# Heat pump vs. propane furnace and AC on Rosebud Electric Coop Inc rates (SD)

> **Quick answer** (updated 2026-11-10): As of November 2026, for a typical 1,800 sq ft propane-heated home on Rosebud Electric Coop Inc electricity rates in South Dakota that needs a new furnace and AC: A heat pump comes out ahead here even with a high quote: about $11,900 less than a new furnace and AC over 15 years at typical prices, and $800 a year less to run.

- Verdict: **heat pump ahead at any quote**
- Heat pump yearly running cost vs. a new propane furnace and AC: $800 less
- Break-even quote gap: the heat pump wins over 15 years if its quote is no more than $11,900 above the like-for-like quote
- Interactive calculator (change size, insulation, fuel, prices, ZIP): https://meterwise.app/sd/rosebud-electric-coop-inc/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/sd/rosebud-electric-coop-inc.json

## Typical home: costs by option

1,800 sq ft, average insulation, heating with propane, furnace and AC both need replacing.

| Option | Installed (typical) | Installed range | Rebates | Energy per year | 15-year total |
|---|---|---|---|---|---|
| New propane furnace + new AC | $11,530 | $9,030–$14,040 | – | $1,560 | $34,900 |
| Heat pump (replaces both) | $11,530 | $8,020–$15,050 | – | $760 | $22,900 |
| High-efficiency cold-climate heat pump | $15,050 | $11,030–$20,060 | – | $530 | $23,000 |

## Inputs

- Electricity: Rosebud Electric Coop Inc's average residential price in SD (EIA), $0.106/kWh; the winter price of extra kWh is estimated at $0.081/kWh. Enter your own rate for a closer answer. Typical-bill price 10.6¢/kWh, -26% vs. the South Dakota average of 14.3¢/kWh.
- Weather: Bonesteel, 7,112 heating and 812 cooling degree days a year (NOAA 1991-2020 normals).
- Gas: $0.94/therm (South Dakota winter average, EIA); propane $1.88/gallon; heating oil $5.97/gallon.
- Homes in this utility's South Dakota area heat with propane 43%, electricity 42%, other 6%, heating oil 5%, gas 4% (U.S. Census Bureau ACS 2019-2023).
- Installed prices: published study ranges, scaled for home size and South Dakota HVAC installer wages (BLS).
- Rebates: not yet checked in South Dakota, so not included.

## Common questions

**Is a heat pump worth it for Rosebud Electric Coop Inc customers?**
As of November 2026, for a typical 1,800 sq ft propane-heated home on Rosebud Electric Coop Inc electricity rates in South Dakota that needs a new furnace and AC: A heat pump comes out ahead here even with a high quote: about $11,900 less than a new furnace and AC over 15 years at typical prices, and $800 a year less to run.

**How much does a heat pump cost to run on Rosebud Electric Coop Inc's rates?**
About $760 a year for heating and cooling with the Heat pump (replaces both) option, against $1,560 for New propane furnace + new AC.

**What electricity price does this use?**
Electricity: Rosebud Electric Coop Inc's average residential price in SD (EIA), $0.106/kWh; the winter price of extra kWh is estimated at $0.081/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 South Dakota utilities

- [Black Hills Electric Coop, Inc](https://meterwise.app/sd/black-hills-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [Central Electric Coop, Inc](https://meterwise.app/sd/central-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [Dakota Energy Coop Inc](https://meterwise.app/sd/dakota-energy-coop-inc/heat-pump-vs-furnace/index.md)
- [Montana-Dakota Utilities Co](https://meterwise.app/sd/montana-dakota-utilities-co/heat-pump-vs-furnace/index.md)
- [Xcel Energy (Northern States Power Minnesota)](https://meterwise.app/sd/xcel-energy-northern-states-power-minnesota/heat-pump-vs-furnace/index.md)
- [Otter Tail Power](https://meterwise.app/sd/otter-tail-power/heat-pump-vs-furnace/index.md)
- [Sioux Valley SW Elec Coop](https://meterwise.app/sd/sioux-valley-sw-elec-coop/heat-pump-vs-furnace/index.md)
- [Southeastern Electric Coop Inc](https://meterwise.app/sd/southeastern-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [Black Hills Power, Inc.](https://meterwise.app/sd/black-hills-power-inc/heat-pump-vs-furnace/index.md)
- [West River Electric Assn Inc](https://meterwise.app/sd/west-river-electric-assn-inc/heat-pump-vs-furnace/index.md)
- [All South Dakota utilities](https://meterwise.app/sd/index.md)

## Cite this page

MeterWise, "Heat pump vs. propane furnace and AC on Rosebud Electric Coop Inc rates (SD)", updated 2026-11-10, https://meterwise.app/sd/rosebud-electric-coop-inc/heat-pump-vs-furnace/. Data licensed CC BY 4.0.