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Heat pumps with coefficients of performance ranging from 2.5 to 3.2. and gas furnaces with thermal efficiencies of 75% to 90% are analyzed through DOE-2 computer simulations and life-cycle cost analyses. The annual heating performances and the life-cycle costs of air-to-air heat pump and airconditioner / gas furnace systems operating in single-family detached residences located in 16 climatic zones defined by the California Energy Commission are compared. With standard performance equipment, heat pumps cost more in all zones except for China Lake and Sacramento, but with high performance equipment, heat pumps cost less in all zones except for Fresno and Mt. Shasta.

Units: I-P