Is a heat pump cheaper than gas in North Carolina?
South · Mixed (e.g. Mid-Atlantic, Pacific NW, lower Midwest) · EIA residential fuel prices
For a reference 2,000 sq ft home in North Carolina (assumed seasonal COP 2.8, 95% gas furnace), a heat pump costs about $603/year to run versus about $594/year for natural gas — so a heat pump is about $9/yr more than a gas furnace. It is cheaper than propane ($1,502/yr), cheaper than heating oil ($1,577/yr), and far cheaper than electric resistance ($1,688/yr). The cheapest option here is natural gas furnace (95% afue). These are estimates — verify with an HVAC pro.
Source: EIA Electric Power Monthly, Table 5.6.A (residential). Data as of June 2026.
North Carolina residential fuel prices
| Fuel | Residential price | Source / period |
|---|---|---|
| Electricity (residential) | 16.00¢/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 North Carolina; 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 North Carolina — 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 |
|---|---|---|
| Natural gas furnace (95% AFUE) | $594/yr | 379 therms |
| Heat pump | $603/yr | 3,768 kWh |
| Propane furnace (92% AFUE) | $1,502/yr | 428 gal |
| Heating oil (85% AFUE) | $1,577/yr | 306 gal |
| Electric resistance (baseboard, COP 1.0) | $1,688/yr | 10,551 kWh |
Source: EIA fuel prices + ENERGY STAR energy conversions. Data as of June 2026.
Cheapest to run in this reference case: Natural gas furnace (95% AFUE). Run your own home size, COP and prices.
Heat pump vs each fuel in North Carolina
| Comparison | Heat pump | Other system | Heat-pump result |
|---|---|---|---|
| vs natural gas (95% AFUE) | $603 | $594 | $9/yr more |
| vs propane (92% AFUE) | $603 | $1,502 | Saves $899/yr |
| vs heating oil (85% AFUE) | $603 | $1,577 | Saves $974/yr |
| vs electric resistance (COP 1.0) | $603 | $1,688 | Saves $1,085/yr |
How North Carolina compares with similar states
The five states with the closest electricity price to North Carolina, and how heat-pump-vs-gas savings look there:
| State | Electricity ¢/kWh | Heat-pump vs gas (ref. home) |
|---|---|---|
| North Carolina (this state) | 16.00¢ | $9/yr more |
| Mississippi | 16.30¢ | Saves $62/yr |
| West Virginia | 16.37¢ | $4/yr more |
| Texas | 16.39¢ | Saves $159/yr |
| Arizona | 15.59¢ | Saves $91/yr |
| South Carolina | 16.45¢ | Saves $23/yr |
Frequently asked questions
Is a heat pump cheaper to run than gas in North Carolina?
Not in this reference case. For a 2,000 sq ft home in North Carolina (assumed seasonal COP 2.8, 95% gas furnace), a heat pump costs about $603/year vs about $594/year for gas, because North Carolina has relatively cheap natural gas. A heat pump is still typically cheaper than propane, oil and electric resistance here.
What does it cost to heat a home in North Carolina?
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 $603, natural gas $594, propane $1,502, heating oil $1,577, electric resistance $1,688. The cheapest here is natural gas furnace (95% afue).
Is a heat pump cheaper than propane or heating oil in North Carolina?
In this reference case, vs propane a heat pump saves about $899/year, and vs heating oil it saves about $974/year. Heat pumps usually beat both delivered fuels comfortably because they deliver far more heat per unit of energy.
How does North Carolina rank for heat-pump savings?
On heat-pump savings vs a gas furnace (reference 2,000 sq ft home), North Carolina ranks #19 of 51 states (1 = saves the most). This reflects North Carolina's mix of 16.00¢/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