The government wants to make heat pumps a no-brainer for most households. Don't be fooled by the name — this game-changing HVAC tech is capable of both heating and cooling your home more efficiently and saving you major dollars.
The lone problem for most homeowners? Installation costs are high, averaging $4,000 to $8,000. Fortunately, that's where the government comes in to cut down on those startup prices.
🗣️ Which of these factors would most effectively motivate you to buy a heat pump?
🔘 Lower energy bills 💰
🔘 Better temperature control 🌡️
🔘 Helping the planet 🌎
🔘 I'd never buy a heat pump 🚫
🗳️ Click your choice to see results and speak your mind
The scoop
To entice homeowners to switch, qualifying households are eligible for up to $10,000 in tax credits and rebates to install heat pumps via the Inflation Reduction Act.
It breaks down very simply.
All households can get up to $2,000 in tax credits for putting in a heat pump. The further $8,000 in rebates is for eligible low-income homeowners. Add those together, and some households can get up to $10,000 to install a heat pump.
If you're interested in making the money-saving switch to a heat pump, EnergySage's Heat Pump Marketplace can assist you in shopping the best offers in your area.
How it's working
Heat pumps can save money on your bills immediately to the tune of $300-$1,500 annually, per U.S. Department of Energy estimates. The savings are especially pronounced in cold-weather areas.
The secret sauce to the tech is that heat pumps transfer heat instead of generating it. Even on cold days, heat pumps can transport heat from the outdoors to inside. The opposite is true on hot days, where heat pumps use electricity to move heat from your home outside.
This impressive tech allows heat pumps to function in all conditions while increasing efficiency. With those efficiency gains, heat pumps are capable of curbing household energy usage by close to 50%, compared to furnaces and conventional air-conditioning units.
As a bonus, unlike furnaces, heat pumps don't create harmful air pollution outdoors or even indoors.
💡Save thousands with a heat pump
A heat pump can save you thousands of dollars in heating and cooling costs — but first you have to find the right installer at the right price.
Use EnergySage's free tool today to find local options, compare prices, and see how much you can save.
The Cool Down may receive a commission on signups made through links on this page, but we only promote partners we vet and believe in. For more cool tips like this one, check out our solutions list here.
What people are saying
"There are millions of people who would benefit from putting in heat pumps," said DOE senior research engineer Eric Wilson.
Fellow DOE researcher Prateek Munankarmi said households can "save thousands of dollars on average" through installing a heat pump and taking steps to increase their home's energy efficiency like weatherizing them.
Wilson acknowledged that "there are still millions more households for whom the technology is still pretty expensive."
That's where greater awareness of the IRA's rebates and incentives comes in.
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