Illinois homeowner aims to ditch gas, but heat pump estimate comes in $3,500 above dual fuel

"Usually one fuel is cheaper almost all of the time, just stick with that one."

A Chicago-area homeowner remodeling a 1950s house ran into an unexpected hurdle while trying to move toward all-electric heating: a heat pump quote came in about $3,500 higher than a dual-fuel option.

What the homeowner learned

In a Reddit post, the homeowner said two HVAC contractors they consulted both recommended dual fuel, including one that was described as a top-tier dealer for a major heat pump brand.

Under the dual-fuel plan, the existing furnace and air-conditioning condenser would remain in use for the basement and about 1,500 square feet on the main floor, while a new system would be added for the roughly 1,100-square-foot upper level.

The homeowner said the all-heat-pump option would cost around $3,500 more than the dual-fuel alternative.

"I can't make the math work," the poster wrote. "Am I missing something?"

For homeowners facing a similar decision, replacing heating and cooling equipment can be one of the most effective ways to cut utility bills and limit exposure to higher energy prices. Palmetto says it can help homeowners review HVAC choices and lower energy costs through more efficient systems and heat pumps, while its Comfort Plan network connects customers with vetted installers.

Utility rates were another key concern. The homeowner noted, "Given that we have really cheap electricity at ~8c/KwH and ~50c/therm natural gas, the heat pump would probably be more expensive to run at basically any temperature."

More background

Cold-weather performance was not the main issue. After insulation was added to the older walls and attic and the windows were replaced, the homeowner said a Manual J calculation found that "heating and cooling loads are quite modest."

One commenter said gas backup offers more than savings, writing that "having natural gas for morning recovery (dropping the temp overnight) is a comfort thing for me."

Another pushed back on mixing fuel sources, saying, "Usually one fuel is cheaper almost all of the time, just stick with that one."

What can be done?

If the main obstacle is the roughly $3,500 upfront difference this homeowner saw, the Comfort Plan could help narrow the gap. For homeowners who are not ready to pay for HVAC equipment upfront, Palmetto's Comfort Plan includes $0-down options that can reduce heating and cooling costs by up to 50%, and Comfort Plan customers also receive 12 years of free maintenance.

Solar was also part of the homeowner's plan. Pairing solar panels with electric appliances, including an efficient HVAC system or a heat pump water heater, can help drive utility costs even lower.

EnergySage says it makes it easier to compare solar options and find the right system and installer for a home's budget, with potential savings of up to $10,000.

Where can I learn more?

Homeowners comparing heat pumps and dual-fuel systems continue to face similar questions about upfront costs, fuel prices, and backup heat.

• In Massachusetts, a new-build owner found dual fuel may save only $117 over heat pumps.

• In North Texas, homeowners were told gas rates determine whether dual fuel makes sense.

• In Wisconsin, a failing air conditioner made the heat pump calculation a wash versus a 1990 furnace.

• In Connecticut, one homeowner received a $25,000 HVAC quote, then priced both systems at $15,000.