Is a Dual Fuel Heat Pump Right for Me?

Learn about dual-fuel heat pumps and whether a dual-fuel heating system is a good choice for your home.

November 13, 2024

By Anne Fonda

You have a lot of choices when it comes to heating and cooling your home. If you’re thinking about HVAC replacement, you’re smart to be exploring your options. You may have heard of a dual-fuel heat pump, or hybrid HVAC system and wondered what it was.

In this article, we’ll go over what these systems are, how they work, when such a system makes sense, and more.

Let’s get started. 

What is a dual-fuel heat pump?

A dual-fuel heat pump, or dual-fuel heating system, pairs an outdoor electric heat pump with an indoor gas furnace. The thermostat completes the dual-fuel system. Pairing an electric heat pump with a gas furnace in a hybrid heating system has many advantages. 

Benefits of a dual-fuel heat pump system

With proper installation in the right climate, a dual-fuel heating system has many benefits, including:

  • More energy efficient
  • Reduced carbon emissions
  • Qualifying heat pumps are eligible for sizeable tax credits and rebates
  • The units automatically choose the most efficient way to heat your home

How does this system offer all of these benefits? It boils down to the way the system works.

How does a dual-fuel heating system work?

During the warmer months, the heat pump works to cool your home. When the temperatures start to drop, dual-fuel technology combines the best of electric heat and gas heat.

The heat pump switches to heating mode and heats your home in the fall, winter, and early spring. 

The heat pump works in conjunction with the gas furnace. The furnace will take over either when it gets cold enough that the heat pump is not keeping up anymore, or if there is a set point on the thermostat. 

Some dealers will program your thermostat to tell the system to switch to gas heat if the temperature falls below a certain outdoor temperature. Many dealers chose 35 degrees. When the outdoor temperatures fall to that level, the thermostat signals the dual-fuel system to automatically change from electric heat to gas heat to maximize efficiency. 

In general, standard heat pumps use more energy and don’t heat as effectively when the temperatures drop below 35 degrees. But furnaces excel at heating in cold and extreme temperatures. 

Something to keep in mind - in general, a variable speed, high-efficiency heat pump will do a better job at heating for longer than a base model, single-stage unit.

Can you have a heat pump and a gas furnace at the same time?

Yes. These two components make up a dual-fuel heat pump system. However, you should know that they do not both heat your home at the same time. One or the other heats your home based on the outdoor temperature and your set temperature to switch to gas heat.

When does a dual-fuel heat pump make sense?

Top factors to consider include:

  • Climate
  • Energy efficiency
  • Cost savings
  • Carbon emissions

Let’s take a look.

Climate

Your climate is probably the biggest factor to consider. A dual-fuel heating system may make sense for you if you live in a climate with wide temperature fluctuations and all four seasons. If you live in a milder climate that rarely sees temperatures below 40 degrees, a standard heat pump + air handler system may make more sense.

For instance, in Texas, you might not need to consider a dual-fuel system if you live in San Antonio, but if you live in the Panhandle in Amarillo, you might want the backup gas heat to get you through the colder winter.

Dual-fuel systems can be a great option for people living in states such as:

  • Colorado
  • Illinois
  • Virginia
  • Oklahoma 
  • Pennsylvania
  • Ohio
  • New York
  • Connecticut
  • New Jersey
  • Indiana
  • Minnesota
  • Massachusetts

Anywhere the winter temperatures spend a significant amount of time below freezing is a good place to consider a dual-fuel heat pump system.

Energy efficiency

By quickly and efficiently choosing the most effective way to heat your home, a dual-fuel heating system reduces energy waste without reducing your comfort. In addition, a heat pump is more energy efficient than a comparable central air conditioner.

Heat pumps create more cool and warm air by volume than the energy it takes to run them. An air source heat pump's efficiency ranges between 175% and 300%. The higher the HSPF2 and SEER2 ratings, the more energy-efficient the heat pump is.

New, high-efficiency gas furnaces can be up to 98.5% efficient, meaning some combustion gases escape your home, rather than being used to heat it.

Cost savings

Due to that energy efficiency, a dual-fuel heat pump system can save money on energy bills in the summer as well as winter. You can increase your savings by using a smart thermostat to regulate the temperature for maximum efficiency. 

Carbon emissions

If you’re concerned about reducing your carbon footprint, a heat pump system can help you get there. And if you live in a climate with colder winters, a dual-fuel heating system can be ideal for heating performance. While your gas furnace will still have carbon emissions, by using the heat pump to heat when it’s most efficient, you can greatly reduce carbon emissions.

How much does a dual-fuel heating system cost?

Is a dual-fuel heat pump worth it? We get that question a lot. It depends on your heating needs, if you want a more eco-friendly heating and cooling system, and your budget. 

Factors impacting the installation costs include:

  • If you already have a natural gas connection
  • The capacity and efficiency of the units you choose
  • The complexity of the installation
  • The condition of your existing ductwork
  • Which HVAC brand you choose
  • Which HVAC company you choose for the installation
  • And more

To get an accurate idea of what a dual-fuel system would cost, you’ll need to get quotes from several local HVAC companies. Get some tips on how to find the best HVAC service near you. 

Take advantage of heat pump tax credits and rebates

Heat pump rebates and HVAC tax credits offered as part of the Inflation Reduction Act (IRA) of 2022 can help offset any higher upfront costs you might see over a traditional system. Eligible heat pumps qualify for a $2,000 federal tax credit and states are slowly rolling out heat pump rebates. 

New York State is the first to offer heat pump rebates under the IRA through the NYS Clean Heat program. State rebates can be up to $8,000, depending on your income. Visit the Department of Energy’s Home Energy Rebates tracker to see where your state is in the process of applying for and receiving money to offer these heat pump rebates.

Maintaining and troubleshooting your dual fuel heat system

Troubleshooting and maintenance of a dual-fuel heating system is about the same as taking care of any other type of HVAC system.  Change the filters regularly, and schedule HVAC maintenance every spring and every fall to keep your system running at peak performance.

American Standard’s dual-fuel options

Work with your local American Standard HVAC experts to determine which of our heat pumps and furnaces would be best suited for a split system dual-fuel solution for your home. The Gold 15 Hybrid Dual Fuel Comfort System is also an option if space is a consideration. 

We offer industry-leading warranties on new equipment. Homeowners and dealers trust us to provide the most reliable equipment possible, and we take that responsibility seriously. We subject our equipment to a gauntlet of punishing tests at every stage to ensure it performs in even extreme conditions.

Anne Fonda, Content Writer

A Content Writer with Trane Technologies, Anne Fonda researches topics and writes for Trane® and associated residential HVAC brands. She works in collaboration with Trane Technologies subject matter experts, offering easy-to-understand, informative content on complex topics. Her goal is to help consumers make informed decisions on the products and services they need. 

She has written for HVAC and other service provider websites for over 16 years. Before transitioning to web content writing, Anne had a 14-year stint as an award-winning journalist. She graduated cum laude from the University of Missouri-Columbia School of Journalism. When she’s not working, Anne enjoys playing word games, reading, gardening, spending time with family, and visiting gardens and museums.

Expert review by Mark Woodruff, Senior Product Manager, Ducted Outdoor


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