Most Elk Grove and Sacramento homes were built with a gas furnace and a separate central air conditioner. When it is time to replace either one, homeowners now have a real alternative: an electric heat pump that does both jobs. Here is how to think about the choice.
How a heat pump works
A heat pump is an air conditioner that can run in reverse. In summer, it moves heat out of the house. In winter, it pulls heat from the outdoor air and moves it inside. Because it moves heat instead of making it, a heat pump can deliver several units of heat for each unit of electricity it uses.
Why the Valley climate suits heat pumps
Heat pumps work best where winters are mild, and Sacramento winters rarely drop far below freezing. Modern variable-speed heat pumps keep heating efficiently well below the temperatures we usually see. Summers, meanwhile, need strong cooling, which a heat pump provides just like a standard air conditioner.
Rebates and costs
SMUD supplies electricity to Elk Grove and Sacramento and offers rebates on heat pump HVAC systems. In February 2026 it listed up to $3,000 for gas-to-electric conversions and $1,000 for electric-to-electric upgrades. Program rules change, so we confirm current terms when we quote. Federal heat pump tax credits ended on December 31, 2025.
Operating cost depends on SMUD electricity rates, PG&E gas rates, how well the house is insulated and how you set the thermostat. SMUD charges the most on summer weekday evenings, which affects cooling costs with any system.
Questions that decide the choice
- Electrical panel. A heat pump may need more electrical capacity than a gas furnace. Some homes need a panel upgrade, which adds cost.
- Ducts. Heat pumps deliver warm air at a lower temperature than a furnace over a longer run, so leaky or undersized ducts matter more. Sealing them helps either system.
- Age of the current equipment. If both the AC and furnace are old, replacing both with one heat pump is often the simplest path. If the furnace is new, replacing only the AC may make more sense.
- Comfort preference. A furnace delivers short bursts of hot air. A heat pump delivers steadier, gentler warmth. Some people prefer one or the other.
The dual-fuel option
A dual-fuel system pairs a heat pump with a gas furnace. The heat pump handles cooling and most heating, and the furnace takes over on the coldest mornings. It can be a good middle ground for homes that want to keep gas heat available.
Our approach
When you replace a system, Air Wrx prices a standard AC and furnace next to a heat pump, with the current rebate terms, so you can compare the real numbers side by side. See our heat pump page, call (916) 715-0076 or request an estimate.