Buying a new furnace could be a costly home renovation move — unless you pick the right replacement
When it comes to heating your home, the debate between a heat pump and a furnace is fiery.
Advocates of heat pumps are now pointing out that they are three to five times more efficient than traditional heating systems, meaning they use less energy to heat your home and will save you money on your heating and cooling bills.
But, depending on the size of your home and the type of heat pump you get, the upfront cost of a heat pump could be significant. So which should you opt for?
Is a heat pump better than a furnace?
When it comes to performance: yes. Besides being way more efficient than traditional furnaces, heat pumps can also cool your home in the summer, making them excellent two-in-one devices.
Because of this, they can save you serious money on your energy bills — one Department of Energy estimate puts the yearly figure at about $1,000 for some homeowners.
If your home is sealed correctly, heat pumps can continue to work above temperatures of -13 degrees Fahrenheit, according to the climate tech company Sealed. And many newer models can deal with frigid temperatures even lower than that.
Will a heat pump cost more than a furnace?
The cost of a heat pump will vary depending on the type of heat pump, the size of the house, and the local climate.
Heat pump installation can cost close to $5,500 on average, although more expensive models are available. This does make them more costly than furnaces on average. But because heat pumps use far less energy than traditional furnaces, they’ll actually save you money in the long run.
But there’s no need to fret about this significant upfront cost. Thanks to the recent Inflation Reduction Act, you could get up to an $8,000 upfront discount (depending partly on income) when you purchase and install a heat pump.
When you buy a heat pump, this rebate can also be combined with a 30% tax credit (up to $2,000). So, together, these economic incentives make upgrading from a nasty gas furnace to an efficient heating-and-cooling heat pump an obvious choice.
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