A recent analysis from RMI found that homeowners can save thousands — sometimes even over $10,000 — by switching to a heat pump instead of sticking with a traditional gas furnace and AC system.
Because of a mix of federal, state, and local incentives, these systems might cost even less upfront than conventional heating and cooling options — but federal incentives expire at the end of the year, so the time to act is now.
The scoop
Unlike gas-powered furnaces, heat pumps don't create heat by burning fuel. Instead, they pull warmth from the air or ground outside and transfer it inside your home (or do the reverse to cool it down), making them far more energy-efficient.
Popular HVAC brands like Mitsubishi offer a range of heat pump options to meet the needs of various home types — including highly cost-effective mini-split systems that maximize savings and comfort by allowing homeowners to target specific rooms.
How it's helping
RMI's analysis found that even without federal funding, low-income homeowners in Southern California could save between $2,400 and $4,200 by choosing an air-source heat pump over a standard gas furnace and AC setup. Add in federal rebates, and those savings can exceed $10,000. Plus, heat pumps run more efficiently, which means lower energy bills over time.
It's not just Californians who can save money. Through the end of the year, federal rebates and credits provide thousands of dollars in incentives for homeowners upgrading to energy-efficient systems — so if you're thinking about a change, now's the time to use a tool like Mitsubishi's to connect with local installers for free quotes.
What everyone's saying
In 2022 in the U.S., heat pump sales outpaced gas furnace shipments for the first time, and they continued to do so through 2024, signaling a shift toward cleaner, more efficient home heating.
"South Coast Air Quality Management District board members, we need standards for healthy heating equipment!" the Coalition for Clean Air wrote in a Bluesky post about the RMI analysis.
If you're thinking about making the switch, it might feel daunting to find the right installer. However, trusted companies like Mitsubishi can help you compare options and get personalized quotes from its network of installers. A cleaner, more affordable future might be just one heat pump away.
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