By Anne Fonda
A dual fuel HVAC system is a hybrid system made up of both an electric heat pump and a gas furnace.
The heat pump in the system works like a central air conditioner in the summer months by transferring hot air out of your home until your thermostat reads your desired temperature. The heat pump also does the majority of the work in the fall and spring months by providing cost-efficient heat.
The gas furnace takes over and works to heat your home when the temperature drops below freezing for a standard heat pump and below 5°F for our low-profile cold climate heat pumps.
Just like a hybrid car or truck, a hybrid heating system will operate on electricity most of the time and switch to the gas furnace whenever the temperatures get cold enough that it is needed.
Understanding the differences between these HVAC units will help you decide which system is right for your home!
Gas furnaces burn natural gas or propane to generate heat. Air passes over the heat exchanger and then flows through your ductwork and into your home. Furnaces only produce heat, so you need an air conditioning system in your home for the summer months.
Furnaces are only about 80-95% energy efficient, but they do have a longer lifespan (more than 20 years) than other heating devices because they’re used for only a few months out of the year. Keep in mind that your home does need to have access to natural gas or propane for a furnace to function. If it doesn’t, the process to access a natural gas source will drive up the installation cost.
Heat pumps use electricity and a heat transfer process to both heat and cool your home. They can be up to 300% efficient, because they move heat rather than burn fuel. In other words, the output of energy in the form of heat is normally several times greater than that required to power the heat pump.
When outdoor temperatures are close to freezing, standard heat pumps have to work harder to bring heat into your home, which can drive up your utility bills. But, they are more energy efficient overall than most HVAC equipment. According to the Department of Energy (DOE), they can reduce your electricity use for heating by about 75% compared to electric furnaces or baseboard heating.
Because they run all year long, heat pumps have a shorter lifespan than furnaces (around 15 years).
Cold climate heat pumps (CCHPs) use inverter-driven, multi- or variable speed compressors to deliver 100% of your heat in single-digit temperatures and even perform well in temperatures below zero.
They’re a great solution for homeowners in northern states who want to move away from burning fossil fuel, or don’t have access to a natural gas line. Many northern states such as Massachusetts, Maine, and New York offer heat pump rebates and other incentives to switch to a heat pump system or dual-fuel system.
The smart, energy-efficient choice for a majority of American households. Pairing a standard heat pump and furnace will keep you comfortable year-round while maximizing efficiency.
“For homeowners who experience harsher winters, a Trane cold climate heat pump delivers reliable comfort even as temperatures drop. These systems can maintain maximum capacity down to 0°F and continue providing heat in temperatures as low as -10°F to -20°F. When paired with a furnace, they offer added heating capacity to help keep your home warm and comfortable through extreme cold.”
Chelsea Hudson, Product Manager, Heat Pumps and System Ratings
“A dual fuel system can be a smart choice for homeowners who live in areas with colder winters and changing temperatures. By pairing an electric heat pump with a gas furnace, the system can automatically use the energy source best suited for current outdoor conditions.
In milder weather, the heat pump provides efficient heating, while the furnace can step in during colder temperatures to deliver added warmth and comfort. This makes dual fuel a strong option for homeowners looking for a balance of efficiency, performance, and year-round comfort.”
Chelsea Hudson, Product Manager, Heat Pumps and System Ratings
Furnaces use energy sources like propane and natural gas to heat, which isn’t always the most environmentally-friendly option. States are beginning to pass new laws that encourage and reward energy efficiency in HVAC, like California’s 2022 Energy Code.
Heat pumps are the star of the show in California’s new code, using the energy efficiency rates of heat pumps as the performance standard baseline for heating and cooling in all homes and some commercial spaces. Heat pumps are typically the gold standard in terms of energy efficiency, because they transfer energy instead of burning fossil fuels to generate heat.
If you’re using a furnace in the winter and experiencing dry, chapped skin while inside your home, your HVAC system could be the cause. The gas heat that furnaces produce and put into your home is a higher temperature than heat produced from an electric heat pump. This hot, dry heat can dry out and chap sensitive skin.
While a whole-house humidifier can help, when it’s time for HVAC replacement, consider pairing your furnace with a heat pump. The heat pump heats without drying out the air.
The ability for a dual fuel system to switch between a furnace and a heat pump is what saves you energy and money. The heat pump efficiently cools in the summer, and the most efficient heating unit operates in the colder months. Your actual savings will depend on your climate, your home’s insulation, local utility rates, and more.
If it’s time to replace your aging and inefficient HVAC system, consider a dual-fuel system. Unless you live in an area that’s warm year-round like southern Florida, a dual-fuel furnace + heat pump system can offer energy-efficient heating and cooling year-round.
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 Chelsea Hudson, Product Manager, Heat Pumps and System Ratings
A hybrid system combines a heat pump and a gas furnace and uses each in its optimal conditions in order to both heat and cool your home.
A matched system is a combination of HVAC units that work together to heat and cool your home. Components of a matched system may include an air conditioner, furnace, heat pump, air handler, or an all-in-one packaged system.
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