Gas Furnace vs Heat Pump Heating Cost in Montana (2026)

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For a typical 68 million-BTU heating season in Montana: a 95% AFUE gas furnace costs about $587/year; a modern heat pump (HSPF 7.0) costs about $1355/year. Gas wins by $768/year at current local prices.

Heating fuel	Energy used/yr	Cost/yr
Natural gas (95% AFUE furnace) at $8.47/Mcf	718 therms	$587
Heat pump (HSPF 7.0, COP 2.05) at 13.90¢/kWh	9,749 kWh	$1355

Montana: gas $8.47/Mcf (March 2026), electricity 13.90¢/kWh (April 2026). Climate: very cold.

What this means in Montana

At current Montana prices, a gas furnace remains cheaper to run than a heat pump — $768/year less. The gap closes (and often flips) if electricity rates fall, gas prices rise, or you switch to a more efficient cold-climate heat pump. Heat pumps still win on flexibility: they cool in summer, qualify for the 30% federal tax credit, and decouple your heating from fossil fuels.

The gas vs heat-pump trade-off depends on three local numbers: gas price (8.47 $/Mcf here), electricity rate (13.90¢/kWh), and how cold winters get (climate: very cold → effective HSPF 7.0).

How we calculated this

Gas furnace cost = (68 MMBtu) ÷ (95.00% efficient × 100,000 BTU/therm) × $0.817/therm.

Heat pump cost = (68 MMBtu) ÷ (2.05 COP × 3,412 BTU/kWh) × 13.90¢/kWh.

Heat load assumption: 68 MMBtu/year is typical for an 1,800 sqft home in a very cold climate. Modify with your actual annual gas usage (from your bill) for a personalized answer.

If you’re heat-pump shopping

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FAQ

Does this account for cold-climate performance?

Yes — we use a state-specific effective HSPF (7.0 for Montana) reflecting how heat pumps actually perform across the heating season at typical local outdoor temperatures.

What about my actual gas usage instead of these defaults?

Take your last 12 gas bills, sum the therms, and multiply by $0.817/therm. Compare to (your gas therms × 29.3 kWh) ÷ 2.05 × 0.1390 for what a heat pump would cost.

Are gas prices stable?

Less stable than electricity. Wholesale gas can swing 30%+ in a cold winter. The breakeven above can flip year-to-year depending on weather and pipeline conditions.