# Heat pump vs. electric furnace and AC on Southwest Mississippi E P A rates (MS)

> **Quick answer** (updated 2026-11-10): As of November 2026, for a typical 1,800 sq ft electrically heated home on Southwest Mississippi E P A electricity rates in Mississippi that needs a new furnace and AC: A heat pump comes out ahead here even with a high quote: about $8,100 less than a new furnace and AC over 15 years at typical prices, and $600 a year less to run.

- Verdict: **heat pump ahead at any quote**
- Heat pump yearly running cost vs. a new electric furnace and AC: $600 less
- Break-even quote gap: the heat pump wins over 15 years if its quote is no more than $9,000 above the like-for-like quote
- Interactive calculator (change size, insulation, fuel, prices, ZIP): https://meterwise.app/ms/southwest-mississippi-e-p-a/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/ms/southwest-mississippi-e-p-a.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 | $9,440 | $6,830–$12,230 | – | $1,140 | $26,600 |
| Heat pump (replaces both) | $10,340 | $7,190–$13,490 | – | $550 | $18,500 |
| High-efficiency cold-climate heat pump | $13,490 | $9,890–$17,980 | – | $420 | $19,700 |

## Inputs

- Electricity: Southwest Mississippi E P A's average residential price in MS (EIA), $0.150/kWh; the winter price of extra kWh is estimated at $0.129/kWh. Enter your own rate for a closer answer. Typical-bill price 15.0¢/kWh, +0% vs. the Mississippi average of 15.0¢/kWh.
- Weather: Meadville, 2,094 heating and 2,344 cooling degree days a year (NOAA 1991-2020 normals).
- Gas: $1.51/therm (Mississippi winter average, EIA); propane $3.11/gallon; heating oil $6.15/gallon.
- Homes in this utility's Mississippi area heat with electricity 62%, gas 22%, propane 14%, other 2% (U.S. Census Bureau ACS 2019-2023).
- Installed prices: published study ranges, scaled for home size and Mississippi HVAC installer wages (BLS).
- Rebates: not yet checked in Mississippi, so not included.

## Common questions

**Is a heat pump worth it for Southwest Mississippi E P A customers?**
As of November 2026, for a typical 1,800 sq ft electrically heated home on Southwest Mississippi E P A electricity rates in Mississippi that needs a new furnace and AC: A heat pump comes out ahead here even with a high quote: about $8,100 less than a new furnace and AC over 15 years at typical prices, and $600 a year less to run.

**How much does a heat pump cost to run on Southwest Mississippi E P A's rates?**
About $550 a year for heating and cooling with the Heat pump (replaces both) option, against $1,140 for New electric furnace + new AC.

**What electricity price does this use?**
Electricity: Southwest Mississippi E P A's average residential price in MS (EIA), $0.150/kWh; the winter price of extra kWh is estimated at $0.129/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 Mississippi utilities

- [Central Electric Power Assn](https://meterwise.app/ms/central-electric-power-assn/heat-pump-vs-furnace/index.md)
- [Coast Electric Power Assn](https://meterwise.app/ms/coast-electric-power-assn/heat-pump-vs-furnace/index.md)
- [Dixie Electric Power Assn](https://meterwise.app/ms/dixie-electric-power-assn/heat-pump-vs-furnace/index.md)
- [East Mississippi Elec Pwr Assn](https://meterwise.app/ms/east-mississippi-elec-pwr-assn/heat-pump-vs-furnace/index.md)
- [4-County Electric Power Assn](https://meterwise.app/ms/4-county-electric-power-assn/heat-pump-vs-furnace/index.md)
- [City of Holly Springs](https://meterwise.app/ms/city-of-holly-springs/heat-pump-vs-furnace/index.md)
- [Magnolia Electric Power Assn](https://meterwise.app/ms/magnolia-electric-power-assn/heat-pump-vs-furnace/index.md)
- [Entergy Mississippi](https://meterwise.app/ms/entergy-mississippi/heat-pump-vs-furnace/index.md)
- [Mississippi Power Co](https://meterwise.app/ms/mississippi-power-co/heat-pump-vs-furnace/index.md)
- [Pontotoc Electric Power Assn](https://meterwise.app/ms/pontotoc-electric-power-assn/heat-pump-vs-furnace/index.md)
- [Prentiss County Elec Pwr Assn](https://meterwise.app/ms/prentiss-county-elec-pwr-assn/heat-pump-vs-furnace/index.md)
- [Singing River Elec Cooperative](https://meterwise.app/ms/singing-river-elec-cooperative/heat-pump-vs-furnace/index.md)
- [All Mississippi utilities](https://meterwise.app/ms/index.md)

## Cite this page

MeterWise, "Heat pump vs. electric furnace and AC on Southwest Mississippi E P A rates (MS)", updated 2026-11-10, https://meterwise.app/ms/southwest-mississippi-e-p-a/heat-pump-vs-furnace/. Data licensed CC BY 4.0.