How much does it cost to heat and cool a 2,000 sq ft home in Iowa?

In Iowa (13.8¢/kWh via MidAmerican Energy / Alliant), a 2,000 sq ft home averages $786/year ($66/month) with a high-efficiency heat pump, $783/year with a natural gas furnace and central AC, and $2,369/year with electric baseboards.

Are heat pumps cheaper to run than gas furnaces in Iowa?

At Iowa's natural gas rate of $1.18/therm, the economic break-even electricity price for a COP 3.1 heat pump is 13.6¢/kWh. Comparing this against Iowa's residential electricity rate of 13.8¢/kWh determines annual operating savings.

Iowa Heating & Cooling Cost Calculator (2026)

2,000 Sq Ft Heat Pump Bill

$66/mo

IA Electricity / Gas Rate

13.8¢ / $1.18

15-Yr Savings vs Baseboard

+$20,145

Iowa Annual Heating & Cooling Bills by Home Size

In Iowa, a 2,000 sq ft home averages $786/year ($66/mo) using a cold-climate heat pump ($734/yr winter heating + $51/yr summer cooling), compared to $783/year with a natural gas furnace and $2,369/year with electric baseboards.

Home Size	Heat Pump (COP 3.1)	Gas Furnace + AC	Baseboard + Window AC	15-Yr Heat Pump Savings
1,000 Sq Ft	$393/yr ($33/mo)	$392/yr ($33/mo)	$1,184/yr ($99/mo)	+$8,265
1,500 Sq Ft	$589/yr ($49/mo)	$588/yr ($49/mo)	$1,776/yr ($148/mo)	+$14,205
2,000 Sq Ft	$786/yr ($66/mo)	$783/yr ($65/mo)	$2,369/yr ($197/mo)	+$20,145
2,500 Sq Ft	$982/yr ($82/mo)	$979/yr ($82/mo)	$2,961/yr ($247/mo)	+$26,085
3,000 Sq Ft	$1,178/yr ($98/mo)	$1,175/yr ($98/mo)	$3,553/yr ($296/mo)	+$32,025
3,500 Sq Ft	$1,375/yr ($115/mo)	$1,371/yr ($114/mo)	$4,145/yr ($345/mo)	+$37,950

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Verify 2026 Federal 25C Tax Credit & MidAmerican Energy / Alliant rebate eligibility and compare turnkey contractor pricing for a 3.0-Ton system (2,000 sq ft).

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