# Heat pump vs. gas furnace and AC on PECO rates (PA)

> **Quick answer** (updated 2026-11-10): As of November 2026, for a typical 1,800 sq ft gas-heated home on PECO electricity rates in Pennsylvania that needs a new furnace and AC: It depends on your quotes. A heat pump saves about $180 a year to run, so it comes out ahead over 15 years if its quote is no more than $2,700 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: $180 less
- Break-even quote gap: the heat pump wins over 15 years if its quote is no more than $2,700 above the like-for-like quote
- Interactive calculator (change size, insulation, fuel, prices, ZIP): https://meterwise.app/pa/peco/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/pa/peco.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 | $11,630 | $9,100–$14,150 | – | $920 | $25,500 |
| Heat pump (replaces both) | $11,630 | $8,090–$15,170 | – | $740 | $22,700 |
| High-efficiency cold-climate heat pump | $15,170 | $11,120–$20,220 | – | $580 | $23,900 |

## Inputs

- Electricity: PECO's average residential price in PA (EIA), $0.162/kWh; the winter price of extra kWh is estimated at $0.132/kWh. Enter your own rate for a closer answer. Typical-bill price 16.2¢/kWh, -23% vs. the Pennsylvania average of 20.9¢/kWh.
- Weather: Phila Franklin Inst, 4,212 heating and 1,603 cooling degree days a year (NOAA 1991-2020 normals).
- Gas: $1.44/therm (Pennsylvania winter average, EIA); propane $3.19/gallon; heating oil $5.98/gallon.
- Homes in this utility's Pennsylvania area heat with gas 56%, electricity 26%, heating oil 12%, propane 4%, other 2% (U.S. Census Bureau ACS 2019-2023).
- Installed prices: published study ranges, scaled for home size and Pennsylvania HVAC installer wages (BLS).
- Rebates: not yet checked in Pennsylvania, so not included.

## Common questions

**Is a heat pump worth it for PECO customers?**
As of November 2026, for a typical 1,800 sq ft gas-heated home on PECO electricity rates in Pennsylvania that needs a new furnace and AC: It depends on your quotes. A heat pump saves about $180 a year to run, so it comes out ahead over 15 years if its quote is no more than $2,700 above the quote for a new furnace and AC.

**How much does a heat pump cost to run on PECO's rates?**
About $740 a year for heating and cooling with the Heat pump (replaces both) option, against $920 for New gas furnace + new AC.

**What electricity price does this use?**
Electricity: PECO's average residential price in PA (EIA), $0.162/kWh; the winter price of extra kWh is estimated at $0.132/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 Pennsylvania utilities

- [Duquesne Light Co](https://meterwise.app/pa/duquesne-light-co/heat-pump-vs-furnace/index.md)
- [PPL Electric Utilities](https://meterwise.app/pa/ppl-electric-utilities/heat-pump-vs-furnace/index.md)
- [UGI Utilities, Inc](https://meterwise.app/pa/ugi-utilities-inc/heat-pump-vs-furnace/index.md)
- [Somerset Rural Elec Coop, Inc](https://meterwise.app/pa/somerset-rural-elec-coop-inc/heat-pump-vs-furnace/index.md)
- [Adams Electric Cooperative Inc](https://meterwise.app/pa/adams-electric-cooperative-inc/heat-pump-vs-furnace/index.md)
- [Bedford Rural Elec Coop, Inc](https://meterwise.app/pa/bedford-rural-elec-coop-inc/heat-pump-vs-furnace/index.md)
- [Valley Rural Electric Coop Inc](https://meterwise.app/pa/valley-rural-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [Central Electric Coop, Inc](https://meterwise.app/pa/central-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [Claverack Rural Elec Coop Inc](https://meterwise.app/pa/claverack-rural-elec-coop-inc/heat-pump-vs-furnace/index.md)
- [Tri-County Rural Elec Coop Inc (PA)](https://meterwise.app/pa/tri-county-rural-elec-coop-inc-pa/heat-pump-vs-furnace/index.md)
- [REA Energy Coop Inc](https://meterwise.app/pa/rea-energy-coop-inc/heat-pump-vs-furnace/index.md)
- [Northwestern Rural E C A, Inc](https://meterwise.app/pa/northwestern-rural-e-c-a-inc/heat-pump-vs-furnace/index.md)
- [All Pennsylvania utilities](https://meterwise.app/pa/index.md)

## Cite this page

MeterWise, "Heat pump vs. gas furnace and AC on PECO rates (PA)", updated 2026-11-10, https://meterwise.app/pa/peco/heat-pump-vs-furnace/. Data licensed CC BY 4.0.