# Heat pump vs. electric furnace and AC on Kauai Island Utility Cooperative rates (HI)

> **Quick answer** (updated 2026-11-10): As of November 2026, for a typical 1,800 sq ft electrically heated home on Kauai Island Utility Cooperative electricity rates in Hawaii that needs a new furnace and AC: It depends on your quotes. A high-efficiency cold-climate heat pump saves about $560 a year to run, so it comes out ahead over 15 years if its quote is no more than $8,400 above the quote for a new furnace and AC.

- Verdict: **depends on quotes**
- Heat pump yearly running cost vs. a new electric furnace and AC: $560 less
- Break-even quote gap: the heat pump wins over 15 years if its quote is no more than $8,400 above the like-for-like quote
- Interactive calculator (change size, insulation, fuel, prices, ZIP): https://meterwise.app/hi/kauai-island-utility-cooperative/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/hi/kauai-island-utility-cooperative.json

## Typical home: costs by option

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

| Option | Installed (typical) | Installed range | Rebates | Energy per year | 15-year total |
|---|---|---|---|---|---|
| New electric furnace + new AC | $10,880 | $7,870–$14,090 | – | $1,490 | $33,200 |
| Heat pump (replaces both) | $11,910 | $8,290–$15,540 | – | $1,310 | $31,600 |
| High-efficiency cold-climate heat pump | $15,540 | $11,400–$20,720 | – | $930 | $29,400 |

## Inputs

- Electricity: D Residential Service tariff for Kauai Island Utility Cooperative, effective 2025-07-01, from the U.S. Utility Rate Database, applied tier by tier to the extra kWh. Typical-bill price 35.3¢/kWh, -20% vs. the Hawaii average of 44.4¢/kWh.
- Weather: Makaweli, 0 heating and 4,017 cooling degree days a year (NOAA 1991-2020 normals).
- Gas: $5.39/therm (Hawaii winter average, EIA); propane $2.69/gallon; heating oil $6.15/gallon.
- Homes in this utility's Hawaii area heat with other 61%, electricity 31%, propane 5%, gas 3% (U.S. Census Bureau ACS 2019-2023).
- Installed prices: published study ranges, scaled for home size and Hawaii HVAC installer wages (BLS).
- Rebates: not yet checked in Hawaii, so not included.

## Common questions

**Is a heat pump worth it for Kauai Island Utility Cooperative customers?**
As of November 2026, for a typical 1,800 sq ft electrically heated home on Kauai Island Utility Cooperative electricity rates in Hawaii that needs a new furnace and AC: It depends on your quotes. A high-efficiency cold-climate heat pump saves about $560 a year to run, so it comes out ahead over 15 years if its quote is no more than $8,400 above the quote for a new furnace and AC.

**How much does a heat pump cost to run on Kauai Island Utility Cooperative's rates?**
About $930 a year for heating and cooling with the High-efficiency cold-climate heat pump option, against $1,490 for New electric furnace + new AC.

**What electricity price does this use?**
Electricity: D Residential Service tariff for Kauai Island Utility Cooperative, effective 2025-07-01, from the U.S. Utility Rate Database, applied tier by tier to the extra kWh.

## 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 Hawaii utilities

- [Hawaiian Electric (Hawaii Island)](https://meterwise.app/hi/hawaiian-electric-hawaii-island/heat-pump-vs-furnace/index.md)
- [Hawaiian Electric (Maui County)](https://meterwise.app/hi/hawaiian-electric-maui-county/heat-pump-vs-furnace/index.md)
- [Hawaiian Electric (Oahu)](https://meterwise.app/hi/hawaiian-electric-oahu/heat-pump-vs-furnace/index.md)
- [All Hawaii utilities](https://meterwise.app/hi/index.md)

## Cite this page

MeterWise, "Heat pump vs. electric furnace and AC on Kauai Island Utility Cooperative rates (HI)", updated 2026-11-10, https://meterwise.app/hi/kauai-island-utility-cooperative/heat-pump-vs-furnace/. Data licensed CC BY 4.0.