Heat pump vs gas heating cost in Oregon

$113 a year saved by heating a typical Oregon home with a heat pump instead of a gas furnace.

A typical home here burns about 405 therms of gas a year for heat, about $689 at the national average of $1.70/therm. A heat pump would use about 3,603 kWh instead, $575 at 15.97¢/kWh. Electricity would have to pass 19.1¢/kWh before gas became the cheaper way to heat.

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

How Oregon compares

Ranked by yearly saving against gas, Oregon is 17th of 51. At U.S. average figures a heat pump saves $27 a year. Oregon has the 23rd cheapest residential electricity of the 50 states and DC, near the middle, at 15.97¢/kWh, 13% below the U.S. average of 18.31¢.

With an estimated 4,500 heating degree days a year, winters here are moderate, and the calculator uses a seasonal COP of 2.8.

Against propane the heat pump saves $541 a year, against heating oil it saves $1,113 a year, and against electric baseboard heat it saves $1,036 a year.

Heating now	Now, per year	Heat pump	Difference
Natural gas furnace	$689	$575	$113
Propane furnace	$1,116	$576	$541
Oil furnace	$1,689	$576	$1,113
Electric baseboard	$1,611	$575	$1,036

Three of its four neighbors do better against gas: Idaho, Nevada and Washington, led by Idaho at $250 a year saved.

State	Electricity	Saving vs gas a year
Idaho	13.73¢	$250
Nevada	12.77¢	$191
Washington	14.71¢	$176
Oregon	15.97¢	$113
California	33.61¢	−$157

More for Oregon

EV charging cost in Oregon vs gas: an EV saves $1,164 a year on fuel.
Solar payback in Oregon: a typical system pays back in 14.6 years.

What these numbers assume

A heating load estimated from about 4,500 heating degree days a year: 405 therms of gas, 443 gallons of propane, 311 gallons of oil or 10,089 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 2.8.
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.