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Home & Family
HEAT PUMPS CAN KEEP YOUR HOME WARM AND COOL. SHOULD YOU GET ONE?
NEW TECH AND TAX REBATES MAKE THESE ENVIRONMENTALLY FRIENDLY DEVICES MORE
AFFORDABLE
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By
Stacey Freed,
AARP
En español
January 25, 2023
Heat pumps are having a moment. They aren’t used much in the U.S. — yet — but
they are more efficient than traditional gas furnaces and better for the
environment. And despite the name, heat pumps can be used to provide both warmth
and cooling.
Matt Bowers, 43, lives in a 2,800-square-foot house in Rochester, New York. He
heats his home, he says, “with the same amount of electricity that’s put out by
a hair dryer.” The yearly heating portion of his electric bill is approximately
$250, about what it costs, on average, to heat most U.S. homes for just two
months. Bowers, who is the owner of Rochester Passive House Consulting, uses an
air source heat pump to heat and cool his home.
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Although Bowers’ home was already built to ultra-energy-efficient Passive House
standards, anyone using a heat pump should see dramatic savings on their home
energy bills, according to the American Council for Energy Efficient Economy
(ACEEE). That’s because today’s heat pumps are 2.2 to 4.5 times more efficient
than traditional gas furnaces, according to a recent report from consulting firm
McKinsey on building decarbonization.
NAPA74/Getty Images
Heat pumps also are quiet, offer more control than a gas furnace and are being
touted as one of the best ways to help fight climate change, since they run on
electricity and don’t give off carbon dioxide and carbon monoxide (as
fossil-fuel-burning gas furnaces do). Plus, recent federal legislation provides
tax credits of up to $2,000 to get people to make the switch, and state rebates
can sweeten the deal (see box below for more information).
Sound too good? “There aren’t a lot of drawbacks to owning a heat pump,” says
Amber Wood, director, buildings program, ACEEE. She acknowledges that in the
past, there were complaints about noise levels, or that heat pumps don’t work
well in cold climates or that they don’t raise the temperature high enough. But
new technology has overcome those challenges, she says.
It is true, though, that if you live in a region where it can be extremely cold
for long periods of time, your heat pump might not be able to keep up with the
heat loss from the structure itself, and you’d need a backup heat source powered
by gas or electricity that kicks in quickly.
In any case, if your house is drafty or poorly insulated, a heat pump probably
shouldn’t be your first line of defense. You need to take care of those issues
first before you invest in either a heat pump or a traditional heating system.
In addition, Wood says, if your house is properly weatherized, “you can likely
install a smaller system — another place to find savings.”
Today only about 14 percent of homes nationwide use heat pumps. But concerns
about the climate and a host of government incentives mean that could change.
And in some states, such as Washington, heat pumps are now mandated for all new
residential construction (with an allowance for gas use for backup heating in
extreme cold).
HOW DOES A HEAT PUMP WORK?
Think of a heat pump like an air conditioner that can blow hot air as well as
cold.
A heat pump draws heat either from outdoor air or from underground, depending on
the type of system you have—regardless of the season. The air is run across a
refrigerant, which, when compressed, gets superhot or, when depressurized, gets
cold.
The most common system is an air source heat pump (ASHP), which has an exterior
unit (similar to a central air-conditioning unit) that connects via a tubing
system to one or more indoor air handlers or “heads.” A ground source heat pump
(GSHP) does similar work but pulls heat from the ground instead of the outside
air.
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ARTICLE CONTINUES AFTER ADVERTISEMENT
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HOW DOES THE AIR GET INTO THE HOUSE?
Heat pumps feed warm air into your home either with or without ductwork.
Homeowners with a traditional furnace can use the ductwork they already have in
place with a heat pump.
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With a ductless system, air-handling units are positioned throughout a home: on
a wall, recessed in the ceiling, mounted on the floor. These are connected by
tubing to the exterior unit.
WHY IS A HEAT PUMP SO EFFICIENT?
Unlike a furnace, “heat pumps are not creating heat. They’re moving heat,” says
Chad Gillespie, senior manager, performance construction, at Mitsubishi Electric
Trane HVAC U.S. Even the most efficient gas furnace doesn’t turn 100 percent of
its fuel into heat, but a heat pump is more than 100 percent efficient; it can
transfer three times more heat energy to a home than the electrical energy it
consumes.
And heat pumps have variable speeds. In other words, a heat pump doesn’t shut
down and wait for directions from your thermostat. It recognizes when you need
cooler or warmer indoor air, making the whole system more consistent—and more
efficient as a result.
WHAT ARE THE COSTS FOR A HEAT PUMP?
An air source heat pump (non-ducted) system generally costs several thousand
dollars, and the cost may be higher depending on each home’s setup. Your initial
purchase includes the outdoor unit, the refrigerant line and one indoor air
handler or head. If you have a large home, perhaps 2,600 to 3,000 square feet,
additional air handlers will run a few thousand dollars each. And if you live in
a very cold climate, a whole-house heat pump package can cost more than $10,000.
If you already have ducts, the system will be slightly different and you might
be able to use the ducts in place. “But whatever system you buy has to be
customized for your house, its size and construction,” Wood says.
A heat pump system may seem expensive when compared with the costs of a
traditional gas furnace, which according to HomeAdvisor ranges from $3,800 to
$10,000 with installation. HomeAdvisor also reports that installation of an
electric furnace ranges from $2,000 to $7,000, and oil furnaces cost $6,750 to
$10,000 or more with installation.
But remember that a heat pump provides cooling too, and your long-term
savings can offset the upfront costs. A heat pump can save a homeowner, on
average, about $950 a year compared to oil heat, or about $459 when compared to
electric resistance heaters, according to the U.S. Department of Energy.
In addition, there are lots of federal tax credits and state rebates available
for those switching to a heat pump. As part of the Inflation Reduction Act (IRA)
of 2022, depending on when you make the purchase, you could take a tax credit of
between $300 and $2,000 and receive a state rebate of up to $14,000 depending on
your income (see box for more information).
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“Speak with your contractor and tax preparer to make sure what’s accurate for
your locale,” advises Dan Wildenhaus, senior technical manager at the Center for
Energy and Environment. Signed into law on August 16, the IRA’s changes to
residential energy-efficiency tax credits become effective this year.
Another resource is DSIREUSA.org, the Database of State Incentives for
Renewables & Efficiency. Type in your zip code to find information on local and
national tax credits and rebates.
HEAT PUMP CONSIDERATIONS
1. The strength of the heat
Heat pumps were once known as not being able to provide enough heat in really
cold climates, but technology has improved. However, if your house is drafty or
not well insulated, a heat pump — or a new furnace, for that matter — is not
going to solve your problems. “People have a negative opinion about heat pumps
from the early ’80s and ’90s, when they didn’t put out a lot of heat. Today they
put out a lot more heat,” Gillespie says. “Old heat pumps would not heat below
40 to 47 degrees because they didn’t have the right engine to do so.”
But “technology has come a long way in the last 10 to 15 years,” Bowers says.
“They absolutely can be used in colder regions; there are heat pumps that will
put out full heating capacity down to minus 14 degrees Fahrenheit.”
2. Heat pump air may seem cooler on your skin
A gas furnace produces air that’s about 140 degrees. A heat pump produces air
that’s around 125 degrees, so a room might feel cool if you’re used to the type
of warmth emitted by a radiator or traditional system. But as Bowers points out,
“you don’t necessarily want air to be blowing out at 140 degrees. If the
temperature is too hot, you can actually start to smolder dust particles, and
you may get a burning smell near the heat registers. With an air source heat
pump, the air is 120 to 125 degrees so you’re not smoldering dust particles.”
Many older adults tend to be sensitive to cold temperatures, and they prefer
their living spaces to be as warm as 75 or 80 degrees. A heat pump is able to
get the temperature up that high. You can set the temperature using a
programmable thermostat, for example. The heat pump can automatically shift from
air-conditioning to heat depending on the temperature. And because heat pumps
distribute heat evenly throughout the house, you shouldn’t feel cold spots.
3. Maintenance costs and insulation
Just like with a furnace, the indoor heads of a ducted or ductless system
need their filters changed and cleaned about two to three times a year. “Usually
they’re washable, so you don’t have to buy new ones each time,” Bowers says.
Ultimately, it’s about overall comfort in your home. But before you switch out
one heating system for another, it’s important to do air sealing and take other
weatherization measures to ensure your home is not drafty. As Bowers puts it, “A
wise man once said, ‘You pay for insulation whether you have it or not.’ ”
TAX CREDITS FOR HEAT PUMP INSTALLATION
If you’re considering making a switch to a heat pump for heating and cooling
your home, there are federal tax credits for energy efficiency, known as 25C,
and state rebates available to make it more affordable. These are part of the
federal Inflation Reduction Act passed in August 2022.
Energy Efficient Home Improvement (25C) Tax Credit
* Heat pumps installed during 2022 that are Energy Star certified meet the
requirements for the 25C tax credit of $300.
* For equipment installed on Jan. 1, 2023, or later, households can deduct 30
percent of the costs for buying and installing a qualified heat pump, up to
$2,000 if the heat pump system meets or exceeds the highest performance tier
set by the Consortium for Energy Efficiency (CEE).
High-Efficiency Electric Home Rebate Act
* This is a 10-year program, administered through state energy offices, to
support low- and moderate-income households.
* The act allocates $4.3 billion to states to pass on to homeowners for home
energy improvement projects, including point-of-sale heat pump rebates.
* State rebate programs depend on income and are available to households
earning less than 150 percent of their area’s median income. If your
household income is less than 80 percent of your state’s median household
income, you are eligible for 100 percent of the cost of upgrades up to
$14,000.
%{postComment}%
Stacey Freed is a contributing writer who covers remodeling, construction,
lifestyle issues, education and pets. Her work has appeared in USA Today, Real
Simple and This Old House.
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subject to change and may have restrictions.\u003c/p\u003e\u003cp\u003eThe 25%
discount is applied to the standard retail prices set forth on the FTD.COM
website. The 30% discount applies to any item in the AARP Choice Collection.
Enter promo code AARP30 to receive 30% discount on AARP Choice Collection items
at checkout. Discounts are applied to the standard retail prices set forth on
the FTD.COM website (standard retail prices shall not include sales prices) and
are not available on: (a) product customizations including vases or product
add-ons; or (b) service, shipping, delivery, care and handling fees
(collectively, “Service Fees”), or any other fees and applicable taxes. The
discount is available online and through the special toll-free number. Discounts
cannot be combined. Quantities may be limited. Delivery for Floral and Gifting
Items: For each item delivered by a local florist or shipped direct, a standard
Service Fee will apply (the standard Service Fee is waived for FTD Plus Insider
members). Service Fees may be higher based on day of delivery or product type,
or during high volume holiday periods. If an item is not available, a comparable
substitute may be provided. Due to the perishable nature of our products, please
make any customer service inquiries within 7 days of delivery. For items
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AARP MEMBERSHIP
Join or Renew Today
Save 25% when you sign up for automatic renewal
Learn More
See more Health & Wellness offers >
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234
*
*
*
*
* MEMBERS ONLY
Restaurants
Moe's Southwest Grill
10% off in-store, in-app and online orders
learn more
See more Restaurants offers >
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* Travel
AARP Travel
Vacation ideas, savings tips and special offers
learn more
See more Travel offers >
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* MEMBERS ONLY
Flowers & Gifts
Flowers by FTD
25% off sitewide and 30% off select items
learn more
See more Flowers & Gifts offers >
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* Health & Wellness
AARP Online Fitness powered by LIFT session
Customized workouts designed around your goals and schedule
learn more
See more Health & Wellness offers >
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