MeterMath

Heat pump South Dakota

Heat pump vs gas heating cost in South Dakota

$70 a year saved by heating a typical South Dakota home with a heat pump instead of a gas furnace.

A typical home here burns about 666 therms of gas a year for heat, about $1,132 at the national average of $1.70/therm. A heat pump would use about 6,913 kWh instead, $1,063 at 15.37¢/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 you heat now
therms/yr
 
$/therm
 
¢/kWh
 
Efficiency, upfront cost and rebates
%
Older furnaces 78 to 80, new 90 to 97.
 
$
Heat pumps also replace your AC.
$
State, utility or HEAR rebates.

How South Dakota compares

Ranked by yearly saving against gas, South Dakota is 27th of 51. At U.S. average figures a heat pump saves $27 a year. South Dakota has the 18th cheapest residential electricity of the 50 states and DC, near the middle, at 15.37¢/kWh, 16% below the U.S. average of 18.31¢.

South Dakota is a cold-climate state, with an estimated 7,400 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 $772 a year, against heating oil it saves $1,712 a year, and against electric baseboard heat it saves $1,488 a year.

Heating nowNow, per yearHeat pumpDifference
Natural gas furnace$1,132$1,063$70
Propane furnace$1,835$1,062$772
Oil furnace$2,775$1,063$1,712
Electric baseboard$2,550$1,063$1,488

Four of its six neighbors do better against gas: Montana, Nebraska, North Dakota and Wyoming, led by Nebraska at $260 a year saved.

StateElectricitySaving vs gas a year
Nebraska13.78¢$260
North Dakota13.41¢$241
Wyoming14.36¢$138
Montana14.99¢$96
South Dakota15.37¢$70
Iowa15.99¢$24
Minnesota17.45¢−$79

More for South Dakota

What these numbers assume

  • A heating load estimated from about 7,400 heating degree days a year: 666 therms of gas, 728 gallons of propane, 511 gallons of oil or 16,591 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.