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

> **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 Maryland that needs a new furnace and AC: It depends on your quotes. A heat pump saves about $120 a year to run, so it comes out ahead over 15 years if its quote is no more than $1,800 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: $120 less
- Break-even quote gap: the heat pump wins over 15 years if its quote is no more than $1,800 above the like-for-like quote
- Interactive calculator (change size, insulation, fuel, prices, ZIP): https://meterwise.app/md/pepco-potomac-electric-power/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/md/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 | $12,350 | $9,670–$15,040 | – | $1,060 | $28,300 |
| Heat pump (replaces both) | $12,350 | $8,590–$16,110 | – | $940 | $26,500 |
| High-efficiency cold-climate heat pump | $16,110 | $11,810–$21,480 | – | $740 | $27,200 |

## Inputs

- Electricity: Residential - Schedule R tariff for Pepco (Potomac Electric Power), effective 2025-08-01, from the U.S. Utility Rate Database, applied tier by tier to the extra kWh. Typical-bill price 19.4¢/kWh, -9% vs. the Maryland average of 21.3¢/kWh.
- Weather: Rockville 1 Ne, 4,454 heating and 1,278 cooling degree days a year (NOAA 1991-2020 normals).
- Gas: $1.60/therm (Maryland winter average, EIA); propane $3.83/gallon; heating oil $6.30/gallon.
- Homes in this utility's Maryland area heat with gas 52%, electricity 41%, heating oil 3%, propane 2%, other 2% (U.S. Census Bureau ACS 2019-2023).
- Installed prices: published study ranges, scaled for home size and Maryland HVAC installer wages (BLS).
- Rebates: not yet checked in Maryland, 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 Maryland that needs a new furnace and AC: It depends on your quotes. A heat pump saves about $120 a year to run, so it comes out ahead over 15 years if its quote is no more than $1,800 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 $940 a year for heating and cooling with the Heat pump (replaces both) option, against $1,060 for New gas furnace + new AC.

**What electricity price does this use?**
Electricity: Residential - Schedule R tariff for Pepco (Potomac Electric Power), effective 2025-08-01, 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 Maryland utilities

- [BGE (Baltimore Gas & Electric)](https://meterwise.app/md/bge-baltimore-gas-and-electric/heat-pump-vs-furnace/index.md)
- [Choptank Electric Cooperative, Inc](https://meterwise.app/md/choptank-electric-cooperative-inc/heat-pump-vs-furnace/index.md)
- [Delmarva Power](https://meterwise.app/md/delmarva-power/heat-pump-vs-furnace/index.md)
- [The Potomac Edison Company](https://meterwise.app/md/the-potomac-edison-company/heat-pump-vs-furnace/index.md)
- [Southern Maryland Elec Coop Inc](https://meterwise.app/md/southern-maryland-elec-coop-inc/heat-pump-vs-furnace/index.md)
- [All Maryland utilities](https://meterwise.app/md/index.md)

## Cite this page

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