MeterMath

Heat pump Tennessee

Heat pump vs gas heating cost in Tennessee

$211 a year saved by heating a typical Tennessee home with a heat pump instead of a gas furnace.

A typical home here burns about 333 therms of gas a year for heat, about $566 at the national average of $1.70/therm. A heat pump would use about 2,592 kWh instead, $355 at 13.71¢/kWh. Electricity would have to pass 21.8¢/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 Tennessee compares

Ranked by yearly saving against gas, Tennessee is 5th of 51. At U.S. average figures a heat pump saves $27 a year. Tennessee has the 5th cheapest residential electricity of the 50 states and DC at 13.71¢/kWh, 25% below the U.S. average of 18.31¢.

Winters here are mild, with an estimated 3,700 heating degree days a year, so the calculator uses a seasonal COP of 3.2: each kWh of electricity delivers 3.2 kWh of heat.

Against propane the heat pump saves $562 a year, against heating oil it saves $1,030 a year, and against electric baseboard heat it saves $782 a year.

Heating nowNow, per yearHeat pumpDifference
Natural gas furnace$566$355$211
Propane furnace$917$355$562
Oil furnace$1,385$355$1,030
Electric baseboard$1,137$355$782

A heat pump compares better with gas here than in any neighboring state; next is Kentucky at $182 a year saved.

StateElectricitySaving vs gas a year
Tennessee13.71¢$211
Kentucky13.81¢$182
Arkansas14.33¢$168
North Carolina15.16¢$159
Mississippi14.54¢$118
Missouri16.09¢$116
Alabama16.40¢$99
Georgia16.27¢$98
Virginia17.55¢$51

More for Tennessee

What these numbers assume

  • A heating load estimated from about 3,700 heating degree days a year: 333 therms of gas, 364 gallons of propane, 255 gallons of oil or 8,296 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 3.2.
  • 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.