Is a Heat Pump a Good Idea? And is it the Right Choice for Your Home?

Oct 28, 2020

Is a Heat Pump a Good Idea & is it the Right Central Heating Choice for your Home and Climate?

This article is written by Michael Haines and AC Direct.

Updated on January 19, 2021.

A heat pump can suit your needs perfectly, depending on where you’re located, and how cold your area gets in the winter.

Who is this article for? It’s for anyone looking for a new cooling and heating system who needs some guidance in the selection process.

It’s for you if you have found yourself asking any of the following questions:

What is the difference between a heat pump and central air?
Is a heat pump a good idea?
Do you really save money with a heat pump?
What are the disadvantages of a heat pump?

Can a heat pump heat your whole house?
Do heat pumps use a lot of electricity?
How much do heat pumps cost?
How long do heat pumps last?

Well, we’re aiming to make this article the ultimate guide to heat pumps. So we’re going to answer ALL of those questions.

Just for you.

Heat Pumps: An Overview

We’ve looked, and as near as we can tell, most of the articles out there on heat pumps are a bit technical.

While excruciating detail is good for HVAC contractors and salespersons, it is not so good for a person who just wants to know the basics about choosing a new system for their home or office.

So here are the basics on this commonly misunderstood marvel of modern heating and cooling:

A heat pump is a device that pumps heat.

We hope this has been informative.

That was a joke, of course, but it’s based in truth. Pumping heat from one place to another is truly the sole job a heat pump is equipped to perform.

Heat pumps pump heat, and they can do it in both directions.

Want it cooler in your home? The heat pump will pump heat out of your home. Want it warmer? You guessed it, the heat pump will pump heat into your home.

Simple. Versatile. Elegant.

A heat pump is a heating AND cooling system that extracts heat from the air, and then moves it – using an air handler, or “blower,” as they’re sometimes called – into the desired location.

All you really need to understand is that there is significant heat in the air even on freezing cold days. “Cold” is a relative term. As humans, 32 degrees F feels cold due to our 98 degree body temperature. As a matter of fact, there is heat in the air all the way down to absolute zero or –459.67° F.^[1]

Absolute zero is the absence of all heat. Just to keep this simple when the outside (ambient) temperature is, say, 32° F, a heat pump can capture the substantial heat that exists in the air via a refrigerant loop and “pump” this existing heat into your home without having to actually create it.

So by moving the existing heat is where the operational savings occur; it is much less expensive to transfer existing heat than it is to actually create it.

For example if your 1600 sq. ft. home is heated by a 10KW heat strip (this consumes 10,000 watts of energy per hour), in most areas of the country this heat strip would cost you about $1.40 per hour to operate.

A newer, efficient heat pump, on the other hand, will cost about 31 cents per hour for the same size home at that same temperature. That’s a savings of 78% on your monthly heating operational cost.

It’s important to note that since the amount of available heat that can be transferred into your home diminishes as the ambient temperature drops, a heat pump always employs a backup heat source, usually in the form of a heat strip as mentioned above.

A heat pump is most efficient in temperatures above the mid 30’s. At this approximate temperature and above, the heat pump can produce just about all of the heat needed to keep you comfortable without relying on the much more expensive backup heat source.^[2]

As the outdoor temperature drops, the heating capacity of the heat pump drops in tandem. So the heat pump will continue producing heat, just not enough to keep your home comfortable by itself.

However, between the backup heat source and the heat pump itself, the combined forces will maintain a comfortable temperature inside your home, without relying solely on either source.

Traditional heat pumps have advanced to the point where they are being used in cold northern climates and are still effective.

If you live in a climate where the ambient temperature is expected to drop below 15 degrees just about every winter, we would suggest you investigate a “hybrid” heat pump, also known as “dual fuel”.

Instead of using the less efficient electric heat as the backup source, it will use a fossil fuel such as oil or gas.

Depending on your local electric utility and fossil fuel rates (this can vary greatly by region) the fossil fuel backup may be the most efficient and effective option in the colder northern climates.^[3]

curious woman with question marks next to her image

What is the difference between a heat pump and a central air conditioner?

Well, for one thing, a central air conditioner can’t heat your home in the winter. We think that is a pretty crucial difference – but it isn’t the only one. An AC system requires a heat source such as an electric heat strip, or a gas or oil furnace.

When it’s set to cool your home, a heat pump works on the same basic principle as an air conditioner, cooling your home by absorbing heat energy from inside your home and releasing it outside.

It does this by way of a looped refrigerant system that connects your outdoor ac unit (condensing unit) to you indoor blower section, (an air handler, gas or oil furnace). This indoor blower section will contain a cooling coil, also known as an evaporator coil.

This coil is connected to the outdoor unit (known as the condenser) via a set of copper refrigerant lines. The cold refrigerant passes through this indoor coil, which, in turn, becomes very cool.

Your indoor air is pulled from your home and is then blown across this coil.

This process delivers the cooled air into your “supply” duct system and it re-enters your home via your “supply air” registers.

In short, when you’re cooling your home, a heat pump and traditional AC system are the same, but when the time comes to heat your home, the central air conditioner is helpless on its own, while the heat pump is ready to go, thanks to the handy ability to reverse the directionality of the temperature exchange.

Related content – When and how ductless mini split AC systems are the absolute best option in terms of function and efficiency.

Is a heat pump a good idea?

We know what you actually mean:

Is a heat pump a good idea for me?

Because, obviously, it’s a good idea in general. In short a heat pump is an excellent idea for you if:

You want a greener and generally cheaper and more efficient alternative to traditional heating and cooling equipment.
You have an outdated HVAC system (heating or cooling) and are seeking to upgrade.
You want a more efficient alternative to handle both heating and cooling, rather than relying on electric heat, gas or oil as your heating source.

If you have questions or need assistance, give us a call or email us here.

Do you REALLY save money with a heat pump?

It is not true in every scenario, but by and large, heat pumps are at the forefront of the energy efficiency race.

Heat pumps are built to be on par with central air conditioners in terms of cooling efficiency – and built to compete with the most efficient natural gas furnaces in terms of heating costs.

That means, there’s a better than even chance that a heat pump could save you money on heating, cooling, or both.

Should you replace an existing gas furnace with a heat pump?

In most circumstances, this is not necessary or wise, at least from a financial standpoint.

Here’s why:

To switch from natural gas heat to a heat pump, you’ll need to swap out the entire system, including your existing outdoor AC unit. This is because the outdoor section is the actual heat pump, not the indoor unit.
If your natural gas furnace is less than about 8 years and has been well maintained it could last another 7-10 years.
If your furnace uses propane gas (LP gas), in some areas of the country prices can be considerably higher than natural gas. Plus some customers complain of delivery issues and service problems with their fuel supplier. If these are an issue for you, switching to a heat pump is a solid choice.
Gas furnaces to tend to heat your home more quickly in colder environments so switching to a heat pump just for the sake of switching (without a valid reason) is not encouraged (at least by AC Direct).
One big advantage to switching from gas heat to a heat pump is that the heat pump does not expel considerable poisonous and unsafe contaminants into the atmosphere like gas furnaces do.

At temperatures above about 35 degrees (Fahrenheit) heat pumps are particularly efficient heaters. If you’re wondering why, it’s because they’re not generating heat – they’re just moving it around, as discussed earlier. That’s easier to manage.

Thus, if your heating needs are already on the moderate side, a heat pump can provide equivalent temperature control to conventional systems – at as little as 25-50% of the cost.

There are situations in which a heat pump’s capabilities would be strained, of course.

Keep reading to find out more about those.

What are the disadvantages of a heat pump?

Heat pumps aren’t without their potential downsides. This article isn’t about convincing you that you must run and call a heat pump installation contractor right now – it’s about giving you the information to make the right decision for your needs.

Heat pumps may not be the most cost-effective option for you under certain circumstances. Here are a few potential disadvantages.

Slightly higher upfront cost: Heat pumps take a bit longer to recoup the initial cost if you are replacing an air conditioning system with just electric heat.

Even though your utility bills WILL be reduced, your upfront installation cost could be a little higher than a standard heating or cooling system with electric heat.

Although, keep in mind, If you currently have a gas or oil furnace, converting to a hybrid system is really not much different than just replacing the existing furnace and ac system.

You may need to have an electrician do some circuitry updates and this will vary based on the electrical requirements of your existing outdoor unit and the new outdoor heat pump.

The materials and labor for both this outdoor heat pump and the replacement of the existing furnace is pretty much identical in terms of time and material as just installing a new air conditioner and indoor furnace.
Less efficient in extreme cold weather: Because in the heating mode, heat pumps move heat, rather than generate heat, they can struggle in temperatures below the 20’s F.

If you live in an area with extreme winters, your contractor might recommend the hybrid system in which a heat pump does a large portion of the heating, but there is a supplemental gas heating system that will kick in when temperatures drop below a certain point.

This may or may not raise your costs to a point where a more traditional HVAC setup would be more cost-effective.

Also, be aware, that in milder temperature conditions, the heat pump will deliver air that is not as warm as that which a fossil fuel furnace can deliver although it will still satisfy your indoor thermostat setting either on its own or with the backup fossil fuel furnace.

Hybrid systems do reduce your heating costs, though, by allowing the heat pump to do the bulk of the work, and having the gas furnace play a supportive role. You might think of it as analogous to a hybrid car, in fact.

Of course, each year, heat pumps are getting better and better at surmounting the extreme cold obstacle. In fact, heat pumps are one of the fastest-growing businesses for HVAC contractors in Maine!
Heat pumps use electricity, which can be a disadvantage if you live in a region with particularly high electricity costs. There is also the question of whether or not it is possible to be carbon neutral with a heat pump – which is achievable with solar panels, of course.

Can a heat pump heat your whole house?

This question is a bit of a throwback, because the answer used to be not always, but now, thanks to the nature of HVAC innovations, the answer is almost always yes.

As with central air conditioners and furnaces, it’s difficult to arrive at a universal answer to this question. The type of heat pump you will need will depend on a number of factors. Some of those are:

The square footage of your home or commercial space.
The number of floors.
The layout – open vs. closed floor plans.
The location of the indoor unit (blower or air handler unit).
What you are spending to cover your heating and cooling needs on oil, gas, or electricity.
The thermal envelope of your home – how much heat it is losing and gaining.

So we would answer this question with a firm yes. Heat pumps are designed as central heating and cooling systems so by their nature so there is no reason they cannot heat and cool your entire home.

Do heat pumps use a lot of electricity?

They do not – particularly when compared to other all-electric heating systems. Electricity is more renewable than fossil fuels, but the prices vary county by county, so we have come up against this question often in the past.

The concern seems to be that by decreasing your use of nonrenewable resources like oil or gas, you are increasing your use of electricity.

So are you really saving money at all?

We would say that in almost every case, the answer is yes. While your electric usage will go up, it will still use less energy than heating your home with oil or gas – at least in most cases.

In colder climates, this won’t always be true, as high-efficiency natural gas furnaces can outperform heat pumps in extreme winters. If, however, you are using oil or propane, it is virtually a guarantee that a heat pump will have a lower operating cost.

Also, as we mentioned earlier in this article, you could always look into pairing your heat pump with solar panels, bringing you even closer to carbon-neutrality and dramatically cheaper heating and cooling.

Note: In extremely mild climates, like South Florida or South Texas, for instance, electric heat is often the most preferred option, because heating hours are extremely limited.

In those cases, your heating bill will be a bit higher with electric heat but the initial purchase and installation is around $500-$1000 less than a heat pump – but again, ask your contractor or call us for specifics!

How much do heat pumps cost?

Well, that is a pretty tricky question. We could dodge it with a joke (more than a breadbox and less than the International Space Station) but we’ll try to unpack it for you, instead.

The first thing you should know is:

A heat pump will cost more than a central air conditioning and electric heat system with equivalent cooling capability. (But remember, electric heat is used only in extremely mild winter climates.)

But, like any other appliance, there is a pretty huge variance in heat pump prices. For context, do a quick Google search for consumer-grade (meaning non-commercial, for your home) refrigerators.

At the time of this writing, we see a range in refrigerator pricing from $398 to $9,550, without even poking around. Heat pumps work by a similar principle, and in keeping with the old saying, you do get what you pay for.

By way of offering you a range, heat pump systems, fully installed by a qualified contractor, are averaging between $3,500 for small budget systems and as high as $13,000 for a single high efficiency heat pump system for large homes.

Most installations will fall in the middle of those two extremes.

I would say, using a nationwide sample, most homeowners pay between $5,500-$8,500 for a new heat pump system installed.

Here in Florida, prices tend to be lower than in most parts of the US, but based on my conversations with contractors and wholesale distributors across the country, this seems to be the mid-range average pricing for most homeowners.

Note: These prices are primarily for air-sourced heat pumps, which are by far the most common. A second style of heat-pump called a geothermal or ground-sourced heat pump does exist. These use the earth as a heat source, rather than the air, which boosts efficiency by a substantial margin.

However, these systems are far more expensive to install, and require a looped heat exchanger to be buried beneath the ground or underwater near your home.

They’re complicated, difficult to install, require substantial property, and are a feasible option only in limited circumstances for the average home or business.

How long do heat pumps last?

Again, we’ll be talking averages here, but most heat pumps will last 12-15 years. The specific longevity of a heat pump can be impacted by many factors.

Consider how some people can drive a car and maintain it well, and get 200,000 miles out of the engine without any significant problems, while others can drive the same model car and have it die at 60,000 miles.

Some things that will affect the longevity of your heat pump:

Lack of regular maintenance
Incorrect sizing (a system that is too small or too large for your home’s needs)
Excessively high or improper usage
Corrosion or extreme weather that might affect the outdoor unit

You can extend the life of your heat pump in the same way that you extend the life of any other machine: with regular maintenance.

Preventative maintenance (tune-ups and services by a qualified technician) make it far more likely that your heat pump will be around to heat your home for many years.

Have more questions about heat pumps? Tell us all about it, so we can answer them all in future posts!

If you have questions or need assistance, give us a call or email us here.