How Heat Pumps Can Save You Money on Energy Bills During Energy Crisis

With winter still approaching, storage is being emptied faster than usual and gas prices have surged, raising echoes of the 2022 shock.

Rapidly depleting gas reserves and looming supply cuts from Moscow have the makings of a fresh energy crisis for Europe, which is still reeling from extreme shocks two years ago. Rising crude oil prices result in higher gasoline prices at the pump, soaring electricity bills and 20 million households behind on their electricity bills.

With the looming energy crisis and the subsequent rise in electricity bills, it's more crucial than ever to invest in energy-efficient heating appliances. By choosing a high-efficiency heating system, you can significantly reduce your energy consumption and lower your monthly costs, ensuring a comfortable and sustainable winter.

Heat pumps and air conditioners are two popular home heating methods. Both use electricity to circulate air and refrigerants to heat air inside a house. The main difference between them is how they operate. Heat pumps move heat from one area to another, whereas air conditioners only remove heat from a room by forcing cold air inside.

Is a heat pump a better option than an air conditioner? Let’s make a comparison between them to explore which option is wiser.

I. Cost

Heat pumps are typically more expensive than air conditioners up-front. Average installation costs for a heat pump—including equipment and labor—range from $4,200 to $7,600*, depending on the size of your home and the complexity of the system. If you don’t have ductwork in place, you’ll have to pay an additional $3,000 to $7,500 to install 300 linear feet of ductwork.

Air-source and mini-split heat pumps are the least expensive to install. If you opt for a geothermal or solar heat pump, costs increase to $18,000–$34,000. While up-front costs can be steep, heat pumps provide efficient heating and cooling, often making them a worthwhile investment in the long run. Besides, don’t forget the government incentives. Different countries offer different incentive and subsidy programs, generally including special loans, tax subsidies, direct subsidies, etc. For example, some state governments in the US also provide additional incentives by offering subsidies to users who install heat pump systems to reduce energy costs and carbon emissions. For example, the Ohio heat pump replacement program offers a subsidy of up to $5,000 for businesses or households to replace heat pumps.

Central air conditioning has slightly lower installation costs, ranging from $3,800 to $7,500. Air conditioners are good for cooling but not heating; you’ll have to invest in additional equipment to heat your home during colder months, which will increase your overall energy costs.

Ultimately, when choosing between a heat pump and an air conditioner, consider your budget as well as your long-term energy efficiency needs.

II. Energy Efficiency

A heating system’s energy efficiency is measured by its seasonal energy efficiency ratio (SEER). SEER is calculated by dividing the total heat added to your home by the total electrical energy consumed by the air conditioner or heat pump. A higher SEER rating means a more efficient system. The more energy-efficient your system is, the more money you save.

Heat pumps are more energy-efficient than air conditioners as they don’t consume as much electricity. They dehumidify the air better than standard AC units, resulting in less energy use. Heat pumps are also more efficient than electric resistance heating sources. Heat pumps can reduce your electricity use for heating by about 50% compared to furnaces and baseboard heaters.

The cost to operate a heat pump will depend on its size, location, and the climate you live in. In general, heat pumps function cleanly in moderate climates but are not as efficient in cold climates.

III. Longevity

The life span of your heat pump or air conditioner depends on several factors, including how often you use it and how well you maintain it. The climate you live in can also affect the life expectancy of either system.

Note that both systems require professional maintenance every year to perform at maximum efficiency, so make sure you have a qualified technician inspect them and make any necessary repairs or adjustments. With proper maintenance and usage, both systems can provide you with many years of reliable heating and cooling performance.

Heat pumps have been making several advances in different areas including fan motors, refrigerants, compressors, coils, and the use of dual sources---ground and air. Dual source heat pumps (DSHP) can draw heat from either the air or the ground, depending on which is most efficient at the time, making it much more effective than traditional heat pump models. New heat pumps are also built with “dual-speed” or “variable-speed” motors to maximize comfort and electricity savings.

As you have seen, what defines air source heat pumps is the versatility to heat your home in colder months, and provide cooling from renewable energy through the same system during warmer months. An air conditioner is not such a dwarfed choice when cooling your house, but heat pumps are worth considering with electricity efficiency and versatility taken into account.

Heat Pump Market size surpassed USD 50 billion in 2022 and is anticipated to grow at 12.5% from 2023 to 2032. In addition, high energy efficiency, low carbon footprint, availability of financial incentive schemes, and quiet operations are some of the key factors bolstering the industry landscape. SMAD air-to-water heat pump system, which offers heating, cooling and/or domestic hot water all in one. The range has been praised for having the best COP and best EER on the market. If you want to know more, please leave us a message.