Heat pump vs gas heating cost in Texas

$79 a year saved by heating a typical Texas home with a heat pump instead of a gas furnace.

A typical home here burns about 171 therms of gas a year for heat, about $291 at the national average of $1.70/therm. A heat pump would use about 1,331 kWh instead, $211 at 15.88¢/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 Texas compares

Ranked by yearly saving against gas, Texas is 26th of 51. At U.S. average figures a heat pump saves $27 a year. Texas has the 22nd cheapest residential electricity of the 50 states and DC, near the middle, at 15.88¢/kWh, 13% below the U.S. average of 18.31¢.

Winters here are mild, with an estimated 1,900 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 $260 a year, against heating oil it saves $500 a year, and against electric baseboard heat it saves $465 a year.

Heating now	Now, per year	Heat pump	Difference
Natural gas furnace	$291	$211	$79
Propane furnace	$471	$211	$260
Oil furnace	$711	$211	$500
Electric baseboard	$676	$211	$465

Every neighboring state does better against gas, led by Oklahoma at $178 a year saved.

State	Electricity	Saving vs gas a year
Oklahoma	14.35¢	$178
Arkansas	14.33¢	$168
Louisiana	12.72¢	$102
New Mexico	16.09¢	$101
Texas	15.88¢	$79

More for Texas

EV charging cost in Texas vs gas: an EV saves $1,167 a year on fuel.
Solar payback in Texas: a typical system pays back in 12.5 years.

What these numbers assume

A heating load estimated from about 1,900 heating degree days a year: 171 therms of gas, 187 gallons of propane, 131 gallons of oil or 4,260 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.