# Heat pump vs. gas furnace and AC on PSEG Long Island (LIPA) rates (NY)

> **Quick answer** (updated 2026-11-10): As of November 2026, for a typical 1,800 sq ft gas-heated home on PSEG Long Island (LIPA) electricity rates in New York that needs a new furnace and AC: It depends on your quotes. A high-efficiency cold-climate 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/ny/pseg-long-island-lipa/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/ny/pseg-long-island-lipa.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 | $12,770 | $9,990–$15,540 | – | $1,220 | $31,000 |
| Heat pump (replaces both) | $12,770 | $8,880–$16,650 | – | $1,390 | $33,600 |
| High-efficiency cold-climate heat pump | $16,650 | $12,210–$22,200 | – | $1,100 | $33,100 |

## Inputs

- Electricity: 180/183/186 (Residential Service) tariff for PSEG Long Island (LIPA), effective 2026-01-01, from the U.S. Utility Rate Database, applied tier by tier to the extra kWh. Typical-bill price 29.3¢/kWh, +3% vs. the New York average of 28.5¢/kWh.
- Weather: Mineola, 4,561 heating and 1,124 cooling degree days a year (NOAA 1991-2020 normals).
- Gas: $1.65/therm (New York winter average, EIA); propane $3.74/gallon; heating oil $6.35/gallon.
- Homes in this utility's New York area heat with gas 53%, heating oil 35%, electricity 8%, propane 3%, other 2% (U.S. Census Bureau ACS 2019-2023).
- Installed prices: published study ranges, scaled for home size and New York HVAC installer wages (BLS).
- Rebates: not yet checked in New York, so not included.

## Common questions

**Is a heat pump worth it for PSEG Long Island (LIPA) customers?**
As of November 2026, for a typical 1,800 sq ft gas-heated home on PSEG Long Island (LIPA) electricity rates in New York that needs a new furnace and AC: It depends on your quotes. A high-efficiency cold-climate 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 PSEG Long Island (LIPA)'s rates?**
About $1,100 a year for heating and cooling with the High-efficiency cold-climate heat pump option, against $1,220 for New gas furnace + new AC.

**What electricity price does this use?**
Electricity: 180/183/186 (Residential Service) tariff for PSEG Long Island (LIPA), effective 2026-01-01, 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 New York utilities

- [Central Hudson Gas & Electric](https://meterwise.app/ny/central-hudson-gas-and-electric/heat-pump-vs-furnace/index.md)
- [Con Edison](https://meterwise.app/ny/con-edison/heat-pump-vs-furnace/index.md)
- [NYSEG (New York State Electric & Gas)](https://meterwise.app/ny/nyseg-new-york-state-electric-and-gas/heat-pump-vs-furnace/index.md)
- [National Grid (Niagara Mohawk)](https://meterwise.app/ny/national-grid-niagara-mohawk/heat-pump-vs-furnace/index.md)
- [Orange & Rockland Utils Inc](https://meterwise.app/ny/orange-and-rockland-utils-inc/heat-pump-vs-furnace/index.md)
- [Rochester Gas & Electric Corp](https://meterwise.app/ny/rochester-gas-and-electric-corp/heat-pump-vs-furnace/index.md)
- [All New York utilities](https://meterwise.app/ny/index.md)

## Cite this page

MeterWise, "Heat pump vs. gas furnace and AC on PSEG Long Island (LIPA) rates (NY)", updated 2026-11-10, https://meterwise.app/ny/pseg-long-island-lipa/heat-pump-vs-furnace/. Data licensed CC BY 4.0.