My home has an old electric, central furnace. All of my neighbors are on natural gas. I pay 5-6 times as much as they do on my heating bills during winter months.
I can either convert my home to natural gas or install an electric heat pump. Air conditioning is not at all important where I live, so considered an insignificant part of the math.
Current rates are:
- $0.34 per therm, for natural gas
- $0.14 per kilowatt hour for electricity
As my electric bills are so high, I need to buy the most efficient equipment possible. Upfront costs will be $8-10k regardless of whether I put in a gas or electric furnace.
Based on current rates, what equipment specs and math are needed to estimate the monthly cost of a natural gas furnace vs an electric heat pump?
Climate average lows in winter: Oct: 29°F Nov: 18°F Dec: 11°F Jan: 11°F Feb: 16°F Mar: 20°F Apr: 24°F May: 33°F
I learned my state offers mail in rebates of $200-375 for installing gas furnaces and a $2000 tax credit for electric heat pumps. Is that indicative of lower costs?