Choosing a home heating system is a long-term decision — these systems last 15–25 years and significantly affect annual energy costs. Heat pumps, gas furnaces, and gas boilers each have different installation costs, operating costs, and carbon footprints.

Heat Pump: Most Efficient, Highest Upfront Cost

Air-source heat pumps cost $4,000–8,000 installed (central/ducted) or $3,000–5,000 per zone for mini-splits. They heat by moving heat from outside air rather than generating it, achieving efficiencies of 200–400% (COP of 2–4). Annual heating cost for a 2,000 sq ft home in a moderate climate: $600–1,000 in electricity. Heat pumps also provide cooling in summer, eliminating the need for a separate AC system. Qualify for the federal 30% tax credit (up to $2,000) through 2032.

Gas Furnace: Lower Upfront, Higher Operating Cost

Gas furnaces cost $2,500–5,000 installed. Modern high-efficiency models achieve 95–98% AFUE. Annual heating cost for a 2,000 sq ft home: $700–1,200 depending on gas prices and climate. Gas prices are more volatile than electricity rates. Gas furnaces don't provide cooling and have a lifespan of 15–20 years. In very cold climates (below -10°F regularly), high-efficiency gas furnaces still outperform most heat pumps in heating capacity.

Gas Boiler: Hydronic Heat, Highest Comfort

Gas boilers heat water distributed through radiators or radiant floor systems, providing very even, comfortable heat. Installation cost: $4,000–8,000. Annual operating cost: similar to gas furnaces ($700–1,200/year). Boilers have the longest lifespan of any heating system (20–35 years). They don't provide cooling and are rarely installed in new construction. Best for homes with existing radiator systems where hydronic heat is preferred.

Which Should You Choose?

  • Heat pump: Best for moderate climates, new installations, anyone wanting heating + cooling in one unit, and those prioritizing efficiency and lower carbon
  • Gas furnace: Best for very cold climates where heat pump efficiency drops, homes with existing ductwork, and areas with cheap natural gas
  • Gas boiler: Best for homes with existing hydronic systems or where radiant heat comfort is a priority

Use our Heating Cost by Fuel Calculator to compare annual costs with your local energy rates.