How do I choose between a furnace and a heat pump?

Furnaces burn fuel to generate heat and work well in any climate, but are less efficient than heat pumps in moderate weather. Heat pumps transfer heat rather than generating it, providing both heating and cooling in one system. In South Jersey, heat pumps are efficient for most of the winter but may struggle during extreme cold snaps. A dual fuel system pairs a heat pump with a gas furnace, giving you the best of both options.