You might not know it yet, but the heat pump could be the coolest (and hottest) home upgrade you're missing out on — and the government is even offering an incentive of up to $2,000 (or sometimes more) to sweeten the deal.
What is a heat pump?
A heat pump is an energy-efficient appliance that moves heat from one place to another. It can usually both heat and cool your home, unlike a traditional air conditioner. It can warm or cool a space by simply moving heat efficiently — and it doesn't need to burn fuel like a conventional gas furnace does.
Heat pumps generally work by taking heat from the air or ground (or sometimes water) outside your home and moving heat indoors in winter or outdoors in summer. Despite its name, a heat pump is versatile, in most cases functioning as both a heater and an air conditioner.
Why are heat pumps important?
Heat pumps are important because they offer a cost-effective alternative to traditional HVAC systems, and they are more sustainable.
Their efficiency can significantly reduce energy usage, which in turn lowers utility bills and pollution. According to the Department of Energy, switching to a heat pump can nearly cut your heating bill in half, offering long-term savings that make up for their initial cost.
The government is making it easier and cheaper for homeowners to switch to heat pumps by offering big incentives. Thanks to the 2022 Inflation Reduction Act, you can get a federal tax credit for 30% of your project cost, up to $2,000 in a year, just for installing a qualifying air-source heat pump (the most common variety).
Depending on your household income and location, you could even get up to $8,000 back — though the details of this incentive are still being determined in most states. These savings, on top of the lower energy bills you'll enjoy, make this upgrade a no-brainer for anyone wanting to improve their home's heating and cooling.
How do heat pumps help the environment?
Beyond the financial benefits, heat pumps also contribute to a cleaner environment. Even if they pull electricity from a dirty grid, they are more efficient than conventional air conditioners and don't burn fuel like typical furnaces. This means they help cut down on health-harming pollution and combat Earth's overheating.
Additionally, the government's recent push to increase domestic manufacturing of heat pumps under the Defense Production Act should mean they'll be readily available for Americans — and supportive of American industry.
Organizations like EnergySage can help you find local installers and compare prices to ensure you're getting the best deal on your heat pump upgrade. To explore options in your area, visit EnergySage's free online Heat Pump Marketplace.
Switching to a heat pump isn't just a smart move for your wallet; it's a win for the environment too. With significant savings on energy bills (up to an estimated $1,000 annually), generous government incentives, and the added bonus of helping the planet, making the switch to a heat pump is a forward-thinking upgrade.
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