Under most circumstances, heat pump HVAC systems are widely considered one of the best ways to slash home energy costs.
However, in California, where consumers already face high electricity bills, the situation is more complicated.
This is the conundrum policymakers in the Golden State are presently grappling with. In addition to being cheaper to operate in many instances, heat pump HVAC systems also produce less air pollution than the alternatives, such as gas furnaces.
Many factors can affect whether energy-efficient electric heat pumps result in lower utility bills, according to CalMatters, including not only the prices of electricity and natural gas but also the climate in which one lives.
"If I'm a consumer, I'm going to be thinking about — not just, 'Is this good for the environment?'" said Helen Kerstein of the Legislative Analyst's Office, per CalMatters. "That's certainly one consideration, but also, 'Is this something I can afford?'"
"Unless folks are saving money on the operating cost, it often doesn't pencil out," Kerstein continued.
In addition to operating costs, the expense of installing new HVAC equipment is a consideration for homeowners. In that sense, heat pumps have the advantage of serving as both a source of heat during cooler weather and air conditioning in the heat.
Installation costs for heat pumps have tended to be "pretty competitively priced with traditional units, especially since in most cases, you are installing two appliances for the price of one," said Madison Vander Klay of the Building Decarbonization Coalition, per CalMatters.
Such affordability considerations have complicated efforts to meet California's goal of installing 6 million heat pumps by 2030.
While individual experiences can vary, many homeowners have raved about both the cost savings and performance of their heat pumps, even in extreme cold. For example, one homeowner in Ontario, Canada, shared that their heat pump adequately heated their 3,000-square-foot home, even in sub-freezing temperatures.
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