To generate heat, furnaces burn oil or gas, while heat pumps run on electricity, drawing heat from outside air—even cold air—and transferring it indoors. Furnaces, however, are often located away from the living area—in a basement or utility room—and a soft whoosh of air is often the only sound they make. A furnace generates heat in a traditional way by burning oil or natural gas and sending the resulting heat into the home. Because furnaces don’t depend on outdoor air to produce heat, they produce much warmer air for homes located in cold temperature climates compared to heat pumps. Heat pumps operate as both heating and cooling systems, replacing the need for a separate furnace and central air conditioning system. Furnaces, which are typically installed indoors, can take up a lot of … The compressor part of a heat pump, which is located outdoors but close to the house—in a similar manner to an air conditioner—requires a minimum 24-inch clearance around its outdoor unit. During the summer months, your heat pump can also act as an air conditioner, making this a more versatile product compared to a furnace. Do heat pumps live up to the hype? Furnace installation can range between $2,000 to upwards of $7,000, depending on the furnace and company you are using to install the unit. Furnaces can also be powered by electricity. Likewise, installation isn’t a DIY project. A heat pump extracts heat from the outside air (even if it’s cold) to move warm air through your home. Though a heat pump performs the same function as a furnace and air conditioner, these systems accomplish their jobs in different ways. If you experience incredibly cold winters with temperatures below freezing, a furnace is the best option for you. But in an older leaky home, a 30F to 35F outdoor-indoor delta is about the limit, depending again on size of heat pump vs. the home's heat load. A heat pump heater, on the other hand, removes heat from the outdoors and deposits it inside your home. Southeastern climates are ideal for heat pump use. Heat pumps both heat and cool homes by moving warm air in or out, while furnaces burn fuel to create and distribute warm air throughout a home. The Pros and Cons of a Heat Pump vs Furnace: Heat Pump Pros & Cons Again, heat pumps are essentially air conditioners that work in reverse to provide warmth for the home. To install the most common type of heat pump—an air-to-air model—you’ll pay an average of $3,500 to $4,500, depending on size and efficiency. While exact operating costs depend on the climate where you live, the unit’s efficiency, and local utility costs, for a single winter season, heating costs run an average of $1,550 for a propane furnace, $850 for a natural gas furnace, $900 for an electric furnace, and just $500 for a heat pump. For this section we’ll look at a heat pump vs. gas furnace and a heat pump vs. oil furnace as those are the predominant furnace types in Central Virginia. Electric Heat pumps are different from furnaces in one big way. Instead, external heat, pulled from outside or the ground, flows into the home. Since heat pumps work on the same principle as air conditioners during the summer months, the costs to cool your home with either will run about the same—$300 or more, depending on your climate. The difference between a heat pump and furnace can be summarized as: Heat pumps are used in many parts of the U.S. By Glenda Taylor and Bob Vila. A heat pump doesn’t burn fuel to generate heat. Heat pumps, which also have an average 15-year lifespan, have been around for more a century but didn’t become popular furnace alternatives until the 1970s. The cost to have a gas furnace installed averages $4,500, and the cost to install an electric furnace runs about $4,000, but you could pay up to 10,000 or more for a high-efficiency model of either type of furnace. In terms of air quality, heat pumps don’t produce CO, so you don’t have to worry about carbon monoxide leaks. A heat pump is, overall, a better choice for most homes. Heat pumps move heat instead of generating heat. There is only one type of heat pump. A heat pump uses much less energy than an electric or gas furnace. Disclosure: BobVila.com participates in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for publishers to earn fees by linking to Amazon.com and affiliated sites. If you live in zones 4 through 7 and you want to install a heat pump, you’ll need a geothermal model. While a furnace is designed to generate only heat, a heat pump warms your home in winter and cools it during the summer months. Geothermal systems are very efficient. Some heat pumps even go as high as a 9 HSPF rating and SEER ratings reaching 16. If you live in an area with mild winters, a heat pump is a great option. At what temperature is a heat pump not effective? Installing a geothermal heat pump, however, can run as high as $25,000, due to the added cost of excavating to bury its refrigerant lines. In addition, heat pumps aren’t as efficient if temperatures reach below freezing. In the heat pump Vs the electric furnace, the heat pump should still be ideal for you. Because heat pumps make use of both an indoor and an outdoor unit, the installation process can be difficult and time-consuming and may disrupt your house and daily life. A unit that’s too small won’t keep you warm on the coldest days and will force the unit to work overtime, which can reduce its lifespan and increase the need for repairs. You can also consider the overall cost, air quality and reliability. Read on, or learn more about heat pumps in our product catalogue. So the space conditioning costs less compared to using a conventional cooling or heating system. Heat Pump vs. There are systems that work alongside heat pumps to generate warmth by moving the air over heating coils, but they typically use a lot of energy. Keep in mind that beyond the limit, the heat pump continues to product the lion's share of the heat, sloping off as outdoor temps drop further. Get the Catalogue Most people are more familiar with furnaces than heat pumps. Instead of creating heat, like a furnace does, heat pumps move heat from one point to another. For example, in the summer heat pumps move heat from your home and deposit it outside. In the heat pump versus gas furnace debate, climate is the biggest deciding factor. 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