Geothermal heat pump vs. electric furnace: running cost
A geothermal heat pump is cheaper to run: about $841 a year versus $1,971 for an electric furnace at typical use and 17.99¢/kWh, a $1,130 difference.
| Geothermal heat pump | Electric furnace | |
|---|---|---|
| Typical watts | 3,200 W | 15,000 W |
| Watt range | 2,000–6,000 W | 10,000–25,000 W |
| Typical use | 24 hours a day for 5 months a year | 24 hours a day for 5 months a year |
| Energy per year | 4,675 kWh | 10,958 kWh |
| Cost per hour | 23¢ | 54¢ |
| Cost per day | $5.53 | $12.95 |
| Cost per month | $168 | $394 |
| Cost per year | $841 | $1,971 |
| Per year in Hawaii (43.51¢) | $2,034 | $4,768 |
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What drives the difference
- Geothermal heat pump: Includes compressor, blower and loop pump. Geothermal systems deliver 3.5-5 kWh of heat per kWh, so a 3-ton system uses roughly 4,000-5,000 kWh a winter; summer cooling use is in addition.
- Electric furnace: Electric furnaces use resistance heating strips rated 10-25 kW plus a ~500 W blower. Defaults (about 10,900 kWh a winter) reflect a moderate US climate; cold climates can run 15,000-20,000 kWh.
Ways to cut either cost
Prevents unnecessary auxiliary heat staging.
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Frequently asked questions
Which costs more to run, a geothermal heat pump or an electric furnace?
At typical use and the U.S. average rate (17.99¢/kWh), an electric furnace costs about $1,971 a year versus $841 for a geothermal heat pump. That's $1,130 more, or 2.3× as much.
How many watts do geothermal heat pump and electric furnace use?
A geothermal heat pump typically draws 3,200 W (range 2,000–6,000 W). An electric furnace draws 15,000 W (range 10,000–25,000 W). Watts alone don't decide cost. Hours of use, cycling and standby matter just as much.
Rates: EIA, 12 months ending 2026-07. Methodology.