Heat Pump Savings Calculator in Arkansas
Compare heat pump and furnace heating costs in Arkansas. Uses local climate data (3200 HDD), electricity rates, and fuel prices for accurate savings estimates.
Data last updated July 2026. Sources & methodology
What Arkansas Residents Should Know
Arkansas falls in IECC climate zone 3A with 3,200 heating degree days per year — well below the national average. With an average heating COP of 3, heat pumps in Arkansas operate at high efficiency, producing 3 units of heat for every unit of electricity consumed.
With natural gas at $1.00 per therm in Arkansas, a gas furnace may have lower operating costs in the coldest months. However, heat pumps provide both heating and cooling in one system, which can offset the difference when you factor in AC savings. In shoulder seasons (spring and fall), a heat pump is significantly more efficient, often making the overall annual cost competitive with gas.
A heat pump also replaces your air conditioner, and Arkansas's 1,900 cooling degree days make that dual-function value real: one system handles both seasons, so you retire a separate AC unit and its maintenance along with the furnace. For homes with an aging furnace-and-AC pair, replacing both at once is usually where a heat pump makes the strongest financial case in Arkansas.
Arkansas residents can access up to $500 in state rebates and incentives for heat pump installations. With the federal 25C credit having ended December 31, 2025, these state and utility programs are now the primary way to reduce the upfront installation cost, which typically ranges from $4,000 to $8,000 depending on system size and complexity. Run the calculator above with your home details to see your personalized payback estimate.
Avg. Electricity Rate
$0.119/kWh
Avg. monthly bill: $126
Regular Gas Price
$2.85/gal
Natural gas: $1.00/therm
Heating Degree Days
3,200
Cooling: 1,900 CDD
Incentives in Arkansas
Federal clean energy tax credits ended in late 2025 under legislation passed in July 2025; they are shown below for reference since recent purchasers may still claim them. State programs are governed separately and many remain active — always verify current details with the program before purchasing.
| Incentive | Type | Amount | Description |
|---|---|---|---|
| Energy Efficient Home Improvement Credit (Heat Pump - 25C)Ended | tax credit | 30% | Federal tax credit of 30% up to $2,000 for qualifying heat pumps. Ended December 31, 2025 — systems placed in service after that date do not qualify. State and utility heat pump rebates remain available in many states. |
| Entergy Arkansas Heat Pump Water Heater Rebate | rebate | $500 | Up to $500 per unit on qualifying ENERGY STAR heat-pump (hybrid) water heaters at participating retailers, under Entergy Arkansas's 2026 residential program. |
Heat Pump Savings in Arkansas: Frequently Asked Questions
- Are heat pumps worth it in Arkansas?
- In Arkansas, low natural-gas prices mean a heat pump may not beat a gas furnace on heating cost alone, but its combined heating-and-cooling in one system, plus efficiency in mild months, can still make it the better long-term choice.
- Do heat pumps work in Arkansas's climate?
- Arkansas sits in IECC climate zone 3A with about 3,200 heating degree days per year. Modern heat pumps there average a heating COP of 3, meaning they deliver 3 units of heat per unit of electricity.
- Are there heat pump rebates in Arkansas?
- Yes. Arkansas residents can access Entergy Arkansas Heat Pump Water Heater Rebate, worth up to $500. The federal 25C credit ended December 31, 2025, so these state and utility programs are now the main way to cut installation cost.
Run the Heat Pump Savings Calculator
Use our free calculator pre-filled with Arkansas data to see your personalized results.
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