The Benefits of Using Heat Pump

The most common type of heat pump is the air-source heat pump, which transfers heat between your house and the outside air. Today's heat pump can reduce your electricity use for heating by up to 75% compared to electric resistance heating such as furnaces and baseboard heaters. High-efficiency heat pumps also dehumidify better than standard central air conditioners, resulting in less energy usage and more cooling comfort in summer months.

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Air-source heat pumps have been used for many years in nearly all parts of the United States, but they've not always been used in areas that experience extended periods of subfreezing temperatures. However, advancements in air-source heat pump technology now offer a legitimate space heating alternative in colder regions. Existing homeowners looking to replace a gas heating system with a heat pump should weatherize their homes to ensure optimal cost savings and comfort, especially in older homes. For more information on home upgrades, visit the ENERGY STAR Home Upgrade platform.

Consider upgrading to an ENERGY STAR® certified heat pump for better efficiency and lower operating costs. Learn more about ENERGY STAR® certified heat pumps.
 

Heat pumps aren&#;t just some expensive tech for do-gooders. Though the cost of installation varies widely, CR members surveyed between and paid an average of $8,348 for a system compared with $6,221 for a gas furnace.

But in many cases, heat pumps are the most affordable way to heat and cool a home. Even by the most conservative estimate we&#;ve found (the study from the University of Texas, et al.), an air-source heat pump will be the most cost-effective HVAC system in 32 percent of households, or more than 37 million. 

Homes that heat with propane, oil, or &#;regular&#; electric-resistance systems are the most likely to save money by installing a heat pump. Propane and oil are always expensive (even when we aren&#;t in the midst of a massive price spike). And electric resistance heating uses an average of two-and-a-half to three times as much electricity as a heat pump does to produce the same amount of heat.

So in many parts of the country, you could save more than $1,000 per year on your heating bills by switching to a heat pump. The DOE has some state-by-state fact sheets that can give you an idea of how much you might save per year. 

You may also be eligible for subsidies or tax incentives that shrink the costs of heat pumps even further. Many states and utility companies offer rebates for heat pumps. 

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Massachusetts, for example, currently offers a $10,000 rebate for whole-house air-source heat-pump systems if you remove your old equipment. And the federal government offers a 30 percent tax credit on ground-source heat pumps through the end of . Punch in your ZIP code at DSIREUSA.org to see what&#;s available near you.

Mark Norris, a professor of environmental science at Stevenson University who lives in Baltimore County, Maryland, found that a ground-source heat pump was the most affordable way to heat and cool his home&#;a bit of a surprise because they&#;re much more difficult to install than regular air-source heat pumps or traditional HVAC equipment.

Norris had the ground-source system installed to a depth of 250 feet, straight down into the dirt in the front yard of his &#;tiny suburban lot,&#; as he described it. It cost about $23,000 up front, but as the rebates and incentives from his utility company and federal, state, and local governments trickle in, the total out-of-pocket cost works out to be around just $8,000. Norris says that the final cost is lower than the quote he received to install a basic gas furnace and central AC.

Most of the time, though, gas heating will cost less than a heat pump, particularly in colder climates. Installing both a basic gas furnace and basic central AC is usually cheaper than installing one whole-house cold-climate heat pump.

And gas-fired heating equipment tends to cost less to install than electric cold-climate heat pumps, says Dave Lis, a director at the Northeast Energy Efficiency Partnerships, though the operating costs are often pretty close. There are nuances and exceptions to this, though, including the option of using a hybrid or dual fuel system that combines a heat pump and furnace system, running the heat pump in milder temperatures when it&#;s most efficient, then switching to a furnace when it saves money to do so. (You can read more about hybrids in our heat pump buying guide.) 

The easiest way to figure out whether a heat pump is right for your home is to get a few quotes from local HVAC contractors, according to Francis Dietz, vice president of public affairs for the Air-Conditioning, Heating, & Refrigeration Institute.

&#;They&#;re going to know how many heating days you have based on where you live, and what your [utility] rates are,&#; Dietz says. They&#;ll also know what equipment works well in your area and what subsidies are available. A good contractor will do a proper load calculation to figure out exactly how much heating and cooling capacity your home needs, and whether you&#;d benefit from efficiency upgrades. (Our heat pump buying guide has more information on finding an experienced contractor.)