A grey outdoor HVAC unit mounted on a concrete pad beside the beige-sided exterior wall of a suburban house.

Heat pump vs Furnace in Lincoln County, South Dakota

When a heat pump makes sense

A heat pump makes sense if you want cooling and heating from one system and you're set on staying off gas. Look for a cold-climate model, since a standard heat pump loses heating power once temperatures drop toward 12°F the way they do here from December through February. Expect to pay more to run it than a furnace, since gas heat costs at least 35% less here at South Dakota prices.

When a furnace makes sense

A furnace suits most homes in Lincoln County, given how cold winter nights get here and how much of the year, about 8 months, needs heat. It costs less to run than a heat pump at South Dakota gas and electric prices, and it holds its output no matter how far the temperature drops. If your home already has a gas line, a furnace is the simpler and cheaper machine to heat with here.

When a heat pump makes sense

A heat pump makes sense if you want cooling and heating from one system and you're set on staying off gas. Look for a cold-climate model, since a standard heat pump loses heating power once temperatures drop toward 12°F the way they do here from December through February. Expect to pay more to run it than a furnace, since gas heat costs at least 35% less here at South Dakota prices.

When a furnace makes sense

A furnace suits most homes in Lincoln County, given how cold winter nights get here and how much of the year, about 8 months, needs heat. It costs less to run than a heat pump at South Dakota gas and electric prices, and it holds its output no matter how far the temperature drops. If your home already has a gas line, a furnace is the simpler and cheaper machine to heat with here.

An outdoor heat pump unit mounted on a concrete pad beside a house with beige siding and a landscaped garden bed.

Heat pump

Runs on
Electricity
What it does
Heats and cools
Tax credit
No federal tax credit since the end of 2025

Sources: U.S. Department of Energy · Internal Revenue Code

A gas furnace and sheet-metal air handler unit installed in an unfinished concrete basement.

Furnace

Runs on
Natural gas
What it does
Heats only
Tax credit
No federal tax credit since the end of 2025

Sources: U.S. Department of Energy · Internal Revenue Code

Furnace wins in Lincoln County.

Nights here average 12°F all winter, and gas heat costs at least 35% less than a heat pump, so gas wins on this cold and this budget.

At least 35% lessto heat with natural gas than with a heat pump, at South Dakota prices
12°Faverage winter low
66%of homes here heat with gas

If your home has no gas line to it, a cold-climate heat pump will still heat it through a 12°F night without the cost of bringing gas service in.

Find a contractor
Compared onHeat pumpFurnace
Cost to run hereCosts more to runAt least 35% less to run
What it doesHeats and coolsHeats only
Homes in the Plains states that heat with one5.4%77.6%
Handles a 12°F nightStandard models lose heating power in the cold; cold-climate models are built for itYes

Sources: U.S. Energy Information Administration, U.S. Department of Energy, NOAA

When a heat pump makes sense

A heat pump makes sense if you want cooling and heating from one system and you're set on staying off gas. Look for a cold-climate model, since a standard heat pump loses heating power once temperatures drop toward 12°F the way they do here from December through February. Expect to pay more to run it than a furnace, since gas heat costs at least 35% less here at South Dakota prices.

When a furnace makes sense

A furnace suits most homes in Lincoln County, given how cold winter nights get here and how much of the year, about 8 months, needs heat. It costs less to run than a heat pump at South Dakota gas and electric prices, and it holds its output no matter how far the temperature drops. If your home already has a gas line, a furnace is the simpler and cheaper machine to heat with here.

A Lincoln County contractor will price both against your own house, your ductwork and your panel.

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