By Lara Howell

Curious about saving money and reducing your carbon footprint? Read on to learn about heat pumps! Discover the ins and outs of these efficient systems and find out which type is perfect for your building or home.

Heat pumps have been around for a while as an alternative to forced air systems, like baseboard heaters and radiators, and central air conditioning. Now, new technology is making them more efficient and more cost effective. Heat pumps combine the uses of an air conditioning unit and furnace, operating both heating and cooling systems. They work like an AC unit, using refrigerants to cool air and move it into your building. But they can also move in reverse, using compressed gas from a heated refrigerant to heat surrounding air and push it into your building. 

By moving heat instead of generating it, heat pumps operate more efficiently than other heating alternatives. In fact, they can save up to 65% on energy consumption compared to other heating and cooling systems, according to the U.S. Department of Energy, and that saved energy means less money spent on your electricity bill. 

Demystifying how heat pumps work

So how exactly do heat pumps work? The most common type of heat pump is an air-source heat pump. Air-source heat pumps move air from outside your building to the indoors, run the air over refrigerants, and match the air temperature to your thermostat in the process. During colder months, heat pumps absorb heat from the cold outdoors (yes, there is still heat outside when it’s cold!) and move the heat over even colder refrigerants, causing the refrigerants to evaporate. The gas from the refrigerants is compressed, making the air even warmer, and then the air is moved to your building. In warmer weather, heat pumps work in reverse, moving heat from inside your building into the outdoors and releasing cold air into your building.

Demystifying paying for heat pumps

The Department of Energy reports that air-source heat pumps can deliver up to three times more heat energy to a building than the electrical energy that the heat pump consumes. This can mean huge savings for the consumer, who could reduce their heating and cooling bill by 20 to 40%.

Often a major hesitation when switching to heat pumps is the upfront cost of installing one. While consumers will typically make the upfront cost back in utility bill savings in 5 to 15 years, it is still a hurdle.  

The payback period of your upfront costs will depend on several factors, including the efficiency of your home and your income. Luckily, there are several funding sources and incentives that help to finance both the initial costs of a heat pump, and upgrades to other aspects of your home’s energy efficiency. 

The Inflation Reduction Act included increased tax credits and new rebates for energy efficiency upgrades to your home. Before beginning installation on any new projects, consider getting an energy audit, eligible for up to $150 in tax credit and sometimes offered at no cost. Energy audits will be able to point to the most impactful and cost effective ways to save energy and cut down on your energy bills.  

Energy experts may recommend installing insulation and air sealing before installing a heat pump to ensure maximum energy savings once the heat pump is operating. Energy saving improvements to doors, windows, insulation, and electrical panels are eligible for tax credits of up to $1,200. An additional heat pump tax credit will cover 30% of your project costs, regardless of your income, up to $2,000, totaling a possible credit of $3,200! If you are considering taking advantage of these programs, make sure to get started soon, as these specific tax credits are only set through 2032.

While these tax credits are aimed at homeowners, non-residential buildings may soon qualify for assistance in making the switch to heat pumps. Appalachian Voices, through a project funded in part by the Department of Energy’s Building Technologies Office, is providing support to to help install heat pumps and other energy efficiency upgrades in some non-residential buildings in Southwest Virginia’s coalfield counties. The goal of the program, part of the Buildings Upgrade Prize (Buildings UP), is to work with community partners to upgrade and electrify buildings that can serve as community hubs in the event of flooding or other disasters. 

Which heat pump is right for you? 

Different brands and models of heat pumps will have different technologies, but there are a few different overarching categories of heat pump to choose from. While air-source heat pumps are the most common and can reduce your electricity use significantly, geothermal heat pumps can achieve even higher efficiencies. 

Geothermal heat pumps transfer heat between your building and the ground or a nearby water source, which have more consistent temperatures than the air. They act as a heat sink in the summer and a heat source in the winter, pulling on the consistent temperature a few feet below the earth’s surface to heat and cool your home. Geothermal pumps cost more to install than air pumps, but they have low operating costs, can reduce energy use by 70 to 80%, and are well suited for extreme climates. 

Mini-split heat pumps may be a good option for you if your building has a non-ducted heating system, or you have small spaces or new room additions where you cannot extend ductwork. Mini-splits operate like standard air-source heat pumps, but fit seamlessly into your space and can provide greater flexibility and potentially greater savings depending on your needs. If you need to heat or cool a small, well-insulated space, mini-split heat pumps may save you money. They often have higher upfront costs, but don’t lose efficiency in air ducts, so have a much lower operating cost. 

There are a few other variations of heat pumps, and meeting with a contractor in your area will help you determine which type of heat pump best fits your needs.

Other benefits of heat pumps

Outside of the cost benefits of heat pumps, leaving your furnace and air conditioning behind leaves a positive impact on your community.

If you’re switching to heat pumps from baseboard heaters, electric furnaces, or other electrical forced-air systems you’ll require less energy from the electrical grid thanks to the higher efficiency of heat pumps. A lighter load in times of peak demand or emergency can keep the lights on for you and your neighbors, and reduce carbon dioxide and other emissions from the burning of fossil fuels. 

Heat pumps also make a positive household impact on safety and air quality. They don’t require oil or gas to be piped in and burned up on your property or in your home, which means that your family will be exposed to less methane or other harmful gasses. 

No matter which type of heat pump is best suited for your needs, by investing in one today, you’ll be ready to face whatever storm tomorrow brings — all while keeping some money in your pocket.  

Lara is originally from Charlottesville, Va., but spent most of her life in central Texas (far, far away from the mountains). She is happy to be returning to Virginia as a rising senior at the University of Virginia, where she studies Global Environments & Sustainability and Religious Studies.