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You can save close to $700 a year by making this one change to your heating system — here's how

If you make the upgrade, you can expect to save about $670 every single year on home heating and cooling.

Installing a heat pump

Photo Credit: iStock

For many Americans, energy bills are now higher than ever, and finding ways to lower your electricity use isn't easy.

If you have an old furnace or air conditioning unit, however, installing a heat pump could be the answer. 

Why install a heat pump

Simply put, heat pumps can save you huge sums of money on your energy bills. These innovative home heating appliances, which can both heat and cool your home, are up to three times more efficient than traditional furnaces.

This increase in efficiency means enormous savings. If you make the upgrade, you can expect to save about $670 every single year on home heating and cooling. 

Beyond cost savings, some people like the added benefit of having a quieter heating system that doesn't add planet-warming pollution into the air.

What's the cost of a heat pump?

The cost of a heat pump varies depending on the size of your house and the type of heat pump you choose. 

The average cost for a heat pump in the U.S. (not including installation) hovers around $6,000, although there are far cheaper and more expensive options available. But this number shouldn't scare you away because investing in one is now a lot cheaper than you might expect. 

Due to the Inflation Reduction Act, you can get thousands of dollars in rebates when you make the switch — really, thousands. In late 2023, people who upgrade their homes with a heat pump got up to $8,000 back for the installation, making it a far more feasible option. 

These rebates can fully cover the cost if the price tag comes in at under $8,000, meaning that you could save hundreds of dollars every year while helping out the planet.

Of course, every home needs to make the financial decisions that are best for them. But if home energy costs are too high, heat pumps might be the perfect solution. And this year is certainly a great time to get one.

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