Heat Pump vs. Gas Furnace: A Comparison of Operating Costs

Posted By on December 5, 2010

According to Green NRG, LLC, a company that conducts Home Energy Ratings, it really pays to have a high efficiency Gas Furnace instead of a Heat Pump in the Greater Cincinnati marketplace.

Many new home builders today install Heat Pumps as standard in their homes.  Not Potterhill Homes.  Every new Potterhill Home comes with a high efficiency gas furnace (where gas is available), and the numbers show it’s really worth it.

We asked Green NRG to run an analysis on our popular Rockefeller house.  The house is about 2,600 square feet, it has 4 bedrooms and 2.5 baths, and it is a 2-story home. Green NRG used Potterhill’s building standards including Blown Cellulose Insulation, 9’ first floor ceilings, programmable thermostat, Low-E EnergyStar Rated windows, compact florescent light bulbs and exterior caulking package.

Then, they ran the numbers comparing what it would cost, on an annual basis, if the house had a 92% high efficiency gas furnace (combined with 13 SEER A/C) versus a 13 SEER heat pump.  They used current Duke Energy rates for the cost of electric and the cost of gas.

Here’s what the analysis showed.

The Estimated Annual Energy Cost (total Duke Energy bill):

13 SEER Heat Pump = $2,719

92% High Efficiency Gas Furnace w9th 13 SEER A/C = $1545

The total annual energy savings the homeowner would experience because of installing a high efficiency gas furnace in lieu of a 13 SEER Heat Pump is $1,174. That’s $98 per month, every month!

If you’re shopping for a new home, we’d recommend you seriously look at the energy performance of any home before you buy.  This savings of $1,174 per year, or $98 per month, will only get bigger as time goes on and as the utility companies raise their rates. 

For more information on Potterhill Homes’ energy efficient standards, visit http://www.potterhillhomes.com/features/greenBuilding.php

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About the author

As the people behind Potterhill Homes, we have some pretty strong feelings about energy efficiency and green building. And we don't always agree! But we are commited to building a best homes we can and bringing you along on our journey to figure out exactly what that means! Thanks for checking out our site. My Google Profile+

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About Potterhill Homes

Cincinnati-based Potterhill Homes is a premier builder of affordable, environmentally friendly homes in Greater Cincinnati. Our homes are built with traditional Cincinnati architectural styles and are perfect for both urban infill and suburban development. To learn more about Potterhill Homes,visit www.potterhillhomes.com.


About the authors

As the people behind Potterhill Homes, we have some pretty strong feelings about energy efficiency and green building. And we don't always agree! But we are commited to building a best homes we can and bringing you along on our journey to figure out exactly what that means! Thanks for checking out our site. My Google Profile+