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

In New Mexico (15.1¢/kWh via PNM New Mexico), a 2,000 sq ft home averages $578/year ($48/month) with a high-efficiency heat pump, $560/year with a natural gas furnace and central AC, and $1,679/year with electric baseboards.

Are heat pumps cheaper to run than gas furnaces in New Mexico?

At New Mexico's natural gas rate of $1.22/therm, the economic break-even electricity price for a COP 3.1 heat pump is 14.0¢/kWh. Comparing this against New Mexico's residential electricity rate of 15.1¢/kWh determines annual operating savings.

New Mexico Heating & Cooling Cost Calculator (2026)

2,000 Sq Ft Heat Pump Bill

$48/mo

NM Electricity / Gas Rate

15.1¢ / $1.22

15-Yr Savings vs Baseboard

+$12,915

New Mexico Annual Heating & Cooling Bills by Home Size

In New Mexico, a 2,000 sq ft home averages $578/year ($48/mo) using a cold-climate heat pump ($492/yr winter heating + $86/yr summer cooling), compared to $560/year with a natural gas furnace and $1,679/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	$289/yr ($24/mo)	$280/yr ($23/mo)	$840/yr ($70/mo)	+$4,665
1,500 Sq Ft	$433/yr ($36/mo)	$420/yr ($35/mo)	$1,259/yr ($105/mo)	+$8,790
2,000 Sq Ft	$578/yr ($48/mo)	$560/yr ($47/mo)	$1,679/yr ($140/mo)	+$12,915
2,500 Sq Ft	$722/yr ($60/mo)	$700/yr ($58/mo)	$2,099/yr ($175/mo)	+$17,055
3,000 Sq Ft	$867/yr ($72/mo)	$840/yr ($70/mo)	$2,519/yr ($210/mo)	+$21,180
3,500 Sq Ft	$1,011/yr ($84/mo)	$980/yr ($82/mo)	$2,938/yr ($245/mo)	+$25,305