Quick answer
A heat pump wins for almost every Western Washington home currently heated by an electric furnace or baseboards. Both run on electricity, but resistance heat converts each kilowatt-hour into exactly one unit of heat, while a heat pump moves two to four units for the same power — a major cut in heating cost at PSE's roughly $0.12/kWh. Rebates for replacing electric heat are the strongest in the state.
- Electric resistance is exactly 100% efficient (1:1); a heat pump is effectively 200–400% because it moves heat instead of making it.
- Homes with existing electric furnaces already have the ducts, the 240V service, and often the panel capacity a heat pump needs — conversion is usually straightforward.
- Replacing electric heat unlocks the best rebate stack: WA HEAR up to $8,000 point-of-sale for income-eligible households, plus PSE air-source heat pump rebates of $500–$1,500 for everyone else.
- A heat pump also adds real air conditioning — an electric furnace never will.
- The catch: a heat pump costs more upfront and demands a proper Manual J load calculation to be sized right.
What does each option cost installed in the Seattle area?
These ranges match our published Puget Sound system cost guides. The gap looks wide on paper, but an electric-furnace home is the single best rebate candidate in Washington, and the operating-cost difference compounds every winter you own the house.
| Option | Typical installed range | What that covers |
|---|---|---|
| Electric furnace (like-for-like swap) | $9,000–$15,000 | New cabinet, elements, and blower on the existing ducts and circuit — the same 1:1 operating cost you have today, locked in for another 15–20 years. |
| Cold-climate heat pump system | $12,000–$20,000 | Outdoor unit plus matched air handler on your existing ductwork — BEFORE rebates, which are strongest when electric heat is what's being replaced. |
What changes the price
- Rebates: WA HEAR takes up to $8,000 off at point of sale for income-eligible households (≤150% AMI); PSE pays $500–$1,500 on qualifying air-source heat pumps with no income limit.
- Panel capacity: many 1960s–80s electric-heat homes have 100A panels — if an upgrade is needed, HEAR can contribute up to $4,000 toward the panel and $2,500 toward wiring.
- Duct condition: crawlspace ducts common under Everett ramblers may need sealing or minor rework to carry heat-pump airflow.
- Sizing: a Manual J load calculation is non-negotiable — oversized heat pumps short-cycle and undersized ones lean on strip heat.
- Permits and code: electrical and mechanical permits apply either way; a heat pump adds refrigerant line work that must be done by a licensed installer.
Ranges are representative Seattle / Puget Sound installed prices, not a quote — your home's specifics set the real number. Eco gives you an upfront price before any work begins.
How do they work differently?
How an electric furnace works
It is a giant toaster in a cabinet: electricity flows through resistance coils, the coils glow hot, and a blower pushes air across them into your ducts. The physics cap it at exactly one unit of heat per unit of electricity — no engineering can improve on that, because the energy is being created as heat directly. Simple, reliable, and the most expensive way to heat a home in Washington.
How a heat pump works
It refuses to make heat and steals it instead. Refrigerant absorbs warmth from outdoor air — there is usable heat in the air even on a 25°F morning — and a compressor concentrates it and releases it inside. Moving heat takes far less energy than generating it, which is how the same kilowatt-hour that buys one unit of heat from a furnace buys two to four from a heat pump. Flip the reversing valve and the whole process runs backward as air conditioning.
Pros and cons, honestly
Heat pump
Pros
- Cuts heating energy use dramatically versus resistance heat — the biggest bill reduction available to an electric-heat home
- Adds whole-home air conditioning for Seattle's increasingly hot summers and smoke-season window-closed stretches
- Best-in-state rebate support when replacing electric heat (WA HEAR + PSE)
- Uses the ducts, thermostat wiring, and heavy electrical service your electric furnace already proved out
- No combustion, no flue, no carbon monoxide risk
Cons
- Higher installed cost before rebates
- Output tapers in extreme cold, so correct sizing matters more than with resistance heat
- Outdoor unit needs a spot with clearance and occasional maintenance
- More complex machine — repairs, when they happen, cost more than swapping a heating element
Electric furnace
Pros
- Lowest upfront cost of the two, and the fastest like-for-like swap
- Dead-simple technology — elements and a blower, cheap to repair
- Full heat output no matter how cold it gets outside
- No outdoor equipment to place or maintain
Cons
- The most expensive heat per delivered BTU you can buy in the Puget Sound
- No cooling — a separate AC would cost nearly as much as the heat pump you passed on
- Zero rebate support in Washington in 2026
- Locks in high operating costs for the 15–20 year life of the new unit
Which one should you choose?
Choose a heat pump when
Your home heats with an electric furnace or baseboards and you plan to stay put more than a few years. This describes thousands of Bellevue split-levels and Everett ramblers built in the 1960s–80s, where the ducts and 240V service are already in place. The rebate stack was practically designed for you, the operating savings start the first month, and you get air conditioning in the same package. If your panel is the only obstacle, HEAR panel and wiring rebates exist precisely for that.
Choose an electric furnace when
You need the cheapest possible replacement right now — a rental you're selling, a failed furnace in January with no budget flexibility — and cooling genuinely doesn't matter to you. It's also the fallback when a home's electrical service can't support a heat pump and no rebate path covers the upgrade. Go in with clear eyes: you're buying low sticker price at the cost of the highest heating bills in the region for another two decades.
Also consider: ductless for baseboard homes
If your electric heat is baseboards rather than a ducted furnace, there may be no ductwork to reuse — and a ductless mini-split becomes the natural conversion. PSE's ductless rebate specifically targets homes replacing electric baseboard or wall heat. See our ductless vs central comparison below.
Ready to compare for your home?
Get honest numbers for both options side by side — an upfront range, the considerations, and the rebates you qualify for, before any work begins.
Continue exploring
- Book: Heat pump installation & replacement →
- Book: Electrical panel upgrades →
- Book: Heating services →
- Compare: Heat Pump vs Air Conditioner: Which Should Seattle Homes Add? →
- Compare: Air Handler vs Furnace: Decoding the Box in Your Quote →
- Compare: Heat Pump With Backup Heat vs Furnace: Does Seattle Need Dual Fuel? →
- Compare: Whole-Home Electrification vs Natural Gas: The Strategic Decision →
- How do heat pumps work? →
- Washington HVAC rebates explained →
- Whole-home electrification →
- All heating & air comparisons →
Common questions
How much cheaper is a heat pump to run than an electric furnace?
Because a heat pump delivers two to four units of heat per unit of electricity and resistance heat delivers exactly one, heating energy use typically drops by half or more. At PSE rates around $0.12/kWh, that's a meaningful difference every winter month — your exact number depends on your home's load, which is why we run a Manual J before quoting.
My electric furnace still works. Should I switch anyway?
Working-but-old is actually the ideal time: you can plan the conversion, capture rebates, and schedule it in shoulder season instead of making a panic decision in a cold snap. If the furnace is under ten years old and your bills are tolerable, waiting is defensible — just don't sink a large repair into a machine you intend to replace.
Will my 100A panel handle a heat pump?
Often yes — a home already running an electric furnace usually has substantial capacity spoken for by the old heat, which the heat pump replaces rather than adds to. We do a load calculation on the panel itself during the estimate. Where an upgrade is genuinely needed, WA HEAR can cover up to $4,000 of panel work for income-eligible households.
Does a heat pump keep up in a Washington cold snap?
Cold-climate models hold full output well below Seattle's mid-20s°F winter design temperature. For the rare arctic event, a small electric strip in the air handler backs it up automatically — you'd never notice the handoff except on the bill for those few days.
Last updated: 2026-07-05