Loading NuWatt Energy...
We use your location to provide localized solar offers and incentives.
We serve MA, NH, CT, RI, ME, VT, NJ, PA, and TX
Loading NuWatt Energy...
Real-world running cost data across 9 states. Using actual utility rates, COP efficiency curves, and gas AFUE ratings to show exactly how much you save (or do not save) by switching from gas to a heat pump.
$800-1,400
HP Annual Cost
$1,200-2,200
Gas Annual Cost
25-45%
Avg Savings
9
States Compared
Last updated: February 2026. Based on utility rate filings and manufacturer COP data.
The cost comparison boils down to two efficiency metrics: the heat pump's COP (Coefficient of Performance) and the gas furnace's AFUE (Annual Fuel Utilization Efficiency).
Key Assumptions
We use COP 3.0 at 30F, 2.0 at 5F, and 1.5 at -5F for heat pump calculations. Gas AFUE is 96% for new furnaces and 80% for old (15+ year) furnaces. Annual heating load is 50 million BTU for a typical 2,000 sq ft home in the Northeast and 30 million BTU in Texas.
Heat pump annual cost vs 96% AFUE gas furnace. Based on actual 2026 utility rates in each state. Assumes 50M BTU annual heating load (Northeast) and 30M BTU (Texas).
| State | Electric ($/kWh) | Gas ($/therm) | HP Annual | Gas Annual | Savings | Notes |
|---|---|---|---|---|---|---|
| Massachusetts | $0.28 | $1.55 | $1,260 | $1,940 | 35% ($680) | Eversource $0.2836, NGrid $0.32 |
| Connecticut | $0.27 | $1.48 | $1,215 | $1,855 | 34% ($640) | Eversource $0.27, UI $0.28 |
| Rhode Island | $0.29 | $1.60 | $1,305 | $2,000 | 35% ($695) | RI Energy $0.29/kWh |
| New Hampshire | $0.27 | $1.52 | $1,215 | $1,900 | 36% ($685) | Avg $0.27/kWh across utilities |
| New Jersey | $0.26 | $1.30 | $1,170 | $1,625 | 28% ($455) | Gas-dominant market, narrow savings |
| Maine | $0.27 | $1.85 | $1,350 | $2,200 | 39% ($850) | CMP $0.27, Versant $0.32. Most heat with oil |
| Vermont | $0.22 | $1.45 | $990 | $1,810 | 45% ($820) | Lowest electric rate, strong savings |
| Pennsylvania | $0.21 | $1.20 | $945 | $1,500 | 37% ($555) | Low gas prices narrow the gap |
| Texas | $0.15 | $1.10 | $810 | $1,375 | 41% ($565) | DFW 15c, Houston 16c, Austin 12c |
* Annual costs assume SCOP 2.8 for Northeast states, SCOP 3.2 for Texas. Gas at 96% AFUE. Heating load 50M BTU (NE) / 30M BTU (TX).
Rebate amounts vary by equipment and income. See what you qualify for.
Check My EligibilityHeat pump efficiency drops as temperatures fall. Here is the cost to produce 100,000 BTU at each temperature compared to a 96% AFUE gas furnace at $1.50/therm. The breakeven point is typically around 0 to 5 degrees Fahrenheit.
| Outdoor Temp | Heat Pump COP | HP Cost / 100K BTU | Gas Cost / 100K BTU | HP Advantage |
|---|---|---|---|---|
| 47F | 4 | $1.90 | $4.35 | 56% |
| 30F | 3 | $2.55 | $4.35 | 41% |
| 17F | 2.5 | $3.05 | $4.35 | 30% |
| 5F | 2 | $3.80 | $4.35 | 13% |
| -5F | 1.5 | $5.10 | $4.35 | -17% |
| -13F | 1.2 | $6.35 | $4.35 | -46% |
Why Heat Pumps Still Win Seasonally
Even though heat pumps lose their cost advantage below 5F, the vast majority of heating hours occur above 20F. In Boston, only 3-5% of winter hours fall below 5F. The seasonal average COP of 2.5-3.0 makes the heat pump cheaper overall.
Section 25C: EXPIRED
The federal Section 25C energy efficiency tax credit (up to $2,000 for heat pumps) expired December 31, 2025. There is no federal heat pump credit for homeowners in 2026.
Mass Save
Up to $16,000
Income-eligible can get 100% paid
Energize CT
$250-$1,000/ton
Standard + Optimization tiers
Efficiency Maine
$1,000-$3,000/unit
Income-tiered, max 3 units
Clean Heat RI
Up to $11,500
60% of cost, 100% income-eligible
Efficiency VT
$600-$1,200/ton
Based on system type
NJ Whole Home
Up to $7,500
Graduated rebate + utility rebates
If your gas furnace is 15+ years old, it likely operates at 80% AFUE or lower. The savings from switching to a heat pump are even more dramatic.
$2,425
Old furnace (80% AFUE)
Annual cost, MA avg rate
$1,260
Heat pump (SCOP 2.8)
Annual cost, MA avg rate
$1,165/yr
Annual savings (48%)
$29,125 over 25 years
Pairing solar panels with a heat pump means the sun powers your heating and cooling. This combination eliminates both your electricity bill and your heating fuel bill, creating massive long-term savings.
Gas furnace + grid
$4,300/yr
$107,500 over 25 years
Heat pump + grid
$2,800/yr
$70,000 over 25 years
Heat pump + solar
$200/yr
$5,000 over 25 years
COP data by temperature, cold-climate model comparisons, and real winter performance.
How heat pumps work in drafty, poorly insulated homes and what upgrades help.
Combine solar and heat pump for maximum savings. Full bundle cost analysis.
Research
You just did this
Calculate
See your savings
Save
Lock in your price
You've done the reading. Now see how the numbers look for your specific zip code and utility bill.
Check My EligibilityTalk to an expertNo credit card required. 100% free. Takes about 2 minutes.
Every home is different. Get a free, no-pressure heat pump quote with real pricing, available state rebates, and projected annual savings.