A recent analysis from RMI found that Southern California 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.
The scoop
Unlike gas-powered furnaces, heat pumps don't create heat by burning fuel. Instead, heat pumps pull warmth from the air or ground outside and transfer it inside your home (or do the reverse to cool it down), making them way more energy-efficient. According to the U.S. Department of Energy, geothermal heat pumps use a lot less energy than regular systems because of the steady temperature underground.
It's not just Californians who can save money, either. There are a ton of financial incentives available to make these systems more accessible. The United Kingdom's Boiler Upgrade Scheme offers grants up to £7,500 ($9,715) for heat pump installations to help phase out gas boilers. In the U.S., the Inflation Reduction Act provides tax credits and rebates to homeowners upgrading to energy-efficient systems, including heat pumps.
Unfortunately, President Donald Trump has been vocal about eliminating clean energy subsidies, but major changes to the IRA would require an act of Congress. That means homeowners looking to take advantage of these savings should do so as soon as possible.
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.
In terms of air quality, gas-burning furnaces and water heaters pump out gases that are major contributors to smog. Heat pumps don't produce any on-site pollution output, which helps cut air pollution, improve public health, and reduce the risk of respiratory diseases like asthma. Given Southern California's ongoing smog problem, replacing old gas systems with heat pumps could make a big difference.
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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