Is a heat pump cheaper than gas in Arkansas?
South · Mixed (e.g. Mid-Atlantic, Pacific NW, lower Midwest) · EIA residential fuel prices
For a reference 2,000 sq ft home in Arkansas (assumed seasonal COP 2.8, 95% gas furnace), a heat pump costs about $514/year to run versus about $897/year for natural gas — so a heat pump is cheaper to run than a gas furnace by about $384/yr. It is cheaper than propane ($1,253/yr), cheaper than heating oil ($1,373/yr), and far cheaper than electric resistance ($1,438/yr). The cheapest option here is heat pump. These are estimates — verify with an HVAC pro.
Source: EIA Electric Power Monthly, Table 5.6.A (residential). Data as of June 2026.
Arkansas residential fuel prices
| Fuel | Residential price | Source / period |
|---|---|---|
| Electricity (residential) | 13.63¢/kWh | EIA, March 2026 |
| Natural gas (residential) | $2.368/therm | EIA, March 2026 |
| Heating oil (residential) | $4.491/gal | EIA, Gulf Coast (PADD 3) |
| Propane (residential) | $2.929/gal | EIA, Gulf Coast (PADD 3) |
Source: EIA (electricity, natural gas, heating oil & propane). Data as of June 2026.
Arkansas residential natural gas is $24.56/Mcf (about $2.368/therm), EIA March 2026. Heating oil and propane are EIA residential prices for Gulf Coast (PADD 3) (Week ending 2026-03-30) — EIA does not publish these per individual state.
Annual heating cost in Arkansas — every system compared
Reference: a 2,000 sq ft home in a mixed (e.g. mid-atlantic, pacific nw, lower midwest), roughly 36 MMBTU/year of useful heat. Energy cost only (no equipment, install or maintenance):
| Heating system | Annual energy cost | Annual use |
|---|---|---|
| Heat pump | $514/yr | 3,768 kWh |
| Natural gas furnace (95% AFUE) | $897/yr | 379 therms |
| Propane furnace (92% AFUE) | $1,253/yr | 428 gal |
| Heating oil (85% AFUE) | $1,373/yr | 306 gal |
| Electric resistance (baseboard, COP 1.0) | $1,438/yr | 10,551 kWh |
Source: EIA fuel prices + ENERGY STAR energy conversions. Data as of June 2026.
Cheapest to run in this reference case: Heat pump. Run your own home size, COP and prices.
Heat pump vs each fuel in Arkansas
| Comparison | Heat pump | Other system | Heat-pump result |
|---|---|---|---|
| vs natural gas (95% AFUE) | $514 | $897 | Saves $384/yr |
| vs propane (92% AFUE) | $514 | $1,253 | Saves $739/yr |
| vs heating oil (85% AFUE) | $514 | $1,373 | Saves $860/yr |
| vs electric resistance (COP 1.0) | $514 | $1,438 | Saves $924/yr |
How Arkansas compares with similar states
The five states with the closest electricity price to Arkansas, and how heat-pump-vs-gas savings look there:
| State | Electricity ¢/kWh | Heat-pump vs gas (ref. home) |
|---|---|---|
| Arkansas (this state) | 13.63¢ | Saves $384/yr |
| Wyoming | 13.59¢ | $677/yr more |
| Oklahoma | 13.56¢ | Saves $83/yr |
| Montana | 13.48¢ | $848/yr more |
| Missouri | 13.44¢ | Saves $69/yr |
| Iowa | 13.42¢ | $236/yr more |
Frequently asked questions
Is a heat pump cheaper to run than gas in Arkansas?
Yes, in this reference case. For a 2,000 sq ft home in Arkansas (assumed seasonal COP 2.8, 95% gas furnace), a heat pump costs about $514/year vs about $897/year for gas - a saving of roughly $384/year. Your result depends on your home, equipment and the actual winter.
What does it cost to heat a home in Arkansas?
Using EIA March 2026 prices and a 2,000 sq ft home in a mixed (e.g. mid-atlantic, pacific nw, lower midwest) (about 36 MMBTU/yr), estimated annual energy cost is about: heat pump $514, natural gas $897, propane $1,253, heating oil $1,373, electric resistance $1,438. The cheapest here is heat pump.
Is a heat pump cheaper than propane or heating oil in Arkansas?
In this reference case, vs propane a heat pump saves about $739/year, and vs heating oil it saves about $860/year. Heat pumps usually beat both delivered fuels comfortably because they deliver far more heat per unit of energy.
How does Arkansas rank for heat-pump savings?
On heat-pump savings vs a gas furnace (reference 2,000 sq ft home), Arkansas ranks #1 of 51 states (1 = saves the most). This reflects Arkansas's mix of 13.63¢/kWh electricity and $2.368/therm gas.
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Sources & accuracy
Electricity: EIA Electric Power Monthly, Table 5.6.A (residential) (March 2026); natural gas: EIA residential price (March 2026); heating oil & propane: EIA Heating Oil and Propane Update (Gulf Coast (PADD 3), Week ending 2026-03-30); energy constants: ENERGY STAR Thermal Energy Conversions. All U.S. public domain. These are statewide/regional averages and the comparison is an estimate, not a quote or engineering analysis. Actual savings depend on your home, climate, equipment and rates. Verify with an HVAC professional. See methodology and disclaimer.
Last updated: 2026-06-29