An outdoor heat pump unit mounted on a concrete pad in front of a two-story suburban house.

Heat pump vs Furnace in Davison County, South Dakota

When a heat pump makes sense

A heat pump makes sense if you want air conditioning and heat from one system and you're set on staying electric. Look for a cold-climate model, since standard heat pumps lose heating power once temperatures drop toward 11°F, and that's a normal winter night here from December through February. Plan on a backup heat source for those cold stretches, and expect to pay more to run it than a furnace at South Dakota gas prices.

When a furnace makes sense

A furnace fits a home here where winter nights average 11°F and the heat has to run about eight months of the year. It holds its heat output no matter how cold it gets outside, with no drop in performance like a standard heat pump sees in the cold. Natural gas also costs at least 35% less to heat with than a heat pump here, which matters over eight months of heating a year.

When a heat pump makes sense

A heat pump makes sense if you want air conditioning and heat from one system and you're set on staying electric. Look for a cold-climate model, since standard heat pumps lose heating power once temperatures drop toward 11°F, and that's a normal winter night here from December through February. Plan on a backup heat source for those cold stretches, and expect to pay more to run it than a furnace at South Dakota gas prices.

When a furnace makes sense

A furnace fits a home here where winter nights average 11°F and the heat has to run about eight months of the year. It holds its heat output no matter how cold it gets outside, with no drop in performance like a standard heat pump sees in the cold. Natural gas also costs at least 35% less to heat with than a heat pump here, which matters over eight months of heating a year.

An outdoor air conditioning condenser unit mounted on a concrete pad in front of a single-story suburban house.

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

An unfinished concrete basement containing a metal HVAC air handler, exposed wooden ceiling joists with sheet-metal ducts, a hanging bare bulb, copper pipes, and stacked cardboard boxes.

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 Davison County.

Nights average 11°F here from December through February, and gas heat runs at least 35% cheaper than a heat pump at South Dakota prices.

At least 35% lessto heat with natural gas than with a heat pump, at South Dakota prices
11°Faverage winter low
47%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 those 11°F nights and cool it in summer without needing one installed.

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 11°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 air conditioning and heat from one system and you're set on staying electric. Look for a cold-climate model, since standard heat pumps lose heating power once temperatures drop toward 11°F, and that's a normal winter night here from December through February. Plan on a backup heat source for those cold stretches, and expect to pay more to run it than a furnace at South Dakota gas prices.

When a furnace makes sense

A furnace fits a home here where winter nights average 11°F and the heat has to run about eight months of the year. It holds its heat output no matter how cold it gets outside, with no drop in performance like a standard heat pump sees in the cold. Natural gas also costs at least 35% less to heat with than a heat pump here, which matters over eight months of heating a year.

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

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