We have a gas furnace that needs replacing. I see incentives to replace gas heat with electric coming from small town governments in our area (Northwest Nebraska). Am I unwise to just replace our old gas heater with a new one?
It depends, you have about three or more options. First, you can replace your old gas furnace with a higher efficiency (90 - 95% AFUE)furnace and it will save you money this next winter. Second, you can replace your furnace while also installing a new heat pump. This option is called duel-fuel heating. Heat pumps requires some type of backup or emergency heating source. This backup heat can be either gas or electric resistance. This second option will provide you with the most efficient way to heat your home (but it will also be your largest investment cost).
Another thing to consider is the heating difference between gas furnaces and heat pumps. The output temperature of most new furnace is in the range of 110 - 120 degrees while a heat pump will only supply about 85 - 95 degree temperature. I know you might be thinking that this lower output temperature is a negative for heat pumps, but actually its a good thing. The closer the output temperature is to you thermostat set point, the more evenly your home will feel (i.e. it's a plus!). Think about it this way; do you know of anyone that wants the temperature inside their home to be more than 80 degrees? I don't know of anyone who does.