# Heat pump vs. gas furnace and AC on Salem Electric rates (OR)

> **Quick answer** (updated 2026-11-10): As of November 2026, for a typical 1,800 sq ft gas-heated home on Salem Electric electricity rates in Oregon that needs a new furnace and AC: It depends on your quotes. A heat pump saves about $360 a year to run, so it comes out ahead over 15 years if its quote is no more than $5,300 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: $360 less
- Break-even quote gap: the heat pump wins over 15 years if its quote is no more than $5,300 above the like-for-like quote
- Interactive calculator (change size, insulation, fuel, prices, ZIP): https://meterwise.app/or/salem-electric/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/or/salem-electric.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 | $11,680 | $9,140–$14,220 | – | $760 | $23,100 |
| Heat pump (replaces both) | $11,680 | $8,130–$15,240 | – | $410 | $17,800 |
| High-efficiency cold-climate heat pump | $15,240 | $11,180–$20,320 | – | $330 | $20,200 |

## Inputs

- Electricity: Salem Electric's average residential price in OR (EIA), $0.110/kWh; the winter price of extra kWh is estimated at $0.100/kWh. Enter your own rate for a closer answer. Typical-bill price 11.0¢/kWh, -29% vs. the Oregon average of 15.6¢/kWh.
- Weather: Salem AP (Mcnary Field), 4,341 heating and 401 cooling degree days a year (NOAA 1991-2020 normals).
- Gas: $1.60/therm (Oregon winter average, EIA); propane $2.69/gallon; heating oil $6.15/gallon.
- Homes in this utility's Oregon area heat with electricity 52%, gas 43%, other 3%, propane 1% (U.S. Census Bureau ACS 2019-2023).
- Installed prices: published study ranges, scaled for home size and Oregon HVAC installer wages (BLS).
- Rebates: not yet checked in Oregon, so not included.

## Common questions

**Is a heat pump worth it for Salem Electric customers?**
As of November 2026, for a typical 1,800 sq ft gas-heated home on Salem Electric electricity rates in Oregon that needs a new furnace and AC: It depends on your quotes. A heat pump saves about $360 a year to run, so it comes out ahead over 15 years if its quote is no more than $5,300 above the quote for a new furnace and AC.

**How much does a heat pump cost to run on Salem Electric's rates?**
About $410 a year for heating and cooling with the Heat pump (replaces both) option, against $760 for New gas furnace + new AC.

**What electricity price does this use?**
Electricity: Salem Electric's average residential price in OR (EIA), $0.110/kWh; the winter price of extra kWh is estimated at $0.100/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 Oregon utilities

- [Central Electric Coop Inc](https://meterwise.app/or/central-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [Central Lincoln People's Ut Dt](https://meterwise.app/or/central-lincoln-people-s-ut-dt/heat-pump-vs-furnace/index.md)
- [Coos-Curry Electric Coop, Inc](https://meterwise.app/or/coos-curry-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [Consumers Power, Inc](https://meterwise.app/or/consumers-power-inc/heat-pump-vs-furnace/index.md)
- [City of Eugene](https://meterwise.app/or/city-of-eugene/heat-pump-vs-furnace/index.md)
- [Idaho Power](https://meterwise.app/or/idaho-power/heat-pump-vs-furnace/index.md)
- [Lane Electric Coop Inc](https://meterwise.app/or/lane-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [Midstate Electric Coop, Inc](https://meterwise.app/or/midstate-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [Oregon Trail El Cons Coop, Inc](https://meterwise.app/or/oregon-trail-el-cons-coop-inc/heat-pump-vs-furnace/index.md)
- [Pacific Power (PacifiCorp)](https://meterwise.app/or/pacific-power-pacificorp/heat-pump-vs-furnace/index.md)
- [Portland General Electric Co](https://meterwise.app/or/portland-general-electric-co/heat-pump-vs-furnace/index.md)
- [Tillamook Peoples Utility Dist](https://meterwise.app/or/tillamook-peoples-utility-dist/heat-pump-vs-furnace/index.md)
- [All Oregon utilities](https://meterwise.app/or/index.md)

## Cite this page

MeterWise, "Heat pump vs. gas furnace and AC on Salem Electric rates (OR)", updated 2026-11-10, https://meterwise.app/or/salem-electric/heat-pump-vs-furnace/. Data licensed CC BY 4.0.