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36.8% of Connecticut homes heat with natural gas. At $1.85/therm, the typical CT homeowner spends ~$2,200/year on gas heating. A heat pump cuts that to ~$1,200 — saving about $1,000/year. That is real but less dramatic than oil conversions. Here is the honest breakdown.
Last updated: February 2026
Switching from gas to a heat pump in CT saves approximately $1,000 per year in heating costs. That is real savings, but less dramatic than oil-to-heat-pump conversions (~$1,700/year). With gas furnace replacement costs of $4,000-$7,000 and heat pump installation of $14,000-$20,000, the payback period without rebates is 10-16 years. Energize CT rebates (up to $10,000) and Smart-E Loans (0.99% APR) make the math work — especially if your furnace needs replacement anyway or you do not have central AC.
of CT homes heat with natural gas
average annual gas heating cost
annual savings with a heat pump
Gas at $1.85/therm (CT average, Feb 2026). Heat pump at $0.27/kWh (Eversource CT) with COP of 3.0. Savings are real but more modest than oil conversions — we believe in giving you the honest numbers.
Natural gas at $1.85/therm vs cold-climate heat pump at $0.27/kWh (Eversource CT) with COP 3.0. Gas furnace efficiency: 92% AFUE. All figures are annual operating costs.
| Home Size | Gas Usage | Gas Cost/Year | Heat Pump/Year | Annual Savings |
|---|---|---|---|---|
Small 1,200 sq ft | 800 therms | $1,480 | $810 | $670 |
Medium 2,000 sq ft | 1,200 therms | $2,220 | $1,200 | $1,020 |
Large 3,000 sq ft | 1,700 therms | $3,145 | $1,700 | $1,445 |
1,200 sq ft · 800 therms/year
2,000 sq ft · 1,200 therms/year
3,000 sq ft · 1,700 therms/year
Gas price: $1.85/therm (CT EIA average, February 2026). Heat pump assumes Eversource CT residential rate of $0.27/kWh and seasonal COP of 3.0. Gas furnace efficiency: 92% AFUE. Actual costs vary by home insulation, thermostat settings, and local utility rates.
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 + AC unit, a heat pump is actually cheaper since it replaces both systems.
Energize CT Energy Optimization offers $1,000/ton (up to $10,000). If income-qualified for HEAR, up to $8,000. These can cut payback to 4-6 years.
Natural gas leaks cause explosions. CT has aging gas infrastructure. A heat pump eliminates combustion appliances from your home entirely.
A functioning modern gas furnace (95%+ AFUE) is already efficient. Wait until replacement age and switch then.
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. A heat pump in a leaky home will run inefficiently and may not achieve the savings shown here.
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 CT homeowners fall somewhere in between.
Enter your current fuel type and annual usage to see how much you could save with a heat pump. The calculator uses current CT fuel prices and Eversource/UI electricity rates.
Current price: $3.50 $/gallon
Note: Connecticut does not have a special heat pump electric rate. Calculations use the standard residential rate for Eversource (~$0.27/kWh). CT rates are among the highest in New England.
Based on CT fuel prices as of February 2026 (oil $3.50/gal, propane $3.82/gal, gas $1.85/therm). Heat pump assumes COP 3.0 (cold-climate average). Electric rate based on Eversource at $0.27/kWh. Actual savings depend on home size, insulation, and usage patterns.
Not ready to fully commit? A dual-fuel (hybrid) setup uses the heat pump for most heating and keeps your gas furnace as backup. This is popular with CT homeowners who want to ease into the transition.
The heat pump handles 85-95% of your heating hours. It runs more efficiently than gas at temperatures above 25-30 degrees F, which covers most CT winter days.
Your existing gas furnace activates during extreme cold snaps (below 15-20 degrees F) or if the heat pump cannot maintain setpoint. Provides peace of mind in your first winter.
Dual-fuel captures 70-85% of the savings of a full heat pump system ($700-$850/year) while keeping the safety net of gas. Many CT homeowners decommission the furnace after the first winter.
Your thermostat manages the switchover automatically. When outdoor temperature drops below the balance point (typically set at 25-35 degrees F), the system switches from heat pump to gas. Most modern smart thermostats can manage dual-fuel systems. Your installer configures the balance point during setup.
Connecticut's rebate programs are the key to making gas-to-heat-pump conversions financially attractive. Here is every incentive available in 2026.
The federal Section 25C energy efficiency tax credit (previously up to $2,000 for heat pumps) expired December 31, 2025. It is no longer available for any installations in 2026. Energize CT rebates and Smart-E Loans are the remaining incentives for CT homeowners.
Connecticut does not offer a discounted heat pump electricity rate. Eversource CT charges approximately $0.27/kWh and United Illuminating charges approximately $0.28/kWh. All calculations on this page use these standard residential rates. Heat pumps are still cheaper than gas because of their 300%+ efficiency (COP 3.0).
Natural gas is cleaner than oil, but a heat pump still reduces your carbon footprint — even when accounting for electricity generation.
Emitted by a typical gas-heated CT home (1,200 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 for a year
Beyond emissions, switching to a heat pump eliminates the risk of gas leaks and carbon monoxide poisoning. Connecticut has aging gas infrastructure, and gas line incidents, while rare, can be catastrophic. A heat pump removes all combustion appliances from your heating system.
Natural gas prices have historically been volatile, spiking during cold winters and supply disruptions. Electricity prices are more stable and regulated. Switching to a heat pump reduces your exposure to gas market swings, especially as more homes electrify and gas distribution costs are spread over fewer customers.
Complete guide to Energize CT rebates by tier
Read guideOil-to-heat-pump savings are even more dramatic
Read guideWhat to look for, questions to ask, red flags
Read guideNational heat pump guides by state and type
Read guideHeat pump + solar + battery bundle cost analysis
Read guideNortheast-wide guide with state-by-state incentives
Read guideNuWatt Energy helps Connecticut homeowners make the right decision about switching from gas to a heat pump. Get a free assessment, see your personalized savings estimate, and find out which Energize CT rebates you qualify for.