# Electric furnace to heat pump in Memphis

> Swap electric strip heat for a heat pump in Memphis. A heat pump moves two to three units of heat per unit of power and keeps smaller strips only as backup.

URL: https://blufflinememphisheatpumps.com/electric-furnace-to-heat-pump/

Service

Strip heat makes the biggest winter bills in Memphis. A heat pump moves heat instead of making it and keeps strips for the coldest hours.

(901) 657-2200

Last Updated: November 12, 2026

1 visit

before a written estimate with load numbers, model numbers and price

95° / 20°

Shelby County design temperatures we size for

In writing

start-up readings for charge, airflow and backup heat

## January bills that spike with an electric furnace

About half of Memphis homes heat with electricity, according to the Census Bureau, and many do it with resistance strips in the air handler. Strips turn one unit of electricity into one unit of heat.

[Bluffline Memphis Heat Pumps](https://blufflinememphisheatpumps.com/) replaces electric furnaces with heat pumps across Memphis, Millington and the towns around them. A heat pump moves heat instead of making it.

### Why the bill changes most here

On MLGW’s rates, strip heat costs about $35.80 per million BTU of delivered heat. A heat pump costs about $10.20 on a mild winter day and about $14.30 on a cold one. No other job we do changes a winter bill as much.

## What actually changes in the house

Less than you might think. The ducts stay. The thermostat moves to a heat pump model. Two things are new.

- **Outside:** a heat pump takes the AC’s place on the pad. It cools in summer exactly as the AC did.
- **Inside:** a matched air handler replaces the electric furnace, with a smaller strip kit for backup.

The air handler usually fits the same closet, attic or crawlspace spot, on the same platform. Where the closet is tight, we measure before we pick the cabinet.

## Sizing the heat pump and the backup

We run a load calculation for Shelby County’s design conditions: 95 degrees in summer and 20 degrees in winter. The heat pump is sized for the house, and the strips are sized for the gap at 20 degrees.

That gap is usually small. A house that needed a 15 kW furnace often needs 5 to 8 kW of backup with a heat pump. The [sizing guide](https://blufflinememphisheatpumps.com/guide/heat-pump-sizing-manual-j/) explains how the calculation works.

### Why smaller strips matter

Smaller strips draw less power when they do come on, which can keep a panel upgrade off the estimate. They also stop a cold-morning recovery from pulling 15 kW at once.

## Aux heat, emergency heat and the lockout

The thermostat decides when strips run. Set it wrong and the strips run on mild days, and the savings disappear.

- **Auxiliary heat** comes on automatically when the heat pump can’t keep up, during defrost, or when you raise the setpoint a lot at once.
- **Emergency heat** is a manual switch that turns the heat pump off and runs strips alone. It is for a broken outdoor unit, not cold weather.
- **The lockout** keeps strips off above an outdoor temperature we set with you, usually around 30 to 35 degrees.

An outdoor sensor makes the lockout work. The [aux and emergency heat guide](https://blufflinememphisheatpumps.com/guide/auxiliary-emergency-heat/) and the [thermostat setup guide](https://blufflinememphisheatpumps.com/guide/heat-pump-thermostat-setup/) cover the settings.

## Where strip heat is most common

Electric heat is the majority in Memphis itself and in Millington, where about two-thirds of homes heat with electricity and the typical house dates from around 1970. Our [Millington page](https://blufflinememphisheatpumps.com/service-areas/millington/) covers that town’s permit path.

Across the suburbs strip heat is less common but still sits in roughly a third to two-fifths of homes, usually in houses that were built all-electric.

### Houses where it fits best

- **1960s and 1970s ranches** with an electric furnace in a hall closet and a separate AC outside.
- **All-electric houses from the 1980s and 1990s** with an attic or crawlspace air handler.
- **Any house where the AC is near the end anyway**, since the heat pump replaces it too.

### When the ducts need work first

Older crawlspace ducts in strip-heat houses often leak or have come loose. A heat pump delivers cooler supply air than strips in winter, so leaks you never noticed with 120-degree strip air can make rooms feel drafty. We test static pressure on the visit, and [heat pump ductwork](https://blufflinememphisheatpumps.com/heat-pump-ductwork/) explains what the fixes involve.

## The panel and the circuits

An electric furnace usually sits on a large circuit, often 60 amps. The new air handler with smaller strips needs less, and the outdoor unit can often reuse the AC’s circuit.

On the visit we check the panel’s capacity, the breaker sizes and the wire. If the existing circuits fit the new equipment’s ratings, they stay. If not, the change is a separate line on the estimate, done by a licensed electrician. The [panel guide](https://blufflinememphisheatpumps.com/guide/electrical-panel-for-heat-pump/) explains when an upgrade is really needed.

## What it costs

Bluffline’s typical range for a whole-home ducted heat pump system, outdoor unit and matched air handler with existing ducts reused, is $8,000 to $16,000. Your written estimate after the visit sets the price.

### What moves the number

- The heat pump’s size and efficiency tier.
- Whether the line set can be reused.
- Duct repairs found during the static pressure test.
- Any electrical change at the panel.
- Access: a closet is quicker than a low crawlspace.

TVA EnergyRight pays $500 for a qualifying heat pump at 15 SEER2 and $800 at 17 SEER2, installed by a participating contractor in TVA’s Quality Contractor Network. The [cost page](https://blufflinememphisheatpumps.com/heat-pump-installation-cost/) covers every range.

## The install, step by step

Most strip-heat swaps take one or two days.

1. Pull the mechanical permit for your town.
2. Recover the AC’s refrigerant and remove the AC and the electric furnace.
3. Set the matched air handler with its strip kit and the heat pump on a raised pad.
4. Braze the line set under nitrogen, pressure-test it and pull a vacuum below 500 microns.
5. Charge by weight and check against the maker’s numbers.
6. Wire the outdoor sensor and set the strip lockout with you.
7. Test heating, cooling, defrost and the strips, and leave the readings in writing.

## Your first winter bill

Expect the heating part of the bill to drop by more than half against strip heat, with the biggest change in January and February. Cold snaps still bring the strips on for a few hours.

### Reading the bill

MLGW bills show kilowatt-hours by month. Compare the same months year to year, since a mild January and a hard one can differ a lot. [Reading your MLGW bill after a heat pump](https://blufflinememphisheatpumps.com/blog/reading-your-mlgw-bill-after-a-heat-pump/) shows what to look for.

## What's included

- Load calculation for heating and cooling
- New heat pump and matched air handler with smaller strips
- Panel and circuit check for the new air handler
- New or reused line set
- Raised pad and electrical disconnect
- Heat pump thermostat with an outdoor sensor
- Old furnace and AC hauled away
- Start-up readings in writing

## What changes when strips become backup

|  | Electric furnace and AC | Heat pump with backup strips |
| --- | --- | --- |
| Heat per unit of electricity | 1 | 2 to 3 on most winter days |
| Strips run | Every time it heats | Coldest hours and defrost only |
| Cost per million BTU on MLGW | About $35.80 | About $10.20 to $14.30 |
| Cooling | Separate AC | Same heat pump |

## From strip heat to a heat pump in Millington

A 1971 brick ranch near Navy Road heats with a 15 kW electric furnace and cools with a separate AC. January MLGW bills top $300. The owners want the bill down and a backup for the coldest nights.

Where

Millington, near Navy Road

The house

1971 brick ranch, about 1,400 sq ft, furnace in a hall closet, attic ducts

Price

$8,900

Time on site

2 days

1. Size the backup, not just the heat pump The load calculation sets the heat pump at 2.5 tons. At 20 degrees outside it needs about 5 kW of help, a third of the old furnace's strips.
2. Fit the closet The new matched air handler stands in the same 26 inch deep closet, on the same 60 amp circuit, with the return still in the closet door.
3. Set the outdoor unit A 2.5-ton 16 SEER2 heat pump replaces the AC on its pad, with a new line set through the wall.
4. Keep the strips in reserve An outdoor sensor locks the strips out above 30 degrees. Above that, every unit of electricity buys two to three units of heat instead of one.

## Related resources

- [Learn**What is the difference between auxiliary heat and emergency heat?** Two settings that both turn on the strips, why one is automatic and the other is a last resort, and how to keep the bill in check.](https://blufflinememphisheatpumps.com/guide/auxiliary-emergency-heat/)
- [Learn**How should a heat pump thermostat be set up in Memphis?** The handful of settings that decide whether a heat pump saves money: the equipment type, the outdoor sensor, the lockout, setbacks and the fan.](https://blufflinememphisheatpumps.com/guide/heat-pump-thermostat-setup/)
- [Learn**Do you need an electrical panel upgrade for a heat pump?** Most heat pump jobs reuse the existing circuits. Here is when they don't, what a load calculation checks, and how smaller strips avoid an upgrade.](https://blufflinememphisheatpumps.com/guide/electrical-panel-for-heat-pump/)
- [Cost Guide**How does the TVA EnergyRight heat pump rebate work in Memphis?** Who qualifies, which equipment tier pays what, the contractor rule, and what to expect on the Mississippi and Arkansas side.](https://blufflinememphisheatpumps.com/guide/tva-energyright-heat-pump-rebate/)
- [Decision Guide**How do you buy the right heat pump for a Memphis house?** The whole decision in the order you meet it, from the system you have now to the readings you should get at start-up.](https://blufflinememphisheatpumps.com/guide/memphis-heat-pump-buying-guide/)

## How a job runs

### Call or send the form

Tell us what heats and cools the house now and what's going wrong.

### One visit

We look at the equipment, ducts, panel and the spot outside and run the load numbers.

### Written estimate

Load figures, matched model numbers, scope and price on one page.

### Install and start-up

Permit pulled, system set, line set tested, and the start-up readings handed to you.

## Electric furnace to heat pump: questions

### How much does a heat pump save over an electric furnace in Memphis?

On MLGW's rates strip heat costs about $35.80 per million BTU and a heat pump about $10.20 to $14.30, so the heating part of a winter bill usually drops by more than half. How much you save depends on how much of the bill is heat.

### Do I still need the strips?

Yes, smaller ones. At Shelby County's 20-degree design temperature most heat pumps need some help, and the strips also warm the air during defrost. We size them to that gap, often 5 to 8 kW instead of 15.

### Can my old electric furnace stay with a heat pump added?

Sometimes a coil can sit on top of it, but an old furnace blower and strip package usually aren't worth keeping. A matched air handler is the cleaner job and the one the efficiency ratings assume.

### Will I need an electrical upgrade?

Usually not. Smaller strips draw less than the old furnace, and the outdoor unit often reuses the AC's circuit. We check the panel and both circuits on the visit and list any change.

### Why do my strips still come on with a heat pump?

They are meant to during defrost and on the coldest mornings. If they run on mild days, the thermostat is often missing an outdoor sensor or a lockout. We set both at start-up.

## Related services

- [Service**Heat pump replacement** Your heat pump is near the end and you want the next one to last. We size it from the house and match both halves.](https://blufflinememphisheatpumps.com/heat-pump-replacement/)
- [Service**Air handlers** The indoor half decides airflow, drainage and backup heat. We replace it with a matched unit and keep a sound outdoor unit.](https://blufflinememphisheatpumps.com/heat-pump-air-handler-replacement/)
- [Service**Duct work** A heat pump can only move the air the ducts let through. We measure first, then fix returns, seams and crushed runs.](https://blufflinememphisheatpumps.com/heat-pump-ductwork/)

## Get an estimate for electric furnace to heat pump

Tell us what heats and cools the house now, what's going wrong and roughly where the house is. Photos of the outdoor unit and its nameplate help.

(901) 657-2200