Heat pump vs gas heating cost in North Dakota

$241 a year saved by heating a typical North Dakota home with a heat pump instead of a gas furnace.

A typical home here burns about 783 therms of gas a year for heat, about $1,331 at the national average of $1.70/therm. A heat pump would use about 8,128 kWh instead, $1,090 at 13.41¢/kWh. Electricity would have to pass 16.4¢/kWh before gas became the cheaper way to heat.

Prices updated October 2026 from EIA, AAA and BLS data.

How North Dakota compares

Ranked by yearly saving against gas, North Dakota is 4th of 51. At U.S. average figures a heat pump saves $27 a year. North Dakota has the 4th cheapest residential electricity of the 50 states and DC at 13.41¢/kWh, 27% below the U.S. average of 18.31¢.

North Dakota is a cold-climate state, with an estimated 8,700 heating degree days a year, so the calculator uses a lower seasonal COP of 2.4. Cold-climate heat pumps rated for low temperatures can do better.

Against propane the heat pump saves $1,067 a year, against heating oil it saves $2,173 a year, and against electric baseboard heat it saves $1,526 a year.

Heating now	Now, per year	Heat pump	Difference
Natural gas furnace	$1,331	$1,090	$241
Propane furnace	$2,157	$1,090	$1,067
Oil furnace	$3,263	$1,090	$2,173
Electric baseboard	$2,616	$1,090	$1,526

A heat pump compares better with gas here than in any neighboring state; next is Montana at $96 a year saved.

State	Electricity	Saving vs gas a year
North Dakota	13.41¢	$241
Montana	14.99¢	$96
South Dakota	15.37¢	$70
Minnesota	17.45¢	−$79

More for North Dakota

EV charging cost in North Dakota vs gas: an EV saves $1,252 a year on fuel.
Solar payback in North Dakota: a typical system pays back in 16.2 years.

What these numbers assume

A heating load estimated from about 8,700 heating degree days a year: 783 therms of gas, 856 gallons of propane, 601 gallons of oil or 19,506 kWh of baseboard heat.
Natural gas at $1.70/therm, the U.S. city average for September 2026. Gas prices vary a lot by state and utility, so enter the price per therm from your bill.
Propane at $2.52 and heating oil at $5.43 a gallon, EIA forecasts for winter 2026–27.
Furnaces 85% efficient (oil 80%), and a heat pump with a seasonal COP of 2.4.
No federal tax credit: Section 25C ended for equipment placed in service after December 31, 2025.

Change any of them in the calculator above to match your own bills. The formulas are on the main heat pump calculator.

Sources

Electricity price: EIA Electric Power Monthly, Table 5.6.A (July 2026 data).
Natural gas: BLS U.S. city average, September 2026.
Propane and heating oil: EIA Short-Term Energy Outlook winter forecast, October 2026.
Heating degree days: MeterMath rounded estimate for the state.
Tax credit status: Public Law 119-21.