Heat Pump vs Furnace? Which is Right for You.

The first cool front of the season is a welcome event for everyone on the Alabama Gulf Coast. It is a refreshing break from the long, hot, and humid summer, signaling the arrival of milder temperatures and more pleasant days ahead. As the evenings grow cooler and you switch your thermostat from “cool” to “heat” for the first time in many months, it is a natural time to consider the efficiency, reliability, and cost of operating your home’s heating system.

When it comes time to replace your home comfort system, you are faced with a choice between two primary heating technologies: the traditional and powerful gas furnace, and the modern, all-in-one electric heat pump. While both are excellent at keeping a home warm, they operate on fundamentally different principles. The right choice for your home depends on a variety of factors, but none is more important than our unique and mild winter climate. The ideal heating solution for a home in Daphne is often very different from the right choice for a home in a colder, northern state.

How They Work

To understand which system is the better fit for our area, it is important to first understand the basic mechanical difference between how a furnace and a heat pump create warmth.

A gas furnace is a true heat generator. It is a dedicated heating appliance that is connected to a natural gas or propane fuel line. When your thermostat calls for heat, the furnace ignites this fuel in a controlled combustion chamber. This process creates extremely hot gases that pass through a metal component called a heat exchanger. Your system’s indoor blower fan then pushes air across the hot exterior of this exchanger, and the super-heated air is distributed throughout your home via your ductwork. A furnace is a specialist that only provides heat, so it must be paired with a separate central air conditioner for summer cooling.

Considering going with a furnace? Click to learn more.

A heat pump, on the other hand, is a heat mover. It is a remarkable, two-way air conditioner that provides both heating and cooling from a single, all-electric unit. In the summer, it functions exactly like a standard air conditioner, extracting heat from inside your home and moving it outside. In the winter, it reverses this process. Even when the air outside feels cold, it still contains a great deal of ambient heat energy. The heat pump absorbs this energy from the outdoor air, concentrates it, and then transfers it into your home to warm your living spaces.

Leaning towards a heat pump? Click to learn more.

The Efficiency Equation on the Gulf Coast

The most significant difference between these two technologies, especially for a homeowner in the Daphne area, is their energy efficiency. This is where the mild nature of our winters gives a clear and powerful advantage to the heat pump.

Because a heat pump is moving existing heat instead of creating it from scratch by burning a fuel, it is incredibly efficient. A modern, high-efficiency heat pump can deliver up to four units of heat energy for every one unit of electrical energy it consumes. This translates to an efficiency rating of 300% to 400%. This process is at its most effective and efficient when the outdoor temperatures are mild, in the 40s and 50s, which describes the vast majority of a typical winter on the Alabama Gulf Coast. For most of our heating season, a heat pump can keep your home perfectly comfortable while using a remarkably small amount of electricity, leading to significantly lower utility bills.

A modern gas furnace is also very efficient at what it does. High-efficiency models can have an AFUE (Annual Fuel Utilization Efficiency) rating of 95% or higher, meaning that 95 cents of every dollar you spend on gas is converted into usable heat. While this is an impressive number, it cannot compete with the 300%+ efficiency of a heat pump operating in its ideal temperature range. The powerful heat generation of a furnace is often “overkill” for our typical winter weather, making it a generally less energy-efficient way to produce heat in our mild climate.

The Comfort Factor

Another difference between the two systems is the subjective “feel” of the air they produce, which can be a deciding factor for some homeowners based on their personal preference.

A gas furnace, through its process of combustion, delivers air from the vents at a very high temperature, often between 120 and 140 degrees Fahrenheit. This results in a powerful and rapid blast of intensely hot air that can heat up a room very quickly. Many people who grew up with furnaces are accustomed to this feeling and find it to be a very cozy and comforting type of heat.

A heat pump, because it is gathering ambient heat from the outside air, delivers a gentler and more continuous stream of warm air that is typically closer to your body temperature, usually around 85 to 95 degrees. Because the air temperature is less intense, a heat pump will run for longer, more consistent cycles to maintain the desired temperature in your home. Some people who are new to heat pumps can initially perceive this less-intense air as “cool” or “drafty” when it is running. However, these longer run times result in a very even and consistent heat throughout the house, eliminating the temperature swings that can sometimes be felt with a furnace that cycles on and off.

Installation and Upfront Cost Considerations

The initial investment in a new system is always a major consideration. The cost comparison between a furnace and a heat pump can depend on your home’s existing infrastructure and whether you are replacing one or both parts of your HVAC system.

For a home in the Daphne area that already has a natural gas line and an existing gas furnace, simply replacing the old furnace with a new, high-efficiency model can sometimes be the most straightforward and affordable upfront option, especially if your existing air conditioner is still relatively new and does not need to be replaced.

However, if you are planning to replace both your air conditioner and your furnace at the same time, the cost of installing a complete, new heat pump system is very competitive with the cost of installing a new furnace and a new air conditioner. This is especially true when you factor in the various financial incentives that are often available. High-efficiency heat pumps frequently qualify for significant federal energy tax credits and manufacturer rebates that can dramatically lower the initial investment, making them an even more financially attractive option. For any all-electric home, a heat pump is the clear and most cost-effective choice.

A Hybrid Approach

For homeowners who want to capture the incredible efficiency of a heat pump but who also love the powerful, high-temperature heat of a gas furnace, there is a premium, “best of both worlds” solution called a dual fuel system.

A dual fuel system combines a high-efficiency electric heat pump with a reliable gas furnace, and both are controlled by a smart thermostat. This setup allows you to take advantage of the heat pump’s efficiency for the vast majority of the year. The heat pump will handle all of your summer cooling needs and will also provide your heating during the milder days of our winter. However, the thermostat can be programmed to automatically switch over to the gas furnace on those rare occasions when the temperature drops to a very low point where the furnace becomes the more effective heating source. While this system offers excellent performance, for the consistently mild winters of the Gulf Coast, a high-efficiency heat pump alone is often more than sufficient.

The Verdict for a Daphne, AL Home

While every home and every homeowner is different, the unique climate of the Alabama Gulf Coast makes the decision between a furnace and a heat pump a relatively clear one for most people.

For the vast majority of homeowners in Daphne, Spanish Fort, and the surrounding communities, a modern, high-efficiency heat pump is the smartest, most energy-efficient, and most cost-effective solution for year-round comfort. Its remarkable efficiency during our long cooling season and its ability to handle our mild winter heating needs with ease make it the ideal choice for our specific climate.

A gas furnace remains a good option for homeowners who already have gas service and a newer air conditioner they are not planning to replace, or for those who simply have a strong personal preference for the intense blast of heat that only a furnace can provide.

Regardless of the option you choose, maintaining your HVAC system is extremely important. Check out our maintenance plan here.


Choosing a new heating and cooling system is a major decision that will affect your family’s comfort and your finances for many years to come. The unique, mild winter climate of the Alabama Gulf Coast makes it a perfect environment to take advantage of the superior efficiency of a modern heat pump. An expert assessment of your home and a clear understanding of your options are the keys to making a confident choice.

If you are considering a new HVAC system, we encourage you to contact the local experts who understand our climate inside and out. The team at 5 Starr Heating and Air can provide a professional consultation to analyze your home and help you choose the perfect system for year-round, efficient comfort in your Daphne home.