Heat pumps aren’t just some expensive tech for do-gooders. Though the cost of installation varies widely, CR members surveyed between 2007 and 2024 paid an average of $8,348 for a system compared with $6,221 for a gas furnace.
But in many cases, heat pumps are the most affordable way to heat and cool a home. Even by the most conservative estimate we’ve found (the study from the University of Texas, et al.), an air-source heat pump will be the most cost-effective HVAC system in 32 percent of households, or more than 37 million.
Homes that heat with propane, oil, or “regular” electric-resistance systems are the most likely to save money by installing a heat pump. Propane and oil are always expensive (even when we aren’t in the midst of a massive price spike). And electric resistance heating uses an average of two-and-a-half to three times as much electricity as a heat pump does to produce the same amount of heat.
So in many parts of the country, you could save more than $1,000 per year on your heating bills by switching to a heat pump. The DOE has some state-by-state fact sheets that can give you an idea of how much you might save per year.
You may also be eligible for subsidies or tax incentives that shrink the costs of heat pumps even further. Many states and utility companies offer rebates for heat pumps.
Massachusetts, for example, currently offers a $10,000 rebate for whole-house air-source heat-pump systems if you remove your old equipment. And the federal government offers a 30 percent tax credit on ground-source heat pumps through the end of 2032. Punch in your ZIP code at DSIREUSA.org to see what’s available near you.
Mark Norris, a professor of environmental science at Stevenson University who lives in Baltimore County, Maryland, found that a ground-source heat pump was the most affordable way to heat and cool his home—a bit of a surprise because they’re much more difficult to install than regular air-source heat pumps or traditional HVAC equipment.
Norris had the ground-source system installed to a depth of 250 feet, straight down into the dirt in the front yard of his “tiny suburban lot,” as he described it. It cost about $23,000 up front, but as the rebates and incentives from his utility company and federal, state, and local governments trickle in, the total out-of-pocket cost works out to be around just $8,000. Norris says that the final cost is lower than the quote he received to install a basic gas furnace and central AC.
Most of the time, though, gas heating will cost less than a heat pump, particularly in colder climates. Installing both a basic gas furnace and basic central AC is usually cheaper than installing one whole-house cold-climate heat pump.
And gas-fired heating equipment tends to cost less to install than electric cold-climate heat pumps, says Dave Lis, a director at the Northeast Energy Efficiency Partnerships, though the operating costs are often pretty close. There are nuances and exceptions to this, though, including the option of using a hybrid or dual fuel system that combines a heat pump and furnace system, running the heat pump in milder temperatures when it’s most efficient, then switching to a furnace when it saves money to do so. (You can read more about hybrids in our heat pump buying guide.)
The easiest way to figure out whether a heat pump is right for your home is to get a few quotes from local HVAC contractors, according to Francis Dietz, vice president of public affairs for the Air-Conditioning, Heating, & Refrigeration Institute.
“They’re going to know how many heating days you have based on where you live, and what your [utility] rates are,” Dietz says. They’ll also know what equipment works well in your area and what subsidies are available. A good contractor will do a proper load calculation to figure out exactly how much heating and cooling capacity your home needs, and whether you’d benefit from efficiency upgrades. (Our heat pump buying guide has more information on finding an experienced contractor.)
Awareness of air source heat pumps is increasing as more and more homeowners are talking about low carbon heating systems. A heat pump system is different to a traditional central heating system that uses a gas or oil boiler so to help homeowners fully understand the advantages and disadvantages of this renewable technology, we have summarised some in this article.
An air source heat pump cleverly uses the heat energy in the air and captures this to be used in a central heating system. Instead of using a fossil fuel, heat pumps are a renewable energy source and require electricity to power them. They do operate differently to a traditional heating system so living with a heat pump is not the same as a gas or oil-fired system.
There are many benefits that homeowners can enjoy when they own a heat pump but it is important that they understand the differences too, so let us take a look at some air source heat pump pros and cons.
If your home is currently heated by a fossil fuel, such as gas, oil or LPG, then swapping to a heat pump will mean you will no longer need to order these fuels, allowing you to heat your home more sustainably. You can therefore enjoy not having these fuel costs to pay each month as your gas bills will be no more!
When an air source heat pump is installed and set up correctly, they are very efficient units, maximising output for the energy consumed. For example, the Grant Aerona³ 6kW air source heat pump produces 6kW at a SCOP of 4.62 when tested at a low temperature and in average climate conditions (SCOP refers to the efficiency of a heat pump, calculating its overall performance during a particular season and dividing this by the annual energy consumed to run the heat pump). In summary, what this means is that for every kilowatt of energy used to run the heat pump, over 4kW of energy is being given to the heating system in return.
To view the performance data of Grant heat pumps, please download the data sheet here.
An air source heat pump appliance itself burns no fossil fuels and uses electricity. With more and more of the electricity generation in the UK now being produced via renewables, this makes a heat pump a better choice for the environment than gas boilers.
Grant heat pumps are user-friendly being both straightforward to control and simple to maintain. When an installer sets up and commissions a heat pump, they will set the core parameters of the system so that the end-user has minimal interaction with the controls. Thereafter, the homeowner can adjust their desired room temperatures via third-party controls, which may be app enabled, and they can sit back and enjoy their renewable system. The only thing to remember is to arrange the annual servicing of the heat pump.
Disadvantages & considerations of heat pumps
1. Increased electricity
usageAs mentioned above, heat pumps do need electricity in order to work so if you install a heat pump, you will likely see an increase in your electricity usage. It is recommended that homeowners contact their energy supplier to see if a heat pump electricity tariff is available which may be a cheaper and more suitable tariff for an electric based renewable heating system.
A term you will often hear of with heat pumps is ‘low temperature system’. Unlike boilers which are high temperature systems, a heat pump operates at a lower flow temperature so to ensure that this heat can be effectively transferred into the space within the home, sufficient heat emitter surface area is needed and this is why correctly sizing the heat emitters is so important. It is not always possible to use existing radiators with a new heat pump as larger radiators, or an underfloor heating system, may be better suited.
Compared to traditional boiler replacements, a heat pump installation requires significantly more planning and preparation. The design of the system must be thoroughly completed with a detailed heat loss calculation carried out on the property to ensure it is well insulated, as well as a correct assessment of the heat pump output required and the correct sizing of the chosen heat emitters.
Ensuring your property is well insulated is key for an effective heat pump. We recommend as a minimum checking your loft, cavity wall and window insulation. You can find out more on our blog – how to prepare your home for a heat pump.
It is important that no corners are cut during the design phase to ensure that the system installed is the right one to meet the heat demand of the property most effectively and efficiently.
Provided the unit is installed correctly, adhering to all the do’s and don’ts which are detailed in our heat pump brochure, a heat pump will deliver years of reliable, sustainable home heating.
Homeowners need to be well informed about heat pumps so if you are interested in learning more about this renewable technology, visit our Knowledge Hub.
If you are interested in learning more about air source heat pumps, you may be interested in taken a listen to our Net Zero Heating Show podcast. The podcast is aimed at installers and heating professionals but homeowners looking to learn more about this renewable technology will also find it an interesting listen.