Heat Pump vs. Natural Gas in NH: Operating Cost

There is no single answer to whether a heat pump or natural gas costs less to operate in New Hampshire. The result depends on the homeowner's actual electric rate, delivered gas price, existing equipment efficiency, heat-pump performance, and outdoor temperature.

Natural gas can be a very competitive heating fuel where service is available. A heat pump adds high-efficiency cooling and gives a homeowner another way to heat the house. A.J. LeBlanc Heating compares both sides using the rates, equipment, and comfort goals for the home.

The numbers that control the comparison

Start with information from the utility bills and equipment rather than a statewide average:

Electricity: the total price paid per kilowatt-hour, including supply and delivery.
Natural gas: the delivered price per therm, including the charges that change with usage.
Gas-equipment efficiency: the furnace or boiler's AFUE rating and its actual condition.
Heat-pump performance: the model's capacity and coefficient of performance at different outdoor temperatures.
Home heating needs: how much heat the house requires as the weather changes.

Utility rates change, and two customers can pay different supply prices during the same month. That is why a fixed example should not be treated as a permanent answer.

How natural-gas operating cost is calculated

A therm contains 100,000 BTU of fuel energy. The useful heat delivered to the home depends on the equipment efficiency. A 95 percent AFUE furnace or boiler converts more of that fuel into usable heat than older, lower-efficiency equipment.

To compare fairly, divide the delivered gas cost by the useful heat produced. The gas bill provides the price, and the equipment rating provides a reasonable starting efficiency. Equipment condition, duct losses, boiler-water temperature, and system controls can affect real performance.

How heat-pump operating cost is calculated

A heat pump moves heat rather than creating it through combustion. Its efficiency changes with the outdoor temperature and operating conditions. A model can deliver several units of heat for each unit of electricity in milder weather, with performance generally changing as the temperature falls.

The calculation uses the electric rate and the heat pump's coefficient of performance at the temperature being evaluated. Manufacturer performance tables are more useful than one generic efficiency number because models do not all behave the same way in cold weather.

Why there is no universal crossover temperature

A crossover temperature is the point where one heat source becomes less expensive to operate than the other. It changes when the electric rate, gas price, equipment efficiency, or heat-pump performance changes. Some homes may have a useful crossover point. In others, natural gas may remain less expensive through the full heating range, or the heat pump may be competitive for a larger part of the season.

Use our Heat Pump Cost Comparison Calculator with the current rates from your bills. Recheck the comparison when the utility changes its rates.

Why a gas-heated home may still benefit from a heat pump

Heating and cooling from one system. A heat pump provides air conditioning in summer and heating in cooler weather.
Fuel flexibility. A properly designed dual-fuel system can use the heat pump and gas equipment at different conditions.
Room-by-room comfort options. Ductless equipment can serve additions, bonus rooms, and areas that are difficult to condition from the main system.
Replacement timing. When an air conditioner is already due for replacement, comparing a heat pump with another cooling-only system makes sense.
No gas service at the address. Many Southern New Hampshire homes do not have natural gas available, so the practical comparison may be heat pump versus oil, propane, or electric resistance.

When dual fuel makes sense

Dual fuel combines a heat pump with a gas furnace or another compatible backup system. The controls can change heat sources based on outdoor temperature, equipment capacity, comfort settings, or an operating-cost strategy.

It is not automatically the right answer for every home. The equipment must be compatible, the controls must be set up correctly, and the system should be designed around the house rather than a generic balance point.

Current rebates and project cost

Rebate programs and eligibility rules change. We keep current information on our New Hampshire rebates page instead of hard-coding an amount into this article. A.J. LeBlanc Heating applies point-of-sale rebates when available and helps customers understand the requirements for other programs.

The full project cost also matters. Compare the equipment being replaced, the cooling value included with the heat pump, electrical work, duct changes, controls, warranties, and expected service life. Financing options are available for qualifying projects.

Get a comparison based on your home

A.J. LeBlanc Heating installs and services heat pumps, natural-gas furnaces, boilers, and dual-fuel systems. A Home Comfort Advisor can review the existing equipment, current utility rates, and the home's heating and cooling needs before presenting options.

Schedule a free written estimate or call 603-623-0412.

Frequently asked questions

Is a heat pump always cheaper than natural gas in New Hampshire?

No. Natural gas can cost less to operate in some homes. The answer depends on current utility rates, equipment efficiency, outdoor temperature, and the heat pump selected.

Should I remove a working gas furnace when adding a heat pump?

Not necessarily. The furnace may remain as part of a dual-fuel system. The right choice depends on equipment compatibility, condition, capacity, and the homeowner's goals.

What is the crossover temperature between a heat pump and natural gas?

There is no statewide crossover temperature. It must be calculated from the homeowner's rates and the performance of the specific equipment.

Why consider a heat pump when the house already has gas heat?

A heat pump also provides air conditioning, creates another heating option, and may improve comfort in areas the existing system does not serve well.

What heat-pump rebates are available?

Programs and qualification rules change. Check our rebates page or ask a Home Comfort Advisor for the current programs that apply to the proposed equipment and address.

Sources

Last reviewed: July 2026.