This question doesn’t come up often but when it does, I’m happy to answer! If you’re thinking about switching to a heat pump, you might be wondering: How much will a heat pump increase my electric bill? It’s a fair question. After all, adding a new appliance—especially one that heats and cools your entire home—sounds like it would drive up your energy costs.
But here’s the kicker: a heat pump won’t increase your electric bill. It will likely slash it.
That’s right! If you’re switching from traditional electric resistance heating (like baseboard heaters or an old electric furnace) or an oil or propane heating system, a heat pump could cut your heating costs 30-60%! And even if you’re coming from natural gas, a heat pump can still be a cost-effective and environmentally friendly choice.
So, let’s break it down and look at what you can actually expect when it comes to your energy bill.
Why a Heat Pump Uses Less Energy Than Traditional Heating Systems
The secret to a heat pump’s efficiency lies in how it transfers heat energy instead of generating it. Unlike electric furnaces or baseboard heaters that burn through electricity to create heat, a heat pump simply transfers heat energy from one place to another via the refrigerant line—even in cold weather.
Because it uses this method, a heat pump can deliver three to four times more heating energy than the electricity it consumes. That’s why it’s one of the most energy-efficient ways to heat and cool your home.
And in the mild Pacific Northwest climate? Heat pumps work exceptionally well, keeping homes cozy in winter and cool in summer with minimal energy use.
How Much Will a Heat Pump Cost to Run?
While every home is different, let’s look at some real-world numbers to estimate how a heat pump might impact (or rather, reduce) your electric bill.
Scenario 1: Switching from Electric Resistance Heat
If you’re currently using electric baseboard heaters or an electric furnace, you’re probably paying two to three times more than you need to for heating.
| Heating System | Annual Heating Cost (based on a 1,500 sq. ft. home) |
| Electric Furnace | $1,800 – $2,500 |
| Baseboard Heaters | $1,500 – $2,200 |
| Ductless Heat Pump | $700 – $1,200 |
Switching to a heat pump could cut your heating costs by more than half.
(Source: Shrink That Footprint)
Scenario 2: Switching from Oil or Propane Heat
If you heat your home with oil or propane, you already know how expensive these fuels can be. With fluctuating prices and delivery fees, heating a home this way can easily cost thousands per year.
| Heating System | Annual Heating Cost |
| Oil Furnace | $2,000 – $3,500 |
| Propane Furnace | $1,800 – $3,000 |
| Ductless Heat Pump | $700 – $1,200 |
In this case, a heat pump isn’t just saving you money—it’s practically a financial rescue mission!
(Source: Shrink That Footprint)
Scenario 3: Switching from Natural Gas
Natural gas is often considered a cost-effective heating option, and in some cases, it is. However, a heat pump may still be the better long-term choice, especially if you’re interested in lowering your carbon footprint or avoiding fluctuations in gas prices.
| Heating System | Annual Heating Cost |
| Gas Furnace | $600 – $1,200 |
| Ductless Heat Pump | $700 – $1,200 |
For homes with gas heating, some of our customers report up to 47% savings and, it does have some key advantages, including:
✔ Cooling capability (unlike a gas furnace)
✔ No combustion = better indoor air quality
✔ Energy independence—avoid rising gas prices
(Source: Remodeling Calculator)
What About the Cooling Cost?
One of the biggest perks of a heat pump is that it provides both heating and cooling. If you currently rely on window AC units or a central air conditioner in the summer, you’ll see savings here too.
A heat pump uses far less electricity than traditional air conditioning, so while you might see a slight summer increase if you weren’t using AC before, it will be far more efficient than a standard air conditioner.
What Factors Affect Your Heat Pump’s Energy Use?
While heat pumps are ultra-efficient, a few factors can influence their energy consumption:
- Your home’s insulation: A well-insulated home retains heat better, meaning your heat pump won’t have to work as hard.
- The size of the heat pump: Choosing the right-sized unit for your space is crucial for maximum efficiency.
- Temperature settings: Keeping your thermostat at a reasonable level (like 68°F in winter and 75°F in summer) helps keep costs low.
So, Will a Heat Pump Increase Your Electric Bill?
Technically, yes—because you’ll be using electricity for heating instead of paying for oil, propane, or gas. But in almost every case, your total energy costs will drop significantly!
✔ If you’re switching from electric resistance heat, your bill will likely decrease by 50% or more.
✔ If you’re switching from oil or propane, you could save hundreds to thousands per year.
✔ If you’re switching from natural gas, the savings will be smaller but you’ll gain cooling, better air quality, and energy independence.
And don’t forget—there are often rebates and incentives available for heat pumps, making the switch even more affordable!
Take the Next Step Toward Lower Energy Bills
If you’re ready to stop overpaying for heating and cooling, a ductless heat pump is one of the smartest investments you can make.
Not sure where to start? We’d love to help! At Alpine Ductless, we specialize in helping Pacific Northwest homeowners find the perfect heat pump for their needs. Contact us today for a free estimate, and let’s start saving you money! 🚀