A grey air-source heat pump outdoor unit mounted on a concrete pad next to a modern white-rendered residential house.

Heat pump vs Furnace in Minnehaha County, South Dakota

When a heat pump makes sense

A heat pump makes sense if you want cooling as well as heating from the same system. Choose a cold-climate model built to hold its output at 10°F, since a standard heat pump loses heating power once temperatures drop that low. You will still pay more to heat through the winter than a gas furnace would cost, since gas runs at least 35% cheaper here at South Dakota prices.

When a furnace makes sense

A furnace fits most homes in this county. It keeps its full output no matter how cold the night gets, which matters when winter nights average 10°F from December through February. It only heats, so cooling means adding a separate system. At South Dakota gas prices it costs less to run through the roughly nine months a year this county needs heat, and 64% of homes here already heat this way.

When a heat pump makes sense

A heat pump makes sense if you want cooling as well as heating from the same system. Choose a cold-climate model built to hold its output at 10°F, since a standard heat pump loses heating power once temperatures drop that low. You will still pay more to heat through the winter than a gas furnace would cost, since gas runs at least 35% cheaper here at South Dakota prices.

When a furnace makes sense

A furnace fits most homes in this county. It keeps its full output no matter how cold the night gets, which matters when winter nights average 10°F from December through February. It only heats, so cooling means adding a separate system. At South Dakota gas prices it costs less to run through the roughly nine months a year this county needs heat, and 64% of homes here already heat this way.

A gray outdoor HVAC condenser unit mounted on a concrete pad in the front yard of a two-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 basement featuring exposed ceiling joists, a metal HVAC unit with round ductwork, a hanging light bulb, and scattered boxes and debris along the left wall.

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 Minnehaha County.

Nights here average 10°F all winter, and gas heat costs at least 35% less 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
10°Faverage winter low
64%of homes here heat with gas

If your home has no gas line to it, a cold-climate heat pump is still worth a look, since it handles the 10°F nights and gives you cooling too.

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 10°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 as well as heating from the same system. Choose a cold-climate model built to hold its output at 10°F, since a standard heat pump loses heating power once temperatures drop that low. You will still pay more to heat through the winter than a gas furnace would cost, since gas runs at least 35% cheaper here at South Dakota prices.

When a furnace makes sense

A furnace fits most homes in this county. It keeps its full output no matter how cold the night gets, which matters when winter nights average 10°F from December through February. It only heats, so cooling means adding a separate system. At South Dakota gas prices it costs less to run through the roughly nine months a year this county needs heat, and 64% of homes here already heat this way.

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

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