Heat Pump Payback in Marion, IN
Heat pump vs. gas furnace in Marion, IN
Marion is a place where a heat pump genuinely costs more to operate than the alternative. Against a like-for-like gas furnace and AC swap, going electric costs $5,500 more up front here. Unfortunately the electric bill outweighs the gas bill it replaces by about $47 a year here, so the extra spend stays unrecovered. There's no spin on that: Marion's numbers say wait.
Checking a different city
This runs the same numbers for 3206 US cities, not just Marion. Look one up here.
Why Marion's climate drives this number
3759 heating degree days pile up here every year, so Marion has a real but manageable winter; the cooling side runs to 750 cooling degree days, where summers add a moderate cooling load. Sizing runs off the design temperature, not the average day: 9.5°F here (coldest 2024 reading 8.2°F), which works out to a seasonal COP of 2.93 for the cold-climate class of unit this climate calls for. A cold-climate unit is the right call in Marion, below 25°F design temperature, a standard heat pump leans hard on electric-resistance backup, which erases most of the savings. These numbers come from Marion Municipal AP, the closest NOAA station, 4.8 miles out.
What it actually costs to run, year to year
A 2000-square-foot house here would pull roughly 3,249 heating kilowatt-hours annually on top of cooling, totalling about $662 a year on electricity. The gas furnace it replaces burns roughly 39 Mcf a year at $11.49 per Mcf here, for a running cost near $615 a year including the old AC (electricity here runs 17.03¢/kWh). With running costs higher every year, there is no payback at any purchase price; over 15 years, against a like-for-like replacement, a household here would end $6,202 behind.
How sensitive Marion's result is to prices
The heat pump would become the cheaper option in Marion if electricity fell to 15.4¢/kWh (from 17.03¢) or gas rose above $12.68 per Mcf (from $11.49). At today's prices a cheaper quote cannot rescue the gas comparison in Marion, since there is no yearly saving to recover it from.
The other scenario: no gas furnace to begin with
Gas isn't universal in Marion, many houses run on electric heat already. Against electric-resistance heat, baseboard or an electric furnace, both 100% efficient but still just resistance, the case for switching gets stronger here. Switching saves about $1,124 a year here, a heat pump moving heat rather than generating it needs far less electricity than resistance coils, so the extra $10,000 spent up front comes back in about 8.9 years.
Where Marion ranks in this dataset
Ranked against the other 3206 cities covered, Marion comes in at 1644 for heating severity, 1 would be the coldest place in the dataset, and 1413 by population, where 1 is largest. That's the middle third for winter severity among the cities covered here.
Deciding what's next in Marion, IN
About 28,216 people live in Marion, Indiana, and every number on this page is what a contractor would actually work from when quoting a system here, the point isn't to replace that quote, it's to tell you whether to bother asking for one. Here, there's no cost penalty to waiting until your current furnace or AC actually needs replacing.
Ask a local HVAC contractor for a quote before committing either way.
Where Marion's figure comes from
Every constant behind this page, the 2.93 seasonal COP, the degree-day corrections, the equipment costs, is documented in the methodology guide. Marion's 9.5°F design temperature falls on the cold side of the 25°F cutoff the cold-climate unit guide walks through.