Heat Pumps vs. Furnaces: Which Is Best for Your Home?

Our team at ABA Heating and Cooling in Austin, TX, has installed heat pumps and furnaces in homes across our service area for years. When meeting with our customers, our team always gets two questions: What is the difference between a heat pump and a furnace, and which one should I choose for my home?

We’ve compiled this guide to help you determine the differences and how they can affect your wallet, home comfort, and how long they will last.

Heat Pump Services in Austin, TX

Key Differences Between Heat Pumps and Furnaces

  1. Heating Method:
    • Furnaces generate heat by burning natural gas, oil, or using electric elements to warm the air, which is then circulated through ductwork into your home.
    • Heat Pumps, on the other hand, transfer heat from the outside air or ground into your home using electricity. They also double as air conditioners in the summer, making them a versatile option for year-round comfort​.
  2. Energy Efficiency:
    • Heat Pumps are generally more energy-efficient in milder climates. They can provide up to three times more heat energy than the electricity they consume, making them a cost-effective choice for homes in areas like Austin, TX, where winters are relatively mild.
    • Furnaces tend to be more efficient in colder climates. High-efficiency gas furnaces can reach up to 98.5% Annual Fuel Utilization Efficiency (AFUE), making them ideal for regions with freezing temperatures​.
  3. Climate Considerations:
    • In warmer climates like Austin, heat pumps are more effective and efficient because they don’t have to work as hard to extract heat from the air.
    • In colder climates, however, furnaces tend to perform better since they generate heat independently, regardless of how cold it is outside​.
  4. Lifespan:
    • Furnaces generally last longer, with lifespans ranging from 20 to 30 years, provided they receive regular maintenance.
    • Heat Pumps, due to their dual heating and cooling functions, typically have a shorter lifespan of 15 to 20 years​.

Which Is Better for Your Scenario?

If You Live in a Mild Climate (like Austin, TX):
A heat pump is typically the better option for both heating and cooling. It offers high efficiency, low operating costs, and the convenience of one system handling both summer and winter comfort.

If You Live in a Colder Climate:
A furnace, particularly a gas furnace, may be a better choice due to its reliability and consistent performance even in sub-zero temperatures.

Concerned About Energy Costs?
Heat pumps are typically cheaper to run because they don’t require as much energy to move heat compared to the fuel consumption of a furnace. However, keep in mind that electricity prices and utility costs in your area can influence this decision.

Other Common Questions We Get

  • Are Heat Pumps Noisy?
    Yes, heat pumps can be noisier than furnaces because they run more frequently and rely on a compressor that clicks and hums. However, newer models are much quieter than older ones​.
  • Do Heat Pumps Work in Cold Climates?
    While heat pumps work best in milder climates, advanced models like geothermal heat pumps or those with backup electric or gas heaters can still function effectively in colder temperatures​.
  • Which Is More Expensive to Install?
    Furnaces tend to have lower upfront installation costs, averaging between $2,000 to $6,800, while heat pumps range from $3,500 to $7,900. However, heat pumps can offer savings in energy bills over time, especially in regions where electricity is cheaper​.

Key Takeaways: Making the Right Choice

The decision between a heat pump and a furnace depends largely on your climate, energy costs, and whether you want an all-in-one solution for heating and cooling. If you’re in a warmer area like Austin, a heat pump offers versatility and efficiency year-round. In colder climates, a furnace might be the better choice for reliable heating during harsh winters.

If you have questions about installing a new heat pump or furnace in your home we are here to help. Contact our experts today to schedule a free installation quote for your home.