Author: The HVAC Brief Editorial Team

HVAC Capacitor: What It Does and How It Fails

Last reviewed: September 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

The short answer

An HVAC capacitor is a small electrical component that helps start, and keep running, the motors in an air conditioner or heat pump: the compressor, the outdoor fan and often the indoor blower. The classic sign of failure is an outdoor unit that hums but does not start.

It is one of the least expensive parts in the system. It is still a job for a technician, because a capacitor can hold a dangerous charge after the power is switched off.

What a capacitor does

A capacitor stores electrical charge and releases it in step with the motor. That shifts the timing of current in a second motor winding, which gives a single-phase motor the push it needs to start and the balance it needs to run efficiently.

Without it, a compressor or fan motor receives power but cannot turn, or turns weakly. That is why a failed capacitor so often looks like a failed motor from the outside, and why the two are told apart by measurement rather than by looking. See what an AC condenser does for the rest of the outdoor unit.

Start, run and dual run capacitors

Residential systems use two kinds of job, sometimes combined in one part: a run capacitor that stays in the circuit, and a start capacitor that helps only at start-up.

Type	Job	Typically found on
Run capacitor	Stays in the circuit while the motor runs, for efficient operation	Outdoor fan motors, blower motors, compressors
Dual run capacitor	One case serving two motors, with terminals usually marked HERM, FAN and C	Outdoor condensing units, serving compressor and fan
Start capacitor	Adds a burst of starting torque, then is switched out	Some compressors, and hard start kits
Hard start kit	An added start capacitor with a relay	Compressors that struggle to start

Signs a capacitor has failed

Most capacitor symptoms are about motors not starting properly. Each one has other possible causes, which is why a technician tests before replacing anything.

The outdoor unit hums but the fan does not turn. The most common pattern. A failed contactor or a seized motor can look the same. More in what HVAC noises mean.
The compressor tries to start and trips the breaker. A weak start or run capacitor is one cause; a failing compressor is another.
The fan starts slowly or not at all while the compressor runs.
The system runs but blows warm air. If the compressor is not starting, the indoor blower can still move uncooled air. See AC running but not cooling.
A visibly swollen or leaking case. A domed top is a clear sign, but many failed capacitors look perfectly normal.

If the outdoor unit is humming without starting, switch the system off at the thermostat. A motor that keeps receiving power without turning can overheat.

Why it is not a do-it-yourself part

A capacitor can retain a charge after the disconnect is off, and the outdoor unit runs on a 240-volt circuit. Fitting one with the wrong rating can damage the motor it is meant to protect, and confirming the fault takes a meter. Replacing a capacitor does not open the refrigerant circuit, so EPA Section 608 certification does not govern that task itself, but state and local electrical rules may.

Reading the label

Every capacitor is printed with its capacitance in microfarads, shown as µF or MFD, and a voltage rating, commonly 370 or 440 volts AC on residential equipment.

A replacement should match the capacitance the equipment calls for and meet or exceed the voltage rating. On a dual run capacitor both capacitance values matter, one for the compressor and one for the fan. The equipment wiring diagram, not the old part alone, is the reference, because the old part may itself be the wrong one.

Why a small part matters

A capacitor is cheap; the motors it serves are not, and they are getting more expensive. The BLS producer price index for motor and generator manufacturing reached 318.1 in 2026-08, up 3.9% on a year earlier and 47.5% above its 2019 average.

That is a factory-gate index for motors in general, not a price for HVAC replacement motors. It still makes the practical point: dealing with a failing capacitor promptly costs less than letting a motor strain against it.

What a capacitor replacement costs

No federal series measures HVAC repair prices, so any figure you see for a capacitor replacement is a vendor survey or a contractor estimate. We do not publish one.

The part is inexpensive and the visit is short, which puts it at the low end of HVAC repairs. Ask for part and labour separately, and ask why it failed: a capacitor that fails twice in two seasons points to a different problem. Our page on what HVAC repair costs are actually measured explains the gap in the data.

Frequently asked questions

What does a capacitor do on an AC unit?

It stores and releases electrical charge to help the compressor, outdoor fan and sometimes the indoor blower motor start and run efficiently. Without a working capacitor, those single-phase motors receive power but cannot turn, or turn weakly.

How do I know if my AC capacitor is bad?

The usual sign is an outdoor unit that hums but does not start, or a fan that will not spin while the compressor runs. A swollen or leaking case confirms it, but many failed capacitors look normal. A failed contactor or motor can cause the same symptoms, so a technician tests it with a meter.

Can I replace an AC capacitor myself?

It is not recommended. A capacitor can hold a dangerous charge after the power is off, the outdoor unit runs on 240 volts, and the wrong rating can damage a motor. EPA refrigerant certification does not govern the task, but state and local electrical rules may.

What is a dual run capacitor?

A single capacitor case that serves two motors, usually the compressor and the outdoor fan, with terminals commonly marked HERM for the compressor, FAN for the fan motor and C for common. It carries two capacitance ratings, and a replacement must match both.

Methodology and limitations

This page describes how motor capacitors work in residential air conditioners and heat pumps in general terms. Equipment-specific ratings come from the manufacturer’s wiring diagram and data plate.

No federal source measures capacitor failure rates or replacement prices, and we publish neither.
The motor price index is BLS series PCU335312335312, not seasonally adjusted, and covers motors broadly rather than HVAC replacement parts.
Nothing here is electrical safety advice for a specific installation.

Sources

US Bureau of Labor Statistics, Producer Price Index series PCU335312335312, motor and generator manufacturing.
US Environmental Protection Agency, Section 608 of the Clean Air Act, refrigerant management requirements.

The HVAC Brief is an independent trade publication. We do not sell equipment, take manufacturer advertising, or accept payment for placement in our research. Corrections welcome.

September 11, 2026

What Is Central Heating? Forced Air, Boilers and Heat Pumps

Last reviewed: September 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

The short answer

Central heating is any system that produces heat in one place and distributes it through the house, by ducts or by pipes. In the US it usually means a forced-air furnace: 74.42 million homes, 63.2% of those that heat, use a central warm-air furnace as their main heating equipment, according to EIA’s Residential Energy Consumption Survey.

Add central heat pumps and 90.55 million homes, 76.9%, heat with ducted forced air. Boilers feeding radiators or radiant floors, which is what central heating usually means in Britain, are the main system in 9.29 million.

63%Homes heating mainly with a central furnace

72%Of those furnaces burn natural gas

20%Homes whose main heating equipment is 20 years old or more

95%Federal AFUE minimum for new gas furnaces from December 18, 2028

How forced-air central heating works

A furnace heats air and a blower pushes that air through ducts. The flame or element never touches the air you breathe; a heat exchanger sits between them.

The thermostat calls for heat.
The furnace produces heat, by burning gas, propane or oil, or by passing current through electric resistance elements.
A heat exchanger transfers that heat to the air while keeping combustion gases in a separate path.
The blower pushes warmed air into the supply ducts and out through registers in each room.
Return ducts draw cooler room air back to the furnace, through the filter, to be heated again.
Combustion gases vent outdoors through a flue or, on high-efficiency condensing furnaces, through plastic vent pipe.

A heat pump does the same distribution job but moves heat from outdoor air instead of making it. See heat pump versus gas furnace.

What US homes heat with

Forced air dominates. The central furnace alone is the main system in more homes than every other type of heating equipment combined.

Main heating equipment	Homes (millions)	Share of homes that heat
Central warm-air furnace	74.42	63.2%
Heat pump	16.13	13.7%
Steam or hot water system	9.29	7.9%
Built-in electric units	7.65	6.5%
Built-in oil or gas room heater	3.49	3.0%
Portable electric heaters	3.03	2.6%
Wood-burning stove	1.94	1.6%
Ductless heat pump (mini-split)	1.06	0.9%
Some other equipment	0.74	0.6%
Homes using heating equipment	117.74	100%

Figures are EIA RECS 2020, table HC6.1, and may not sum exactly because of rounding. Fuel shares across all equipment types are covered in how American homes are heated.

Does central heating use gas?

Usually, but not always. Of the 74.42 million homes heating mainly with a central furnace, 71.6% burn natural gas.

Furnace fuel	Homes (millions)	Share of furnace homes
Natural gas	53.26	71.6%
Electricity	13.82	18.6%
Propane	4.03	5.4%
Fuel oil or kerosene	3.10	4.2%

Electric furnaces are the second largest group. They have no flame and no flue, and they convert electricity to heat one for one, which makes them expensive to run where electricity is expensive.

Forced air versus hot water

Both are central heating. The difference is what carries the heat: air through ducts, or water through pipes to radiators, baseboards or floors.

Factor	Forced air	Hot water (hydronic)
Heat carrier	Air, through ducts	Water, through pipes
Shares ducts with central air	Yes	No, cooling needs a separate system
Filtration and humidity control	Built into the air path	Not part of the system
Federal efficiency metric	AFUE for furnaces, HSPF2 for heat pumps	AFUE for boilers
Homes using as main heat	90.55M with heat pumps	9.29M

More on the water side in radiant floor heating.

Federal efficiency minimums for furnaces

A new non-weatherized gas furnace must reach 80% AFUE today, and 95% for units manufactured from December 18, 2028, under 10 CFR 430.32(e).

Furnace class	Current minimum AFUE	From December 18, 2028
Non-weatherized gas furnace	80.0%	95.0%
Mobile home gas furnace	80.0%	95.0%
Weatherized (outdoor) gas furnace	81.0%	No change scheduled
Non-weatherized oil-fired furnace	83.0%	No change scheduled
Weatherized oil-fired furnace	78.0%	No change scheduled
Mobile home oil-fired furnace	75.0%	No change scheduled
Electric furnace	78.0%	No change scheduled

AFUE is determined under the federal test procedure, so these are rating floors rather than measured performance in a given house. The 2028 change and what it means for venting is covered in the 95% furnace standard.

What central heat costs to run, by fuel

At 2025/26 heating season average prices, heat from an 80% gas furnace cost about $18.81 per million Btu delivered, against $52.10 from an electric furnace and $23.70 from a minimum-efficiency heat pump.

The full comparison, including propane, oil and the prices used, is in what heat costs by fuel.

How old heating systems are

Heating equipment is kept much longer than cooling equipment. 20.0% of homes that heat run main heating equipment 20 years old or more, against 9.6% of air conditioned homes for cooling equipment.

Age of main heating equipment	Homes (millions)	Share of homes that heat
Less than 2 years	13.29	11.3%
2 to 4 years	17.19	14.6%
5 to 9 years	26.77	22.7%
10 to 14 years	22.29	18.9%
15 to 19 years	14.66	12.5%
20 years or more	23.54	20.0%

Ages are reported by households, grouped in bands, and cover all main heating equipment, including long-lived boilers.

Frequently asked questions

What is central heating?

A system that produces heat in one place and distributes it through the whole house, either as warm air through ducts or as hot water through pipes. In the US the most common form is a forced-air furnace, the main heating equipment in 74.42 million homes, per EIA RECS 2020.

Does central heating use gas?

Most often. Of 74.42 million homes heating mainly with a central furnace, 53.26 million, 71.6%, use natural gas. The rest use electricity, propane or fuel oil. Central heat pumps and electric furnaces use no gas at all.

What is forced air heating?

Heating that warms air in a furnace or heat pump and pushes it through ducts with a blower. Furnaces and central heat pumps together are the main heating system in 90.55 million US homes, 76.9% of homes that use heating equipment.

What is the most common heating system in the US?

The central warm-air furnace, the main heating equipment in 74.42 million homes, 63.2% of those using heating. Heat pumps are second at 16.13 million and steam or hot water systems third at 9.29 million, per EIA RECS 2020.

Methodology and limitations

Household counts and ages are EIA RECS 2020, table HC6.1. Efficiency minimums are quoted from 10 CFR 430.32(e). Running costs use EIA season average prices and federal minimum efficiencies, as documented on our fuel cost page.

RECS 2020 is a survey estimate and the latest vintage for equipment data, with the 2024 survey’s equipment tables due in spring 2027 See what the 2024 survey release covers.; we do not project it forward.
Furnace fuel rows do not sum to the furnace total because of rounding and suppressed cells.
We publish no installed prices, because no federal series measures them.

Sources

US Energy Information Administration, Residential Energy Consumption Survey 2020, table HC6.1.
Code of Federal Regulations, 10 CFR 430.32(e), furnace and boiler standards.

The HVAC Brief is an independent trade publication. We do not sell equipment, take manufacturer advertising, or accept payment for placement in our research. Corrections welcome.

September 11, 2026

How to Choose an HVAC Contractor: What to Verify First

Last reviewed: September 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

The short answer

Choose an HVAC contractor on what you can verify: a licence that covers HVAC work, EPA certified technicians, a written load calculation, a quote naming the matched equipment and refrigerant, and a clear answer on who pulls the permit.

Reviews and price matter, but neither tells you whether the system will be sized and installed correctly. The checks below do, and a good contractor will answer all of them without hesitation.

Nine checks, in order

Work through these before comparing prices, because a cheaper quote that fails one of them is not comparable.

A licence that covers the work. Look it up with your state licensing board or local building department. Requirements vary, and some states license HVAC at state level while others leave it to cities or counties.
EPA certified technicians. Anyone who works on the refrigerant circuit must hold Section 608 certification, and a company cannot legally buy refrigerant unless it employs a certified technician. See what 608 certification means.
A load calculation. Ask how the size was chosen. The industry procedure is ACCA Manual J, done room by room. A quote that simply matches the old unit’s size has not been sized. Our sizing guide explains why that matters.
A matched system on paper. The quote should give model numbers for the outdoor unit and the indoor coil or air handler. Efficiency ratings apply to the certified combination, which you can check in the AHRI Directory of Certified Product Performance.
The refrigerant named. New residential systems now use A2L refrigerants such as R-454B or R-32. Do not accept a quote that leaves the refrigerant out.
Regional efficiency compliance. In the federal Southeast and Southwest regions, a split air conditioner under 45,000 Btu/h installed since January 1, 2023 must reach 14.3 SEER2. The rule turns on where and when the system is installed.
Permit and inspection. Ask who pulls the permit and whether an inspection follows. Permit rules are local.
Warranty in writing. Get the labour warranty term on paper and ask who registers the manufacturer warranty. See what an HVAC warranty covers.
Payment terms. Compare the total amount repayable on any financing, not the monthly figure, and ask when each payment is due.

What a written quote should include

A quote is only comparable to another quote if both describe the same scope. These are the lines that most often go missing.

Line on the quote	Why it matters
Outdoor unit model number	Identifies the exact equipment and its certified ratings
Indoor coil or air handler model number	Ratings apply to the matched pair, not the outdoor unit alone
AHRI certified reference number	Lets you confirm the combination’s SEER2 and capacity
Refrigerant type	Affects parts, service and future refrigerant cost
Basis for capacity	Shows whether a load calculation was done
Ductwork scope	Existing ducts reused, modified or replaced
Permit	Who obtains it and whether inspection is included
Removal and disposal	Includes refrigerant recovery from the old system
Labour warranty	Term, and what it excludes
Payment schedule	Deposit, stage payments and final payment trigger

Our walk-through of what happens on installation day shows what each of those lines looks like when the work is done.

Your right to cancel a sale made at home

If a seller signs you up at your home for a contract of $25 or more, the FTC’s Cooling-Off Rule generally gives you until midnight of the third business day to cancel.

The rule, at 16 CFR 429.1, requires the seller to give you a contract stating, in substance: “You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction.” It also requires a notice of cancellation form.

The rule has limits. It does not cover a sale that followed prior negotiations at the seller’s permanent business location, and it excludes certain emergency situations where you initiated the contact. Many states add their own home improvement protections on top.

Red flags

None of these proves a contractor is bad, but each one is a reason to slow down.

A size quoted without anyone measuring the house or asking about insulation and windows.
Pressure to sign the same day, especially with a discount that expires tonight.
A quote with a brand name but no model numbers.
Reluctance to pull a permit.
No answer on what refrigerant the new system uses.
A request for most of the price before any work starts.

A small company is normal

Census counted 111,207 plumbing, heating and air conditioning contractor establishments in 2023, and 58.3% had fewer than five employees. Size tells you little about quality; the checks above tell you more. See the contractor industry by the numbers.

Frequently asked questions

How do I choose a good HVAC contractor?

Verify a licence that covers HVAC work, confirm technicians hold EPA Section 608 certification, ask for a room-by-room load calculation, and insist on a written quote with matched model numbers, the refrigerant type, permit responsibility and a labour warranty. Compare prices only between quotes that pass those checks.

What should an HVAC quote include?

Model numbers for the outdoor unit and the indoor coil or air handler, the AHRI certified reference number, the refrigerant, the basis for the capacity chosen, ductwork scope, permit responsibility, removal and refrigerant recovery, the labour warranty and the payment schedule.

Do HVAC contractors need to be certified?

Technicians who work on refrigerant circuits must hold EPA Section 608 certification, and a company can only buy refrigerant if it employs a certified technician. Contractor licensing is separate and is set by states and localities, so requirements differ by where you live.

Can I cancel an HVAC contract after signing?

If you signed at home with a seller who came to you and the price is $25 or more, the FTC Cooling-Off Rule generally lets you cancel until midnight of the third business day. It does not cover every sale, including some emergency repairs you requested, and state law may add protections.

Methodology and limitations

This checklist is built from federal rules we can cite: the EPA refrigerant sales restriction, 10 CFR 430.32 regional standards and the FTC Cooling-Off Rule. Industry procedures are named, not reproduced.

We rate and recommend no contractors.
Licensing, permit and deposit rules vary by state and locality, and we do not summarise them.
Nothing here is legal advice.

Sources

US Environmental Protection Agency, Refrigerant Sales Restriction.
Code of Federal Regulations, 16 CFR Part 429, Cooling-Off Period for Sales Made at Homes or at Certain Other Locations.
Code of Federal Regulations, 10 CFR 430.32(c)(6), regional standards for central air conditioners.
US Census Bureau, County Business Patterns 2023, NAICS 238220.

The HVAC Brief is an independent trade publication. We do not sell equipment, take manufacturer advertising, or accept payment for placement in our research. Corrections welcome.

September 11, 2026

Starting an HVAC Business: What the Census Counts Show

Last reviewed: September 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

The short answer

There were 111,207 plumbing, heating and air conditioning contractor establishments with paid employees in the US in 2023, and 58.3% of them employed fewer than five people, according to the Census Bureau’s County Business Patterns.

Starting one is federally simple and locally complicated. There is no federal contractor licence, but a business can only buy refrigerant if it employs an EPA certified technician, and licensing is set by states and localities.

111,207Contractor establishments with payroll, 2023

58%Employ fewer than five people

$0.1kAnnual payroll per employee, 2023

69%Organised as S corporations

How big the trade is

The contractor industry grew on every measure between 2022 and 2023, and payroll grew fastest: up 8.9% against 3.2% more employees.

NAICS 238220	2022	2023	Change
Establishments	109,601	111,207	+1.5%
Employees, mid-March	1,176,759	1,214,761	+3.2%
Annual payroll	$82.24B	$89.52B	+8.9%
Payroll per employee	$69,883	$73,693	+5.5%
Average employees per establishment	10.7	10.9

One caveat shapes every number here. The federal industry code, NAICS 238220, covers plumbing, heating and air conditioning contractors together, and Census does not publish HVAC-only firms separately. County Business Patterns also counts only establishments with paid employees, so a one-person business with no payroll is not in these figures.

Most firms are small

A business with fewer than five employees is the typical contractor, not the exception. Only 1,656 establishments, 1.5%, employ 100 people or more.

Employees	Establishments, 2023	Share	Cumulative
Fewer than 5	64,871	58.3%	58.3%
5 to 9	20,587	18.5%	76.8%
10 to 19	13,148	11.8%	88.7%
20 to 49	8,384	7.5%	96.2%
50 to 99	2,561	2.3%	98.5%
100 to 249	1,300	1.2%	99.7%
250 to 499	256	0.2%	99.9%
500 to 999	76	0.1%	100.0%
1,000 or more	24	0.0%	100.0%

For a new owner, that distribution cuts both ways. Small is a normal starting point, and most competitors are also small; but the few large operators have scale in purchasing, marketing and hiring that a start-up does not.

How HVAC firms are organised

More than two thirds of contractor establishments belong to S corporations, and the share of sole proprietorships is shrinking.

Legal form	2022	2023	Change	Share, 2023
S corporation	73,280	76,190	+4.0%	68.5%
C corporation	16,103	15,841	-1.6%	14.2%
Sole proprietorship	12,858	11,821	-8.1%	10.6%
Partnership	7,306	7,299	-0.1%	6.6%
Nonprofit	43	42	-2.3%	0.0%
Other	11	14	+27.3%	0.0%

This shows what existing firms do, not what a new one should do. Entity choice is a tax and liability decision for an accountant or attorney who knows your state.

What is required federally, and what is not

Federal rules for an HVAC business are mostly about refrigerant and employment. Licensing to contract is not federal.

Refrigerant purchasing. EPA’s sales restriction says “Only EPA-certified technicians are allowed to purchase” ozone-depleting refrigerants or their non-ozone-depleting substitutes, with limited exceptions. An employer can buy if it gives the wholesaler written evidence that it employs at least one properly certified technician.
Technician certification. Technicians who maintain, service, repair or dispose of equipment that could release refrigerant need Section 608 certification. See what the EPA 608 certification covers.
Employer registration. A business with employees needs an employer identification number from the IRS and has federal payroll tax obligations.
Everything else is state or local. Contractor licensing, business registration, insurance and workers’ compensation requirements, and permits vary by state and often by city or county. No federal source consolidates them.

Labour is the constraint to plan around

Hiring costs more every year. Average hourly earnings at plumbing, heating and air conditioning contractors reached $42.61 in July 2026, a preliminary BLS figure, up 40.2% from $30.39 in 2019.

Employment in the same industry was 1,355,400 in July 2026, also preliminary, up 18.8% from the 2019 average. More on pay in what HVAC contractors pay and the latest employment and wage readings.

Why the two headcounts differ

County Business Patterns counts 1,214,761 employees in the pay period including March 12, 2023. The BLS Current Employment Statistics survey puts the industry at 1,355,400 in July 2026. They are different surveys, three years apart, and both include plumbing. Use CBP for firm structure and CES for the current trend.

Frequently asked questions

How many HVAC companies are there in the US?

Census County Business Patterns counted 111,207 plumbing, heating and air conditioning contractor establishments with paid employees in 2023. That code includes plumbing contractors, and it excludes businesses with no payroll, so no federal source gives an HVAC-only count.

Do you need a license to start an HVAC business?

There is no federal contractor licence. Licensing is set by states and often by cities or counties. Federally, technicians who handle refrigerant need EPA Section 608 certification, and a business can only buy refrigerant if it employs at least one certified technician.

Can an HVAC company buy refrigerant without certification?

Only with a certified technician on staff. EPA allows an employer to purchase refrigerant if it provides the wholesaler with written evidence that it employs at least one properly certified technician. Only Section 608 certified technicians can buy refrigerant intended for stationary air conditioning equipment.

Are most HVAC businesses small?

Yes. In 2023, 58.3% of plumbing, heating and air conditioning contractor establishments had fewer than five employees, and 1.5% had 100 or more, according to Census County Business Patterns.

Methodology and limitations

Establishment, employee, payroll, size and legal form figures are County Business Patterns 2023 and 2022 national files for NAICS 238220. Earnings and employment trends are BLS Current Employment Statistics series CEU2023822003 and CEU2023822001; July 2026 values are preliminary and subject to revision.

NAICS 238220 includes plumbing contractors, and CBP counts establishments, not firms.
Nonemployer businesses are excluded from CBP.
We publish no revenue, margin or start-up cost figures, because CBP does not measure them and we do not use vendor surveys.
Nothing here is legal, tax or licensing advice.

Sources

US Census Bureau, County Business Patterns, 2023 and 2022, NAICS 238220.
US Environmental Protection Agency, Refrigerant Sales Restriction.
US Bureau of Labor Statistics, Current Employment Statistics series CEU2023822001 and CEU2023822003.

The HVAC Brief is an independent trade publication. We do not sell equipment, take manufacturer advertising, or accept payment for placement in our research. Corrections welcome.

September 11, 2026

What Is Central Air? How It Works and Who Has It

Last reviewed: September 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

The short answer

Central air is a cooling system that serves the whole house from one outdoor unit and one indoor coil, moving cooled air to every room through ducts. It is how most American homes are cooled: 82.69 million homes, 75.5% of those using air conditioning, rely on central equipment as their main system, according to the EIA Residential Energy Consumption Survey.

Central air runs on electricity. It usually shares ductwork and a blower with the furnace, which is why the pairing gets sold and discussed as central heat and air.

82.7MHomes using central air as their main cooling, including central heat pumps

76%Share of air conditioned homes

21.4MHomes relying mainly on window or wall units

13.4Federal minimum SEER2 for a split central air conditioner in northern states

How central air works

A central air conditioner does not make cold air. It moves heat from inside the house to outside, using refrigerant that absorbs heat at the indoor coil and releases it at the outdoor coil.

The thermostat calls for cooling. It switches on the outdoor unit and the indoor blower.
The blower pulls room air through the return ducts and pushes it across the indoor evaporator coil.
Refrigerant in the coil evaporates and absorbs heat from that air. Moisture condenses on the cold coil and drains away, which is how central air dehumidifies.
The compressor in the outdoor unit pumps the refrigerant vapour up to high pressure and temperature.
The outdoor condenser coil and fan release the heat to outside air, and the refrigerant condenses back into a liquid.
An expansion device drops the pressure and the cold refrigerant returns indoors, while the cooled air leaves through the supply ducts.

The parts of a central air system

Every central system has the same core parts split between an outdoor cabinet and an indoor section, joined by refrigerant lines and served by ductwork.

Part	Where it sits	What it does
Condensing unit	Outdoors, on a pad or bracket	Holds the compressor, condenser coil and fan, and rejects heat outside
Evaporator coil	Indoors, on the furnace or inside an air handler	Absorbs heat and removes moisture from house air
Blower	In the furnace or air handler	Moves air across the coil and through the ducts
Refrigerant lines	Between the two units	Carry refrigerant in a sealed loop
Supply and return ducts	Throughout the house	Deliver cooled air and bring room air back
Condensate drain	Under the indoor coil	Carries away the water pulled out of the air
Thermostat	Living space	Starts and stops the cycle

The outdoor unit is covered in detail in what an AC condenser does. Ducts decide more of a system’s real performance than most owners expect, which is why ductwork and airflow problems so often get blamed on the equipment.

How many homes have central air

Central equipment is the main cooling system in 66.9% of all US homes. It is close to standard in houses and noticeably less common in apartments.

Main cooling equipment	Homes (millions)	Share of AC users
Central air, including central heat pumps	82.69	75.5%
Window or wall air conditioner	21.43	19.6%
Portable air conditioner	2.68	2.4%
Ductless heat pump (mini-split)	1.76	1.6%
Evaporative or swamp cooler	0.95	0.9%
All homes using air conditioning	109.51	100%

Housing type	Homes using AC (millions)	Central as main system (millions)	Central share
Single-family detached	69.75	57.73	82.8%
Single-family attached	6.57	5.15	78.4%
Apartment, 2 to 4 units	7.57	3.80	50.2%
Apartment, 5 or more units	19.56	12.11	61.9%
Mobile home	6.07	3.90	64.3%

Another 14.02 million homes use no air conditioning at all.

Central air versus the alternatives

The real choice is between systems that need ducts and systems that do not. Central air and central heat pumps need them; mini-splits, window units and portables do not.

System	Needs ducts	Area served	Also heats
Central air conditioner	Yes	Whole house	No, paired with a furnace
Central heat pump	Yes	Whole house	Yes
Ductless mini-split	No	One zone per indoor head	Usually, as a heat pump
Window or wall unit	No	One room	Some models
Portable unit	No	One room	Some models

A central heat pump is the same machine as central air with a reversing valve added, so it can run the cycle backwards in winter. See how a heat pump works.

Does central air use gas?

No. The compressor, fans and controls all run on electricity. The confusion comes from the furnace: in a house with a gas furnace, central air shares the furnace blower and ducts, so the two look like one appliance.

The word gas also gets used loosely for refrigerant. Refrigerant is a working fluid that circulates in a sealed loop, not a fuel that gets burned, and a correctly working system does not use it up.

What the federal efficiency rules require

New central air conditioners must meet a minimum SEER2 rating set by the Department of Energy, and for split systems the minimum depends on where the system is installed.

Product	North	Southeast	Southwest
Split air conditioner, under 45,000 Btu/h	13.4 SEER2	14.3 SEER2	14.3 SEER2, plus EER2
Split air conditioner, 45,000 Btu/h or more	13.4 SEER2	13.8 SEER2	13.8 SEER2, plus EER2
Split heat pump	14.3 SEER2, 7.5 HSPF2	14.3 SEER2, 7.5 HSPF2	14.3 SEER2, 7.5 HSPF2

Under 10 CFR 430.32, the Southeast covers Alabama, Arkansas, Delaware, Florida, Georgia, Hawaii, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, the District of Columbia and US territories. The Southwest is Arizona, California, Nevada and New Mexico. The regional rules apply to systems installed on or after January 1, 2023. Our SEER2 guide covers how the rating works.

How old central air systems are

About one in five air conditioned homes runs main cooling equipment that is at least 15 years old: 21.56 million homes, or 19.7%.

Age of main AC equipment	Homes (millions)	Share of AC users
Less than 2 years	15.63	14.3%
2 to 4 years	21.76	19.9%
5 to 9 years	30.08	27.5%
10 to 14 years	20.49	18.7%
15 to 19 years	11.01	10.1%
20 years or more	10.55	9.6%

These bands cover all main cooling equipment, not central systems alone, and ages are as reported by households. RECS publishes the distribution but no average age and no failure rate. Our guide to HVAC lifespan explains what that does and does not tell you.

Frequently asked questions

What is central air?

Central air is a whole-house cooling system with an outdoor condensing unit, an indoor evaporator coil and a blower that sends cooled air through ducts to every room. It is the main cooling system in 82.69 million US homes, 75.5% of homes that use air conditioning, per EIA RECS 2020.

Does central air use gas?

No. Central air runs on electricity. It often shares ductwork and a blower with a gas furnace, which is why the two can seem like one system. Refrigerant is sometimes called gas, but it is a sealed working fluid, not a fuel.

What is the difference between central air and a heat pump?

A central heat pump is a central air conditioner that can also run in reverse to heat the house. Both use an outdoor unit, an indoor coil and ducts. A central air conditioner only cools and relies on a separate furnace or boiler for heat.

How common is central air in the US?

Central equipment is the main cooling system in 82.69 million of 123.53 million US homes, or 66.9%. Among single-family detached houses that use air conditioning the share is 82.8%, and among apartments in buildings with five or more units it is 61.9%.

Methodology and limitations

Household counts are from EIA RECS 2020 table HC7.1, the latest vintage for equipment data, and include central heat pumps in the central category. Efficiency minimums are quoted from the Code of Federal Regulations.

RECS 2020 is a survey estimate with sampling error, and we do not project it forward.
Equipment age is reported by households, grouped in bands, and covers all main cooling types.
We publish no installation prices, because no federal series measures them.

Sources

US Energy Information Administration, Residential Energy Consumption Survey 2020, table HC7.1.
Code of Federal Regulations, 10 CFR 430.32(c)(5) and (c)(6), energy conservation standards for central air conditioners and heat pumps.

The HVAC Brief is an independent trade publication. We do not sell equipment, take manufacturer advertising, or accept payment for placement in our research. Corrections welcome.

September 11, 2026

Radiant Floor Heating: Hydronic vs Electric, by the Numbers

Last reviewed: September 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

The short answer

Radiant floor heating warms a room from the floor up, using hot water tubing or electric cables under the surface. The Department of Energy’s guidance says radiant heating “is more efficient than baseboard heating and usually more efficient than forced-air heating because it eliminates duct losses.”

Running cost depends on the heat source. A hydronic floor fed by a minimum-efficiency gas boiler delivered heat for about $17.92 per million Btu at 2025/26 prices; an electric floor is resistance heat, at about $52.10.

3Types: radiant air, electric and hydronic

$17.92Per million Btu, hydronic from an 84% gas boiler

$52.10Per million Btu, electric radiant floor

9.29MHomes heating mainly with steam or hot water systems

How radiant floor heating works

Heat passes from a warm floor surface directly to people and objects in the room, rather than being carried by moving air. There are no ducts to lose heat along the way.

DOE separates installations into two kinds. “Wet” installations embed tubing or cables in a concrete slab or lightweight concrete, using its thermal mass. “Dry” installations run them in an air space under the floor, which is faster and cheaper to build but needs the system to run at a higher temperature.

Hydronic, electric and radiant air floors

Of the three types, DOE calls hydronic systems “the most popular and cost-effective radiant heating systems for heating-dominated climates.”

Type	How it heats	DOE’s assessment
Hydronic	Pumps heated water from a boiler through tubing under the floor	Most popular and cost-effective in heating-dominated climates
Electric	Heating cables or mats built into the floor	Usually cost-effective only with significant thermal mass and time-of-use electricity rates
Radiant air	Pumps heated air through the floor	Not cost-effective in homes and seldom installed

Hydronic systems can heat the water with gas or oil boilers, wood-fired boilers or solar water heaters. Our guide to boilers and baseboard heating covers the boiler side.

What radiant floor heating costs to run

The floor only distributes heat; the source sets the running cost. At 2025/26 season prices and federal minimum efficiencies:

Heat source	Federal minimum	Cost per million Btu delivered
Gas hot water boiler	84% AFUE	$17.92
Oil hot water boiler	86% AFUE	$33.68
Electric cables or mats	Resistance, 100%	$52.10

Federal AFUE minimums for hot water boilers are 84% for gas and 86% for oil under 10 CFR 430.32(e)(2); electric hot water boilers have no AFUE minimum. For how these compare with furnaces and heat pumps, see what heat costs by fuel.

How electric floors can make sense

DOE’s guidance explains that with a thick concrete floor and time-of-use rates, you can “charge” the slab with heat during off-peak hours, approximately 9 p.m. to 6 a.m. If the thermal mass is large enough, the stored heat “will keep the house comfortable for eight to ten hours without any further electrical input.” Without both conditions, an electric floor is simply expensive heat.

Which floor coverings work

DOE says ceramic tile “is the most common and effective floor covering for radiant floor heating, because it conducts heat well and adds thermal storage.” Anything that insulates the floor from the room lowers efficiency.

Tile and stone: the best match.
Carpet: use thin carpet with dense padding, and as little as possible.
Wood: DOE recommends laminated wood flooring over solid wood, to reduce shrinking and cracking.
Mixed rooms: rooms with a different covering should have their own tubing loop, because water under a covered floor has to run hotter.

The disadvantages

The main drawbacks are slow response, no cooling, and cost and disruption to install in an existing home.

Slow response. DOE notes thick slabs have a “slow thermal response time, which makes strategies such as night or daytime setbacks difficult if not impossible,” and most experts recommend a constant temperature.
No cooling. A radiant floor heats only. Cooling needs a separate system, such as a ductless mini-split.
Installation cost. DOE says hydronic installation cost varies with location, home size, installation type, floor covering, site remoteness and labour. No federal series measures it.
Floor limits. Coverings and floor build-up are constrained, especially in retrofits.

How many homes use it

EIA does not count radiant floors separately. Its Residential Energy Consumption Survey reports that 9.29 million homes, 7.9% of those that heat, use a steam or hot water system as their main heating equipment, a group that includes radiators, baseboards and radiant floors. Forced air is far more common; see what central heating is.

Frequently asked questions

Is radiant floor heating efficient?

DOE’s guidance says radiant heating is more efficient than baseboard heating and usually more efficient than forced-air heating because it eliminates duct losses. Running cost still depends on the heat source: about $17.92 per million Btu from an 84% gas boiler against $52.10 for electric floors at 2025/26 prices.

Is electric radiant floor heating expensive to run?

Usually, because it is resistance heat. At the 2025/26 heating season average electricity price it cost about $52.10 per million Btu delivered. DOE says electric floors are usually cost-effective only with significant thermal mass and time-of-use rates, or in additions where extending the main system is impractical.

What is the best flooring for radiant heat?

Ceramic tile, which DOE calls the most common and effective covering because it conducts heat well and adds thermal storage. Carpet should be thin with dense padding, and laminated wood is preferred over solid wood to limit shrinking and cracking.

What are the disadvantages of radiant floor heating?

Slow response in thick slabs, which makes thermostat setbacks difficult; no cooling, so a separate system is needed; limits on floor coverings; and an installation cost that DOE says varies widely with home size, installation type and labour.

Methodology and limitations

DOE statements are quoted from its Energy Saver guidance on radiant heating, which no longer resolves at energy.gov; we cite the archived copy. Running costs use EIA 2025/26 season average prices and federal minimum efficiencies, documented on our fuel cost page.

We publish no installed prices, because no federal series measures them.
Costs exclude distribution pumps, boiler standby losses and fixed utility charges.
RECS 2020 does not separate radiant floors from other hot water systems.

Sources

US Department of Energy, Energy Saver: Radiant Heating, archived copy.
Code of Federal Regulations, 10 CFR 430.32(e)(2), residential boiler standards.
US Energy Information Administration, Residential Energy Consumption Survey 2020, table HC6.1.

The HVAC Brief is an independent trade publication. We do not sell equipment, take manufacturer advertising, or accept payment for placement in our research. Corrections welcome.

September 11, 2026

Geothermal Heat Pumps: Loops, Ratings and the Ended Credit

Last reviewed: September 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

The short answer

A geothermal heat pump heats and cools a house by exchanging heat with the ground, which the Department of Energy describes as holding a relatively constant 40 to 70°F a few feet below the surface. Because the ground is warmer than winter air and cooler than summer air, the system works less hard than an air-source heat pump.

The federal 30% tax credit that covered these systems has ended. The IRS states the Residential Clean Energy Credit “is not available for any property placed in service after December 31, 2025.”

40 to 70°FShallow ground temperature range, per DOE

3.6ENERGY STAR minimum COP, closed loop water-to-air

50+ yrsDOE estimated life of the ground loop

0%Federal credit for systems placed in service in 2026

How geothermal heating and cooling works

It is a heat pump, the same refrigeration cycle as central air, that trades heat with the ground through buried pipe instead of with outdoor air.

Water or a water and antifreeze mix circulates through a buried loop, picking up the ground’s heat in winter.
A heat exchanger passes that heat to the refrigerant in the indoor heat pump unit.
The compressor raises the refrigerant’s temperature and the heat is delivered to the house, usually through ducts.
In summer the cycle reverses, pulling heat from the house and rejecting it into the ground.

DOE notes that geothermal units can also supply hot water if so equipped. For the underlying cycle, see how a heat pump works.

The four types of ground loop

DOE describes four basic loop types: three closed loops, horizontal, vertical and pond or lake, and one open loop. Climate, soil conditions, available land and local installation costs decide which fits a site.

Loop	How it is installed	Where it fits
Horizontal, closed	Pipe laid in trenches at least four feet deep	DOE calls it generally most cost-effective for homes, especially new construction with enough land
Vertical, closed	Holes about four inches wide, about 20 feet apart and 100 to 400 feet deep	Sites where land for horizontal loops is limited
Pond or lake, closed	Loop submerged in a body of water	Properties with suitable water nearby
Open loop	Circulates water from a well or surface source instead of a sealed loop	Sites with adequate water supply and discharge options

A variant called direct exchange skips the water loop and pumps refrigerant through buried copper tubing.

How efficient geothermal heat pumps are

ENERGY STAR certification sets minimum efficiency by product type. A closed loop water-to-air unit must reach an EER of 17.1 and a COP of 3.6.

ENERGY STAR product type	Minimum EER	Minimum COP
Closed loop water-to-air	17.1	3.6
Open loop water-to-air	21.1	4.1
Closed loop water-to-water	16.1	3.1
Open loop water-to-water	20.1	3.5
Direct geoexchange (DGX)	16.0	3.6

At a COP of 3.6 and the 2025/26 season’s average electricity price, heat from a geothermal unit works out to about $14.47 per million Btu, against $23.70 for a minimum-efficiency air-source heat pump and $18.81 for an 80% gas furnace. That COP is a rated value at test conditions, not a measured seasonal figure. The full comparison is in what heat costs by fuel.

What it costs and how long it lasts

No federal series measures installed geothermal prices. DOE’s guidance gives only a relative figure: installation “can be several times that of an air-source system of the same heating and cooling capacity.”

DOE’s guidance says the extra cost “may be returned in energy savings in 5 to 10 years, depending on the cost of energy and available incentives in your area.” That estimate was written while the 30% federal credit was available, so for a 2026 installation the incentive part of the calculation is smaller.

On lifespan, DOE estimates system life “up to 24 years for the inside components and 50+ years for the ground loop.” The loop is the expensive part, and it outlasts several indoor units.

The federal tax credit has ended

Geothermal heat pumps qualified for the Section 25D Residential Clean Energy Credit, worth 30% of costs, but only for property placed in service by December 31, 2025.

Question	What the IRS says
Credit rate	30% of the costs of new, qualified clean energy property
Efficiency requirement	“Geothermal heat pumps must meet Energy Star requirements in effect at the time of purchase.”
Deadline	“The credit is not available for any property placed in service after December 31, 2025.”
Timing rule	“You must claim the credit for the tax year when the property is installed, not merely purchased.”

Some older pages, including government pages written before the change, still describe the credit running into the 2030s. The IRS page governs. State and utility incentives are separate and may still apply. The parallel expiry of the heat pump credit is covered in our 25C report.

Geothermal versus air-source heat pumps

DOE’s comparison is that geothermal units are quieter, more efficient, last longer and need little maintenance, and do not depend on outdoor air temperature. The trade-off is the loop: land or drilling, and a much higher installed price.

EIA’s Residential Energy Consumption Survey does not report ground-source heat pumps separately from other heat pumps, so there is no federal count of homes that use them. For the air-source comparison with gas, see heat pump versus gas furnace.

Frequently asked questions

How does geothermal heating and cooling work?

A heat pump circulates water or antifreeze through pipe buried in the ground or submerged in water, exchanging heat with earth that DOE says holds at roughly 40 to 70°F. In winter it moves ground heat into the house; in summer it moves house heat into the ground.

Is there still a tax credit for geothermal heat pumps in 2026?

Not federally. The IRS says the 30% Residential Clean Energy Credit “is not available for any property placed in service after December 31, 2025,” and the credit is claimed for the year the property is installed, not purchased. State and utility incentives may still be available.

How long do geothermal systems last?

DOE estimates system life at up to 24 years for the inside components and 50 years or more for the ground loop. No federal survey measures actual replacement ages.

Is geothermal more efficient than an air-source heat pump?

Generally yes, because ground temperature is more stable than air temperature. ENERGY STAR closed loop water-to-air units must reach a COP of 3.6, while the federal minimum for split air-source heat pumps, HSPF2 7.5, equates to a seasonal COP of about 2.2. The ratings use different test conditions.

Methodology and limitations

DOE statements are quoted from its Energy Saver guidance on geothermal heat pumps, which no longer resolves at energy.gov; we cite the archived copy. ENERGY STAR criteria and the IRS credit rules were checked in September 2026.

We publish no installed prices or payback periods of our own, because no federal series measures them.
The cost per million Btu uses a rated COP and a national average electricity price.
Nothing here is tax advice.

Sources

US Department of Energy, Energy Saver: Geothermal Heat Pumps, archived copy.
ENERGY STAR, Geothermal Heat Pumps Key Product Criteria.
Internal Revenue Service, Residential Clean Energy Credit.
US Energy Information Administration, Residential Energy Consumption Survey 2020, table HC6.1.

The HVAC Brief is an independent trade publication. We do not sell equipment, take manufacturer advertising, or accept payment for placement in our research. Corrections welcome.

September 11, 2026

What Heat Costs by Fuel: Gas, Propane, Oil and Heat Pumps

Last reviewed: September 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

The short answer

At 2025/26 heating season prices and federal minimum efficiencies, a gas furnace delivered heat for about $18.81 per million Btu, a heat pump for $23.70, propane and oil furnaces for about $34.89, and electric resistance heat for $52.10.

The most efficient system is not automatically the cheapest to run. Electric resistance heat is 100% efficient and still the most expensive, because the fuel price matters as much as the efficiency.

$18.81Per million Btu from an 80% gas furnace

$23.70From a minimum-efficiency air-source heat pump

$52.10From electric resistance heat

14.1¢Electricity price where a heat pump matches gas

What a million Btu of heat cost, by system

Ranked from cheapest to most expensive, using the same season’s average fuel prices for every system and each system’s federal minimum efficiency.

System	Cost per million Btu delivered	Index, 80% gas furnace = 100	Efficiency basis
Geothermal heat pump, closed loop	$14.47	77	COP 3.6, ENERGY STAR minimum at rated conditions
Gas furnace, 95% AFUE	$15.84	84	Federal minimum from December 18, 2028
Gas hot water boiler, 84% AFUE	$17.92	95	Current federal minimum
Gas furnace, 80% AFUE	$18.81	100	Current federal minimum
Air-source heat pump, HSPF2 7.5	$23.70	126	Current federal minimum, seasonal COP about 2.20
Propane furnace, 95% AFUE	$29.38	156	Federal minimum from December 18, 2028
Oil hot water boiler, 86% AFUE	$33.68	179	Current federal minimum
Propane furnace, 80% AFUE	$34.89	185	Current federal minimum
Oil furnace, 83% AFUE	$34.89	185	Current federal minimum
Electric resistance, furnace or baseboard	$52.10	277	Converts electricity to heat one for one

A million Btu is a unit of heat delivered into the house, so the table compares like with like regardless of fuel. It is not an annual bill, which depends on how much heat your house needs.

The fuel prices behind the numbers

Each price is the average across the October 2025 to March 2026 heating season, converted to a cost per million Btu of fuel using EIA heat content factors.

Fuel	Season average price	Btu per unit	Cost per million Btu of fuel	Series
Natural gas	$15.59 per Mcf	1,036,000 per Mcf	$15.05	EIA monthly residential price, N3010US3
Propane	$2.55 per gallon	91,452 per gallon	$27.91	EIA weekly residential propane price
Heating oil	$4.01 per gallon	138,500 per gallon	$28.96	EIA weekly residential heating oil price
Electricity	17.77¢ per kWh	3,412 per kWh	$52.10	EIA Electric Power Monthly, Table 5.3

Delivered cost is the fuel cost divided by efficiency. An 80% furnace needs 1.25 million Btu of gas to put one million Btu into the house. A heat pump with a seasonal coefficient of performance of 2.20 needs only 0.45 million Btu of electricity. Heating oil prices by season are tracked in our heating oil price series.

Efficient is not the same as cheap

Efficiency tells you how much of the fuel becomes heat. Cost per unit of heat also depends on what that fuel costs, and electricity costs far more per Btu than gas.

Electric resistance turns 100% of electricity into heat, but electricity cost $52.10 per million Btu against $15.05 for gas, so it is the most expensive heat in the table.
A heat pump moves heat rather than making it. At the HSPF2 7.5 federal minimum it delivers about 2.2 units of heat per unit of electricity, which is why it undercuts resistance heat by more than half.
Propane and oil furnaces land close together at these prices, roughly 1.9 times the cost of gas heat.
The 2028 gas furnace standard raises the minimum to 95% AFUE, which cuts delivered cost by about 16% at the same gas price. See the 95% furnace rule.

When a heat pump beats gas

At federal minimum efficiencies and 2025/26 season gas prices, an air-source heat pump matches an 80% gas furnace when electricity costs about 14.1 cents per kWh, and a 95% furnace at about 11.9 cents.

Against propane or oil, the break-even is about 26.2 cents, well above the season’s average electricity price of 17.77 cents. Higher rated heat pumps move the line:

Heat pump rating	Status	Seasonal COP	Cost per million Btu
HSPF2 7.5	Federal minimum	2.20	$23.70
HSPF2 8.5	Higher rated	2.49	$20.91
HSPF2 9.5	Higher rated	2.78	$18.71

Local prices can swamp all of this. June 2026 residential electricity ranged from 13.11 cents in Nevada to 52.72 cents in Hawaii; see electricity prices by state. Gas prices vary by state too.

What these figures leave out

HSPF2 is a seasonal rating under a standard federal test climate. In colder places a heat pump’s real seasonal performance is lower, and backup resistance heat raises the cost. Duct losses, fixed monthly gas charges, and minimum delivery terms for propane and oil are also excluded. The geothermal figure uses a rated COP at test conditions, not a seasonal measurement.

Frequently asked questions

What is the cheapest way to heat a house?

At 2025/26 national average prices, gas heat was cheapest among common systems: $18.81 per million Btu from an 80% furnace and $15.84 from a 95% furnace. A minimum-efficiency heat pump delivered heat for $23.70, propane and oil for about $34.89, and electric resistance for $52.10. Local prices can change the order.

What is the most efficient heating system?

By energy delivered per unit consumed, heat pumps: a minimum-efficiency air-source heat pump delivers about 2.2 units of heat per unit of electricity, and ENERGY STAR closed loop geothermal units are rated at a COP of at least 3.6. Efficiency is not the same as running cost, which also depends on fuel price.

Is a heat pump cheaper to run than a gas furnace?

It depends on local prices. At federal minimum efficiencies and 2025/26 season gas prices, a heat pump matches an 80% gas furnace at about 14.1 cents per kWh. The season’s national average was 17.77 cents, so gas was cheaper on average, but a heat pump beat propane, oil and resistance heat.

Is propane or heating oil cheaper for heating?

They were nearly identical in 2025/26. Propane averaged $2.55 a gallon and heating oil $4.01, which at 80% and 83% efficiency gives about $34.89 and $34.89 per million Btu of delivered heat.

Methodology and limitations

Prices are simple averages of EIA observations from October 2025 through March 2026. Heat content factors are EIA’s. Efficiencies are federal minimums from 10 CFR 430.32 and the ENERGY STAR geothermal heat pump criteria. HSPF2 is converted to a seasonal COP by dividing by 3.412.

National averages; state and utility prices differ, in some cases by several times.
Minimum efficiencies, not the efficiency of any installed system.
Excludes equipment cost, installation, fixed charges, delivery fees and distribution losses.

Sources

US Energy Information Administration, natural gas residential prices, series N3010US3.
US Energy Information Administration, Heating Oil and Propane Update, weekly residential prices.
US Energy Information Administration, Electric Power Monthly, Table 5.3.
US Energy Information Administration, British thermal units, heat content factors.
Code of Federal Regulations, 10 CFR 430.32.
ENERGY STAR, Geothermal Heat Pumps Key Product Criteria.

The HVAC Brief is an independent trade publication. We do not sell equipment, take manufacturer advertising, or accept payment for placement in our research. Corrections welcome.

September 11, 2026

Electricity Prices Rose in 46 States in June 2026

Last reviewed: September 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

The short answer

Residential electricity averaged 18.34 cents per kilowatt hour in the US in June 2026, up 5.0% from 17.47 cents a year earlier, and prices rose in 46 of 51 states including the District of Columbia.

The increases were uneven. Hawaii rose 28.7% and Idaho 19.1%, while Connecticut fell 10.6%. Figures are from the EIA Electric Power Monthly released in August 2026.

18.34¢US residential average, June 2026, per kWh

+5.0%Change on June 2025

46 of 51States with higher prices than a year earlier

52.72¢Hawaii, the highest state price

The biggest increases

Hawaii led by a wide margin. Ten states saw residential prices rise by 10.2% or more on the year.

State	June 2026 (cents/kWh)	June 2025	Change
Hawaii	52.72	40.96	+28.7%
Idaho	14.37	12.07	+19.1%
Washington	14.91	12.96	+15.0%
New Hampshire	27.01	23.51	+14.9%
Maryland	21.84	19.29	+13.2%
Virginia	17.22	15.23	+13.1%
New York	29.49	26.55	+11.1%
Michigan	22.99	20.82	+10.4%
Pennsylvania	21.73	19.69	+10.4%
North Carolina	14.74	13.38	+10.2%

Where prices fell

Only 5 jurisdictions paid less than a year earlier, and Connecticut accounted for the only double-digit decline.

State	June 2026 (cents/kWh)	June 2025	Change
Arizona	15.18	15.23	-0.3%
Florida	15.10	15.35	-1.6%
West Virginia	15.45	15.82	-2.3%
Massachusetts	29.61	30.33	-2.4%
Connecticut	24.32	27.19	-10.6%

The EIA table reports prices, not causes, and we do not attribute these moves to any single factor.

The national trend in 2026

Every month of 2026 so far has been more expensive than the same month of 2025. The year-to-date average is 18.16 cents, up 7.4%, and the 12 months to June averaged 17.90 cents, up 6.6%.

Month	2025 (cents/kWh)	2026	Change
January	15.94	17.45	+9.5%
February	16.43	17.65	+7.4%
March	17.09	18.56	+8.6%
April	17.55	18.83	+7.3%
May	17.37	18.44	+6.2%
June	17.47	18.34	+5.0%

The annual average rose from 13.01 cents in 2019 to 17.30 cents in 2025, an increase of 33.0%.

What it means for air conditioning and heat pumps

Electricity price is half of any running cost calculation, and in June it varied about 4-fold between Nevada and Hawaii. That spread matters more to a cooling bill than the difference between two efficiency ratings.

For heating, it decides whether a heat pump beats gas. At federal minimum efficiencies and 2025/26 heating season gas prices, a heat pump matches an 80% gas furnace at about 14.1 cents per kWh. See what heat costs by fuel, what air conditioning costs to run and heat pump versus gas furnace.

Every state, ranked by price

19 states paid more than the US average of 18.34 cents in June 2026. Nevada had the lowest average at 13.11 cents.

State	June 2026 (cents/kWh)	June 2025	Change
US average	18.34	17.47	+5.0%
Hawaii	52.72	40.96	+28.7%
California	34.74	33.59	+3.4%
Massachusetts	29.61	30.33	-2.4%
Maine	29.59	28.14	+5.2%
New York	29.49	26.55	+11.1%
Rhode Island	29.23	26.84	+8.9%
Alaska	28.21	26.87	+5.0%
New Hampshire	27.01	23.51	+14.9%
New Jersey	24.95	24.88	+0.3%
Vermont	24.44	23.00	+6.3%
District of Columbia	24.39	22.70	+7.4%
Connecticut	24.32	27.19	-10.6%
Michigan	22.99	20.82	+10.4%
Maryland	21.84	19.29	+13.2%
Pennsylvania	21.73	19.69	+10.4%
Illinois	19.89	18.29	+8.7%
Wisconsin	19.56	18.52	+5.6%
Delaware	19.29	18.16	+6.2%
Ohio	19.19	17.50	+9.7%
Minnesota	17.52	17.12	+2.3%
Indiana	17.51	16.48	+6.2%
Virginia	17.22	15.23	+13.1%
Colorado	17.13	16.04	+6.8%
Alabama	16.40	16.06	+2.1%
Georgia	16.36	15.96	+2.5%
Oregon	16.32	15.80	+3.3%
Missouri	16.22	15.91	+1.9%
Texas	15.94	15.26	+4.5%
Iowa	15.93	15.33	+3.9%
Kansas	15.71	15.04	+4.5%
South Carolina	15.55	14.79	+5.1%
West Virginia	15.45	15.82	-2.3%
South Dakota	15.36	14.22	+8.0%
Wyoming	15.24	14.89	+2.4%
Arizona	15.18	15.23	-0.3%
Montana	15.14	14.81	+2.2%
Florida	15.10	15.35	-1.6%
New Mexico	15.06	14.68	+2.6%
Washington	14.91	12.96	+15.0%
Mississippi	14.88	14.07	+5.8%
North Carolina	14.74	13.38	+10.2%
Idaho	14.37	12.07	+19.1%
Oklahoma	14.33	13.63	+5.1%
Kentucky	14.26	13.40	+6.4%
North Dakota	14.12	13.71	+3.0%
Arkansas	14.12	13.37	+5.6%
Tennessee	14.07	13.82	+1.8%
Louisiana	13.49	12.74	+5.9%
Utah	13.37	13.10	+2.1%
Nebraska	13.25	13.14	+0.8%
Nevada	13.11	12.26	+6.9%

Frequently asked questions

What is the average electricity price in the US?

18.34 cents per kilowatt hour for residential customers in June 2026, up 5.0% from 17.47 cents in June 2025, according to the EIA Electric Power Monthly. The 2026 year-to-date average was 18.16 cents.

Which state has the highest electricity prices?

Hawaii, at 52.72 cents per kWh in June 2026, up 28.7% on a year earlier. The next highest were California at 34.74 cents and Massachusetts at 29.61 cents.

Which state has the cheapest electricity?

Nevada had the lowest residential average in June 2026 at 13.11 cents per kWh, followed by Nebraska at 13.25 cents and Utah at 13.37 cents. Monthly rankings shift with seasonal rate structures.

Did electricity prices go up in 2026?

Yes. The US residential average was higher in every month from January to June 2026 than a year earlier, and prices rose in 46 of 51 states in June. The year-to-date average was up 7.4%.

Methodology and limitations

State figures are EIA Electric Power Monthly Table 5.6.A, average price of electricity to ultimate customers by end-use sector, residential, June 2026 and June 2025. National monthly and annual figures are Table 5.3. Changes are calculated by The HVAC Brief.

The 51 jurisdictions are the 50 states and the District of Columbia; census division subtotals are excluded.
Recent EIA monthly values are preliminary and may be revised.
Average price is revenue divided by sales and includes delivery; it is not a tariff rate for any customer.
June prices reflect summer rate structures and are not a heating season comparison.

Sources

US Energy Information Administration, Electric Power Monthly, Tables 5.3 and 5.6.A, August 2026.

The HVAC Brief is an independent trade publication. We do not sell equipment, take manufacturer advertising, or accept payment for placement in our research. Corrections welcome.

September 11, 2026

HVAC Equipment Prices Set a New High in August

Last reviewed: September 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

The short answer

Producer prices for HVAC equipment rose 0.26% in August 2026 to an index of 324.82, the highest reading in the Bureau of Labor Statistics series. Prices were 3.9% higher than a year earlier and 60.0% above the 2019 average.

BLS also revised July down, from 324.903 to 323.984. The July gain is now 0.94%, not the 1.23% first reported, and August, not July, holds the record.

324.8HVAC equipment PPI, August 2026, a series high

+3.9%Change on August 2025

+60%Change since the 2019 average

21 of 31Monthly increases since January 2024

The August reading

The index edged up 0.84 points in August 2026, a smaller move than July’s but enough to set a new high above the revised July figure of 323.984.

Month	Index	Month on month	Year on year
January 2026	313.036	+0.37%	+5.0%
February 2026	316.782	+1.20%	+5.5%
March 2026	319.543	+0.87%	+6.7%
April 2026	320.385	+0.26%	+5.4%
May 2026	320.638	+0.08%	+4.0%
June 2026	320.966	+0.10%	+2.9%
July 2026	323.984	+0.94%	+4.1%
August 2026	324.820	+0.26%	+3.9%

Since December 2025, the index is up 4.2%. Prices have risen in 21 of the 31 month-on-month comparisons since January 2024, so the direction has been persistent rather than a single step.

BLS producer price index PCU333415333415, air conditioning, refrigeration and forced air heating equipment manufacturing, not seasonally adjusted. The latest month is highlighted. Chart by The HVAC Brief.

What changed in July

July was revised down by 0.919 points. The month still rose, but by less, and it no longer holds the series high.

July 2026	First published	Revised
Index	324.903	323.984
Change on June	+1.23%	+0.94%
Series high at the time	Yes	Superseded by August 2026

Producer price indexes are preliminary when first published, and BLS revises recent months as late survey responses arrive. We have added a correction note to our July report and updated the pages that cited the first figure.

Heating equipment set a record too

The separate BLS commodity index for heating equipment, WPU106, rose 0.65% in August 2026 to 440.459, its highest reading.

Index	August 2026	Month on month	Year on year	Since 2019
HVAC equipment manufacturing, PCU333415333415	324.82	+0.26%	+3.9%	+60.0%
Heating equipment, WPU106	440.46	+0.65%	+2.5%	+57.7%

The two indexes overlap but are not the same: the first covers the output of an industry, the second a group of products wherever they are made.

Against general inflation

Equipment prices are still outrunning consumer prices. The consumer price index rose 3.4% in the year to July 2026, against 3.9% for HVAC equipment in the year to August 2026.

Over the longer run the gap is wider: HVAC equipment producer prices are up 60% since 2019, consumer prices 31%. Our HVAC price index tracks both series month by month.

What it means for buyers

This is a factory-gate price, not what a homeowner pays. Increases reach installed prices through distributors and contractors, with a lag and alongside labour and refrigerant costs that this index does not include.

No federal series measures installed system prices, which is why we do not publish one. For how the pieces add up, see what HVAC replacement costs in 2026, and for the timing question, whether to replace now or wait.

Frequently asked questions

Are HVAC equipment prices still going up?

Yes. The BLS producer price index for HVAC equipment manufacturing rose 0.26% in August 2026 to 324.82, a series high, and was 3.9% above a year earlier. Prices have risen in 21 of 31 monthly comparisons since January 2024.

What was the HVAC equipment PPI in August 2026?

324.820 for BLS series PCU333415333415, not seasonally adjusted. That is up 0.26% on the revised July figure of 323.984 and 60.0% above the 2019 average of 203.04.

Why was the July 2026 figure revised?

Producer price indexes are preliminary when first released, and BLS revises recent months as late survey responses come in. July moved from 324.903 to 323.984, which cut its monthly gain from 1.23% to 0.94%.

How much have HVAC equipment prices risen since 2019?

About 60%. The producer price index went from a 2019 average of 203.04 to 324.82 in August 2026. Consumer prices rose about 31% over a similar period.

Methodology and limitations

Figures are BLS producer price indexes PCU333415333415 and WPU106 and consumer price index CUUR0000SA0, all not seasonally adjusted, retrieved from the BLS public data API in September 2026. Percentage changes are calculated by The HVAC Brief from index values.

Recent PPI months are preliminary and may be revised again.
2019 comparisons use the simple average of the twelve monthly values.
Producer prices are not retail or installed prices.

Sources

US Bureau of Labor Statistics, Producer Price Index, series PCU333415333415 and WPU106.
US Bureau of Labor Statistics, Consumer Price Index, series CUUR0000SA0.

The HVAC Brief is an independent trade publication. We do not sell equipment, take manufacturer advertising, or accept payment for placement in our research. Corrections welcome.

September 11, 2026