
Dual fuel heat pumps are an excellent investment for homeowners seeking a versatile, efficient, and environmentally friendly heating and cooling solution. They combine an electric heat pump with a gas furnace, providing greater heating and cooling flexibility and lower energy bills. The cost of a dual fuel heat pump system depends on various factors, including the size of the home, specific models, and installation complexity. The unit cost typically ranges from $2,000 to $10,000, while installation can add an additional $2,500 to $7,500, depending on whether it's a new installation or an addition to an existing system. With potential savings on energy bills and a lifespan of 20 to 25 years, dual fuel heat pumps offer a compelling option for those seeking a cost-effective and efficient heating and cooling solution.
| Characteristics | Values |
|---|---|
| Cost of the unit only | $1,500–$12,000 depending on the brand, size, and fuel source |
| Cost of installation | $4,500–$15,000 depending on the size of the home, complexity of the installation, and whether a new furnace is required |
| Energy efficiency | More efficient than traditional heating and cooling systems, reducing energy bills and carbon footprint |
| Lifespan | 20–25 years |
| Maintenance | Requires less maintenance than traditional systems |
| Safety | Can be dangerous if the heat pump and furnace are run at the same time |
| Climate | Best suited for moderately cold climates; may require a high-efficiency furnace for backup heating in colder climates |
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What You'll Learn
- Cost of the unit: $2,000 to $15,000 depending on fuel, brand, and features
- Installation costs: $5,500 to $12,000 depending on size, configuration, and complexity
- Energy costs: Dual fuel systems can save money in the long run
- Compatibility: Requires a compatible thermostat and a relatively new gas furnace
- Climate: Best for moderately cold climates, with efficient heating and cooling

Cost of the unit: $2,000 to $15,000 depending on fuel, brand, and features
The cost of a dual-fuel heat pump unit varies depending on fuel type, brand, features, and size.
Dual-fuel heat pumps are a combination of a heat pump and a gas furnace. The heat pump can be powered by electricity or propane, with the latter being a more expensive option due to its cleaner fuel. Natural gas is the most common and easily accessible fuel type, while oil is also considered reliable and affordable. The choice of fuel type influences the cost of the unit, with prices ranging from $2,000 to $8,000 for the unit only.
The brand of the dual-fuel heat pump also impacts the price, with units ranging from $1,500 to $12,000. Additionally, the size of the heat pump and furnace capacity are important factors in determining the cost. Heat pumps range from 1.5 tons to 5 tons, catering to homes ranging from 1,000 sq. ft. to 2,500 sq. ft. or more. The cost of the unit can be as low as $1,500 for smaller sizes and up to $10,000 for larger sizes.
The features included in the dual-fuel heat pump system also contribute to the overall cost. Basic models start at around $5,500, while high-end models with advanced features like variable speed operation or sophisticated controls can cost significantly more, reaching up to $15,000.
It's important to note that the installation cost is typically separate from the unit cost and can vary based on factors such as the size of the home, the complexity of the installation, and the specific models chosen. On average, the heat pump and furnace units together can cost between $2,500 and $7,500, with the total installation cost ranging from $4,500 to $12,000 or more, depending on the specifics of the project.
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Installation costs: $5,500 to $12,000 depending on size, configuration, and complexity
The cost of installing a dual-fuel heat pump depends on several factors, including the size of your home, the specific models chosen, and the complexity of the installation. The national average cost for a hybrid heat pump installation ranges from $7,500 to $12,000. However, the price can vary significantly depending on the specific circumstances and requirements of each home.
For example, if you already have a relatively new and efficient gas furnace, adding a heat pump to create a dual-fuel system could be a cost-effective option. In this case, you can expect to pay between $2,500 and $7,500 for the heat pump and furnace units. On the other hand, if you need to replace both your furnace and your air conditioner, the cost could be much higher. In this case, it is essential to consider the size of the heat pump and furnace, as well as the complexity of the installation, which can drive up the cost.
The size of the heat pump and furnace needed will depend on the cooling and heating capacity requirements of your home. If you live in a colder climate, you may need a larger heat pump and a higher-efficiency furnace to meet your winter heating needs. This can increase the cost of the units themselves, as well as the complexity of the installation. Additionally, if you require new ducts and additional insulation, this can further increase the installation cost.
It is worth noting that while the initial cost of a dual-fuel heat pump system can be high, these systems offer long-term savings. Dual-fuel heat pumps are designed to maximize efficiency by using the heat pump most of the time and only switching to the gas furnace when necessary. This reduces energy use and lowers utility bills over time. Additionally, dual-fuel heat pumps have a longer lifespan than traditional heat pumps, lasting up to 25 years compared to the average of 15 years for other systems.
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Energy costs: Dual fuel systems can save money in the long run
The energy efficiency of dual-fuel heat pumps is well-documented, and they can save money in the long run. Dual-fuel heat pumps combine a heat pump with a gas furnace, and the two systems work together to provide an efficient and versatile heating and cooling solution. The heat pump is utilised when it is warmer, and the gas furnace turns on during freezing temperatures to warm up the home. This ensures that you get an adequate amount of heat when you need it without wasting energy.
The cost-effectiveness of a dual-fuel system depends on local energy costs. If electricity is expensive in your area, a dual-fuel system could save you money, as you will burn less gas overall. A study by Sustainable Technologies found that a dual-fuel system can reduce the carbon footprint associated with natural gas heating by 30%. Similarly, Energy Saver reports that an electric heat pump can reduce your energy usage by 30% to 60% compared to using only a furnace.
The initial cost of a dual-fuel heat pump system can be high, ranging from $2,000 to $15,000 depending on the size of your home, the specific models chosen, and the complexity of the installation. However, the dual-fuel system will pay for itself over time through reduced energy bills. For example, one study found that a typical 2,100-square-foot home slashed its winter energy bills by $26 using a dual-fuel system.
Before investing in a dual-fuel heat pump, it is important to consider your local climate, current HVAC system, and energy costs. Consult with an HVAC professional to understand your options and make the best choice for your home.
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Compatibility: Requires a compatible thermostat and a relatively new gas furnace
The cost of a dual fuel heat pump system ranges from $2,000 to $15,000, including installation. The price varies depending on factors such as the size, brand, and configuration of the heat pump, as well as the size and insulation of your home.
Now, when it comes to compatibility, a dual-fuel heat pump requires a compatible thermostat and a relatively new gas furnace for optimal performance and efficiency. Let's break this down:
Compatible Thermostat
A compatible thermostat is essential for a dual-fuel heat pump system. Programmable thermostats, including "smart" thermostats, are designed to save energy and money by automatically adjusting the temperature at different times of the day. For example, the temperature can be lowered when occupants are at work or asleep, and then adjusted for comfort when they are home. These thermostats can also learn from experience, optimising the most efficient temperature changes.
Relatively New Gas Furnace
As for the gas furnace, its age and condition are crucial. A relatively new gas furnace is generally considered one that is 10-15 years old or less. Furnaces older than 15 years tend to be less efficient and may need frequent repairs or even replacement. Newer furnaces have longer lifespans due to their increased efficiency, which results in reduced wear and tear.
If your furnace displays signs of aging, such as strange noises, visible damage, or constant repair needs, it may be time for an upgrade. Additionally, if your energy bills are rising, your furnace is struggling to heat your home effectively, or you notice yellow flames accompanied by a gas odour, these are all indicators that it may be time to consider a newer, more energy-efficient model.
By combining a compatible thermostat with a relatively new and well-maintained gas furnace, you can ensure optimal performance and energy efficiency from your dual-fuel heat pump system.
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$799.99

Climate: Best for moderately cold climates, with efficient heating and cooling
Dual-fuel heat pumps are an excellent option for those seeking efficient heating and cooling in moderately cold climates. These systems combine the benefits of a heat pump and a furnace, providing energy-efficient temperature control throughout the year.
Heat pumps are highly effective in moderate to mildly cold climates, typically ranging from 30 to 40 degrees F. They can also function in colder temperatures, with some models operating efficiently down to 5 degrees F or even 13 degrees F. However, in extremely cold climates, heat pumps may struggle to maintain indoor temperatures, leading to higher energy costs.
This is where dual-fuel systems shine. When temperatures drop, the system automatically switches to the gas furnace, which is better suited for rapid heating in cold weather. The furnace takes over to provide blazing heat during frigid winters. On the other hand, the heat pump provides efficient heating and cooling during moderate temperatures, delivering warm or cold air as needed. This flexibility ensures that you always have the most suitable heating or cooling option, saving energy, time, and money.
The upfront cost of a dual-fuel heat pump system is typically higher than that of a single system, ranging from \$2,000 to \$8,000 for the unit alone. Installation costs can vary, with the national average ranging from \$7,500 to \$12,000. However, the low operating costs of dual-fuel systems can offset these initial expenses over time.
If you live in a moderately cold climate and are considering a dual-fuel heat pump, it is important to weigh the benefits against your specific needs. While dual-fuel systems offer efficient heating and cooling, they may be more suitable for regions that experience all four seasons and varying temperatures. In milder climates, a standard heat pump or a fully electric heat pump system might be a more cost-effective and eco-friendly choice.
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Frequently asked questions
A dual fuel heat pump is a type of HVAC system that uses an electric heat pump and a gas furnace to heat and cool your home efficiently and without waste.
The cost of a dual fuel heat pump system varies depending on factors such as the size of your home, the specific models chosen, and the complexity of the installation. On average, expect to pay between $2,500 and $10,000 for the heat pump and furnace units, with high-end models costing more. If you already have a gas furnace, adding a heat pump to create a dual fuel system will cost between $2,500 and $6,000.
Dual fuel heat pumps offer several advantages, including maximum efficiency, reduced energy use, lower energy bills, and a reduced carbon footprint. They also last longer than traditional heat pump designs, functioning year-round for 20 to 25 years. However, they may not be the best solution for every home, especially if you live in a warmer climate where an electric heat pump may be sufficient.











































