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Why a heat pump can use far less electricity than resistance heat

DOE’s comparison is strongest for homes replacing electric furnaces or baseboards. Climate, sizing, ductwork, envelope and utility rates still determine the household result.

By HomeCostGrid Editorial Desk · Published July 26, 2026
Editorial illustration of a heat pump, home airflow, electric meter, and heating-cost comparison

The phrase “75% less” is useful only when the starting system is understood. Electric resistance equipment turns electricity directly into heat, while a heat pump moves heat. A household replacing gas or oil needs a different cost comparison.

Build the current-system baseline

Collect twelve months of electricity and fuel bills, equipment efficiency and service history. Separate space heating from water heating and other loads as carefully as possible.

Model the design temperature

Ask the contractor for room-by-room load calculations, equipment capacity at local winter design conditions, backup-heat strategy, balance point, defrost behavior and expected electric demand. Nameplate capacity alone is not enough.

Check the rest of the house

Duct leakage, undersized returns, poor airflow, insulation gaps and air leakage can reduce comfort and savings. Addressing the shell may allow smaller equipment and improve performance in the rooms that currently struggle.

The HomeCostGrid view

Compare annual operating scenarios using local rates and the proposed performance data. Keep the quote’s electrical, duct, controls, permits, commissioning, warranty and backup-heat costs visible.

Primary sources

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