# Heat pump vs. gas furnace and AC on PSE (Puget Sound Energy) rates (WA)

> **Quick answer** (updated 2026-11-10): As of November 2026, for a typical 1,800 sq ft gas-heated home on PSE (Puget Sound Energy) electricity rates in Washington that needs a new furnace and AC: It depends on your quotes. A heat pump saves about $300 a year to run, so it comes out ahead over 15 years if its quote is no more than $4,500 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: $300 less
- Break-even quote gap: the heat pump wins over 15 years if its quote is no more than $4,500 above the like-for-like quote
- Interactive calculator (change size, insulation, fuel, prices, ZIP): https://meterwise.app/wa/pse-puget-sound-energy/heat-pump-vs-furnace/
- Machine-readable data: https://meterwise.app/data/v1/utilities/wa/pse-puget-sound-energy.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 | $12,880 | $10,080–$15,680 | – | $790 | $24,700 |
| Heat pump (replaces both) | $12,880 | $8,960–$16,800 | – | $490 | $20,200 |
| High-efficiency cold-climate heat pump | $16,800 | $12,320–$22,400 | – | $400 | $22,900 |

## Inputs

- Electricity: PSE (Puget Sound Energy)'s average residential price in WA (EIA), $0.146/kWh; the winter price of extra kWh is estimated at $0.117/kWh. Enter your own rate for a closer answer. Typical-bill price 14.6¢/kWh, +3% vs. the Washington average of 14.2¢/kWh.
- Weather: Seattle Sand Pt Wfo, 4,483 heating and 211 cooling degree days a year (NOAA 1991-2020 normals).
- Gas: $1.61/therm (Washington winter average, EIA); propane $2.69/gallon; heating oil $6.15/gallon.
- Homes in this utility's Washington area heat with electricity 54%, gas 37%, propane 4%, other 4%, heating oil 2% (U.S. Census Bureau ACS 2019-2023).
- Installed prices: published study ranges, scaled for home size and Washington HVAC installer wages (BLS).
- Rebates: not yet checked in Washington, so not included.

## Common questions

**Is a heat pump worth it for PSE (Puget Sound Energy) customers?**
As of November 2026, for a typical 1,800 sq ft gas-heated home on PSE (Puget Sound Energy) electricity rates in Washington that needs a new furnace and AC: It depends on your quotes. A heat pump saves about $300 a year to run, so it comes out ahead over 15 years if its quote is no more than $4,500 above the quote for a new furnace and AC.

**How much does a heat pump cost to run on PSE (Puget Sound Energy)'s rates?**
About $490 a year for heating and cooling with the Heat pump (replaces both) option, against $790 for New gas furnace + new AC.

**What electricity price does this use?**
Electricity: PSE (Puget Sound Energy)'s average residential price in WA (EIA), $0.146/kWh; the winter price of extra kWh is estimated at $0.117/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 Washington utilities

- [PUD No 1 of Benton County](https://meterwise.app/wa/pud-no-1-of-benton-county/heat-pump-vs-furnace/index.md)
- [Benton Rural Electric Assn](https://meterwise.app/wa/benton-rural-electric-assn/heat-pump-vs-furnace/index.md)
- [Big Bend Electric Coop, Inc](https://meterwise.app/wa/big-bend-electric-coop-inc/heat-pump-vs-furnace/index.md)
- [PUD No 1 of Chelan County](https://meterwise.app/wa/pud-no-1-of-chelan-county/heat-pump-vs-furnace/index.md)
- [PUD No 1 of Clallam County](https://meterwise.app/wa/pud-no-1-of-clallam-county/heat-pump-vs-furnace/index.md)
- [PUD No 1 of Clark County](https://meterwise.app/wa/pud-no-1-of-clark-county/heat-pump-vs-furnace/index.md)
- [Columbia Rural Elec Assn, Inc](https://meterwise.app/wa/columbia-rural-elec-assn-inc/heat-pump-vs-furnace/index.md)
- [PUD No 1 of Cowlitz County](https://meterwise.app/wa/pud-no-1-of-cowlitz-county/heat-pump-vs-furnace/index.md)
- [PUD No 1 of Douglas County](https://meterwise.app/wa/pud-no-1-of-douglas-county/heat-pump-vs-furnace/index.md)
- [PUD No 1 of Franklin County](https://meterwise.app/wa/pud-no-1-of-franklin-county/heat-pump-vs-furnace/index.md)
- [PUD No 1 of Grays Harbor County](https://meterwise.app/wa/pud-no-1-of-grays-harbor-county/heat-pump-vs-furnace/index.md)
- [Inland Power & Light Company](https://meterwise.app/wa/inland-power-and-light-company/heat-pump-vs-furnace/index.md)
- [All Washington utilities](https://meterwise.app/wa/index.md)

## Cite this page

MeterWise, "Heat pump vs. gas furnace and AC on PSE (Puget Sound Energy) rates (WA)", updated 2026-11-10, https://meterwise.app/wa/pse-puget-sound-energy/heat-pump-vs-furnace/. Data licensed CC BY 4.0.