Heat pump or gas furnace in California?
At California's average electricity rate of 33¢/kWh, and US-average gas at $1.50/therm, a typical gas-heated home (600 therms a year) would heat about $1,220 a year cheaper with gas — the heat pump only wins here if your gas is dearer or your power cheaper than average. The tie point is 14.0¢/kWh. Your gas price decides it — put your real one in below.
Independent estimate for guidance only. California's climate, your ductwork and the unit itself all move the real answer — get a load calculation and itemised quotes.
Why the answer comes out this way in California
California homes pay about 33¢/kWh for electricity — 14.6¢ above the US average. A heat pump delivering COP 2.6 heat ties a 95% furnace when electricity costs 14.0¢/kWh at $1.50/therm gas, so at average prices gas keeps the edge here. Local gas prices vary as much as power prices do, though — the calculator's gas field is the one to get right.
California electricity price trend
Average residential rate, monthly, May 2023 – Apr 2026. Up 18% over the period.
Source: U.S. Energy Information Administration (EIA), Electric Power Monthly · range 29.12–35.25¢/kWh
A worked example for California
600 therms of heating a year, $1.50/therm gas, 95% AFUE furnace vs COP 2.6 heat pump:
The heat pump would use about 6,425 kWh a year for the same heat. No federal credit applies — the §25C heat-pump credit ended 31 December 2025 — but state and utility rebates may; check DSIRE.
Pair it with solar?
Electrifying your heat makes rooftop solar offset more of your total energy bill — with the honest caveat that panels produce least in the heating months. See whether solar stacks up at all in California with our California solar payback calculator, or check your EV charging cost too.