# Heat pump vs. gas furnace and AC on Southwest Tennessee E M C rates (TN)

> **Quick answer** (updated 2026-11-10): As of November 2026, for a typical 1,800 sq ft gas-heated home on Southwest Tennessee E M C electricity rates in Tennessee that needs a new furnace and AC: It depends on your quotes. A heat pump saves about $160 a year to run, so it comes out ahead over 15 years if its quote is no more than $2,400 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: $160 less
- Break-even quote gap: the heat pump wins over 15 years if its quote is no more than $2,400 above the like-for-like quote
- Interactive calculator (change size, insulation, fuel, prices, ZIP): https://meterwise.app/tn/southwest-tennessee-e-m-c/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/tn/southwest-tennessee-e-m-c.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 | $10,980 | $8,600–$13,370 | – | $720 | $21,800 |
| Heat pump (replaces both) | $10,980 | $7,640–$14,330 | – | $560 | $19,300 |
| High-efficiency cold-climate heat pump | $14,330 | $10,510–$19,100 | – | $440 | $20,900 |

## Inputs

- Electricity: Southwest Tennessee E M C's average residential price in TN (EIA), $0.129/kWh; the winter price of extra kWh is estimated at $0.111/kWh. Enter your own rate for a closer answer. Typical-bill price 12.9¢/kWh, -6% vs. the Tennessee average of 13.7¢/kWh.
- Weather: Covington 3 Sw HCN, 3,724 heating and 1,636 cooling degree days a year (NOAA 1991-2020 normals).
- Gas: $1.24/therm (Tennessee winter average, EIA); propane $3.25/gallon; heating oil $5.97/gallon.
- Homes in this utility's Tennessee area heat with gas 49%, electricity 44%, propane 5%, other 2% (U.S. Census Bureau ACS 2019-2023).
- Installed prices: published study ranges, scaled for home size and Tennessee HVAC installer wages (BLS).
- Rebates: not yet checked in Tennessee, so not included.

## Common questions

**Is a heat pump worth it for Southwest Tennessee E M C customers?**
As of November 2026, for a typical 1,800 sq ft gas-heated home on Southwest Tennessee E M C electricity rates in Tennessee that needs a new furnace and AC: It depends on your quotes. A heat pump saves about $160 a year to run, so it comes out ahead over 15 years if its quote is no more than $2,400 above the quote for a new furnace and AC.

**How much does a heat pump cost to run on Southwest Tennessee E M C's rates?**
About $560 a year for heating and cooling with the Heat pump (replaces both) option, against $720 for New gas furnace + new AC.

**What electricity price does this use?**
Electricity: Southwest Tennessee E M C's average residential price in TN (EIA), $0.129/kWh; the winter price of extra kWh is estimated at $0.111/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 Tennessee utilities

- [Entergy Arkansas](https://meterwise.app/tn/entergy-arkansas/heat-pump-vs-furnace/index.md)
- [Bolivar Energy Authority](https://meterwise.app/tn/bolivar-energy-authority/heat-pump-vs-furnace/index.md)
- [City of Bristol](https://meterwise.app/tn/city-of-bristol/heat-pump-vs-furnace/index.md)
- [City of Clinton](https://meterwise.app/tn/city-of-clinton/heat-pump-vs-furnace/index.md)
- [City of Dickson](https://meterwise.app/tn/city-of-dickson/heat-pump-vs-furnace/index.md)
- [Duck River Elec Member Corp](https://meterwise.app/tn/duck-river-elec-member-corp/heat-pump-vs-furnace/index.md)
- [City of Elizabethton](https://meterwise.app/tn/city-of-elizabethton/heat-pump-vs-furnace/index.md)
- [City of Etowah](https://meterwise.app/tn/city-of-etowah/heat-pump-vs-furnace/index.md)
- [City of Fayetteville](https://meterwise.app/tn/city-of-fayetteville/heat-pump-vs-furnace/index.md)
- [Fort Loudoun Electric Coop](https://meterwise.app/tn/fort-loudoun-electric-coop/heat-pump-vs-furnace/index.md)
- [French Broad Elec Member Corp](https://meterwise.app/tn/french-broad-elec-member-corp/heat-pump-vs-furnace/index.md)
- [Gibson Electric Members Corp](https://meterwise.app/tn/gibson-electric-members-corp/heat-pump-vs-furnace/index.md)
- [All Tennessee utilities](https://meterwise.app/tn/index.md)

## Cite this page

MeterWise, "Heat pump vs. gas furnace and AC on Southwest Tennessee E M C rates (TN)", updated 2026-11-10, https://meterwise.app/tn/southwest-tennessee-e-m-c/heat-pump-vs-furnace/. Data licensed CC BY 4.0.