Heat Pumps and Why They’re Hot in 2024

The hottest technology right now in HVAC? Heat pumps, of course. And it’s easy to see why. Heat pumps are an energy-efficient technology with multiple applications that continue to grow in popularity among American households. This is because they run on electricity instead of fossil fuels (like natural gas, propane, or heating oil). For those trying to be more eco-conscious (and who want to take advantage of big tax credits!), they’re an obvious choice and a step forward in the switch to renewable energy sources.

Without further ado, we present some key takeaways you should know before consulting an HVAC contractor for a heat pump installation in 2024/2025:

What Is a Heat Pump?

A heat pump is an HVAC system that heats and cools your home. Yes, although it’s called a “heat pump,” it’s essentially a central AC system in the summer and a heating system in the winter. While historically many homes had separate systems for heating and cooling, heat pumps do both jobs.

What sets heat pumps apart from traditional combustion heating systems? Traditional combustion heating systems burn gas or oil, while heat pumps transfer heat mechanically.

In the winter, your heat pump will absorb heat from the outdoor air and transfer it to your home, even during sub-zero temperatures. Many heat pump models can heat effectively at a frigid 5°F, just as they can at a milder 47°F. In the summer, the heat pump absorbs heat from the indoor air and transfers it outside your home.

What Are the Types of Heat Pumps?

While the general function of heat pumps—absorbing heat and releasing it—remains the same, there are a few types of heat pumps to be aware of:

• Ducted Air Source Heat Pumps: These transfer heat and cooling from the outside air into your home. They are the most popular units for homeowners, capable of cutting heating energy usage by as much as 50%.
• Geothermal Heat Pumps: These transfer heat from the ground to your home. Slightly less popular than air source heat pumps, geothermal models are just as effective at reducing energy usage.
• Absorption Heat Pumps: hese are driven by a heat source like natural gas instead of operating mechanically. Absorption pumps are newer, more complicated, and generally more expensive but can still be a good option for specific circumstances.

To learn more about the different types of heat pumps, check out the Department of Energy Heat Pump Systems page.

Why Are Heat Pumps Popular in 2024/2025?

There are many reasons why heat pumps continue to grow in popularity. One big reason is that they use significantly less energy than traditional electric heating systems and compete well with natural gas and oil systems. As the Department of Energy confirms:

"Today's heat pump can reduce your electricity use for heating by approximately 50% compared to electric resistance heating such as furnaces and baseboard heaters."

Heat pumps also dehumidify better than standard central air conditioners, resulting in less energy usage and more cooling comfort in the summer months. Homeowners with heat pumps report lower heating costs than those with combustion heating systems. If you’re looking for a heating solution that lowers your monthly expenses, a heat pump might be right for you.

On top of saving energy and money, heat pumps help households reduce their overall environmental impact. The less energy required to heat your home, the greener your footprint. Heat pumps can even help you reach NET ZERO energy consumption, meaning you can install solar panels and return enough renewable energy back to the grid to offset what you use from the grid. Pretty amazing, right?

Heat Pump Tax Credits 2024/2025: Save Big on Energy Efficiency

Switching to a heat pump not only helps reduce energy consumption and lower monthly bills but also comes with significant financial incentives through federal tax credits. These credits, available for both ducted and ductless air-source heat pumps, can help offset installation costs. Here’s what you need to know:

What Tax Credits Are Available?

According to ENERGY STAR, you can claim 30% of the project cost, with a maximum credit of $2,000 for installing a qualifying heat pump system. These credits are available for products purchased and installed between January 1, 2023, and December 31, 2032. To claim this credit, you’ll need to fill out IRS Form 5695.

Eligibility for Heat Pump Tax Credits

Eligibility for the tax credit depends on the type of heat pump and your location:

Ducted Heat Pumps:

• South: Any heat pump that has earned the ENERGY STAR label.
• North: ENERGY STAR Cold Climate heat pumps with an EER2 ≥ 10 qualify .

Ductless (Mini-Split) Heat Pumps:

• South: Must be ENERGY STAR certified with SEER2 ≥ 16, EER2 ≥ 12, and HSPF2 ≥ 9.
• North: Qualifying heat pumps need to be ENERGY STAR Cold Climate with SEER2 ≥ 16, EER2 ≥ 9, and HSPF2 ≥ 9.5.

Maximizing Your Tax Credits

The annual aggregate limit for energy-efficient home improvements is $3,200, which includes up to $1,200 for home envelope improvements (windows, doors, insulation, etc.) and $2,000 for heat pumps or heat pump water heaters. To maximize your tax credits, you could combine heat pump installation with insulation upgrades or window/door replacements in one year. For example, you could claim a $2,000 credit for the heat pump and up to $1,200 for insulation in the same year, maximizing your savings.

Who Qualifies for the Tax Credit?

This tax credit is available to owners of existing homes who install the heat pump in their principal residence. New construction and rental properties do not qualify.

For more information about heat pump tax credits or other Federal Income Tax Credits, contact the IRS at www.irs.gov/contact or 1-800-829-1040.

Are There Any Cons to Heat Pumps?

While heat pumps have many advantages, there are a few things to consider before purchasing one:

• Cost: Heat pump installation can be more expensive than traditional HVAC systems, ranging from $3,000 to $15,000+. However, the upfront cost is offset by the long-term savings in energy bills, and the available tax credits can help reduce the initial price.
• Installation Hassles: Some heat pumps, particularly geothermal models, require more extensive preparation, such as property testing. While necessary for proper installation, these steps can lengthen the process.

Choosing a Heat Pump for Your Home

Finding the right heat pump for your home requires research. The Department of Energy suggests considering factors like noise levels, regional climate, and cost. It’s always a good idea to consult a professional HVAC contractor to help you choose the best system for your home and ensure you qualify for any available tax credits.

BONUS! We Surveyed 1,500 HVAC Contractors

Q1: Force Rank the Best Heat Pump Brands

When switching to a new heat pump, it’s important to choose a brand known for reliability and value. To help you make an informed decision, Filterbuy surveyed 1,500 HVAC contractors across the country to rank the best heat pump brands for your home in 2024/2025. Here’s the top list based on their insights:

1. Carrier
2. Trane
3. American Standard
4. Lennox
5. Goodman
6. Bryant
7. Coleman
8. York
9. Armana

Q2: What should I Ask My HVAC Contractor When Discussing Heat Pumps

Our surveyed contractors also provided essential questions you should ask when discussing heat pumps with your HVAC professional. These questions can help ensure that the system you choose meets your home’s needs.

Can My Panel Handle the Load?

“While they can reduce your home’s overall energy usage, heat pumps still can require electric circuits. Older home panels may not be able to handle a heat pump installation. It’s therefore important to assess whether you need a new circuit panel to accommodate the switch to a heat pump.”

Note: If an upgrade is necessary, it will add to your upfront costs, so be sure to factor this into your decision.

What Are the SEER and HSPF Ratings?

“Before committing to a heat pump, ask about the system’s SEER (Seasonal Energy Efficiency Ratio) and HSPF (Heating Seasonal Performance Factor) ratings. SEER measures the efficiency of the cooling system during warm months, while HSPF gauges the heating efficiency during cooler months.”

Be aware that both northern and southern states have different minimum efficiency standards. Make sure the heat pump’s ratings meet your location’s federal requirements to qualify for tax credits.

What is the balance point for my home?

“The balance point refers to the outdoor temperature at which your heat pump requires backup heating to maintain the set indoor temperature. For example, if the balance point is 30°F, the system will need supplemental heat below that threshold to maintain your desired temperature.”

What Are Heat Pump Filters?

Just like central air conditioning and furnace systems, heat pumps use air filters to prevent dust from accumulating on the heating and cooling coils. If you run your heat pump without a filter or with improperly sized filters, you’re guaranteed coil freeze-ups and expensive repairs.

Worth noting, high efficiency pleated air filters last 3x longer than traditional fiberglass options. They capture fine allergen particles, bacteria, and even smoke.

At Filterbuy, we offer MERV 8, MERV 11, and MERV 13 heat pump air filters in 600 stock & custom sizes to ensure you get the best air filtration, particle protection, and fit possible.

More Information About Heat Pumps

Contact a professional to determine which heat pump will work for your home and can qualify you for a federal tax credit. An HVAC contractor will give you the personalized information necessary to meet your needs and help you decide whether a heat pump is right for you.

To discover more about heat pump filters, MERV ratings, and finding the right filtration option for your heat pump, look no further than Filterbuy. We are happy to help with your heat pump filter needs.