Over the past decade, heat pumps have emerged as a high-efficiency challenger to the traditional notion that heaters must rely on fuel combustion. Through advanced technology, heat pumps act like air conditioners in reverse, separating heat from outdoors and pumping it into your home at a cost far below that of traditional systems like oil and gas furnaces. That said, heat pumps cost far more initially than traditional systems. But the long-term savings can be considerable.

If you’re considering replacing your old heater or investing in heating solutions for a new home, you may find that a heat pump can significantly reduce your long-term energy costs. The most efficient heat pumps can create four times as much energy as the systems’ consume. Heat pumps up-front cost may not be worth the price of admission depending on your needs and location.

Heat pumps come in two varieties: air source heat pumps and geothermal heat pumps. Air source heat pumps generally run somewhere around $4,000 to $10,000, including installation. Geothermal heat pumps run anywhere from $12,000 to $30,000 with installation. But there is a key difference between the systems and reasons you may want to pony up for high heat pump prices.

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Your Location Matters

Air source heat pumps pull heat from the outside atmosphere that often renders them unusable in cold climates. This requires a costly back up furnace to heat your home. Most heat pumps include low-efficiency electric furnaces as back-up options. Air source heat pumps are not an efficient solution in areas where the temperature routinely falls below 40 degrees. Phoenix is known for it’s moderate climate during the winter, so an air source may be a reliable solution if you live in the area.

Geothermal heat pumps pull heat from several feet underground, where the temperature remains relatively consistent throughout the year, even in cold climates. They’re also more efficient than air source heat pumps in any location. In areas such as the Midwest, geothermal heat pumps are an ideal long-term solution.

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Beneficial Tax Breaks

Geothermal heat pumps are eligible for tax breaks of 30% off the cost of the system, helping curb the pain of the steep up-front spending. Through Dec. 31, 2016, Energy Star offers these rebates for existing homes and new construction. Unfortunately, rental properties are not eligible.

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Is This Right For You?

If you plan to live in your home for more than 10 years, you’ll likely enjoy real savings. If you live in an area with extreme cold during the winter months, an air source heat pump is probably as costly as a gas furnace. Unless you live in the West Coast or the South, a geothermal heat pumps may be your best choice. It just might be hard to stomach the additional $30,000 up-front cost. In the end, it comes down to pinpointing what’s most important to you: long-term savings or up-front cost.

Jim Davenport is a seasoned home improvement veteran. If you’re considering heat pumps, he recommends the following guides to Carrier heat pump prices and Bryant heat pump prices.

By: Jim Davenport

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