If you’re considering a heating system replacement, you may be wondering if you should replace your furnace with a heat pump. Heat pumps have been increasing in popularity in recent years, and there are some good reasons why.
In this guide, we’ll discuss when it makes sense to replace your furnace with a heat pump and when it’s better to add a heat pump to an existing furnace system. We’ll also talk about the costs and considerations involved in making the switch.
How a Heat Pump Is Different from a Furnace
A furnace is a forced air heating system that typically burns fuel like natural gas, oil, or propane to heat a home or business. Furnace systems have a burner that heats a heat exchanger, and a blower then sends the heat throughout a building by circulating air through ducts.
A heat pump, meanwhile, does not burn fuel. Heat pumps work by using electricity as their energy source. Rather than generating heat, it moves heat from one place to another. In winter, it pulls heat from the outdoor air and brings it inside. In summer, it reverses the process, pulling heat out of your home and releasing it outside. That means one system handles both heating and cooling.
There are a few different types of heat pumps available on the market. The most common is a central air-source heat pump, which connects to your existing ductwork just like a furnace. Ductless mini-split systems are another option for homes without ductwork or for heating and cooling specific rooms. There are also inverter heat pumps, which adjust their output continuously to maintain a steady temperature and tend to be especially efficient.
Additional Reading: Heat Pumps Vs Furnaces
Do heat pumps work in cold weather?
Yes, modern heat pumps can effectively heat your home in below freezing temperatures. This is a question we get a lot and it’s a good question to ask, since heat pumps don’t actually generate hot or cold air. Older heat pumps struggled once temperatures regularly dropped below freezing. Today’s extended capacity and cold climate models solve that problem and can reliably run in very low temperatures.
For moderate climates like Portland, a standard heat pump does the job well. Winters bring a fair amount of rain, but temperatures stay warm enough for a heat pump to pull heat from the outdoor air and bring it inside. Heat pump technology has also improved a lot in the last five years, giving PNW homeowners more options than ever.
Additional Reading: Is a Heat Pump Right for Your Portland Home?
Reasons to Replace a Furnace With a Heat Pump
There are a few good reasons why heat pumps have become so popular, and one of the most popular heating and cooling upgrades we install.
Heat Pumps Deliver Heating and Cooling With One System
A heat pump heats your home in winter and cools it in summer. That means if you’re running an aging air conditioner when your furnace reaches the end of its life, you can replace both in a single installation.
Heat Pumps Can Lower Your Energy Bill
Because a heat pump moves heat rather than generates it, it uses significantly less energy than electric resistance heating, like an electric furnace or baseboard heaters, to produce the same amount of warmth. According to the U.S. Department of Energy, modern heat pumps can reduce electricity use for heating by up to 50% compared to those systems.
Note that the comparison to a gas furnace is a little more nuanced, and in some cases, an electric heat pump may not actually be the most efficient choice. With electricity rates rising in the Portland area, a high-efficiency gas furnace (95% AFUE or higher) can sometimes cost less to run than a heat pump, especially in older Portland homes with poor insulation, older windows, or drafty attics. A heat pump has to work harder to keep up in a home that loses heat quickly, which affects both comfort and efficiency.
Heat Pumps Are Better for the Environment
Since heat pumps run on electricity and don’t burn any fuel, there’s no combustion, no carbon monoxide risk, and no dependence on a gas line. If you want to reduce your home’s carbon footprint, switching from a gas furnace to a heat pump is an impactful change.
Heat Pumps Are Great for Mild Climates Like Portland
Heat pumps work best when winter temperatures don’t regularly drop below freezing, and summer temperatures don’t soar too high. Portland winters and summers are a near-perfect fit.
When to Replace Your Furnace With a Heat Pump
If replacing your furnace with a heat pump makes sense for you, the next question is when you should make the switch. Here are some tips to help you determine if the timing is right:
- Your furnace is 15 years old or older. The average furnace lasts between 15 and 20 years, and when it’s reaching the end of its lifespan, repairs become more frequent and costly. Replacing your furnace with a heat pump before it fails gives you more control over the timing and decision.
- You’re already facing a significant repair. In many cases, it can make more financial sense to take the money you would pay for a major furnace repair and put it toward a new heat pump.
- Your energy bills have been climbing. If your energy bill has increased due to heating costs, but your usage hasn’t changed, a heat pump may cost less to run.
- You’re planning on replacing your air conditioner. If you’re already budgeting for an air conditioner replacement, a heat pump does both jobs in a single installation.
Additional Reading: Heat Pump vs Air Conditioner: Which is Right for You?
If one or more of these apply to you, it’s worth having a conversation about your options. If your furnace is newer and running well, it may make more sense to wait, or to add a heat pump for cooling now and revisit full replacement down the road.
Adding a Heat Pump to your Existing Furnace
Some homeowners may not want to get rid of their furnaces altogether, and in some cases that’s the right call.
If your existing furnace is relatively new and in good condition, you may be able to keep it and save money. A heat pump can be added to your existing ductwork and used primarily for cooling in the summer, with your furnace handling heat in the winter. This is the most popular option we’ve seen with Portland homeowners.
In areas with very cold winters, this dual-fuel approach can also make sense year-round. Heat pumps become less efficient in extreme cold, so having a furnace as a backup ensures you’re always heating your home in the most cost-effective way. A smart thermostat manages the switchover automatically, choosing whichever system is more efficient based on the outdoor temperature.
For most Portland homeowners, a standalone heat pump is enough. But if you want a backup for the occasional cold snap, or if your existing gas furnace is still in good shape and you’d rather not replace it, a dual-fuel setup can be a smart middle ground. You get efficient electric heating most of the year, with gas backup when you need it most.
Do you need a furnace with a heat pump?
No, but it can make sense if you live in any area that gets very cold in the winter. Another option is to have heat strips as a backup. Though they can be expensive to run, they are a more common alternative due to the ductless units being very efficient in below-freezing temperatures.
Is it easy to add a heat pump to a furnace?
Heat pumps don’t take up a lot of room, so they’re usually easy to connect to the same system of ductwork that your furnace uses. And if you install a ductless mini-split heat pump you won’t need to worry about the ducts at all.
What Replacing Furnace with a Heat Pump Looks Like
Converting to a heat pump isn’t a complicated process, but it does vary depending on what system you’re replacing.
Replacing a Gas Furnace
If you’re replacing a gas furnace, any existing ductwork can typically be reused, though it may need to be inspected and sealed for leaks. If an upgrade to your electrical panel is required, that can add upwards of $5,000 to the project. The process generally involves:
- Pulling needed permits
- Removing and recycling the existing gas furnace
- Placing an electrical disconnect for exterior compressor
- Installing a new circuit for backup electric resistance heat strips
- Swapping out the thermostat
Additional Reading: Switching to Electric Heating
Replacing an Electric Furnace
If you have an electric furnace you may be wondering if a heat pump is a more efficient way to heat your home. The answer is yes. Because it is simply moving heat, heat pumps are more energy efficient than electric furnaces, and can result in a lower energy bill. In parts of the country, like Portland, with milder temperatures heat pumps are able to do double duty, both heating and cooling your home, resulting in even larger savings.
When replacing an electric furnace with a heat pump you will need to make sure that your existing ductwork is compatible with a heat pump, and that your home is properly insulated. Heat pumps require more insulation to ensure heat is not lost in the ducts or to the outdoors.
What Does it Cost to Replace a Furnace With a Heat Pump?
The cost of replacing a gas furnace with a heat pump can in the Northwest can range from $10,000 to $20,000 depending on the size of your home and the type of heat pump you need. Additional ductwork or an electrical panel upgrade can increase that total. However, when you factor in energy savings and the potential for tax credits, heat pumps can become a very cost-effective choice.
If you’re replacing an electric furnace, costs are typically in the same range. Because you’re already on an electric setup, you may avoid some of the electrical upgrade costs that come with gas-to-heat-pump conversions, and your existing ductwork may carry over with minimal modification.
Frequently Asked Questions
What’s the difference between a heat pump and an air conditioner?
A central air conditioner only cools. A heat pump cools in summer and heats in winter, making it a single system replacement for both your furnace and your A/C.
Can I replace my air conditioner with a heat pump?
Yes. As mentioned, heat pumps have the advantage that they can both heat and cool your home throughout the seasons. Since heat pumps simply move heat from one area to another, in summer the process is reversed, moving heat from inside your home to the outside. Heat pumps are extremely energy efficient in the summer, using even less electricity than when heating your home. Like a central A/C system, heat pumps use your existing ductwork and are a single unit to install rather than two separate furnace and A/C units.
What’s the easiest way to decide if I should replace my furnace with a heat pump?
If your furnace is over 15 years old and you’re looking for a more energy efficient system, a heat pump is worth serious consideration, especially in a mild climate like Portland where they work well year-round and can handle both heating and cooling in a single system.
Do you need a furnace if you have a heat pump?
Not in most cases, especially in Portland’s climate. A heat pump handles both heating and cooling on its own. A furnace backup is mainly worth considering if you live somewhere with extended periods below freezing, or if your existing furnace is newer and in good shape.
Can a heat pump be used with a furnace?
Yes. Many homeowners install a heat pump alongside an existing furnace, using the heat pump for cooling in summer and either system for heat in winter. Heat pumps connect to your existing ductwork, or you can go ductless with a mini-split system.
Do heat pumps work well in cold weather?
Yes, modern heat pumps can deliver reliable heat in below freezing temperatures.
What if my home doesn’t have existing ductwork?
A ductless mini-split heat pump is a good option. It doesn’t require any ductwork and can heat and cool specific rooms or zones in your home.
Read next: Why Heat Pumps Are Perfect If You Live In Portland, OR
Heat Pump Installation in Portland
Finding the right HVAC system for your home is crucial to your comfort — and for your wallet. The experts at Jacobs Heating & Air Conditioning are ready to make sure that you have the best system for your home and lifestyle.
We will guide you through the decision so you can avoid extra costs, fewer repairs and enjoy a long-lasting system. No matter what you need we’re always just a phone call away.
