An analysis from the clean energy nonprofit RMI has shown just how much replacing outdated HVAC systems with highly efficient heat pumps can benefit homeowners and power grids alike.
According to the report, U.S. households that still rely on older electric resistance systems for space and water heating could save an average of $1,530 a year by switching, with some of the strongest financial benefits showing up in states with high heating demand and high power prices.
RMI found that more than 25 million homes in the country still use electric resistance as their main source of space heating, while more than 57 million rely on electric resistance water heaters.
Those homes are prime candidates for heat pumps, which can be three times as efficient as more standard electric resistance heating. Using its Green Upgrade Calculator, the organization estimated that single-family homes upgrading both space and water heating could save nearly $23,000 over 15 years.
The report said the biggest per-home savings are likely in parts of the Northeast, where winters are colder and electricity rates are often higher. Texas stood out for a different reason: scale. If all single-family electric-resistance homes there made the switch, residents would save nearly $2 billion a year in energy costs, the report noted.
If these figures have you curious about heat pump HVACs, check out the heat pump marketplace from EnergySage. It can help you understand the best HVAC options for your home and budget and connect you with vetted installers.
The benefits go beyond utility bills. RMI cited Rewiring America data that estimated single-family homes switching from electric-resistance space and water heating to heat pumps could lower typical residential peak demand by about 11 gigawatts in summer and 51 gigawatts in winter nationwide.
Heat pumps use much less electricity to do the same job as conventional units, which can translate into lower monthly bills and less strain during extreme weather. The technology can be a powerful way to reduce home energy costs, especially as utility bills continue rising in many parts of the country.
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The key is finding a system that fits your home and budget. While upfront costs can be a challenge, modern financing and incentive programs can make the switch much more manageable.
EnergySage can help you find the best deal and local incentives on a highly efficient HVAC upgrade.
If you're interested in a new heating and cooling system but are concerned about upfront costs, Palmetto offers $0-down HVAC leasing programs that can reduce your energy bills by up to 50%. Palmetto's plans begin at just $99 a month and include over a decade of free maintenance.
Homeowners can pair solar panels with modern HVAC systems to lower their utility bills even further. EnergySage makes it easy to compare solar options and find the best installer for your home and budget, with some even saving up to $10,000 on installation costs.
If you're not looking for a whole-home system, the Merino Mono offers targeted heating and cooling at a fraction of the price of a conventional heat pump. It doesn't require complicated installation or rewiring and can be installed in under an hour.
For homeowners, the takeaway is fairly simple: If your home uses electric baseboards, an electric furnace, or an older electric water heater, it may be worth checking whether a heat pump or heat pump water heater could cut your bills. Local utility rebates, state incentives, and contractor programs can make the math much better.
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