Surprising Benefits Of Heat Pump Systems That Go Beyond Energy Savings

There are more than 320 million search results for “heat pump” on Google today. It’s likely that this energy-saving technology didn’t garner a fraction of that response before 2022. What’s changed – and why might you want heat pump technology for your home?

There are more model and feature choices today, and financial incentives for changing your water heater and home heating-air conditioning systems that can offset some of their upfront costs. The federal incentives were built into the 2022 Inflation Reduction Act. State incentives vary. Even if rebates didn’t exist or disappear, there are additional financial, safety and wellness benefits to making the switch.

Heat Pump Basics

Heat pumps serve two important functions today: providing hot water to your showers, faucets and appliances, and bringing hot and cool air to your rooms. Since some homes have central heating and air and others don’t, there are different heat pump systems to address each need. The Department of Energy explains each type and use on its website. (Heat pump technology is also being integrated into appliances like clothes washers to make them more energy efficient.)

Many older homes have oil- or gas-burning water or room heating systems that would benefit from an update or replacement. The incentives in the IRA were designed to make the latter easier and more affordable for homeowners. Gas-powered water heaters need replacement roughly every 15 years. If yours is approaching that age, a heat pump-based model would be an excellent choice.

Not replacing an aging unit can result in a major maintenance issue. The Energy Star site warns: “Ignoring these issues can lead to sudden failure of the water heater, cold water, and in some cases, tank rupture and water damage to the floor and carpets.” (The web page also gives you failure red flags.)

Manufacturers are making it easier for homeowners to try heat pump water heaters with hybrid models. These combine heat pump technology with an electric backup, so the homeowner doesn’t run short of hot water for extra laundry loads or multiple long showers. These serve the same confidence-building/try without risk approach as plug-in hybrid vehicles. There were many models to choose from at this week’s International Builders’ Show.

Energy Benefits

Steve Scarbrough, general manager for LG Air Conditioning Technologies, reports that heat pump systems for home heating and cooling are roughly four times more energy efficient than oil- or gas-burning models. “This is an important consideration given heating and cooling makes up nearly half of the energy used in homes.” Quoting Rewriting America, Scarborough says homeowners can expect an average annual savings of $370 with heat pump systems. An ENERGY STAR certified water heater with heat pump technology can save about $550 annually for a household of four, he adds.

“Homeowners typically spend up to 20 percent of household energy use on water heating, making it the second-highest driver of energy expenses after heating and cooling. Using up to 70% less energy than traditional gas systems, Energy Star certified heat pump water heaters are the most energy-efficient water heating technology available to homeowners looking to cut energy costs and boost energy savings,” the site also notes.

Chris Day, a marketing and training vice president at Rheem, estimates that Energy Star-rated heat pump water systems save a homeowner up to $4910 over 10 years. When it comes to HVAC models, savings are going to vary by model. “One way to think of it is… just like a vehicle’s MPG, the higher the SEER2, EER2 and HSPF2 rating on a heat pump, the higher the efficiency of your heat pump.”

Trevor Shane, digital solutions lead at Bosch Home Comfort, comments, “An electric water heater is one product that will show you the quickest savings. Homeowners can see payoff as soon as the five-year mark.”

Safety and Health Benefits

“Anytime we remove a combustion (fossil fuel) appliance from our home we are reducing the risk of several potentially harmful risks,” observes Steve Pemberton, HVAC lead and senior technical advisor at Elephant Energy. He adds that “the biggest one being failure during a combustion cycle leading to a fire or explosion. Though this scenario is rare, it has occurred.”

Pemberton also points out, “The less obvious and even deadlier consequence of a fossil fuel-burning appliance is the risk of CO release and exposure, which in the extreme, can result in death. There are also short and long-term impacts found in several studies regarding the health impact of byproducts created by burning fuel within the home. Studies have pointed to various health concerns such as asthma and other chronic respiratory issues, chronic headaches, etc.”

Scarbrough shares an additional health benefit: “Heat pumps operate with less noise compared to traditional HVAC systems, fostering a more serene indoor environment.” Reduced indoor noise can contribute to reduced stress, better sleep quality, and even lower blood pressure.

Day offers two more health and safety benefits for water heaters: the control and monitoring features available with heat pump technology provide greater comfort than older, oil or gas models, he says. “The dry, cold air pushed out of the heat pump water heater acts as a dehumidifier helping to alleviate moisture issues in the room the water heater is housed in (i.e., basement, attic).” Shane adds that this can be a particular advantage in hot, humid climates, like Florida’s or Louisiana’s.

Purchase Considerations

It’s important to choose the right contractor for your project – whether an HVAC or plumbing professional. “I always recommend using a local utility provider, clean energy government office, or other industry-leading organization. They often have lists of vetted contractors as rebate programs have specific contractor requirements that must be met. These companies are the most likely to provide the best possible outcome and be the most knowledgeable in the technology,” Pemberton suggests. He also suggests thoroughly reading online reviews, rather than relying on stars. “This will help you understand the previous customers’ experience,” he notes.

You should also check on what state and federal rebate incentives are available. Your utility company, contractor and internet search may provide additional incentives.

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Note: The interviews for this article were conducted by email in January and February 2025.