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Gas costs $1.85/therm. Heat pump electricity costs $0.18/kWh. One system handles heating and cooling. The math has shifted dramatically since 2024 -- here is the full breakdown for MA homeowners.
Enter your current gas usage to see how much you would save switching to a heat pump with the Massachusetts heat pump electric rate.
Current price: $3.80 $/gallon
Eversource/National Grid heat pump rate applied
Based on MA fuel prices as of February 2026. Heat pump assumes COP 3.0 (cold-climate average). Actual savings depend on home size, insulation, and usage patterns.
A side-by-side comparison using current Massachusetts energy prices and equipment costs as of February 2026.
Based on National Grid gas at $1.85/therm (92% AFUE furnace) vs heat pump at $0.18/kWh (COP 3.0, heating season HP rate). Includes only space heating, not hot water.
Estimates assume typical insulation for MA homes built 1960-2000. Newer or well-insulated homes may use less. Older homes may use more. Actual savings vary based on thermostat settings, occupancy, and insulation quality.
A 92% AFUE gas furnace converts 92% of gas energy into heat. For every therm (100,000 BTU) of gas at $1.85, you get 92,000 BTU of delivered heat.
An average MA home needs roughly 80-100 million BTU per heating season. At $2.01 per 100k BTU, that is $1,600 - $2,010 in gas alone, plus fixed delivery charges of $15-25/month.
A cold-climate heat pump with COP 3.0 produces 3 units of heat for every 1 unit of electricity consumed. One kWh = 3,412 BTU, so at COP 3.0, one kWh delivers 10,236 BTU.
At the $0.18/kWh heat pump rate, operating cost is about 12% cheaper per BTU than gas. At standard electric rates ($0.33/kWh), gas would win -- the HP rate is essential to making the economics work.
The savings above only apply if you enroll in your utility's heat pump electric rate ($0.18/kWh from November-April). Without it, you pay $0.28-$0.34/kWh standard rates, which makes gas cheaper per BTU. Ask your installer to help you enroll with Eversource or National Grid after installation.
You do not have to choose one or the other. A dual-fuel system uses the heat pump for 85-95% of heating hours and switches to gas only during extreme cold events.
The heat pump runs as the primary system. When outdoor temperatures drop below a set switchover point (typically 5-15 F), the gas furnace automatically takes over. In a typical MA winter, this happens only 50-100 hours per season.
Dual-fuel systems cost $8,000-$15,000 (a single-zone or partial heat pump plus keeping the existing furnace) versus $12,000-$22,000 for a full heat pump replacement. You still capture 80-90% of the operating savings with lower upfront investment.
You keep paying the gas connection fee ($10-15/month or $120-180/year) even if you barely use gas. You also maintain two systems. And you may not qualify for the full $10,000 Mass Save rebate, which requires whole-home heat pump conversion.
We install heat pumps for a living, but we believe in honest advice. Here are scenarios where sticking with gas makes more financial sense:
If you installed a condensing gas furnace in the last 2-3 years, it has 15+ years of efficient life remaining. The upfront cost of a heat pump system ($12,000-$22,000 before rebates) won't pay back quickly enough to justify replacing equipment that works well. Wait until your furnace nears end-of-life.
Some MA municipalities served by Berkshire Gas or smaller providers may have lower rates. At $1.20/therm with a 96% furnace, gas costs about $1.25 per 100,000 BTU delivered -- cheaper than a heat pump even at the HP electric rate. Check your actual gas bill before deciding.
A whole-home heat pump needs 30-60A of panel capacity. If your home has a 100A panel that's already full, you may need a $2,000-$4,000 panel upgrade to 200A first. This added cost lengthens payback significantly. Some ductless systems can work on smaller circuits, so get a professional load assessment.
Oversized homes with minimal insulation and air sealing need enormous heat pump systems that are expensive to install. Invest in weatherization first -- Mass Save covers 75-100% of insulation costs. Then reassess heat pump sizing. The combination of weatherization + right-sized heat pump is always more cost-effective than oversizing the heat pump alone.
Massachusetts offers the most generous heat pump rebates in the country. Here is what is available in 2026 for switching from gas to a heat pump.
The federal Section 25C energy efficiency tax credit (which previously offered up to $2,000 for heat pumps) expired on December 31, 2025, under the OBBBA legislation. Do not rely on any federal tax credit for your heat pump project in 2026. Mass Save rebates and HEAR rebates are your primary incentives.
Switching from gas to a heat pump reduces your household carbon footprint significantly, even accounting for the electricity generation mix on the Massachusetts grid.
Based on 1,200 therms/year at 11.7 lbs CO2/therm
MA grid: 0.53 lbs CO2/kWh (2025 average, increasingly clean)
Small residual from grid electricity on cloudy winter days
Massachusetts has mandated 80% emissions reduction by 2050 and is on track to achieve 50% renewable electricity by 2030. As the grid decarbonizes, heat pump emissions drop automatically -- a gas furnace's emissions never improve. By 2030, a heat pump in MA may emit under 1.5 tons CO2/year from the same electricity consumption.
Yes. With the MA heat pump electric rate of $0.18/kWh available from Eversource and National Grid, a heat pump costs roughly 45-55% less per year to operate than a gas furnace at current National Grid gas rates of $1.85/therm. For an average 2,000 sq ft home, that translates to $1,000-$1,200 in annual savings.
No. The federal 25C energy efficiency tax credit expired on December 31, 2025, under the OBBBA legislation signed July 4, 2025. There is no federal tax credit available for heat pump installations in 2026. However, Massachusetts Mass Save rebates of up to $10,000 and HEAR rebates for income-qualified households remain available.
Yes. Modern cold-climate heat pumps (ccASHP) are rated to operate efficiently down to -13 F. Models from Mitsubishi Hyper-Heating, Daikin Fit, and Fujitsu XLTH maintain over 75% capacity at 5 F. Massachusetts average winter lows are 15-25 F, well within operating range. However, capacity drops during the coldest polar vortex events, which is why some homeowners opt for dual-fuel backup.
A whole-home cold-climate heat pump system costs $12,000-$22,000 before rebates in Massachusetts. Mass Save rebates cover $10,000 for whole-home conversions. After rebates, net cost is typically $2,000-$12,000 depending on system size and complexity. With $1,000+/year operating savings, payback periods range from 2-8 years.
A dual-fuel (hybrid) setup can make sense if you already have a working gas furnace. The heat pump handles 85-95% of heating hours and the gas furnace kicks in only during extreme cold snaps below 0 F. This approach costs less upfront than full heat pump replacement and eliminates performance anxiety about the coldest days. However, you still pay gas connection fees ($10-15/month) year-round.
Both Eversource and National Grid offer a dedicated heat pump electric rate of approximately $0.18/kWh during heating season (November through April), compared to the standard residential rate of $0.28-$0.34/kWh. You must enroll in the program and have a qualifying heat pump system installed. This rate applies only to heat pump consumption metered separately or estimated by the utility.
Mass Save offers up to $10,000 in rebates for whole-home heat pump systems that displace fossil fuel heating. This includes up to $1,250 per ton of equipment plus bonuses for full home conversion. Income-eligible households may qualify for enhanced incentives covering 100% of costs through the HEAR program. Additional rebates are available for weatherization done alongside the heat pump install.
A gas furnace may be the better choice if: (1) you just installed a brand-new high-efficiency gas furnace (96%+ AFUE) and it has 15+ years of life left, (2) your home has severe ductwork issues that would require $5,000+ in modifications, (3) you have access to unusually low gas rates below $1.20/therm, or (4) your electrical panel cannot support a heat pump without a costly $2,000-$4,000 panel upgrade. In most other scenarios, the heat pump wins on lifetime cost.
A typical whole-home heat pump installation takes 2-4 days for a ductless mini-split system and 3-5 days for a ducted central heat pump. Timeline from signing to completion is usually 4-8 weeks, depending on equipment availability and permit processing. Mass Save energy audits (required for rebates) add 2-3 weeks to the front end.
Get a free, no-pressure assessment of whether a heat pump, gas furnace, or hybrid system makes the most sense for your home. We will run the numbers on your actual usage and give you an honest recommendation.
Serving all of Massachusetts. NABCEP certified installers. Mass Save registered contractor.