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Heat Pump Operating Cost (2026) | HeatPumpAtlasUSA

Operating cost

Heat pump operating cost by state

Heat pump operating cost is the number that decides whether you were right. It comes down to one ratio: what you pay for electricity against what you pay for your current fuel.

Written by HeatPumpAtlasUSA Editorial Updated How we calculate this

The one comparison that matters

Comparing a heat pump to a furnace by comparing a kilowatt hour to a therm is meaningless. They are different units of energy, and the machines convert them at different rates. The only fair comparison is cost per million BTU of heat actually delivered into your house.

That number accounts for the price of the fuel, the efficiency of the equipment, and the duct losses that steal part of what you paid for. Once you calculate it for your state, the picture is usually clear, and it is not the same picture everywhere. In Maine, a heat pump crushes oil. In Texas, a heat pump is often a worse financial decision than a cheap gas furnace.

Delivered heating cost by state, 2026

Lower is better. The heat pump column is a ducted cold-climate system. Ductless performs slightly better because it avoids duct losses.

Cost per million BTU of delivered heat by state

  • Maine

    Power price
    29.6¢
    Heat pump
    $35.2
    Natural gas
    $22.7
    Heating oil
    $31.9
    Propane
    $34.2
    Cheapest to run
    Oil wins

  • Massachusetts

    Power price
    29.6¢
    Heat pump
    $35.2
    Natural gas
    $34.0
    Heating oil
    $31.9
    Propane
    $34.2
    Cheapest to run
    Oil wins

  • Vermont

    Power price
    24.4¢
    Heat pump
    $29.1
    Natural gas
    $22.0
    Heating oil
    $31.9
    Propane
    $34.2
    Cheapest to run
    Heat pump wins

  • New York

    Power price
    29.5¢
    Heat pump
    $35.1
    Natural gas
    $22.4
    Heating oil
    $31.9
    Propane
    $34.2
    Cheapest to run
    Gas wins

  • Connecticut

    Power price
    24.3¢
    Heat pump
    $28.9
    Natural gas
    $25.2
    Heating oil
    $31.9
    Propane
    $34.2
    Cheapest to run
    Heat pump wins

  • Rhode Island

    Power price
    29.2¢
    Heat pump
    $34.8
    Natural gas
    $17.4
    Heating oil
    $31.9
    Propane
    $34.2
    Cheapest to run
    Oil wins

  • New Hampshire

    Power price
    27.0¢
    Heat pump
    $32.1
    Natural gas
    $26.5
    Heating oil
    $31.9
    Propane
    $34.2
    Cheapest to run
    Oil wins

  • New Jersey

    Power price
    24.9¢
    Heat pump
    $29.7
    Natural gas
    $22.0
    Heating oil
    $31.9
    Propane
    $34.2
    Cheapest to run
    Gas wins

  • Pennsylvania

    Power price
    21.7¢
    Heat pump
    $25.8
    Natural gas
    $21.4
    Heating oil
    $31.9
    Propane
    $34.2
    Cheapest to run
    Gas wins

  • Colorado

    Power price
    17.1¢
    Heat pump
    $20.4
    Natural gas
    $12.9
    Heating oil
    $31.9
    Propane
    $34.2
    Cheapest to run
    Gas wins

  • Minnesota

    Power price
    17.5¢
    Heat pump
    $20.8
    Natural gas
    $16.2
    Heating oil
    $31.9
    Propane
    $34.2
    Cheapest to run
    Gas wins

  • Wisconsin

    Power price
    19.6¢
    Heat pump
    $23.3
    Natural gas
    $12.8
    Heating oil
    $31.9
    Propane
    $34.2
    Cheapest to run
    Gas wins

  • Michigan

    Power price
    23.0¢
    Heat pump
    $27.3
    Natural gas
    $15.2
    Heating oil
    $31.9
    Propane
    $34.2
    Cheapest to run
    Gas wins

  • Washington

    Power price
    14.9¢
    Heat pump
    $17.7
    Natural gas
    $22.1
    Heating oil
    $31.9
    Propane
    $34.2
    Cheapest to run
    Heat pump wins

  • Oregon

    Power price
    16.3¢
    Heat pump
    $19.4
    Natural gas
    $17.9
    Heating oil
    $31.9
    Propane
    $34.2
    Cheapest to run
    Gas wins

  • California

    Power price
    34.7¢
    Heat pump
    $41.3
    Natural gas
    $24.2
    Heating oil
    $31.9
    Propane
    $34.2
    Cheapest to run
    Gas wins
Heat pump modelled at a seasonal coefficient of performance of 2.9 for cold-climate ducted equipment, reduced by 15 percent duct loss. Gas at 90 percent AFUE. Oil and propane at 82 percent AFUE. States not listed have small heat pump or oil markets or a lower switching priority.

Why the answer flips so hard between states

It comes down to a ratio that most comparison pages ignore.

The heat pump wins when electricity is cheap relative to your current fuel, and loses when it is expensive relative to that fuel. Two ratios drive nearly all of it.

  • The spark spread. Electricity per kilowatt hour divided by gas per therm. When gas is cheap and power is expensive, which describes Texas, Utah and several plains states, the furnace wins.
  • The oil ratio. Heating oil is priced per gallon and delivers a fixed amount of heat, so it is almost always expensive per million BTU. This is why the Northeast flips so hard.

The efficiency advantage of the heat pump is roughly a factor of three against resistance heat and roughly two and a half to three against a decent furnace. That advantage gets erased when electricity costs three times as much per unit of energy as gas, which is exactly what happens in the high-cost power states.

What cold weather actually does

Efficiency and capacity both fall as the outdoor temperature drops. Both are modelled, and both matter.

A heat pump's coefficient of performance is a curve, not a number. At mild temperatures it can exceed 4. At zero degrees Fahrenheit a good cold-climate unit is closer to 1.5 to 2. That is still better than electric resistance, but it is not the number on the marketing sheet.

This is why we use a seasonal coefficient of performance rather than a rated figure. In a 7,000 degree day climate, a system is running in genuinely cold conditions for a large share of its annual hours, and the seasonal number is what your bill sees. The practical implication is that backup heat strategy, sizing and building envelope all matter more in a severe climate than in a mild one.

Head-to-head comparisons

Ask installers to price this job, not a different one

The range is already on this site, and the calculator will give you a ZIP-level number for free. What you do not have is a bid that uses the same scope. We send your ZIP and that range to installers who work the market, and we tell them to quote that job. You get the emails. You decide.

  • We attach the modeled range so the bid has to price that job, not a sales package
  • You also get a one-page brief you can hand to any contractor you found yourself
  • Phone is optional. No account. If nobody covers your ZIP yet, you still get the brief

Installers pay for the introduction in markets we cover. That is how the site is funded. Read the privacy policy and the money model.

Frequently asked questions

How much does it cost to run a heat pump per year?
For a typical 1,800 square foot home in a 5,000 degree day climate, roughly $900 to $1,900 per year for space heating, depending on your electricity price and how well the house is sealed. In a severe climate like Maine or Minnesota, it can exceed $2,200. In a mild climate like Texas or Florida, space heating is a minor part of the bill. The calculator produces a specific figure for your ZIP because the range is too wide to be useful as a national number.
Is a heat pump cheaper to run than gas?
Sometimes, and it depends almost entirely on the ratio of electricity price to gas price in your state. The efficient way to compare is cost per million BTU of delivered heat. In states where electricity is cheap relative to gas, like Washington or Idaho, the heat pump usually wins. In states with high electricity and cheap gas, like Texas or Utah, a 90 percent gas furnace often wins. Our state table shows the actual numbers rather than a slogan.
Is a heat pump cheaper to run than oil?
Usually, and often by a wide margin. Heating oil is an expensive way to buy heat, and heat pumps in the Northeast are two to three times more efficient than an oil boiler or furnace. This is why the oil conversion case in Maine, Vermont, New Hampshire and parts of Massachusetts and New York is the strongest in the country. The advantage shrinks if you are comparing against a modern condensing oil boiler and your electricity is expensive.
Is a heat pump cheaper than electric resistance?
Yes, reliably, in every state. Electric baseboard heat converts one unit of electricity into one unit of heat. A heat pump moves two to three units of heat per unit of electricity, so it is two to three times cheaper to run on the same tariff. If you currently heat with baseboard or a space heater, this is the most certain saving in the whole category.
Will a heat pump raise my electricity bill?
Your electricity bill will rise, because you are now heating with electricity. The question is whether the total of your electricity and fuel bills falls. It usually does for oil, propane and resistance heat, and it often does not for natural gas in states with expensive power. Look at the combined bill, not the electric line alone, and be suspicious of any estimate that shows a big saving without explaining your local rate.
Do heat pumps lose efficiency in cold weather?
Capacity falls as it gets colder, and efficiency falls somewhat, but a modern cold-climate unit still runs at a coefficient of performance above 1.5 well below zero Fahrenheit. The practical consequence is that the unit is less efficient in January than in October, and that a correctly sized system with appropriate backup heat matters more than the headline efficiency rating. We model a seasonal coefficient of performance rather than a single lab number for this reason.

Sources and data

Verified

Green dot marks a primary government, program or utility source. Grey dot marks a secondary benchmark or editorial reference. Our full method, including how modelled figures are produced, is on the methodology page.