Heat pump vs Furnace in Dane County, Wisconsin
When a heat pump makes sense
A heat pump makes sense if you want air conditioning and heat from one system and you want off gas. Get a cold-climate model, since a standard heat pump loses heating power once temperatures drop toward 14°F, and that is a normal winter night here. Expect to pay more to heat your home with electricity than a neighbor pays with gas.
When a furnace makes sense
A furnace is the right call for most homes here, where winter nights average 14°F from December through February and heat is needed about eight months of the year. Natural gas costs at least 45% less than electricity for heating at Wisconsin prices, and a furnace holds its output no matter how cold it gets outside. If your home already has a gas line, as most homes here do, a furnace is the simpler and cheaper way to stay warm.
When a heat pump makes sense
A heat pump makes sense if you want air conditioning and heat from one system and you want off gas. Get a cold-climate model, since a standard heat pump loses heating power once temperatures drop toward 14°F, and that is a normal winter night here. Expect to pay more to heat your home with electricity than a neighbor pays with gas.
When a furnace makes sense
A furnace is the right call for most homes here, where winter nights average 14°F from December through February and heat is needed about eight months of the year. Natural gas costs at least 45% less than electricity for heating at Wisconsin prices, and a furnace holds its output no matter how cold it gets outside. If your home already has a gas line, as most homes here do, a furnace is the simpler and cheaper way to stay warm.
Heat pump
- Runs on
- Electricity
- What it does
- Heats and cools
- Tax credit
- No federal tax credit since the end of 2025
Sources: U.S. Department of Energy · Internal Revenue Code
Furnace
- Runs on
- Natural gas
- What it does
- Heats only
- Tax credit
- No federal tax credit since the end of 2025
Sources: U.S. Department of Energy · Internal Revenue Code
Furnace wins in Dane County.
Nights here average 14°F all winter, and gas heat costs at least 45% less than a heat pump at Wisconsin prices.
If your home also needs cooling in summer, a cold-climate heat pump covers both jobs with one system, where a furnace only heats.
Find a contractor| Compared on | Heat pump | Furnace |
|---|---|---|
| Cost to run here | Costs more to run | At least 45% less to run |
| What it does | Heats and cools | Heats only |
| Homes in the Great Lakes states that heat with one | 3.4% | 78.8% |
| Handles a 14°F night | Standard models lose heating power in the cold; cold-climate models are built for it | Yes |
Sources: U.S. Energy Information Administration, U.S. Department of Energy, NOAA
When a heat pump makes sense
A heat pump makes sense if you want air conditioning and heat from one system and you want off gas. Get a cold-climate model, since a standard heat pump loses heating power once temperatures drop toward 14°F, and that is a normal winter night here. Expect to pay more to heat your home with electricity than a neighbor pays with gas.
When a furnace makes sense
A furnace is the right call for most homes here, where winter nights average 14°F from December through February and heat is needed about eight months of the year. Natural gas costs at least 45% less than electricity for heating at Wisconsin prices, and a furnace holds its output no matter how cold it gets outside. If your home already has a gas line, as most homes here do, a furnace is the simpler and cheaper way to stay warm.
A Dane County contractor will price both against your own house, your ductwork and your panel.
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