With the cost of living being at an all-time high, homeowners are looking for ways to reduce utility bills, and energy-efficient strategies have proved to be efficient. The Inflation Reduction Act may also cover the costs of implementing energy-efficient HVAC units — like heat pumps — as well as offer tax credits and rebates up to $10,000.
Heat pumps are energy-efficient heating and cooling systems that transfer heat between indoors and outdoors rather than generating it. Being that they are dually functional, separate systems for heating and cooling are not needed.
While the up-front cost for heat pumps can be a concern for homeowners, the IRA offers up to $2,000 in tax credits for installation costs as well as $2,000 in tax credits every year until 2033, per the IRS. Qualifying low-income households could also receive $8,000 in rebates.
According to the Department of Energy, heat pumps can reduce your electricity usage by 75% and are 2-4 times more efficient than traditional heating systems. With more efficiency, heat pumps can decrease annual energy costs — saving families an average of $1,500 each year.
💡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.
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Air conditioning units, however, tend to last longer than heat pumps by roughly five years — most likely due to a heat pump running year-round versus just in the summertime. Geothermal heat pumps can last 20-plus years. AC units also don't provide heat, whereas heat pumps can provide cooling and heat. The life span of one's unit will depend on how well it's maintained and how often it's used, which is influenced by the climate.
While there are elevated initial costs, the tax credits, long-term savings, and environmental benefits are no-brainers for homeowners.
EnergySage's Heat Pump Marketplace can help make the entire process as easy and inexpensive as possible. All you have to do is answer a few quick questions, and you'll be shown the best deals from vetted installers.
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