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Get a Free QuoteAbout 30% of New Hampshire homes heat with natural gas — mostly in southern NH along the Liberty Gas corridor. At $1.65/therm, a typical NH homeowner spends ~$1,815/year on gas heating. A cold-climate heat pump cuts that to ~$1,140 — saving about $675/year. Here is the honest breakdown.
Last updated: March 2026
Switching from gas to a heat pump in NH saves approximately $675 per year in heating costs for a medium-sized home. That is real savings, but less dramatic than oil-to-heat-pump conversions (~$1,500/year in NH). With gas furnace replacement costs of $5,000–$7,500 and heat pump installation of $14,000–$20,000, the payback without rebates is 10–15 years. NHSaves rebates ($250/ton, max $1,250) help, and if your furnace needs replacement and you also need AC, effective payback drops to 5–8 years.
of NH homes heat with natural gas
average annual gas heating cost
annual savings with a heat pump
Gas at $1.65/therm (NH average, March 2026). Heat pump at $0.25/kWh (Eversource NH) with COP of 2.7. Savings are real but more modest than oil conversions — we believe in giving you the honest numbers.
Natural gas at $1.65/therm vs cold-climate heat pump at $0.25/kWh (Eversource NH) with COP 2.7. Gas furnace efficiency: 90% AFUE.
| Home Size | Gas Usage | Gas Cost/Year | Heat Pump/Year | Annual Savings |
|---|---|---|---|---|
Small 1,200 sq ft | 700 therms | $1,155 | $730 | $425 |
Medium 2,000 sq ft | 1,100 therms | $1,815 | $1,140 | $675 |
Large 3,000 sq ft | 1,550 therms | $2,558 | $1,610 | $948 |
1,200 sq ft · 700 therms/year
2,000 sq ft · 1,100 therms/year
3,000 sq ft · 1,550 therms/year
Gas price: $1.65/therm (NH EIA average, March 2026). Heat pump assumes Eversource NH residential rate of $0.25/kWh and seasonal COP of 2.7. Gas furnace efficiency: 90% AFUE. Actual costs vary by home insulation, thermostat settings, and local utility rates.
Looking beyond annual savings to the full ownership picture for a 2,000 sq ft home in southern NH.
| Category | Gas Furnace | Heat Pump |
|---|---|---|
| Annual heating cost | $1,815 | $1,140 |
| 10-year heating total | $18,150 | $11,400 |
| Equipment cost (installed) | $5,000–$7,500 | $14,000–$20,000 |
| Annual maintenance | $150–$250 | $100–$200 |
| Equipment lifespan | 15–20 years | 15–20 years |
| Provides cooling (AC) | No | Yes — included |
Key insight: The heat pump costs more upfront but saves $6,750 in operating costs over 10 years. If you subtract the cost of a new gas furnace ($5,000–$7,500) and a separate AC unit ($4,000–$6,000), the heat pump's net incremental cost is only $500–$8,500 — which the operating savings cover in 1–8 years.
We believe in being upfront. Gas-to-heat-pump is not always a slam dunk. Here is when it makes financial sense — and when it does not.
If your furnace needs replacement anyway, the incremental cost of choosing a heat pump over a new furnace is much lower. This is the best time to switch.
A heat pump provides heating AND cooling. If you would otherwise buy a furnace plus an AC unit, a heat pump is cheaper since it replaces both systems.
At $1.65/therm or higher, annual savings exceed $600. At $1.80+ (common in southern NH where Liberty Gas serves most customers), savings reach $675–$950 per year.
Natural gas leaks cause explosions. NH has aging gas infrastructure concentrated in southern corridors. A heat pump eliminates combustion appliances entirely.
A functioning modern condensing gas furnace is already very efficient. Wait until replacement age and switch then — you will get more value from the investment.
If you already have a working AC system, the "free cooling" benefit of a heat pump is less impactful since you are not eliminating an AC purchase.
Address insulation and air sealing first. NH homes, especially older ones in the Seacoast and Lakes Region, often need weatherization before a heat pump can perform efficiently.
The best time to switch from gas to a heat pump is when your furnace needs replacement. The worst time is when you have a new, working furnace and already have AC. Most NH gas customers fall somewhere in between — and the dual-fuel option lets you ease into it.
New Hampshire is Climate Zone 5–6 with approximately 6,900 heating degree days. Heat pump efficiency (COP) varies with outdoor temperature. Here is what that means in practice.
COP: 3.5–4.0
Gas equivalent: 105–120% AFUE
Heat pump wins easily
COP: 2.5–3.0
Gas equivalent: 75–90% AFUE
Heat pump still wins at NH gas rates
COP: 1.8–2.2
Gas equivalent: 55–65% AFUE
Tight — high-efficiency gas may match
COP: 1.3–1.6
Gas equivalent: 40–50% AFUE
Gas furnace wins on these rare days
Many NH homeowners keep their gas furnace as backup for the coldest 5–10% of winter hours. The heat pump handles everything above 15–20°F (90–95% of the heating season), and the furnace kicks in during extreme cold. Your thermostat manages the switchover automatically. This captures 70–85% of the savings while keeping peace of mind.
NHSaves is New Hampshire's utility-funded rebate program, available through Eversource, Liberty, Unitil, and NHEC.
New Hampshire does not offer a discounted heat pump electricity rate. Eversource NH charges approximately $0.25/kWh, Liberty $0.24/kWh, Unitil $0.26/kWh, and NHEC $0.22/kWh. All calculations on this page use standard residential rates. Heat pumps are still cheaper than gas because of their 250–300% efficiency (COP 2.5–3.0).
Natural gas is cleaner than oil, but a heat pump still reduces your carbon footprint — even when accounting for electricity generation on the ISO-NE grid.
Emitted by a typical gas-heated NH home (1,100 therms x 11.7 lbs CO2/therm)
Emitted by a heat pump using ISO-NE grid electricity (improving yearly as grid gets cleaner)
Per household — equivalent to removing nearly a full car from the road
Beyond emissions, switching to a heat pump eliminates the risk of gas leaks and carbon monoxide poisoning. A heat pump removes all combustion appliances from your heating system, reducing the risk of house fires and CO exposure — especially important in older NH homes.
Natural gas prices have historically been volatile, spiking during cold winters and supply disruptions. As more New England homes electrify, gas distribution costs will be spread over fewer customers — potentially raising rates for those who remain. A heat pump hedges against this risk.
Full pricing breakdown by system type and size
Read guideComplete guide to NHSaves heat pump rebate tiers
Read guideWhich system type fits your NH home
Read guideHow a heat pump affects your electricity bill
Read guideOil-to-heat-pump savings are even more dramatic
Read guidePropane is the most expensive — see the savings
Read guideGet a personalized heat pump quote for your NH home. We will show you the real numbers — including when keeping gas makes more sense.