for our inevitable climate reality.

An electric furnace seemed like a nice alternative until I learned that its operating costs (i.e., utility bills) are HIGH throughout the winter, and the grid it’s drawing energy from is not yet that clean (this is in Wisconsin). This is the opposite of the heat pump: lower installation costs, but higher utility costs (over double what it is today with gas), which seems a little unfair to offload these increased costs onto existing tenants.

Does anyone have any experience with this type of situation? If so, I’d love to hear why you chose one option over the other, challenges you ran into, financing solutions you came up with, and/or any other helpful insight. 

Thank you!

[Bruce Woodruff]

A couple things to think about: 

1) A heat pump is a good option, (my choice at 1 of 4 locations) but they do not work (efficiently) below about 18 degrees, so you'll need to install a heat strip that will provide the extra heat needed. This requires an additional 50 Amp circuit.

2) You seem to believe that by using electricity over gas, you will get away from gas (fossil fuels). and be more green? But you also kinda realize that we produce electricity by burning gas and coal, and possibly nuclear depending on location? 

3) I would use what is most efficient and least costly for your location. I generally prefer propane if possible, due to it's availability during a power outage. But you do you. It's all the same in the end.....