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Need air conditioning? Consider the heat pump.

Jul 3, 2025
In collaboration with
canarymedia.com
Need air conditioning? Consider the heat pump.

Canary Media’s ​“Electrified Life” column shares real-world tales, tips, and insights to demystify what individuals can do to shift their homes and lives to clean electric power.

As summer temperatures sizzle, are you frantically shopping for central air conditioning? Take a breather, because you could get AC functionality — and more — by opting for an increasingly popular appliance: a heat pump.

All-electric heat pumps are ACs, but better. Equipped with the ability to work in reverse, they not only dump heat outside in the summer, but can also pull heat indoors in the winter.

Heat pumps do often cost a bit more up front, but if you’re on the hunt for a new AC system anyway, the difference can be small enough that it’s worth exploring the option. After all, you could end up with AC and a shiny new heating system, to boot.

Should you join the growing share of households choosing heat pumps over mere ACs? Here are answers to key questions a prospective buyer is likely to have.

1. Why should I get a heat pump instead of an AC?

When sized right, heat pumps let you simultaneously meet your cooling needs and proactively upgrade your heating system to one that’s better for your health and, typically, your wallet in the long run.

For most households, these two-in-one appliances pay for themselves in reduced energy bills over their estimated 16-year lifetime.

Families that go from relying on expensive delivered fuels to electric heat pumps unlock the biggest cost savings: an average of $840 per year, according to electrification nonprofit Rewiring America. Households ditching gas heating can see an average of $60 in savings per year. Utility customers with access to electricity rates that favor heat pumps can save even more.

Other benefits? Heat pumps slash planet-warming pollution. Adopters report that the appliances produce more even, comfortable heat than gas systems. And unlike their fossil-fuel-burning counterparts, heat pumps don’t emit pollutants linked to asthma, cancer, and premature death.

Oh, and if you’re okay with air-handling units on your walls, a mini-split heat pump system can let you get AC without having to install pricey ductwork.

The air-handling unit of a mini-split heat pump system in Minnesota provides cool comfort when it’s sweltering outside. (Nick Bender)

2. What’s the cost difference between a heat pump and an AC?

It’s tricky to find trustworthy data about the cost of central AC, home-energy marketplace EnergySage reports. But the general consensus is that heat pumps do come at a bit of a premium.

Here’s one example: In California, it costs between $900 and $1,900 more to replace a broken central AC with a heat pump instead of a conventional AC. That’s out of a median total heat-pump installation cost of $15,900, per data from the TECH Clean California program from July 2021 to April 2024.

But spending on a heat pump can mean avoiding the expense of getting a new furnace. Southern California’s air-quality agency recently found that installing a heat pump in a single-family home in the region typically costs $1,000 less than installing a gas furnace and AC.

Across the U.S., heat pump installations typically fall between $6,600 and $29,000, according to Rewiring America. That wide range is because project prices for heat pumps, like other HVAC equipment, can depend on a dizzying number of factors, including the size of your home, its energy demand, your local climate, the equipment efficiency rating, the state of your home’s electrical system, and how familiar your local labor market is with the product.

3. What financial incentives are available for heat pumps?

For now, there’s the Energy Efficient Home Improvement Credit, which can take up to $2,000 off your federal tax bill for a qualifying heat pump. But if Republicans’ ​“Big, Beautiful Bill” passes in its current form, that tax credit will disappear at the end of this year. (All the more reason to get one this summer.)

Income-qualified households can check with their state energy office about the availability of Home Energy Rebates, an $8.8 billion initiative created under the landmark 2022 Inflation Reduction Act. Details vary by state, but the law established an $8,000 incentive for a heat pump, as well as rebates for enabling updates: $2,500 for electrical wiring and $4,000 for an electrical panel upgrade. While some state programs have rolled out after being finalized under the Biden administration, others still awaiting approvals are now stuck in limbo.

Separate state and local incentives may also be available. Ask your utility, Google, and reputable heat-pump contractors in your area. Rewiring America also has a handy calculator that provides information on electrification incentives for residents in 29 states, with more soon to come, a spokesperson said.

4. How do I find the right contractor to install a heat pump?

Get at least three quotes; the EnergySage marketplace can connect you to vetted local installers so you can compare offers. Some contractors specialize in home electrification — and might offer cutting-edge strategies to navigate a heat pump transition. Utility and local incentive programs may also have lists of participating installers.

But don’t stop there. See if there’s a local electrification group — like Go Electric Colorado, Electrify Oregon, or Go Electric DMV for D.C, Maryland, and Virginia — which can connect you to resources and friendly, knowledgeable electric coaches. Typically volunteers, they can offer free advice and recommend contractors they’ve worked with.

5. What else should I keep in mind before deciding whether to get an AC or a heat pump?

Ideally, you don’t want to find yourself in the sticky and sometimes downright dangerous situation of needing to get your AC replaced in an emergency. But if your AC has suddenly expired, you can give yourself more time to weigh your options by getting a ​“micro” heat pump as a stopgap measure.

Experts recommend drafting a road map for electrification upgrades in advance. Research contractors, costs, incentives, and logistics of other upgrades, like insulation and air-sealing or electrical system updates; your future self will thank you.

To help you on your electrification journey, Rewiring America offers a free, personalized planning tool, complete with estimated energy-bill impacts.

Changing your HVAC system is a big deal — and you don’t have to figure it out on your own. Got a question or story to share about choosing a heat pump over an AC, tackling another electrification project, or fully electrifying your home? I’d love to hear it! Reach out to me at takemura@canarymedia.com; my aim is to make the energy transition easier for you. Stay cool out there!

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