Ever opened an energy bill and felt your stomach drop? We have, too.
Heating and cooling take up more of your budget than almost anything else. The average American household pays around $200 a month on HVAC, so it’s no surprise many homeowners are looking for ways to bring these costs down.
At Cellino, one of the first things we recommend to clients looking to save money is a heat pump.
Heat pumps aren’t new, but today’s technology makes them more efficient and cost-effective than ever. They use less energy, cost less to maintain, and qualify for tax credits that help with upfront costs.
In this post, we’ll look at how a heat pump can start saving you money right away, and keep those savings going year after year.
1) Lower Monthly Energy Bills
The most immediate financial benefit of a heat pump is lower utility bills.
Heating with natural gas or oil can get painfully expensive during Western New York’s long, cold winters. In 2024, National Fuel projected residential heating costs at about $560 for the season.
Heat pumps are different. The pump pulls heat from the air outside (yes, even in the freezing cold) and brings it inside to warm your home. Since they’re moving heat rather than creating it, they use far less energy.
A typical air-source heat pump produces two to four times more heat than the electricity it consumes. If you normally spend around $1,500 a year on heating, a heat pump could save you anywhere from $450 to $750 a year on heating alone.
2) One System for Heating and Cooling
A ground-source heat pump covers both heating and cooling in one unit. You don’t have to pay for two separate systems or maintain them.
Essentially, you get:
- Less equipment to install
- Fewer repairs to worry about
- And no surprise $5,000 AC replacement when your unit dies during a heatwave
If your furnace or AC is nearing the end of its life, this is the perfect time to make the switch. Rather than replace one now and the other later, you can switch to a heat pump and take care of both at once.
3) Fewer Repairs and Lower Maintenance Costs
Heat pumps have fewer moving parts than a furnace, so there’s less that can break over time. They also avoid a lot of the wear and tear associated with burning fuel.
You’ll still want annual maintenance, but it’s quicker and less expensive than servicing a separate furnace and AC. Over 10 to 15 years, you could save a decent amount.
Have trouble keeping track of your service schedule? Cellino Plumbing, HVAC & Electrical can help with our maintenance plans. We’ll remind you when it’s time for a tune-up, keep your system running efficiently, and help you take advantage of rebates or seasonal deals.
Members also get 10% off standard services and three complimentary maintenance visits.
4) Long-Term Return on Investment
Although heat pumps can cost more upfront than a standard furnace or air conditioner, they usually pay for themselves within a few years through lower operating costs.
Let’s say your installation costs $2,000–$4,000 more than a standard system. If you’re saving $600 a year, you’ll break even in about five to six years. After that, it’s all savings.
Plus, a high-efficiency system can be a selling point when you put your house on the market. Buyers love the idea of lower energy bills and a modern system that won’t need replacing anytime soon.
5) Utility Rebates and Tax Credits
Right now is the best time to switch to a heat pump from a financial perspective. Between federal programs, state incentives, and utility company rebates, you can offset a big portion of the upfront cost.
a) Federal Tax Credit
The Inflation Reduction Act gives homeowners a 30% federal tax credit (up to $2,000) for qualifying heat pump installations. The amount comes straight off your tax bill, not just as a deduction.
b) Utility Company Rebates
Many electric providers offer rebates between $500 and $2,500, depending on the model you install and how efficient it is. Some also provide extra incentives if you replace an older, less efficient system.
c) State and Local Incentives:
The NYSERDA (New York State Energy Research and Development Authority) Clean Heat program can also help you save anywhere from $1,000 to more than $5,000 on a heat pump installation.
6) Potential Insurance Savings
A few homeowners’ insurance companies provide lower premiums for houses that use all-electric systems. Eliminating a gas furnace makes your home less vulnerable to fires and carbon monoxide leaks: two things insurers like to see.
The discount may be small, but over 10 to 15 years, these savings can add up and become another way your heat pump pays for itself.
Financial Benefits Beyond the Bills
The money-saving benefits of a heat pump go beyond what shows up on your utility statement. There are a few “hidden” ways they can save you money over time.
a) Fewer Sick Days
Heat pumps keep your home at a steady, comfortable temperature and filter the air as they run. With more consistent heating and fewer allergens in the air, your home may feel healthier overall. Additionally, fewer sick days can translate to fewer doctor visits and less missed work, both of which save money in the long run.
b) Fewer Surprise Expenses
A heat pump also helps you avoid budget-busting surprises, like a $600 winter gas bill or a $5,000 AC replacement. The system runs on electricity, includes both heating and cooling, and tends to be more reliable. All of this makes it easier to plan and stick to your household budget.
Hoping to Save More on Heating and Cooling?
If you’re looking for a way to stay comfortable and stop overpaying for heating and cooling, an energy-efficient heat pump is worth every dollar.
Your comfort shouldn’t come with sticker shock every month. At Cellino, we’ll help you pick the right heat pump system, grab every rebate you qualify for, and get it installed correctly, so you can start saving from day one.
Ready to see the difference? Book your consultation today, and let’s get you set up with something better than what you have.
