# Heat pump vs. gas furnace and AC on Pepco (Potomac Electric Power) rates (DC)

> **Quick answer** (updated 2026-11-10): As of November 2026, for a typical 1,800 sq ft gas-heated home on Pepco (Potomac Electric Power) electricity rates in District of Columbia that needs a new furnace and AC: It depends on your quotes. A heat pump saves about $190 a year to run, so it comes out ahead over 15 years if its quote is no more than $2,900 above the quote for a new furnace and AC.

- Verdict: **depends on quotes**
- Heat pump yearly running cost vs. a new gas furnace and AC: $190 less
- Break-even quote gap: the heat pump wins over 15 years if its quote is no more than $2,900 above the like-for-like quote
- Interactive calculator (change size, insulation, fuel, prices, ZIP): https://meterwise.app/dc/pepco-potomac-electric-power/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/dc/pepco-potomac-electric-power.json

## Typical home: costs by option

1,800 sq ft, average insulation, heating with gas, furnace and AC both need replacing.

| Option | Installed (typical) | Installed range | Rebates | Energy per year | 15-year total |
|---|---|---|---|---|---|
| New gas furnace + new AC | $13,710 | $10,730–$16,690 | – | $940 | $27,900 |
| Heat pump (replaces both) | $13,710 | $9,540–$17,880 | – | $750 | $25,000 |
| High-efficiency cold-climate heat pump | $17,880 | $13,110–$23,840 | – | $590 | $26,700 |

## Inputs

- Electricity: Pepco (Potomac Electric Power)'s average residential price in DC (EIA), $0.166/kWh; the winter price of extra kWh is estimated at $0.148/kWh. Enter your own rate for a closer answer. Typical-bill price 16.6¢/kWh, -32% vs. the District of Columbia average of 24.4¢/kWh.
- Weather: Washington Reagan Natl AP GSN, 3,769 heating and 1,738 cooling degree days a year (NOAA 1991-2020 normals).
- Gas: $1.57/therm (District of Columbia winter average, EIA); propane $3.60/gallon; heating oil $6.23/gallon.
- Homes in this utility's District of Columbia area heat with gas 49%, electricity 46%, other 3%, propane 1%, heating oil 1% (U.S. Census Bureau ACS 2019-2023).
- Installed prices: published study ranges, scaled for home size and District of Columbia HVAC installer wages (BLS).
- Rebates: not yet checked in District of Columbia, so not included.

## Common questions

**Is a heat pump worth it for Pepco (Potomac Electric Power) customers?**
As of November 2026, for a typical 1,800 sq ft gas-heated home on Pepco (Potomac Electric Power) electricity rates in District of Columbia that needs a new furnace and AC: It depends on your quotes. A heat pump saves about $190 a year to run, so it comes out ahead over 15 years if its quote is no more than $2,900 above the quote for a new furnace and AC.

**How much does a heat pump cost to run on Pepco (Potomac Electric Power)'s rates?**
About $750 a year for heating and cooling with the Heat pump (replaces both) option, against $940 for New gas furnace + new AC.

**What electricity price does this use?**
Electricity: Pepco (Potomac Electric Power)'s average residential price in DC (EIA), $0.166/kWh; the winter price of extra kWh is estimated at $0.148/kWh. Enter your own rate for a closer answer.

## Method

Heating and cooling need from local weather, floor area and insulation; each option's efficiency (heat pumps lose
efficiency in the cold and use backup heat in cold months) turns that into kWh and fuel; electricity is priced
through the utility's tariff; installed costs come from published ranges. Full method: https://meterwise.app/about/index.md

Estimates for a typical home, not a quote or financial advice.

## Other District of Columbia utilities


- [All District of Columbia utilities](https://meterwise.app/dc/index.md)

## Cite this page

MeterWise, "Heat pump vs. gas furnace and AC on Pepco (Potomac Electric Power) rates (DC)", updated 2026-11-10, https://meterwise.app/dc/pepco-potomac-electric-power/heat-pump-vs-furnace/. Data licensed CC BY 4.0.