Is a heat pump cheaper than gas in Florida?
South · Hot / mild (e.g. Gulf South, Southwest) · EIA residential fuel prices
For a reference 2,000 sq ft home in Florida (assumed seasonal COP 3.2, 95% gas furnace), a heat pump costs about $218/year to run versus about $264/year for natural gas — so a heat pump is cheaper to run than a gas furnace by about $46/yr. It is cheaper than propane ($668/yr), cheaper than heating oil ($701/yr), and far cheaper than electric resistance ($697/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.
Florida residential fuel prices
| Fuel | Residential price | Source / period |
|---|---|---|
| Electricity (residential) | 14.86¢/kWh | EIA, March 2026 |
| Natural gas (residential) | $1.567/therm (US avg) | EIA, March 2026 |
| Heating oil (residential) | $5.156/gal | EIA, Lower Atlantic (PADD 1C) |
| Propane (residential) | $3.512/gal | EIA, Lower Atlantic (PADD 1C) |
Source: EIA (electricity, natural gas, heating oil & propane). Data as of June 2026.
EIA did not publish a March 2026 residential natural-gas price for Florida; the U.S. average of $16.25/Mcf is used and flagged. Heating oil and propane are EIA residential prices for Lower Atlantic (PADD 1C) (Week ending 2026-03-30) — EIA does not publish these per individual state.
Annual heating cost in Florida — every system compared
Reference: a 2,000 sq ft home in a hot / mild (e.g. gulf south, southwest), roughly 16 MMBTU/year of useful heat. Energy cost only (no equipment, install or maintenance):
| Heating system | Annual energy cost | Annual use |
|---|---|---|
| Heat pump | $218/yr | 1,465 kWh |
| Natural gas furnace (95% AFUE) | $264/yr | 168 therms |
| Propane furnace (92% AFUE) | $668/yr | 190 gal |
| Electric resistance (baseboard, COP 1.0) | $697/yr | 4,689 kWh |
| Heating oil (85% AFUE) | $701/yr | 136 gal |
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 Florida
| Comparison | Heat pump | Other system | Heat-pump result |
|---|---|---|---|
| vs natural gas (95% AFUE) | $218 | $264 | Saves $46/yr |
| vs propane (92% AFUE) | $218 | $668 | Saves $450/yr |
| vs heating oil (85% AFUE) | $218 | $701 | Saves $483/yr |
| vs electric resistance (COP 1.0) | $218 | $697 | Saves $479/yr |
How Florida compares with similar states
The five states with the closest electricity price to Florida, and how heat-pump-vs-gas savings look there:
| State | Electricity ¢/kWh | Heat-pump vs gas (ref. home) |
|---|---|---|
| Florida (this state) | 14.86¢ | Saves $46/yr |
| Kentucky | 14.88¢ | Saves $138/yr |
| Oregon | 14.89¢ | Saves $96/yr |
| New Mexico | 14.81¢ | $24/yr more |
| Georgia | 15.01¢ | Saves $79/yr |
| Minnesota | 15.08¢ | $574/yr more |
Frequently asked questions
Is a heat pump cheaper to run than gas in Florida?
Yes, in this reference case. For a 2,000 sq ft home in Florida (assumed seasonal COP 3.2, 95% gas furnace), a heat pump costs about $218/year vs about $264/year for gas - a saving of roughly $46/year. Your result depends on your home, equipment and the actual winter.
What does it cost to heat a home in Florida?
Using EIA March 2026 prices and a 2,000 sq ft home in a hot / mild (e.g. gulf south, southwest) (about 16 MMBTU/yr), estimated annual energy cost is about: heat pump $218, natural gas $264, propane $668, heating oil $701, electric resistance $697. The cheapest here is heat pump.
Is a heat pump cheaper than propane or heating oil in Florida?
In this reference case, vs propane a heat pump saves about $450/year, and vs heating oil it saves about $483/year. Heat pumps usually beat both delivered fuels comfortably because they deliver far more heat per unit of energy.
How does Florida rank for heat-pump savings?
On heat-pump savings vs a gas furnace (reference 2,000 sq ft home), Florida ranks #13 of 51 states (1 = saves the most). This reflects Florida's mix of 14.86¢/kWh electricity and US-average 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 (Lower Atlantic (PADD 1C), 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