Homeowners in this state can save $300 a year by upgrading their HVACs — and the government is offering about $10,000 in incentives to help you switch

There's a better way to heat and cool your home if you're tired of high energy bills and your outdated HVAC system. Heat pumps are quickly becoming the go-to solution for homeowners looking to save money and reduce their environmental footprint.

Thanks to incentives through the Inflation Reduction Act, upgrading to this energy-efficient technology has never been more affordable.

The Scoop

Heat pumps work by transferring heat instead of generating it, making them much more energy-efficient than traditional HVAC systems. Those use refrigerants to move heat in or out of your home, depending on the season, and provide both heating and cooling in one compact device.

While installation costs typically range from $4,000 to $8,000 by one estimate or significantly more by another, the IRA makes this upgrade much more affordable. You could get 30% of the project cost and up to $2,000 in tax credits for installing a heat pump, and if your household qualifies as low-income, you might receive up to $8,000 in rebates for a heat pump under the Home Electrification and Appliance Rebates program now available in certain states. That means this upgrade could cost you a lot less — or potentially even nothing at all.

EnergySage's Heat Pump Marketplace is a great tool to help you compare local installers, find deals, and take advantage of rebates.

How It's Helping

Upgrading to a heat pump doesn't just mean lower up-front costs; it brings long-term benefits, too. 

According to the U.S. Department of Energy, research in Arizona shows that households that make the switch to an Energy Star variable-speed air-source heat pump can see average yearly savings of $300. 

Over time, these savings add up, covering the initial cost and making it a sound financial choice.

Heat pumps also improve your home's comfort. They operate more quietly than traditional systems and maintain consistent indoor temperatures year-round. 

🗣️ What is stopping you from upgrading to a heat pump system?

🔘 The cost of installation 💵

🔘 I live in a cold area 🥶

🔘 I don't know enough about it 🤷

🔘 I already have one 😎

🗳️ Click your choice to see results and speak your mind

Beyond the financial perks, heat pumps reduce your home's carbon footprint. By using less energy, they decrease reliance on dirty energy, contributing to a cleaner, more sustainable future.

What Everyone's Saying

Homeowners who've upgraded to heat pumps often share how straightforward the process can be. Environmental engineer Ben Allwood noted in the Financial Times: "Most people are likely to be surprised their home is heat-pump ready without expensive or disruptive insulation."

Bean Beanland of the Heat Pump Federation in England also highlighted how familiar the technology already is, according to The Times: "The same technology powers your fridge, freezer, and car air conditioning. Most of us have never known life without a heat pump."

These experiences show that heat pumps are accessible, efficient, and capable of delivering real savings.

The IRA's tax credits and rebates have made heat pumps more accessible, but these incentives may not last forever. 

President-elect Donald Trump has stated plans to reduce clean energy subsidies, including those tied to heat pumps. While any major changes would require Congress to act, the uncertainty makes now the best time to upgrade where possible.

Take advantage of EnergySage's tools to connect with reliable local installers and explore your options. To save even more money, look into making your house a smart home or weatherizing your home.

Upgrading to a heat pump means saving money, increasing your home's comfort, and contributing to a more sustainable planet — potentially without stretching your budget.

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