Heat Pump Savings Calculator in Tennessee
Compare heat pump and furnace heating costs in Tennessee. Uses local climate data (3700 HDD), electricity rates, and fuel prices for accurate savings estimates.
What Tennessee Residents Should Know
Tennessee falls in IECC climate zone 4A with 3,700 heating degree days per year — well below the national average. Modern cold-climate heat pumps achieve an average COP of 2.9 in Tennessee's conditions, making them competitive with gas furnaces for most of the heating season.
With natural gas at $1.05 per therm in Tennessee, 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.
While Tennessee does not currently offer state-level heat pump incentives, the federal 25C energy efficient home improvement tax credit covers up to $2,000 for qualifying heat pump systems. This credit, combined with long-term energy savings and the dual heating-cooling functionality, makes heat pumps an investment worth evaluating for most homeowners. Enter your home details above to see your projected savings.
Avg. Electricity Rate
$0.122/kWh
Avg. monthly bill: $140
Regular Gas Price
$2.90/gal
Natural gas: $1.05/therm
Heating Degree Days
3,700
Cooling: 1,600 CDD
Available Incentives in Tennessee
| Incentive | Type | Amount | Description |
|---|---|---|---|
| Energy Efficient Home Improvement Credit (Heat Pump - 25C) | tax credit | 30% | Tax credit for installing a qualifying heat pump, heat pump water heater, or biomass stove. Covers 30% of the cost up to $2,000 per year. Can be combined with other 25C credits up to $3,200 annual limit. |
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Use our free calculator pre-filled with Tennessee data to see your personalized results.
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