If you have a forced air system in your home you probably either have a furnace for heating in the winter, an air conditioning (AC) unit for cooling in the summer, or both. A heat pump is an option that you may consider either as a booster for both systems or possibly as a replacement whether you have air ducts or not.
A heat pump can be used in moderate climates to replace a furnace or air conditioner to move heat into the house in the winter and remove heat during the summer. The efficiency of heat pumps can reduce associated energy costs by as much as 50% and can also be used in conjunction with a furnace and AC.
Heat Pump vs Furnace vs AC
A heat pump moves heat out of the house when it’s not needed (summer) and into the house when it is (winter). Whereas a furnace heats your home in the winter and air conditioning cools it in the summer, a heat pump can effectively do both and uses the outside temperature to do so in one of several ways.
Let’s take a closer look heat pumps, furnaces and air conditioners (AC) to compare each option and learn more about each at a high level.
| Criteria | Heat Pump | Furnace | Air Conditioner |
| Upfront cost | $4,000 – $8,000 and up depending on your chosen system. Geothermal units may cost up to $30,000. May last 15 years for air-based units and up to 50 years for geothermal. Rental options might be available. | $2,500 – $6,592 and up. May last 15-20 years. | $2,800 – $7,700 and up. May last 15 years. |
| Energy efficiency | Can deliver up 300% more energy than it consumes. | A high-efficiency furnace can be up to 95% efficient ie. only 5% of heat is lost, 95% actually becomes usable heat. | Seasonal Energy Efficiency Ratio (SEER) measures AC efficiency. SEER 15-18 is a good range. |
| Required climate | 30°F – 40°F winters minimum are ideal for air-based heat pumps which require a climate that has warm temperatures to utilize the heat. | Doesn’t matter. Heats air with natural gas so they perform better in cold environments than heat pumps. | Doesn’t matter. Cools air with electricity. |
| Main benefits | Very energy efficient. Can be used in place of a furnace and AC or in conjunction. | Very reliable. Natural gas costs at least 50% less than electricity. Works during power outages. | Reduces temperature and humidity throughout the home during hot periods. |
| Considerations | Can be used with air ducts or ductless houses. | Requires air ducts. | Requires air ducts. |
Check out my complete article on replacing or repairing major appliances and the cost of each to learn more about various expenses related to installing or repairing a furnace or AC.
What is a heat pump system?
A heat pump is a heating and cooling device that can replace a furnace heating system and air conditioner unit to take existing heat and move it in to a home for heating purposes and move heat out of a home for cooling purposes.
Heat pumps can be installed in new homes with or without ducts and retrofitted into existing homes, too. A heat pump is a possible solution when you live in an area with moderate climates that don’t get too hot in summer or too cold in the winter.
When using an air-based heat pump, it’s especially important in winter that you get an outdoor temperature range of around 30°F – 40°F minimum so that the heat pump can use heat from the outside and bring it into the home. If the temperatures are lower, the auxiliary system has to work and it’s much more expensive to operate. Other heat pumps systems aren’t reliant on outside air temperature. More on that below.
Modern air-based heat pumps now make it possible to use them as a replacement in more varied and severe climates both hot and cold but it’s something to keep in mind. Your local climate does matter when choosing a some heat pump systems.
In that regard, there are three major types of heat pumps for consumers to consider: Air-based, geothermal water source and geothermal ground source. Let’s look at each in more detail along with variations of each.
Air-to-air heat pump
This is the most common type of heat pump that transfers heat in and out of your home as needed during each season. It’s an easier install and more basic than a geothermal pump which makes the air heat pump a cheaper option, too.
While air-based heat pump systems were traditionally reliant on outside temperature and were only suitable in climates that don’t experience very harsh winters, newer technology makes this option a possibility in colder environs, too. They can also be used in both homes and businesses that have air ducts and ones that don’t.
An air-based heat pump may reduce energy costs by as much as 50% when compared to furnaces or older style heating options such as baseboard heaters.
Geothermal heat pump
There are two kinds of geothermal heat pumps:
Water source heat pump: A water source heat pump isn’t as common as air-based ones since you require access to a lake, well, pond or other water source.
Geothermal water source heat pump systems are the most expensive and can cost upwards of $30,000 to install if not more. You may reduce energy costs by 50% – 65% and some systems are also used to heat your water so they can pay for themselves quicker than an air-to-air unit.
Ground heat pump: Geothermal ground heat pumps are also more expensive to install than air-based systems but are also more efficient due to how they work. When you go underground several feet below the earth’s surface, the temperature remains at a relatively consistent level throughout the year. A ground heat pump takes advantage of moderate temperatures fluctuations in both summer and winter and the fact that below ground
, it’s warmer in winter and cooler in summer than the air above it.
Geothermal heat pumps can reduce energy costs by 30% – 60% depending on your local specifics and are known for being very reliable, solid options that are growing in popularity. They are also somewhat more versatile than air-based system since geothermal heat pumps don’t rely on outside temperature to perform.
Geothermal heat pump summary: It’s worth noting that geothermal heat pumps are used around the world and have been since the 1940s. In the US, the states that tend to install them most frequently are highly populated ones with colder climates in winter such as New York, Ohio, Illinois, Michigan and Pennsylvania. Florida and Texas in the south are also common users of geothermal units.
While much more expensive that air-to-air heat pump systems, a geothermal unit can pay for itself within 10 years and is capable of lasting 25 years (the heat pump itself) and up to 50 years for the outdoors components.
Since geothermal units involve digging into the ground, local government regulations, local climate, soil composition and other concerns specific to you will need to be considered when choosing such a system.
Mini-split heat pump
This type of heat pump is a popular option when you live in a home with no air ducts.
A mini-split heat pump like the four units shown above from Fujitsu combine two components: The large and loud outside-the-home unit like the ones shown in the top photo that produce the heated/cold air and the small and quieter inside-the-home unit that actually delivers the air inside the house shown in the picture below that.
The unit is split into two components so that the louder and larger component is outside the house and the smaller unit inside the home is quieter and less noticeable.
Mini-split heat pump units can be installed in a ductless home or business. They are relatively easy to install and since the inside units are mounted high on the wall, tend to be less intrusive than other options.
Heat pump pros and cons
While each type of heat pump has its own advantages and disadvantages, here in more general terms are the pros and cons of heat pumps across the board.
| Heat pump pros | Heat pump cons |
| A quality heat pump may last 10 – 20 years and longer in the case of geothermal heat pumps which can last 25-50 years. | High installation cost often in the $4,000 – $8,000 range and much higher in some cases for geothermal units which can exceed $30,000. |
| Electric heat pumps are a very efficient way to heat and cool a home saving 30% – 40% off your energy bill if not more for geothermal units. $850 per year in electricity charges for both heating and cooling is not unreasonable. | If the auxiliary heating option of an air-to-air heat pump kicks in when outside temperatures fall below 0 degrees, it can increase the normal energy cost up to five times. |
| Air quality tends to be better as heat pumps dehumidify the air in summer and doesn’t dry it out in winter. | Extreme temperatures tend to be a problem for air-to-air heat pumps to adjust to. |
| Electric heat pumps tend to be quiet particularly the inside-the-house unit. | Electric heat pumps tend to require more maintenance. |
| Electric-powered heat pumps are safer than gas and the cost is simply added to your existing electric bill. | You need both an outdoor component (the compressor) and an indoor component. |
| Reduces your CO2 footprint and safer than combustion-based systems. | Does require electricity to use and can be somewhat difficult to install. |
Heat pump considerations
When choosing a heat pump there are several main considerations to think about:
Local electricity costs: Energy costs vary by region and the higher your electricity charges, the more you can potentially save by purchasing a heat pump. Conversely, if you choose an air-based heat pump and temperatures fall below zero, using the auxiliary system will increase your usage costs.
Heating requirements: How much heat you require is dependent on your local climate (how hot summers get/how cold winters get) and the size of your home among other factors. Your personal preferences to heating or cooling your home – your desired temperature – also plays a role here.
Efficiency of your heat pump: As we saw above, heat pumps offer different levels of efficiency in terms of which option you choose and further, individual brands and products also have their own efficiency level. Also, how well you maintain your heat pump impacts the ongoing efficiency level.
Home insulation: How well is your home insulated? The less insulation you have, the bigger and more powerful heating pump solution you will likely need.
Outside temperature: Certainly an air-based heat pump is dependent on outside air temperature and might impact your decision as to what system you buy if you live in a region that gets particularly cold in winter with frigid weather. While newer air hair pumps can deal with colder temperatures you might instead opt for a different option.
Your chosen system: Which system you choose – an air-based system, a geothermal unit or a hybrid system customized for you – will affect the up front cost, the actual work to be done and your potential usage costs and cost savings over time.
Heat pump vs furnace
A highly efficient heat pump system can deliver up to 300% energy efficiency meaning that it deliver 3x the energy that it consumes. It can also deliver both heat and cold air.
A highly efficient furnace is rated at around 95% and possibly slightly higher so it delivers about 95% of the energy that it produces and wastes around 5%. This 5% figure doesn’t include energy wasted and leaked through air ducts as that calculation is on a case by case basis. A furnace can only produce hot air and is typically in the winter months.
Furnaces do have a tendency to dry out the air under heavy use whereas a heat pump can help to humidify the air.
Heat pump vs air conditioning (AC)
A heat pump that has the same SEER rating as an AC unit will cool just as well but doesn’t require air ducts like AC. If you have no ducts, you can choose a ductless heat pump option or utilize your existing duct work with your heat pump system.
As with heat pumps in general, a heat pump systems may suffice when you have mild temperatures in summer and winter. AC on the other hand might be more suitable in very hot summer environments and very cold winters.
Final heat pump thoughts
- Considerations to think about when choosing a heat pump include your local cost of electricity, outside heat and temperatures particularly in winter, heat pump efficiency and amount of heat you require in your home.
- Buy a heat pump that matches your local climate. Because air-to-air heat pumps require a high outside temperature to function properly, you need one that can work in your local area.
- Geothermal heat pump systems don’t require warm outside air but have other considerations such as your local regulations, soil, and heat/cooling requirements.
- If you already have a home with a furnace and live in a colder northern climate, you can use a heat pump when temperatures are high but when the temperature is sub zero, use your furnace for heat.
- Should you rent or buy? Some energy providers rent heat pump solutions and also sell them. Which option makes the most sense for you?
Click here for another article discussing heat pumps specifically.