As more customers seek new and innovative solutions to enhance the comfortability — and sustainability — of their homes and businesses, HVAC companies are witnessing a profound demand for heat pump technology. Heat pumps are a unique HVAC solution that use electricity to transfer heat between indoor and outdoor spaces, offering cost-effective and efficient heating and cooling.
However, before HVAC professionals can reap the benefits of offering heat pump services, they must understand basic heat pump pros and cons. A thorough understanding of such solutions allows contractors to better structure their sales efforts in the field and help customers determine if these HVAC solutions are right for them. Keep reading to discover the heat pump pros and cons you must know.
Across the commercial and residential HVAC space, contractors and customers will find a vast collection of heat pump options, including ground-source heat pumps, air-source heat pumps, and even geothermal heat pumps. This increasing selection of heat pump solutions offers today’s customers higher efficiency, allowing them to effortlessly save on heating and cooling costs.
On top of reducing consumer costs, the recent introduction of government initiatives aimed at accelerating heat pump manufacturing and adoption are also working to slash residential and commercial carbon footprints. Compared to traditional systems, heat pump adoption can reduce harmful greenhouse gas emissions in commercial and residential spaces by at least 20%.
The Air-Conditioning, Heating, and Refrigeration Institute recently reported that Americans bought 21% more heat pumps in 2023 than gas furnaces. This marks the biggest lead heat pumps have had over traditional types of systems in 20 years of sales reporting, signifying strong adoption. As adoption continues, contractors must be aware of heat pump pros and cons to support sales efforts.
According to researchers at the National Renewable Energy Laboratory, heat pumps can reduce home energy consumption by 31% to 47% on average. Coupled with upgrades such as better home insulation, these percentages could grow to as much as 41% to 52%, making the transition from traditional air conditioners and gas furnaces much more attractive to home and business owners.
The energy-efficient perks of an HVAC heat pump come from the system's ability to move heat rather than generate it. Unlike traditional systems, which typically burn oil or natural gas to produce heat, heat pumps simply pull heat from the outdoors to warm a residential or commercial space — and remove heat to cool a space — solely using electricity and refrigerant.
At first glance, the name “heat pump” may convince some customers that these units were developed solely for heating purposes. To their surprise, it’s quite the opposite. A single heat pump unit can replace the need for separate cooling and heating systems due to its versatility to pull in and extract heat from an indoor space. In other words, one system does the work of two jobs.
Offering heating and cooling abilities, heat pumps are a great option for companies and customers located in areas such as southern states, which endure mild winters and warm summers. Eliminating separate heating and cooling maintenance and system shutdown needs helps property owners easily transition through the seasons, all while keeping professionals busy year-long.
With the versatile comfort control and increased energy efficiency of heat pump technology ultimately comes long-term savings. According to the U.S. Department of Energy (DOE), heat pumps can save homeowners an average of over $500 on yearly energy bills. Bear in mind, this figure is heavily dependent on the unit itself, the local climate, and overall home efficiency and size.
In addition to utility costs, heat pump savings can also come in the form of a tax rebate or credit. Through the Biden Administration’s Investing in America Agenda, households who install an efficient electric heat pump can receive a tax credit of up to $2,000. Likewise, several states are soon expected to develop their own home energy rebate programs, further rewarding homeowners for heat pump adoption.
For some customers, a new heat pump may be too big of a financial investment. Compared to traditional HVAC systems, heat pumps typically hold higher upfront installation and purchase costs. On average, a heat pump purchase will cost homeowners between $4,236 and $7,904, with some project costs easily surpassing this amount due to factors like equipment model and home size.
Note that the long-term tax incentive and energy savings of heat pumps usually outweigh the steep upfront costs. However, HVAC providers will need to understand that steep (and sometimes unexpected) upfront costs may be a dealbreaker for some consumers. To ensure customer satisfaction across all demographics, HVAC providers should offer a selection of services and unit prices.
Outdoor temperatures are another concern HVAC providers will need to consider when offering heat pump services. In colder climates like the Northeast and Midwest, heat pumps may struggle to provide optimal heating when temperatures dip below freezing. This is due to the cold weather impacting the unit’s refrigerant and its ability to absorb and expel heat.
While many modern heat pumps come equipped with defrost and auxiliary heat modes, they can significantly affect the unit's efficiency, resulting in higher energy costs. Cold-weather heat pumps can be offered to customers living in cold climates to avoid such concerns; however, such systems typically come with much higher upfront costs compared to traditional units.
Heat pump installations can be quite the process for HVAC professionals, especially in cases where customers are transitioning from traditional heating systems and air conditioning systems. A new heat pump will require technicians to install an interior and exterior unit, run electrical wiring and refrigerant tubes, and sometimes install new ductwork… all in a single day.
While similar in a way to air conditioning and furnace installations, company owners will want to ensure their teams hold ample heat pump knowledge and experience before offering to replace a traditional furnace or A/C unit. Faulty heat pump installations may not only impact overall unit efficiency and performance but also pose significant safety risks to customers and technicians.
Though the upfront installation costs — and lengthy installation process — might be daunting to contractors and customers alike, there’s another benefit for making the transition from traditional equipment: New heat pumps can still be protected by extended warranties. So, in the event the system hits a snag after installation, contractors can still be locked in for simpler service.
Now that you’re well-versed in heat pump pros and cons, move forward with the confidence that JB Warranties can give your customers ultimate peace of mind with our Extended Protection Plans. Backed by an A+ insurance underwriter, JB Warranties offers the most affordable pricing on HVAC extended warranty plans and covers all major heat pump brands. Contact us today to learn more!