Choosing Between Heat Pump vs Electric Heat
What makes heat pump vs electric heat a critical decision today
Here’s the thing: the decision between a heat pump and electric heat matters more today than ever before. During my 18 years as an HVAC technician, I’ve watched this choice transform from a simple preference to a significant financial and comfort decision, especially at our elevation.
A customer in Kachina Village recently called me after receiving a $580 electric bill from running her baseboard heaters during January’s cold snap. “Nobody warned me this would cost so much,” she told me. That’s because electric heat might seem simple and affordable upfront, but the operating costs can be shocking when temperatures drop below freezing.
The technology advances in cold climate heat pumps have dramatically changed the equation. Systems that once struggled at 20°F (-6°C) now perform efficiently well below zero, making them viable primary heating options even in our Northern Arizona winters.
Add rising electricity rates, increasing environmental awareness, and improved rebate programs, and suddenly this decision impacts not just your comfort but your financial future and environmental footprint.
Comparing energy efficient performance: heat pumps and electric heating systems
Let’s talk efficiency, because this is where these systems fundamentally differ, and where most salespeople get the explanation wrong.
Electric resistance heating (whether from baseboard heaters, space heaters, or electric furnaces) converts electricity directly into heat with 100% efficiency. For every kilowatt of electricity, you get exactly one kilowatt of heat. Sounds perfect, right?
Here’s the contractor’s truth: 100% efficiency sounds great but it’s actually terrible compared to a heat pump’s 200-400% efficiency. Translation: Heat pumps don’t create heat, they move existing heat energy from outdoors to indoors using the refrigeration cycle. This fundamental difference means heat pumps can deliver 2-4 units of heat for every unit of electricity consumed.
I’ve measured this myself during installations: a properly sized 3-ton (10.5 kW) heat pump in Flagstaff can deliver the equivalent heating of a 15kW electric furnace while using less than half the electricity. The difference shows up immediately on your utility bill.
When outdoor temperatures drop extremely low, heat pump efficiency does decrease, a fact many contractors won’t mention. At -10°F (-23°C), even the best cold climate units might drop to 150% efficiency (still better than electric resistance). This is why proper sizing and occasional backup heat become important in our mountain communities.
Key differences between air source heat pumps and electric resistance heating
Beyond efficiency, these systems differ in fundamental ways that affect your daily experience:
Heat Pump Characteristics:
Provides both heating and cooling through one system
Transfers heat rather than generates it
Higher upfront cost ($7,000-$15,000 installed at our elevation)
Lower operating costs (typically 40-70% less than electric resistance)
Requires outdoor unit (must withstand snow, ice, and wind)
Performance varies with outdoor temperature
Maintenance requirements similar to an air conditioner
Produces gentle, consistent heating
Electric Resistance Characteristics:
Heating only (separate AC needed for cooling)
Generates heat through electric resistance coils
Lower upfront cost ($2,000-$6,000 depending on system type)
Higher operating costs (often the most expensive heating method)
No outdoor components (a benefit during heavy snow)
Consistent performance regardless of outdoor temperature
Minimal maintenance requirements
Often creates more temperature fluctuation
What I wish I’d known: When I installed my first heat pump in a Kachina Village cabin, I underestimated the impact of our elevation on system performance. Units rated for “cold weather” at sea level often struggle at 7,000 feet. Always verify equipment specifications for high-elevation performance before purchasing.
Technology Breakdown and Performance in Practice
How electric furnace and electric heaters work vs heat pump mechanisms
Let me simplify these technologies without oversimplifying their importance. Think of electric resistance heating as a toaster, electricity passes through resistive elements, which glow hot and warm the surrounding air. This happens in baseboard heaters, electric furnaces, and portable space heaters alike. The physics are straightforward: electrical energy converts to heat energy at a 1:1 ratio.
In plain English: Electric heaters create heat directly, similar to how a coffee maker heats water.
Heat pumps work entirely differently. Imagine a refrigerator working in reverse. Using a refrigeration cycle with compressed refrigerant, a heat pump collects heat energy from outdoor air (yes, even cold air contains heat energy), compresses it to increase its temperature, and distributes that heat indoors through a heat exchanger.
The key components include:
Outdoor unit with coil and fan to collect heat from outside air
Compressor to concentrate the heat energy
Indoor unit with coil and blower to distribute warm air
Refrigerant lines connecting the components
Reversing valve allowing cooling in summer by reversing the process
What many installers don’t mention: That reversing valve is critical for our mountain climate. It enables the defrost cycle that prevents ice buildup during winter operation. A failed reversing valve can shut down your entire system during the coldest weather.
Why cold climate heat pumps are changing the conversation on electric heating
Traditional heat pumps earned a bad reputation in colder regions for good reason, they simply didn’t work well below freezing. I remember customers in Munds Park abandoning heat pumps in the 1990s because they couldn’t handle our winters.
But here’s what’s changed: Modern cold climate heat pumps have transformed performance at low temperatures through several technological advances:
Enhanced compressor technology with variable speed operation
Flash injection circuits that maintain capacity in cold temperatures
Advanced defrost controls that minimize efficiency losses
Improved refrigerants with better low-temperature properties
Smart controls that optimize performance based on conditions
Real Talk: The best cold climate heat pumps now maintain 100% of their rated capacity down to 5°F (-15°C) and continue operating efficiently to -15°F (-26°C). I’ve personally measured a Mitsubishi Hyper-Heat system maintaining 85% efficiency at -10°F in Flagstaff, performance that was impossible a decade ago.
This technological leap means that heat pumps are now viable primary heating systems even in our mountain communities, though smart homeowners still maintain backup heating for extreme weather events.
Performance in extreme temperatures: reliability of electric resistance vs heat pumps
I’ll be brutally honest about performance in extreme conditions, because that’s when heating systems matter most:
Electric resistance heating maintains 100% output regardless of outdoor temperature. When it’s -20°F (-29°C) outside during a Flagstaff cold snap, your electric baseboard heaters or furnace will produce exactly the same heat as when it’s 30°F (-1°C). This consistency is their greatest strength.
But, this reliability comes at tremendous cost. Your electric meter will spin alarmingly fast, and in older homes, you might face circuit overloads if multiple heaters operate simultaneously.
Heat pumps, even cold climate models, face two challenges in extreme cold:
Reduced capacity: Output typically decreases as temperatures drop below -5°F (-20°C)
Decreased efficiency: While still more efficient than resistance heat, the margin narrows in extreme cold
What’s often misunderstood is the defrost cycle. Heat pumps periodically reverse operation to melt frost from the outdoor coil. During defrost, they temporarily use more energy and may briefly switch to backup heat. In poorly designed systems, this can lead to cold drafts, something I’ve corrected in dozens of Northern Arizona installations by properly configuring defrost settings for our dry climate.
Contractor’s Truth: Both systems can be reliable in extreme cold, but neither is ideal alone. The most robust solution for our mountain communities is a hybrid approach: a cold climate heat pump with electric resistance backup that activates only when absolutely necessary.
Cost, Energy Efficiency, and Environmental Impact
Cost of installation and operation: electric heating systems vs heat pump ROI
Before we immerse: This cost discussion might seem boring, but it’s the difference between comfort and financial strain over the next decade.
Here’s a transparent breakdown of what you’re looking at financially with both options in the Northern Arizona mountain region:
Initial Installation Costs:
Electric resistance heating:
Baseboard heaters: $800-$1,500 per room installed ($3,000-$6,000 for a typical home)
Electric furnace: $2,500-$4,500 installed
No cooling included (add $3,500-$5,500 for a separate AC system)
Possible electrical panel upgrades: $1,200-$3,000 if needed
Heat pump system:
Standard efficiency: $7,000-$10,000 installed
Cold climate models: $9,000-$15,000 installed
Includes both heating and cooling
Electrical requirements typically less demanding than resistance heating
Monthly Operating Costs (2,000 sq ft Kachina Village home):
Electric resistance: $350-$550/month during winter months
Heat pump: $140-$250/month during same conditions
Potential monthly savings: $210-$300 during heating season
What I wish I’d known: When calculating ROI, consider utility rate increases. APS rates have increased 5-7% annually in recent years. With a 15-year equipment lifespan, your actual savings will likely exceed initial projections.
Energy efficiency ratings: what users often overlook
Energy efficiency ratings tell an important story, but most homeowners (and many contractors) misinterpret them for high-elevation applications.
For heat pumps, you’ll see these efficiency metrics:
SEER2 ratings (Seasonal Energy Efficiency Ratio): Measure cooling efficiency
HSPF2 ratings (Heating Seasonal Performance Factor): Measure heating efficiency
COP (Coefficient of Performance): Instantaneous heating efficiency at specific temperatures
Here’s what those numbers actually mean for your Northern Arizona home:
A heat pump with HSPF2 of 8.8 provides about 2.6 units of heat for each unit of electricity consumed when averaged across the heating season. Compare this to electric resistance heating’s fixed 1.0 COP (100% efficiency).
Translation: Even after accounting for our elevation and colder temperatures, a quality heat pump will deliver at least twice the heat per dollar spent on electricity compared to electric resistance heating.
Real Talk: Manufacturers test these ratings at sea level. At our 6,800+ feet elevation, expect about 85-90% of the rated performance due to thinner air affecting the refrigeration cycle. I’ve measured this performance loss directly in Flagstaff installations, it’s real but doesn’t eliminate the efficiency advantage.
Comparing environmental impact: electric resistance vs gas heating vs heat pumps
The environmental impact of your heating choice extends beyond your monthly bill. Here’s how the options compare using the Three E’s Framework (Efficiency, Economics, Environment):
Electric Resistance Heating:
Highest electricity consumption per unit of heat delivered
Zero direct emissions, but high indirect emissions if electricity comes from fossil fuels
APS mix in Arizona: About 50% carbon-free as of 2023 (nuclear, solar, wind)
Natural Gas Heating:
Moderate efficiency (80-98% for modern furnaces)
Direct CO2 and methane emissions from combustion and leakage
Lower operating cost than electric resistance in most scenarios
Not available in many Northern Arizona mountain communities
Heat Pump Systems:
Highest efficiency (200-400% depending on conditions)
Zero direct emissions
Lower indirect emissions due to reduced electricity consumption
Environmental advantage increases as electricity grid gets cleaner
Homeowner Spotlight: A Mountainaire family I worked with reduced their carbon footprint by approximately 4 tons annually after switching from electric baseboard heating to a cold climate heat pump. Their electrical consumption dropped 55%, even while maintaining warmer indoor temperatures than before.
Misconceptions, Mistakes, and Untold Truths
Why many still believe electric heat is cheaper than heat pumps
During my years working in Flagstaff’s HVAC industry, I’ve encountered persistent misconceptions about electric heat. Here’s why these myths persist and what the truth actually is:
Misconception #1: “Electric heat is 100% efficient, so it must be cheaper to run.”
Yes, electric resistance converts 100% of electrical energy to heat, but heat pumps deliver 2-4 times more heat per kilowatt-hour. It’s like comparing a car that gets 25 MPG with one that gets 75 MPG, the percentages don’t tell the whole efficiency story.
Misconception #2: “Heat pumps don’t work in our mountain climate.”
This was true 15 years ago but is outdated now. Modern cold climate heat pumps maintain efficiency down to -15°F (-26°C). I’ve installed dozens in Kachina Village, Munds Park, and throughout the Flagstaff area that perform excellently even during January cold snaps.
Misconception #3: “Electric heat is cheaper to install, so it’s better for tight budgets.”
The upfront savings are quickly erased by higher operating costs. A typical Flagstaff home might save $1,500-$2,500 annually with a heat pump versus electric resistance heat. That’s a 3-5 year payback on the additional investment.
Contractor’s Truth: Some local companies push electric furnaces because they’re simpler to install and service. Proper heat pump sizing and installation requires more expertise, something not all contractors have invested in developing.
Overlooked issues with electric heating in older homes
When evaluating electric heating options for the older homes common in Northern Arizona mountain communities, several critical issues often go unmentioned:
Electrical Capacity Limitations
Many 1970s-1990s homes in our area have 100-125 amp electrical service, insufficient for whole-house electric resistance heating. A 2,000 sq ft home with electric resistance heat can easily require 60+ amps just for heating, leaving little capacity for other appliances. Heat pumps typically require 20-30 amps, creating far less strain on your electrical system.
Uneven Heating Problems
Older mountain homes with electric baseboard heat often suffer from:
Cold spots between heaters
Floor-to-ceiling temperature stratification (up to 15°F difference)
Slower recovery after door openings
Poor circulation that leaves corners cold
Moisture and Comfort Issues
Electric resistance creates a dry, sometimes stuffy heat. In our already dry climate, this can exacerbate:
Static electricity problems
Dry sinuses and skin
Wood furniture and floor shrinkage
What I Wish I’d Known: When we renovated our 1977 Kachina Village home, I discovered the electrical panel couldn’t safely handle the existing baseboard heaters, they had been overloading the circuits for years. The previous owner had been resetting tripped breakers regularly, creating a significant fire risk they weren’t even aware of.
Common sizing and installation mistakes with electric and heat pump systems
Having corrected countless problematic installations across Northern Arizona, I’ve identified the most frequent sizing and installation errors:
Electric Heat Mistakes:
Undersizing circuit breakers, creating fire hazards
Installing insufficient units (based on square footage alone without calculating actual heat load)
Improper thermostat location (near drafts or heat sources)
Inadequate air circulation planning
Failing to account for elevation factors (heating needs increase ~2% per 1,000 feet above sea level)
Heat Pump Mistakes:
Oversizing units (reduces efficiency and creates short-cycling)
Improper refrigerant charge (critical at our elevation)
Inadequate defrost control settings for mountain conditions
Poor line set insulation leading to efficiency losses
Incorrect air handler placement creating uneven temperatures
Using standard heat pumps instead of cold climate models
Before We Immerse: Manual J load calculations are absolutely essential at our elevation, where standard rules of thumb fail miserably. I’ve seen “1 ton per 400 sq ft” estimates lead to systems oversized by 50%, resulting in short cycling, reduced comfort, and premature failure.
Real Talk: About 80% of heat pumps I inspect in the Flagstaff area are incorrectly sized, and about 65% have improper refrigerant charge. These issues severely impact both performance and operating costs. Proper installation matters more than brand in most cases.
Real-World Advice and Use Cases
Expert insights on choosing between heat pump vs electric heat for different climates
After hundreds of installations across Northern Arizona’s varying microclimates, here’s my practical guidance for specific situations:
For Permanent Residences in Flagstaff, Kachina Village, or Munds Park:
Cold climate heat pump with electric resistance backup is ideal
Look for units with at least 100% capacity at 5°F (-15°C)
Size backup heat to cover only the differential between heat pump capacity and worst-case heat load
Consider smart thermostats with outdoor temperature sensors to optimize transitions
For Weekend/Vacation Cabins:
Cold climate mini-split heat pumps with freeze protection
Remote monitoring capabilities essential
Multiple indoor heads to address temperature stratification in cathedral ceilings
Supplemental resistance heat in bathrooms to prevent pipe freezing
For Homes at 8,000+ feet (higher elevations near Snowbowl):
Dual fuel systems (heat pump + propane backup) often make sense
Critical to properly set outdoor temperature lockouts
Premium cold climate units with enhanced defrost capabilities
Extra attention to snow shields and clearances for outdoor units
What I Wish I’d Known: Standard heat pump sizing calculations fail at elevation. Your system needs approximately 7-10% more capacity at 7,000 feet compared to sea level due to thinner air affecting both heat transfer and refrigerant dynamics.
Contractor’s Truth: The best system for our climate is often a cold climate heat pump covering 90% of your heating needs, with limited electric resistance backup for extreme conditions. This hybrid approach provides the lowest operating cost while ensuring reliable comfort even during record cold.
How homeowners use hybrid systems with gas furnace backups
In areas where natural gas is available (parts of Flagstaff but rarely in outlying communities), dual-fuel systems offer compelling advantages. Here’s how local homeowners are implementing these hybrid approaches:
The Balanced Approach: Heat Pump Primary with Gas Backup
A family in University Heights configured their system to:
Run the heat pump exclusively above 20°F (-6°C)
Gradually blend in gas furnace support between 20°F and 0°F (-6°C to -17°C)
Switch completely to gas below 0°F (-17°C)
This strategy reduced their heating costs by 42% compared to their previous gas-only system while maintaining perfect comfort.
The Economic Optimizer: Fuel Switching Based on Rates
A more sophisticated approach used by several tech-savvy homeowners:
Smart controls compare real-time electric rates vs. gas prices
System automatically selects the more economical heat source
Reduces annual heating costs by 15-25% over simpler approaches
The Climate-Conscious Hybrid
Environmentally focused homeowners in Cheshire use:
Heat pump primary operation
Solar PV to offset electricity usage
Minimal gas backup only during extended sub-zero periods
Result: 85% reduction in heating-related carbon footprint
Translation: These hybrid approaches deliver the efficiency benefits of heat pumps while addressing the legitimate concerns about extreme weather reliability.
Real Talk: For homes without natural gas (most of Kachina Village, Munds Park, and outlying areas), propane can substitute as backup, but the economics favor minimizing its use due to higher fuel costs.
Case studies on energy savings using heat pumps vs traditional electric heaters
These real Northern Arizona case studies demonstrate the actual impact of switching from electric resistance heat to heat pumps:
Case Study #1: 1978 Cabin in Kachina Village (1,800 sq ft)
Previous heating: Electric baseboard throughout (15kW total)
Average winter electric bill: $425/month
Replacement: 3-ton cold climate heat pump with minimal backup
New average winter electric bill: $185/month
Annual savings: ~$1,440
Additional benefit: Added summer cooling
Simple payback period: 5.2 years
10-year savings (including maintenance): ~$12,000
Case Study #2: Flagstaff Mountain Home (2,500 sq ft)
Previous heating: Electric furnace (20kW) + portable heaters
Peak winter electric bill: $680 (January 2023)
Replacement: Two cold climate mini-split heat pumps (total 4 tons)
New peak winter electric bill: $240
Annual savings: ~$2,100
Special note: Improved comfort with zoned heating eliminated previous cold spots
Case Study #3: Seasonal Cabin in Munds Park (1,200 sq ft)
Previous: Electric wall heaters left running at low setting to prevent freezing
Winter electric bills (unoccupied): $280-350/month
Replacement: 2-ton mini-split heat pump with freeze protection
Remote monitoring and control via smartphone
New winter electric bills (unoccupied): $110-140/month
Annual savings: ~$1,100 while gaining remote temperature control
Before We Immerse: These cases represent properly sized and installed systems. Your results will vary based on home insulation, elevation, usage patterns, and installation quality. But, the 40-65% energy savings range is consistent across dozens of local projects I’ve documented.
Frequently Asked Questions (FAQ)
Which is better, a heat pump or an electric heat?
Heat pumps are better than electric resistance heating for most Northern Arizona homes based on several key factors:
Operating Cost: Heat pumps typically cost 40-60% less to operate than electric resistance heating in our climate. For a 2,000 sq ft home in Kachina Village, this often represents $1,500-$2,500 in annual savings.
Comfort: Heat pumps provide more consistent heating with less temperature fluctuation. They also maintain better humidity levels in our dry climate, reducing static electricity and dry skin issues common with electric resistance heat.
Versatility: Heat pumps deliver both heating and cooling through a single system, eliminating the need for separate air conditioning in summer.
Environmental Impact: Heat pumps use 50-75% less electricity than resistance heating for the same comfort level, significantly reducing your carbon footprint even with our current electrical grid mix.
But, electric resistance heating may be better in limited situations:
For rarely-used rooms where minimal installation cost outweighs operating expenses
As supplemental heat in bathrooms or small spaces
When budget constraints absolutely prevent the higher initial investment in a heat pump
For extremely small spaces under 400 sq ft where heat pump efficiency advantages are minimized
What is the major disadvantage of a heat pump?
The major disadvantages of heat pumps for Northern Arizona mountain homes are:
Higher Initial Cost: Heat pumps typically cost $4,000-$8,000 more to purchase and install compared to simple electric resistance systems. This upfront investment creates a barrier even though the long-term savings.
Reduced Capacity in Extreme Cold: Even the best cold climate heat pumps experience some capacity reduction when temperatures drop below -10°F (-23°C). This necessitates properly sized backup heating for those rare extreme cold snaps we experience.
Installation Complexity: Heat pumps require precise installation by experienced technicians familiar with high-elevation adjustments. Poor installation can significantly reduce efficiency and performance. Unfortunately, finding qualified installers in our mountain communities can be challenging.
Outdoor Unit Vulnerability: The outdoor unit must withstand our severe winter conditions including heavy snow, ice, and temperature extremes. This requires careful placement, adequate clearances, and sometimes snow shields or covers.
Maintenance Requirements: Heat pumps need regular professional maintenance to maintain efficiency and longevity, adding approximately $150-$250 annually to ownership costs.
What I Wish I’d Known: When installing heat pumps at elevation, refrigerant charge becomes absolutely critical, more so than at lower elevations. A system just 10% undercharged can lose 30% of its efficiency at our elevation. Always ensure your technician adjusts refrigerant charge using subcooling measurements, not just pressure readings.
Why don’t contractors like heat pumps?
Some local contractors avoid or discourage heat pumps for several reasons, some legitimate, others less so:
Legitimate Concerns:
Higher installation complexity requiring more skilled technicians
More potential for callback issues if not properly sized or installed
Greater customer education requirements to manage expectations
Need for specialized tools and test equipment for high-elevation installations
Increased liability if sizing calculations are incorrect
Less Legitimate Reasons:
Higher learning curve to properly design and install systems
Lower profit margins on service calls compared to simpler systems
Resistance to changing established business practices
Lack of training in modern cold climate technologies
Higher inventory requirements for specialized parts
Contractor’s Truth: Many local companies have built their business models around simpler systems. Transitioning to heat pump expertise requires significant investment in training, tools, and processes. The contractors who’ve made this investment generally promote heat pumps enthusiastically, while those who haven’t often discourage them based on outdated information or limited experience.
Real Talk: Ask any contractor discouraging heat pumps these specific questions: “How many cold climate heat pumps have you installed above 6,000 feet elevation in the past two years?” and “What specific training has your team received on high-elevation heat pump installation?” Their answers will tell you everything you need to know.
Do heat pumps use a lot of electricity?
Heat pumps use significantly less electricity than electric resistance heating systems, even though a common misconception to the contrary. Here’s what the data shows for a typical 2,000 sq ft home in Northern Arizona:
Electric Resistance Heating:
Typical installed capacity: 15-20 kilowatts
Average winter electricity use: 2,500-3,500 kWh/month
Peak demand during cold snaps: 10-15 kilowatts
Heat Pump System:
Typical installed capacity: 3-4 tons (approximately 6-8 kilowatts)
Average winter electricity use: 1,000-1,500 kWh/month
Peak demand during cold snaps: 6-9 kilowatts (including backup heat)
Translation: Heat pumps typically use 50-70% less electricity than electric resistance systems for the same amount of heating.
Hmm… that depends on the ambient temperature, to be honest. During mild weather (20-50°F), heat pumps use dramatically less electricity, often 70-80% less than resistance heat. During extreme cold below 0°F (-17°C), the savings narrow to perhaps 30-40% as efficiency decreases and occasional backup heat activates.
What many homeowners don’t realize is that a heat pump’s outdoor unit requires significantly less electrical capacity than electric furnaces or baseboards. This often eliminates the need for expensive electrical service upgrades in older homes with limited panel capacity, an important consideration in the 1970s-1990s homes common in our mountain communities.