Why Is a Heat Pump More Efficient Than a Furnace?

If you've had a furnace for years, you might think another furnace is the automatic choice when it's time to replace or upgrade your home heating. However, heat pumps are a more energy-efficient and cost-effective HVAC system for many homes. Heat pumps can be used for heating and cooling and are now a viable option in all 50 U.S. states and in all climates.

We'll compare heat pump efficiency vs. gas furnaces and electric furnaces, as well as explain the different ways each system operates.

How Are Heat Pumps and Furnaces Different?

Heat pumps and furnaces work in fundamentally different ways. A heat pump transfers thermal energy by moving heat into or out of a space, much like a refrigerator. To heat your home, it uses a refrigerant to absorb existing heat from the outside air and then transfers that warmth indoors.

In contrast, a furnace generates heat. A gas or oil furnace creates heat by burning fuel, while an electric furnace uses a heating element that turns electricity into heat. A blower fan then circulates this generated heat through your home's ductwork.

Because a heat pump simply moves existing heat rather than creating it from scratch, it is significantly more energy-efficient than a furnace. This also makes heat pumps a cleaner heating solution with a smaller carbon footprint, as they rely less on burning fossil fuels. There are ducted and ductless heat pumps and mini-split heat pumps are excellent for zoned heating and cooling.

Why Is a Heat Pump More Efficient Than a Furnace?

Heat pumps are the most efficient HVAC option available because they move heat instead of generating it. You’ll never get more energy out of a fuel than it contains to start. But, you could move more energy than you consume if the process you’re moving it with is highly efficient. A heat pump uses a small amount of electricity, which can come from home solar panels, to move a larger amount of existing heat. 

Heat pumps heat most efficiently at warmer temperatures, but cold-climate heat pumps are proven efficient to temperatures below freezing and, with some models, to below zero.

The COP (coefficient of performance) is a ratio of the amount of heating or cooling a system provides compared to the amount of energy it uses.

An air-source heat pump typically has a COP of 2.0-4.0 as it generates two or four times the heating or cooling output for the energy it consumes. A ground-source or geothermal heat pump can have a COP of about 5. A furnace must burn fuel or use an electric element to create heat.

An electric furnace can reach a COP of 1.0 but never more. A modern gas furnace can get close to a COP of 1.0, but won’t reach it.

Can a Heat Pump Save You Money?

Heat pumps, which can both heat and cool your home, are the most efficient way to do both and can save money for most Americans. Research from the National Renewable Energy Laboratory and Lawrence Berkeley National Laboratory shows more than 90% of US homes would save money with a new heat pump.  

A two-in-one heat pump can save money on maintenance and service over its lifespan compared to having one system for cooling and a second system for heating. 

For additional savings potential, powering a heat pump with solar energy means you can cover all or most of your heating and cooling bills with free, renewable home solar power. You can learn more with the Palmetto App and get estimates specific to your property with Palmetto’s home energy advisor or solar savings calculator. 

Frequently Asked Questions

How are heat pumps and furnaces different?

Heat pumps transfer heat (in the air, ground, or water) into your home, making it warmer, or out of your home, making it cooler. A gas or electric furnace generates heat from burning a type of gas or from electricity. When considering heat pump vs. furnace efficiency, heat pumps are more efficient and, for the majority of homes and users, will save you money. 

How does energy efficiency save you money?

A heat pump transfers heat. It uses energy, generally electricity, to power a compressor and fans, not generate the heat. This makes it from 2-5 times more efficient than a furnace so you’ll use less electricity or gas.