Heat Pump vs. Furnace: Which Is Right for Iowa?

The Great Heating Debate for Iowa Homeowners

If you're replacing your heating system or building a new home in Central Iowa, you've probably heard about heat pumps. They're getting a lot of buzz as an energy-efficient alternative to traditional furnaces. But are they right for Iowa's climate? Let's break it down.

How Furnaces Work

A gas furnace burns natural gas to create heat, then distributes warm air through your ductwork. They're reliable, powerful, and well-suited to extreme cold. Modern high-efficiency furnaces (96%+ AFUE) waste very little fuel and can keep your home warm even when temperatures plunge well below zero.

How Heat Pumps Work

A heat pump doesn't create heat — it moves it. In winter, it extracts heat from outdoor air and transfers it inside. In summer, it reverses the process, working like an air conditioner. Because it moves heat rather than generating it, a heat pump can be 2–3 times more efficient than a furnace in moderate temperatures.

The Iowa Factor

Here's where it gets interesting. Traditional heat pumps lose efficiency as temperatures drop, becoming less effective below 30°F and struggling below 10°F. For most of Iowa's winter, that's a problem.

However, cold-climate heat pumps have improved dramatically. Modern models from Carrier, Trane, and Mitsubishi can maintain efficiency down to -15°F or lower. For many Central Iowa homes, a cold-climate heat pump paired with a gas furnace backup (called a dual-fuel system) offers the best of both worlds — heat pump efficiency in mild weather, furnace power in extreme cold.

Cost Comparison

• Upfront cost: Heat pumps typically cost more to install, but you get both heating and cooling in one system.
• Operating cost: Heat pumps are cheaper to run in moderate weather. A dual-fuel system can reduce winter heating costs by 30–40%.
• Rebates: Federal tax credits and Iowa utility rebates can significantly offset the higher upfront cost of heat pump systems.

Every home is different. Trade Allies Heating and Cooling can evaluate your home, review your energy usage, and recommend the best system for your needs and budget. Call (515) 669-4481 for a free consultation.