That price quote sounds out of line... something doesn't add up. I'm in the SouthEast, where cost of living is generally lower than most other parts of the country. For lower end equipment (13 SEER A/C with 80% furnance), I didn't get any quotes below $6,500. Most quotes for equipment that qualifies for the tax credit were generally closer to the $8,500 number. In the end, we went with a recomended private licenced contractor that got us a system to qualify for the tax credits at a cost just a little south of $8,000 and it seemed like a bargin. Equipment cost sounds about right, but the labor cost seems low. The worry there is that it's an installer that might be taking short-cuts to come in as a low bidder. What I learned from my experience in getting the HVAC system updated is that WHO is installing the equipment is more important than WHAT is getting installed. Basically, I've been told that most manufactures are getting major components (like the compressor) from the same source. But it's also possible to take short-cuts to get a system installed. A short-cut system WILL run. But the prognosis for long life isn't as good. Basically, you can get a longer life with cheap equipment installed correctly than you can from expensive equipment installed poorly. So my advice to people who are looking to replace their HVAC system is to get a quote from three or more places. No one can properly quote an HVAC install without a sight visit. Use that time of the sight visit to in effect interview the company/installer. You SHOULD get quotes that are all about the same even if the equipement isn't exactly the same. Ignore quotes that are "out-of-line", and then of the quotes that are left, ignore cost and go on your instincts on which contractor is likely to do the best job.

You should definitely be pricing with just heat pump. I live in NC which probably is a bit colder in the winter. We get down to the teens but only 15 nights a year maybe. Our winter average low is about 30. Under 10 degrees is definitely a news story. I have 5000 sq ft. I'm looking at my NG bill of $30. I have dual fuel and seer 16 heat pumps. Last winter was very cold and I spent about $700 with $200 being gas. This winter is going to be $120 in gas. My electric rates are similar to yours without the first 1000 discount. What is my point? Your gas usage will likely be $100 a year. Even if that were replaced with all heating strips, you'd be saving $200 a year or so. Since it would probable be 80% heat pump still, the dual fuel is only saving you $40 a year. So a $2500 furnace to save $40 a year seems a little crazy (on dollars alone). Turns out for me, it is probably worth it but only marginally so. I have a 90% (which you should be able to do as mine is basement with horizontal PVC exhaust). It probably saves $60-$70 on an average year. Probably cost $2000 (new house - I can't remember). What is that a 30 year payback (or never if you count interest or NG rates increase)? You do get some flexibility and you can setback at will with dual fuel. That is worth something.

The DOE has worksheets that can help you calculate the relative cost of heating and cooling with different systems using your current energy costs. Of course you need to predict the relative costs over the next decade or two to really tell what is best. How is your crystal ball working? I would like to clear up a couple of common misconceptions. One type of heat does not dry a house in the winter any more than another. Leaky house envelopes dry houses. Heat by flame of some sort might dry a house more because they draw more outside air in if there is not a source of outside combustion air. That would be the only mechanism. There is nothing special about heat pumps in poorly-insulated, leaky homes. No heat or air conditioning source works as well in that situation as well as they do in tighter, well-insulated homes.

Sure, and the ball on the half yard line is not a Touch Down. 'Comfort means different things, to different people... and because neither of you have a communicating system doesn't mean I can explain fully in text what that means.' But if you were comparing a Trane 2 speed non-communicating (legacy) system to a Goodman / Amana 2 speed communicating system and the price was similar for either one... which one would you choose? That is what changes the dynamics of the equation --- does it not? BUT, you have to know which is actually the better of the two and why. #Ah that old devil in the details again! On a side note: Have either one of you dealt with a customer who was a 'hot box'? Someone that is highly sensitive to heat? Not everyone deals with these issues... especially men. Women are known to suffer from what are called 'hot flashes'. And so because you don't realize this you are going to cut yourself off from 50% more business to actually solving a big problem? Yeah more unadulterated non-sense from me. Pay no attention to it.