With reasonable electric rates (which I assume would be cheaper to operate a heat pump with than an 80% gas furnace with your gas rates), and a mild winter climate, a heat pump would be a good option in my opinion. You can keep the gas furnace for backup, though it may not see much use, and doing so would not allow you to leverage the tax credit since you'd need a variable-speed fan which boosts the efficiency for higher SEER equipment. What you would potentially install is a heat pump and a fan coil inside, and that would take care of the heating and cooling and could keep you the tax credit if you choose the correct components. A contractor should come to your home and discuss all this with you and hopefully do a heat loss/heat gain calculation to determine the correct size equipment. I'll attach the link below where you can see what is a rated match (just a tip: keep the model numbers as simple as possible; for example, a Trane may be proposed as 4TWX5036A1000A, but in the database it only reads 4TWX5036A1 -- if you are having trouble finding results). The first link is for air conditioners, and the second for heat pumps. Your 58STA is probably not in the database because it isn't variable speed. Just so you see how it works, look at heat pumps and type in 4TWX5036 for outside and 4TEE3F for inside, and you'll see possible indoor fan coil matchups and their ratings. Here is a link that might be useful: AHRI Directory

Thanks Tigerdunes: Electricity use is as follows: First 1,000 kWh 6.778 â per kWh Over 1,000 kWh 7.500 â per kWh ( I use about 800 kwh without AC and 1300 Kwh with it) Propane: 2.69per gallon - usage in winter used to be approx 350-400 gallons per month! I agree that the mark ups for the Heat Pumps condensor are outrageous. The cheapest price I was quoted was $5310 for a Trane XB14 unit, or $5225 for RUUD. I started shopping in May, have had 4 contractors out here, and still see major issues with each contractor. The one I like the best is from Sky Heating, as he was the most thorough, and company got the best reviews. He had the lowest prices as well, but they are still about 3 times the wholesale cost. I have the money to pay for the more expensive systems, but I just can't find a good reason to do that. won't, on principle, as I feel they are purposefully marking them up. This kind of stuff happens to everyone, but seems to happen a bit more to single women ?!? (kind of a sexist comment, but I have noticed this to be true). Back to the subject at hand - I looked at QualitySmith.com for nationwide averages for installation on various Trane Heat Pumps - I compared it to the bids I received: Trane Installation costs (range nationwide) XR15:Install cost $4500-$10,000 (quote= $8100) XB14 Install cost = $3000-$7500 (qutoe was $5300) XB13 install cost =$2500-$6500 (quote was $6400) I noticed in another post that you were recommending a SEER 13 unit, but did not like the Trane XB13 (SEER 14-15) but not the Trane units. You specifically wrote that wrote that you would not get a Trane XB13. I was wondering if you liked any of the Trane models that I have listed? What Brands/models do you like that are SEER 13? Any suggestions for how to find a more competitive bid? I tried Bargaining with one contractor, and I could tell he was completely resistant to it- giving me less information each time I contacted him; strong arming me to come back and meet with me again, etc. Here are some other Brands I received bids for - they also seemed a bit high but are cheaper than others: : Carrier 25HBC5 Comfort - SEER 14.5 FOR $6289_ York YHJFLX series SEER 14.5 for $5869.00 RUUD 4 ton Achiever SEER 14.5 $5225 I would like to pay less than $5000 but that has not been possible. With 5000 Square foot home, and the logs not chinked, I don't envy the contractors for trying to decide what would work best. A two zone system is preferred in houses like this but the cost to retrofit is exorbitant. Desperately confused in Oregon! Thanks again

Tiger, my conflict is because I know I am being overcharged due to the rebate program. I resent that and just want a fair deal. I know that I am "losing" part of my rebate to the contractor who leaves me with just enough to make me think its a good deal because of the great financing. It is the financing which has made me decide to do it, that plus the attic sealing and insulation which I would probably not otherwise do. I ask a lot of questions because I like to be informed. Not really sure if heat pump will be worth it here either. They claim my energy "savings" will be an additional 5% or so, though a contractor not in the program told me they will manipulate numbers to make it work. Because the heat pump is slightly more efficient in my case I get a $1000 higher rebate, so my net cost is Actually the same. This is because the non hp option uses a more efficient hot water heater (needed for the program) that they are charging 400 more for, AND the rebate is 1000 lower. With those 2 choices the hp makes sense. It would make even more sense if the upgrade cost was not $1500. I could go tankless with non hp, get the full rebate, but cost is 500 more than hp. Figured I am more likely to see savings on the hp so not spending the extra 500. Anyway, after this heat wave i totally see the value in getting my attic done, so even though I will not be fully realizing the amazing 5000 rebate I will probably do it. My ac, in it's 16th year, had a hard time getting below 75 on these hot days, even the ones only in the low 90's. I'm sure it will be going in the next year or two. Neighbor paid 9200 beforerebates for a Lennox xc17 with an 80% furnace. I figure my higher eff furnace would cost more and so would a heat pump, but I know Amana would be cheaper than Lennox, based on that i think the 9200 is a reasonable cost to compare.... I will be spending about 11k for the Amana system, with a new power vent hwh and insulation and air sealing. I think that is reasonable (though I'd prefer a different brand ). I also think my price should be closer to 9k after rebates and that I am getting "only" 2000-2500 value of the 5000 rebate. I am also getting excellent financing. The dealer did do my audit and spend time getting my estimates together and revising them.....not 2500 worth of work. Decided to just do it if I can get the price dif between hp and not-hp lowered. I know you think I'm a pain, but what would you do? Would you accept a price you know is very high or keep asking questions? You have to,admit the price of 11800 is very high for Amana Aszc16 and Amvc95. (4 ton, 90k btu) Does any of that explain why I am conflicted? I am not normally difficult, only when I sense something is not right. Lucky for me when I buy cars there are sites to tell me what is fair and reasonable....being educated is my best option. I could just get an hvac but I don't see us ever forking out the $ for the attic work,separately, and I know it should be done. The attic must be done to get rebate so may as well do it. I hope you can see I am moving toward a decision. I don't want to bother getting more prices. I trust this co and now want to get the best deal that is reasonable from them. Just really wondering at this point how much wiggle room there might be on the Amana set up. The carrier is 2k more and I just don't see the value in it.

for Speedymonk speedy, I live in Southeast and also have a dual fuel Trane-same as yours, XL14i(R-410a) paired with an XV90 furnace. I really wanted the XL15i but it was just being introduced and only available in R-22 which I did not want. I probably should have gone with the XV80 furnace but kind of hedged as this was my first experience with a HP. I knew though that all was OK since my wife has never complained about the HP since it most likely performs about 90+% of heating chore based on my area's climate and relatively mild winters. I estimate I used about 60-70 therms of nat gas last winter. Savings over 100% nat gas heating vs heat pump heating est at around 35%. No regrets with the HP. Trane though is really falling behind in tax credit qualifying condensors both AC and HPs. IMO