# Heat pump vs. gas furnace and AC on City of Lansing rates (MI)

> **Quick answer** (updated 2026-11-10): As of November 2026, for a typical 1,800 sq ft gas-heated home on City of Lansing electricity rates in Michigan that needs a new furnace and AC: It depends on your quotes. A high-efficiency cold-climate heat pump costs about $90 a year more to run, so it only comes out ahead if its quote is at least $1,400 below the quote for a new furnace and AC.

- Verdict: **depends on quotes**
- Heat pump yearly running cost vs. a new gas furnace and AC: $90 more
- Break-even quote gap: the heat pump wins over 15 years if its quote is at least $1,400 below the like-for-like quote
- Interactive calculator (change size, insulation, fuel, prices, ZIP): https://meterwise.app/mi/city-of-lansing/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/mi/city-of-lansing.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 | $11,490 | $8,990–$13,990 | – | $930 | $25,400 |
| Heat pump (replaces both) | $11,490 | $7,990–$14,990 | – | $1,390 | $32,300 |
| High-efficiency cold-climate heat pump | $14,990 | $10,990–$19,980 | – | $1,020 | $30,300 |

## Inputs

- Electricity: City of Lansing's average residential price in MI (EIA), $0.198/kWh; the winter price of extra kWh is estimated at $0.181/kWh. Enter your own rate for a closer answer. Typical-bill price 19.8¢/kWh, -7% vs. the Michigan average of 21.2¢/kWh.
- Weather: Lansing Capital City AP, 6,612 heating and 656 cooling degree days a year (NOAA 1991-2020 normals).
- Gas: $1.03/therm (Michigan winter average, EIA); propane $2.43/gallon; heating oil $5.93/gallon.
- Homes in this utility's Michigan area heat with gas 74%, electricity 21%, propane 3%, other 2% (U.S. Census Bureau ACS 2019-2023).
- Installed prices: published study ranges, scaled for home size and Michigan HVAC installer wages (BLS).
- Rebates: not yet checked in Michigan, so not included.

## Common questions

**Is a heat pump worth it for City of Lansing customers?**
As of November 2026, for a typical 1,800 sq ft gas-heated home on City of Lansing electricity rates in Michigan that needs a new furnace and AC: It depends on your quotes. A high-efficiency cold-climate heat pump costs about $90 a year more to run, so it only comes out ahead if its quote is at least $1,400 below the quote for a new furnace and AC.

**How much does a heat pump cost to run on City of Lansing's rates?**
About $1,020 a year for heating and cooling with the High-efficiency cold-climate heat pump option, against $930 for New gas furnace + new AC.

**What electricity price does this use?**
Electricity: City of Lansing's average residential price in MI (EIA), $0.198/kWh; the winter price of extra kWh is estimated at $0.181/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 Michigan utilities

- [Alger-Delta Coop Electric Assn](https://meterwise.app/mi/alger-delta-coop-electric-assn/heat-pump-vs-furnace/index.md)
- [Alpena Power Co](https://meterwise.app/mi/alpena-power-co/heat-pump-vs-furnace/index.md)
- [Cherryland Electric Coop Inc](https://meterwise.app/mi/cherryland-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [Cloverland Electric Co-op](https://meterwise.app/mi/cloverland-electric-co-op/heat-pump-vs-furnace/index.md)
- [Consumers Energy](https://meterwise.app/mi/consumers-energy/heat-pump-vs-furnace/index.md)
- [DTE Electric](https://meterwise.app/mi/dte-electric/heat-pump-vs-furnace/index.md)
- [Indiana Michigan Power (I&M)](https://meterwise.app/mi/indiana-michigan-power-i-and-m/heat-pump-vs-furnace/index.md)
- [Midwest Energy Cooperative](https://meterwise.app/mi/midwest-energy-cooperative/heat-pump-vs-furnace/index.md)
- [Xcel Energy (Northern States Power Wisconsin)](https://meterwise.app/mi/xcel-energy-northern-states-power-wisconsin/heat-pump-vs-furnace/index.md)
- [Presque Isle Elec & Gas Coop](https://meterwise.app/mi/presque-isle-elec-and-gas-coop/heat-pump-vs-furnace/index.md)
- [Tri-County Electric Coop (MI)](https://meterwise.app/mi/tri-county-electric-coop-mi/heat-pump-vs-furnace/index.md)
- [Upper Peninsula Power Company](https://meterwise.app/mi/upper-peninsula-power-company/heat-pump-vs-furnace/index.md)
- [All Michigan utilities](https://meterwise.app/mi/index.md)

## Cite this page

MeterWise, "Heat pump vs. gas furnace and AC on City of Lansing rates (MI)", updated 2026-11-10, https://meterwise.app/mi/city-of-lansing/heat-pump-vs-furnace/. Data licensed CC BY 4.0.