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New research reveals how many Americans are losing out on massive energy savings — here's what 9 in 10 households are doing wrong

"It cuts the power bill by a huge amount."

"It cuts the power bill by a huge amount."

Photo Credit: iStock

Winter weather brings plenty to look forward to, such as snow days and cups of hot cocoa enjoyed under warm blankets, but it comes with an unfortunate downside: higher energy bills. 

However, new research shows that a heat pump — a cutting-edge heating and cooling appliance — can shave a big chunk off Americans' electric bills. Here's how you can upgrade to this energy-efficient technology

The scoop

According to the Department of Energy, heat pumps use electricity to transfer heat from one location to another, rather than generating it like furnaces or gas boilers. Because heat pumps are up to three times more efficient than furnaces, per the climate tech company Sealed, they use much less electricity. 

The DOE says that the most common type of heat pump — the air-source heat pump — can slash your electricity use for heating by up to 75% compared to a furnace. 


💡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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EnergySage | Heat Pumps

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But, according to peer-reviewed research from two national laboratories shared by the DOE, over 90% of American households aren't taking advantage of potential savings. The study found that for these households, switching from outdated heating systems to heat pumps could save anywhere from $300 to $1,500 a year on energy bills. 

The analysis revealed that while homes that use heating oil, propane, or older electric systems would save the most by switching to heat pumps, the 13 million households that rely on natural gas for heating would also benefit. 

How it's helping

Since heat pumps outperform traditional heating, ventilation, and air conditioning systems across most efficiency metrics, installing one can lead to long-term savings on utility bills. Plus, through the Inflation Reduction Act, all homeowners are eligible for a $2,000 tax credit when they upgrade to qualifying heat pumps, making them even more affordable. 

Another IRA initiative, the Home Energy Rebates Program, could provide additional rebates of up to $8,000 for low-income households and $4,000 for moderate-income households, according to the clean energy marketplace EnergySage. There are several requirements to qualify. 

But these tax incentives may not be around forever, as President Donald Trump has said he wants to dismantle the IRA. Though this would require an act of Congress, it would still be wise to take advantage of thousands of dollars in tax credits and rebates while they're still available. 

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If you want to shop local offers and compare deals on heat pumps, EnergySage's heat pump marketplace can help you find the right system for your needs and connect you with pre-screened installers. All you have to do is create a free account and answer a few questions about your home's energy needs to get started. 

Installing a heat pump will make your home more comfortable and benefit the planet since the devices run on electricity instead of polluting fuels, contributing to cleaner air and less heat-trapping gases in the atmosphere. 

What people are saying

When one Reddit user asked, "Is a heat pump worth it?" in the r/heatpumps community, many members highly recommended them.

"I heat and cool with ductless heat pumps here in the northern US. Since installing them my Summer and Winter energy bills are less than half of what they were," one commenter said.

"Heat pumps are fantastic in the winter if you don't already have gas heat. It cuts the power bill by a huge amount. They use 1/3 to 1/6 as much energy compared to traditional electric heating," a user in r/homeowners shared.

"I have a heat pump system and my house is all electric. We keep our 950 sq ft house around 66-68 in the winter. Our electric bill hasn't ever reached past $150, to my recollection," someone else said.

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