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

Heat pump vs Furnace in Codington County, South Dakota

When a heat pump makes sense

A heat pump makes sense if you want air conditioning along with heat and you're set on staying off gas. Choose a cold-climate model, not a standard one. At 6°F on a typical winter night here, a standard heat pump loses much of its heating power right when you need it most, while a cold-climate unit is built to keep working in that cold. Expect to pay more to heat your home this way, since gas runs at least 35% cheaper here at current prices.

When a furnace makes sense

A furnace is the right call for most homes here, and it's what most of your neighbors already have. It costs less to run than a heat pump at South Dakota gas and electric prices, and it doesn't lose output as the temperature drops, which matters with nights averaging 6°F through the winter. The one thing it won't do is cool your home in summer, so if you want both from one system, weigh that against the running cost difference.

When a heat pump makes sense

A heat pump makes sense if you want air conditioning along with heat and you're set on staying off gas. Choose a cold-climate model, not a standard one. At 6°F on a typical winter night here, a standard heat pump loses much of its heating power right when you need it most, while a cold-climate unit is built to keep working in that cold. Expect to pay more to heat your home this way, since gas runs at least 35% cheaper here at current prices.

When a furnace makes sense

A furnace is the right call for most homes here, and it's what most of your neighbors already have. It costs less to run than a heat pump at South Dakota gas and electric prices, and it doesn't lose output as the temperature drops, which matters with nights averaging 6°F through the winter. The one thing it won't do is cool your home in summer, so if you want both from one system, weigh that against the running cost difference.

An outdoor air conditioning condenser unit mounted on a concrete pad next to a residential house at sunset.

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 Codington County.

Winter nights here average 6°F, and gas heat costs at least 35% less than a heat pump, so most homes here heat with a furnace.

At least 35% lessto heat with natural gas than with a heat pump, at South Dakota prices
6°Faverage winter low
56%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 Codington County winter and cool it come summer.

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 6°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 along with heat and you're set on staying off gas. Choose a cold-climate model, not a standard one. At 6°F on a typical winter night here, a standard heat pump loses much of its heating power right when you need it most, while a cold-climate unit is built to keep working in that cold. Expect to pay more to heat your home this way, since gas runs at least 35% cheaper here at current prices.

When a furnace makes sense

A furnace is the right call for most homes here, and it's what most of your neighbors already have. It costs less to run than a heat pump at South Dakota gas and electric prices, and it doesn't lose output as the temperature drops, which matters with nights averaging 6°F through the winter. The one thing it won't do is cool your home in summer, so if you want both from one system, weigh that against the running cost difference.

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

Tell us about the job

It takes about a minute.

Step 1 of 3: Equipment