1. Air-source heat pump
An air-source heat pump moves heat from the outdoor air into your home in winter and reverses in summer to work as an air conditioner. If you have central air ductwork, it can often replace both your furnace and your AC with a single system.
2. Ductless mini-split
Mini-splits are heat pumps that don't need ducts. A compact outdoor unit connects to slim wall-mounted units in individual rooms. They're a popular fit for older homes without ductwork, additions, and rooms that are always too hot or too cold.
3. Dual-fuel (hybrid) system
A dual-fuel system pairs a heat pump with a gas furnace. The heat pump handles most of the year, and the furnace kicks in only on the coldest days. It's a common middle ground for homeowners in very cold climates who want lower bills without giving up backup heat.
4. Geothermal heat pump
Geothermal systems draw heat from the ground, where temperatures stay steady year-round. They're extremely efficient and long-lasting, but installation requires drilling or digging loops in your yard, so upfront costs are much higher.
5. High-efficiency condensing furnace
If you want to stay with gas, a modern condensing furnace captures much more of the fuel's heat than older models. Look for a high AFUE rating, which measures how efficiently a furnace turns fuel into heat.
How to choose
- Have a contractor do a proper load calculation, not just match your old furnace's size.
- Compare your local electricity and gas prices.
- Check whether your ductwork is in good shape.
- Look up utility rebates for heat pumps and high-efficiency equipment.
- Get at least three quotes that spell out equipment, efficiency ratings, and warranties.
Editorial note: HomeJolly may earn a commission when you request quotes through links on this page. Prices are estimates and vary by location and home. This article is general information, not legal, tax, insurance, or financial advice.