An energy-saving solution that could lower your bills by $350 just got a boost from researchers.
A new report from the American Council for an Energy-Efficient Economy shows how smart electricity pricing could make heat pumps much more affordable for homeowners in cold-weather states. In some cases, it could even reduce annual energy bills by hundreds of dollars, Canary Media reported.
Heating accounts for a huge portion of most households' energy costs, especially in places where winters are long and harsh. For many families, upgrading to a heat pump is one of the smartest ways to save money. These efficient appliances can both heat and cool your home while also reducing pollution and unlocking financial benefits.
But switching to electric heating hasn't always made financial sense in parts of the United States where electricity costs more than gas. That's where "rate design" comes in.
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The ACEEE study found that changing how utilities price electricity through time-of-use rates, demand-based charges, or winter discounts could dramatically improve the economics of switching to a heat pump.
Take Minnesota: The state's largest utility, Xcel Energy, already offers seasonal discounts for customers with electric heat. When paired with a heat pump, those discounts could shave more than $350 off yearly energy bills.
In other states, including Nebraska, new pricing models are being explored that could offer similar benefits without increasing bills for other customers.
These updates could also help the environment. Because heat pumps run on electricity rather than gas, they eliminate a major source of indoor and outdoor air pollution, especially if the power comes from clean sources such as wind or solar, per the Environmental Protection Agency.
And while finding the right HVAC system can be challenging, there are tools that can help. For example, Mitsubishi has a trusted network of trained installers who can help you land an efficient heating, ventilation, and air conditioning system.
The bottom line is that smarter pricing structures could make it easier for Americans to upgrade to efficient HVAC — and get rewarded with lower bills and cleaner air.
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Which of these factors would most effectively motivate you to buy a heat pump? Click your choice to see results and speak your mind. |
Lower energy bills 💰 "They'll be using so much more electricity overall that they end up benefiting much more from that lower [per-kilowatt-hour] charge," ACEEE's Matt Malinowski said, per Canary Media.
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