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Guide

Replace the AC with a heat pump and keep the furnace

Put a heat pump where the AC was and keep the furnace for the coldest days: what changes in the install and what it costs.

The heat pump goes where the AC was

A heat pump sits where your AC sits and cools the house the same way. It can also run in reverse: in winter it pulls heat from outdoor air and moves it inside. Your gas furnace stays, and it takes over on the coldest days. That pairing is called dual fuel.

Why most of our whole-system jobs include one

Since 2023, most of the whole-system replacements we sign include a heat pump, for three reasons: one outdoor unit for heating and cooling, a furnace that runs far less, and rebates that mostly apply to heat pumps rather than to straight AC.

What changes in the install

  • A heat pump outside, where the AC was.
  • A coil on the furnace matched to it.
  • A thermostat that hands off to the furnace below an outdoor temperature you choose.

The ductwork, the furnace (if it's staying) and the venting stay as they are.

What it costs

A furnace plus heat pump costs more up front than a furnace plus AC; see both price ranges. Most rebates go to the heat pump side, and they change: on October 1, 2026 Xcel lowered its heat pump bonus for Xcel gas customers. Check what applies today, or see monthly payment options.

Send photos of your furnace and AC and we'll price both ways.

Common questions

Will a heat pump keep my house warm in a Denver winter?

In a dual-fuel setup, yes: the heat pump heats on most winter days and the gas furnace takes over when it gets very cold. Cold-climate models keep heating well below freezing, so the switchover point is a setting.

Do I need a new furnace to add a heat pump?

Not always. A heat pump can work with an existing furnace if the blower and controls are compatible. If the furnace is old, replacing both together is usually the cleaner job.

Sources

  1. ENERGY STAR furnace guidance
  2. ENERGY STAR heat pump guidance
  3. ENERGY STAR installation guidance
  4. ENERGY STAR HVAC quality installation
  5. AHRI air conditioners and heat pumps