# Heat pump vs. oil furnace and AC on Vermont Electric Cooperative, Inc rates (VT)

> **Quick answer** (updated 2026-11-10): As of November 2026, for a typical 1,800 sq ft heating oil-heated home on Vermont Electric Cooperative, Inc electricity rates in Vermont that needs a new furnace and AC: A high-efficiency cold-climate heat pump comes out ahead here even with a high quote: about $38,500 less than a new furnace and AC over 15 years at typical prices, and $2,670 a year less to run.

- Verdict: **heat pump ahead at any quote**
- Heat pump yearly running cost vs. a new oil furnace and AC: $2,670 less
- Break-even quote gap: the heat pump wins over 15 years if its quote is no more than $40,000 above the like-for-like quote
- Interactive calculator (change size, insulation, fuel, prices, ZIP): https://meterwise.app/vt/vermont-electric-cooperative-inc/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/vt/vermont-electric-cooperative-inc.json

## Typical home: costs by option

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

| Option | Installed (typical) | Installed range | Rebates | Energy per year | 15-year total |
|---|---|---|---|---|---|
| New oil furnace + new AC | $13,620 | $9,280–$16,750 | – | $4,270 | $77,700 |
| Heat pump (replaces both) | $11,600 | $8,070–$15,140 | – | $2,490 | $49,000 |
| High-efficiency cold-climate heat pump | $15,140 | $11,100–$20,180 | – | $1,610 | $39,200 |

## Inputs

- Electricity: Vermont Electric Cooperative, Inc's average residential price in VT (EIA), $0.233/kWh; the winter price of extra kWh is estimated at $0.223/kWh. Enter your own rate for a closer answer. Typical-bill price 23.3¢/kWh, -3% vs. the Vermont average of 24.0¢/kWh.
- Weather: Eden 2 S, 8,552 heating and 243 cooling degree days a year (NOAA 1991-2020 normals).
- Gas: $1.62/therm (Vermont winter average, EIA); propane $3.81/gallon; heating oil $6.06/gallon.
- Homes in this utility's Vermont area heat with heating oil 31%, gas 29%, propane 19%, other 14%, electricity 8% (U.S. Census Bureau ACS 2019-2023).
- Installed prices: published study ranges, scaled for home size and Vermont HVAC installer wages (BLS).
- Rebates: not yet checked in Vermont, so not included.

## Common questions

**Is a heat pump worth it for Vermont Electric Cooperative, Inc customers?**
As of November 2026, for a typical 1,800 sq ft heating oil-heated home on Vermont Electric Cooperative, Inc electricity rates in Vermont that needs a new furnace and AC: A high-efficiency cold-climate heat pump comes out ahead here even with a high quote: about $38,500 less than a new furnace and AC over 15 years at typical prices, and $2,670 a year less to run.

**How much does a heat pump cost to run on Vermont Electric Cooperative, Inc's rates?**
About $1,610 a year for heating and cooling with the High-efficiency cold-climate heat pump option, against $4,270 for New oil furnace + new AC.

**What electricity price does this use?**
Electricity: Vermont Electric Cooperative, Inc's average residential price in VT (EIA), $0.233/kWh; the winter price of extra kWh is estimated at $0.223/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 Vermont utilities

- [Green Mountain Power](https://meterwise.app/vt/green-mountain-power/heat-pump-vs-furnace/index.md)
- [All Vermont utilities](https://meterwise.app/vt/index.md)

## Cite this page

MeterWise, "Heat pump vs. oil furnace and AC on Vermont Electric Cooperative, Inc rates (VT)", updated 2026-11-10, https://meterwise.app/vt/vermont-electric-cooperative-inc/heat-pump-vs-furnace/. Data licensed CC BY 4.0.