A California homeowner shared their experience upgrading to a heat pump heating and cooling system on Reddit, giving insight into the costs and payoff of making the switch.

After previously investing in solar panels and a heat pump water heater, the homeowner decided it was time to replace their aging heating and air conditioning system, which they described as being "from the 2000s and barely functional." 

The homeowner described their property as a single-story, two-bedroom house spanning 1,200 square feet, with high vaulted ceilings. It's a layout that can make efficient — and budget-friendly — temperature control more challenging.

Like many homeowners considering the switch to a heat pump, they initially faced some sticker shock. 

"[My] rough quote was around $20k before rebates," the homeowner wrote. 

But rather than walking away, they took a smart approach, applying for every rebate they could find.

Through their installer, the homeowner was able to collect $11,000 in rebates applied directly to their invoice. They also qualified for an additional $1,000 county electrification rebate and a $5,000 state smart home rebate, both received after installation. 

In the end, those incentives dramatically reduced the cost of the upgrade, bringing the homeowner's out-of-pocket expense to about $3,000.

The investment has already paid off. The homeowner said they are "pretty happy overall" with the switch, noting that the heat pump is significantly more efficient than the old system. 

If you're considering an HVAC upgrade, you don't have to figure it out alone. TCD's HVAC Explorer helps you understand your options in clear, straightforward terms, like showing how a new HVAC system or heat pump could help you save on your energy bills. Plus, it highlights incentives and subscription options that can make upgrading more accessible.

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.

"I can run all units and still be under 3 kWh," the homeowner wrote of their new system. "[My] previous unit would be up in the 5-6 kWh total usage range."

Your HVAC system plays a major role in how comfortable your home feels — and how much you pay in utilities each month. Older systems often work harder than needed, wasting energy and driving up costs. But newer, high-efficiency systems — like heat pumps — are designed to deliver consistent comfort using far less energy. 

Heat pumps don't generate heat or cold air from scratch like traditional HVAC or boiler systems. Instead, heat pumps move existing heat by pulling it from the air, water, or ground outside your home and transferring it indoors — or outdoors when cooling. That's why they are way more energy-efficient, and the key to unlocking some serious home energy savings.

Beyond lowering bills, upgrading to a heat pump can also make your home more resilient to extreme weather and grid strain. By using energy more efficiently, it can reduce stress during peak demand and help your home perform better during power disruptions or weather events, especially when paired with other clean energy upgrades.

Day-to-day, a more efficient HVAC system can mean quieter operation, better air quality, and fewer unexpected repair issues. Over time, that translates into a home that simply feels easier to live in, all while quietly saving you money month after month.

TCD's HVAC Explorer can also connect you with trusted partners to simplify the switch, like Palmetto. With Palmetto, you can save up to 50% on heating and cooling costs with a more energy-efficient system. 

Or you can also get a new HVAC system for $0 down, with subscription lease payments starting as low as $99 a month. Plus, you'll enjoy 12 years of free maintenance. 

Because repairs and upkeep are included, you may even reduce your total lifetime HVAC costs — all while paying nothing upfront.

For even greater impact, many homeowners — including the one in the Reddit post — choose to combine heating and cooling upgrades with solar panels. When your home generates its own clean energy, your efficient HVAC system can run on lower-cost electricity, unlocking even bigger savings and adding another layer of resilience to your home. 

TCD's Solar Explorer can help you explore solar options and connect with trusted partners to see what works best for your home.

And to make your electrification journey even more rewarding, the free Palmetto Home app makes it easy to unlock up to $5,000 in rewards to spend on home upgrades just by taking simple actions in your daily routine. It's an easy way to turn small, everyday choices into meaningful improvements for your home and your budget.

Get TCD's free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD's exclusive Rewards Club.