If you live in a state where it rarely falls below freezing, a new heat pump could save you up to 70% off on your energy bills, an EnergySage report found. The cherry on top? Current federal tax credits and available rebates can save you up to $10,000 on a new heat pump system.
Since 2022, the Inflation Reduction Act (IRA) has helped millions of Americans transition their homes to cleaner energy sources and more energy-efficient home appliances.
As a part of the IRA initiative, the Home Electrification and Appliances Rebate Program (HEAR program) provides low-to-moderate income households up to $8,000 on an ENERGY STAR-certified heat pump for heating or cooling. Federal tax credits for appliances that improve home energy efficiency add an additional $2,000 in savings for homeowners buying and installing a qualified heat pump.
So, exactly how efficient are heat pumps?
New research has found that heat pumps are 180% more efficient than outdated heating and cooling systems. The prime reason for this is that heat pumps transfer heat rather than using an exorbitant amount of energy to generate heat or cooling, as older heating and cooling systems do. According to the U.S. Department of Energy, older furnaces and boilers can easily displace up to 44% of fuel energy into the surrounding environment.
Outdated heating and cooling systems are also generally powered by dirty energy sources like natural gas or propane, which, when burned, release harmful heat-trapping gases into the air. These gases contribute to rising global temperatures that can further exacerbate energy needs.
Switching to an energy-efficient heat pump could save you money on your energy bills, as well as money on a separate air conditioning system. This could be especially beneficial during the warmer months as your heat pump uses significantly less energy to get your home to cooler temperatures.
Some architects, like Kristy Maguire, have constructed new home structures to stay cool and warm, using minimal energy. A new and environmentally friendly neighborhood of solar-equipped houses in Orange County, North Carolina, was built with heavy-duty insulation to keep the structures at a comfortable temperature to minimize the use of heating and cooling systems.
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If you're ready to make the switch, EnergySage's Heat Pump Marketplace can help you find the right ENERGY STAR-certified heat pump that qualifies you for up to $10,000 in savings, thanks to IRA programs.
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The cost of installation 💵 Unfortunately, these incentives may not be available forever. President Trump has mentioned wanting to reverse this federal initiative, which could eliminate the much-needed financial aid for homeowners looking to make clean energy improvements to their homes. However, major changes to the IRA would require an act of Congress.
Take advantage of the thousands of dollars of savings now and build a more energy-efficient and climate-resilient home.
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