Heat pump or gas furnace in Tennessee?
At Tennessee's average electricity rate of 13.5¢/kWh, and US-average gas at $1.50/therm, a typical gas-heated home (600 therms a year) would heat about $33 a year cheaper with a heat pump. The tie point is 14.0¢/kWh. Your gas price decides it — put your real one in below.
Independent estimate for guidance only. Tennessee'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 Tennessee
Tennessee homes pay about 13.5¢/kWh for electricity — 4.9¢ below 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 the heat pump comes out ahead here. Local gas prices vary as much as power prices do, though — the calculator's gas field is the one to get right.
Tennessee electricity price trend
Average residential rate, monthly, May 2023 – Apr 2026. Up 22% over the period.
Source: U.S. Energy Information Administration (EIA), Electric Power Monthly · range 11.78–15.08¢/kWh
A worked example for Tennessee
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 Tennessee with our Tennessee solar payback calculator, or check your EV charging cost too.