Is a heat pump cheaper than gas in Louisiana?
South · Hot / mild (e.g. Gulf South, Southwest) · EIA residential fuel prices
For a reference 2,000 sq ft home in Louisiana (assumed seasonal COP 3.2, 95% gas furnace), a heat pump costs about $208/year to run versus about $264/year for natural gas — so a heat pump is cheaper to run than a gas furnace by about $56/yr. It is cheaper than propane ($557/yr), cheaper than heating oil ($610/yr), and far cheaper than electric resistance ($664/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.
Louisiana residential fuel prices
| Fuel | Residential price | Source / period |
|---|---|---|
| Electricity (residential) | 14.16¢/kWh | EIA, March 2026 |
| Natural gas (residential) | $1.567/therm (US avg) | 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.
EIA did not publish a March 2026 residential natural-gas price for Louisiana; the U.S. average of $16.25/Mcf is used and flagged. 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 Louisiana — 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 | $208/yr | 1,465 kWh |
| Natural gas furnace (95% AFUE) | $264/yr | 168 therms |
| Propane furnace (92% AFUE) | $557/yr | 190 gal |
| Heating oil (85% AFUE) | $610/yr | 136 gal |
| Electric resistance (baseboard, COP 1.0) | $664/yr | 4,689 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 Louisiana
| Comparison | Heat pump | Other system | Heat-pump result |
|---|---|---|---|
| vs natural gas (95% AFUE) | $208 | $264 | Saves $56/yr |
| vs propane (92% AFUE) | $208 | $557 | Saves $349/yr |
| vs heating oil (85% AFUE) | $208 | $610 | Saves $403/yr |
| vs electric resistance (COP 1.0) | $208 | $664 | Saves $457/yr |
How Louisiana compares with similar states
The five states with the closest electricity price to Louisiana, and how heat-pump-vs-gas savings look there:
| State | Electricity ¢/kWh | Heat-pump vs gas (ref. home) |
|---|---|---|
| Louisiana (this state) | 14.16¢ | Saves $56/yr |
| Nevada | 14.17¢ | $45/yr more |
| South Dakota | 14.29¢ | $338/yr more |
| Washington | 14.40¢ | Saves $51/yr |
| Arkansas | 13.63¢ | Saves $384/yr |
| Wyoming | 13.59¢ | $677/yr more |
Frequently asked questions
Is a heat pump cheaper to run than gas in Louisiana?
Yes, in this reference case. For a 2,000 sq ft home in Louisiana (assumed seasonal COP 3.2, 95% gas furnace), a heat pump costs about $208/year vs about $264/year for gas - a saving of roughly $56/year. Your result depends on your home, equipment and the actual winter.
What does it cost to heat a home in Louisiana?
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 $208, natural gas $264, propane $557, heating oil $610, electric resistance $664. The cheapest here is heat pump.
Is a heat pump cheaper than propane or heating oil in Louisiana?
In this reference case, vs propane a heat pump saves about $349/year, and vs heating oil it saves about $403/year. Heat pumps usually beat both delivered fuels comfortably because they deliver far more heat per unit of energy.
How does Louisiana rank for heat-pump savings?
On heat-pump savings vs a gas furnace (reference 2,000 sq ft home), Louisiana ranks #11 of 51 states (1 = saves the most). This reflects Louisiana's mix of 14.16¢/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 (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