Can Heat Pumps Really Save You Money on Your Energy Bill?

Can Heat Pumps Really Save You Money on Your Energy Bill?

Heat Pumps Improve Comfort, but They Also Can Save You Money

More building owners are switching from oil or gas to heat pumps

If you’re ready to upgrade your property’s heating and cooling system, there’s never been a better time to consider air source heat pumps. Heat pumps draw energy from ambient air to provide both heating and cooling, which leads to improved air quality and lower carbon emissions. Heat pumps, sometimes called mini-split systems, also require less maintenance than traditional systems like furnaces and boilers. 

For many building owners, however, the most significant benefit of heat pumps is a sizable reduction in monthly bills. The average household spends more than $2,000 per year on energy bills according to one ENERGY STAR report, and about half of that money goes toward heating and cooling costs. 

By delivering heating and cooling more efficiently—and without combusting fossil fuels—heat pumps reduce energy consumption by an average of 20–40%. Below, we’ll explain how heat pumps save money, then provide a few suggestions for maximizing your savings.

Cut your utility bills with a modern heat pump system. Click here to find out if BlocPower is available in your area. 

How do heat pumps save money? 

Like a refrigerator or a traditional air conditioner, an air source heat pump system passes air over a coil to create a heat exchange. Unlike those other technologies, the heat pump has a reversing valve, which enables the unit to provide both heating and cooling. 

Heat pumps move heat from one space to another instead of producing heat through combustion. They’re significantly more efficient than traditional HVAC systems, and heat pumps designed for colder climates can maintain 100% efficiency at temperatures as low as 5° F. At colder temperatures, modern cold-climate heat pumps are still less expensive than furnaces and boilers overall.

For a more detailed explanation of how heat pumps work, read our Resource Guide:  What Is An Air Source Heat Pump?.

How much can a heat pump save you?

When in cooling mode, heat pumps are about as efficient as central air conditioners and much more efficient than window AC units that are costly to operate. Where heats pumps really save money is by cutting the cost of heating. According to the Environmental Protection Agency, air source heat pumps can reduce electricity usage for heating by up to 50% compared to electrical furnaces and baseboard heaters. 

Over the course of an average year, heat pumps save our clients about 20-70% on their annual heating and cooling bills. Heat pumps can also save money through reduced maintenance expenses and by completely eliminating fees for services such as oil delivery. 

Heat pumps deliver increased savings over time

If you’re switching from a heating system that uses natural gas or oil, a heat pump can provide protection from rising energy costs. According to the U.S. Energy Information Administration

  • American households that heat primarily with natural gas will spend 30% more in the winter of 2021 than they spent the previous year. 
  • Households with heating-oil systems will spend 54% more.
  • Households that heat primarily with electricity will spend 6% more. 

Since air source heat pumps are the most efficient electric heating option available to consumers, they’re an excellent long-term investment.

Example Project: Saint Bartholomew’s Church

Example Project: Saint Bartholomew’s Church
Heat pump systems are a viable solution for all buildings to save money while improving comfort and indoor air quality

BlocPower replaced St. Bartholomew’s Episcopal Church’s oil boiler system with a Variable Refrigerant Flow (VRF) heat pump system. Through a 15-year Energy Service Agreement, the Church was able to install the new system with no money down. BlocPower will maintain all heat pump equipment for the duration of the lease.

The Result: The 19,251 square feet facility saw a 55% reduction in heating and cooling costs—and an annual savings of $8,500.

Learn more about St. Bartholomew’s heat pump retrofit here.
New heat pump units mounted outside the church supplying all season climate comfort and control
New heat pump units mounted outside the church supplying all season climate comfort and control

Old, inefficient and ineffective radiators heading to recycling
Old, inefficient and ineffective radiators heading to recycling

Find out how much you can save with a BlocPower heat pump system.

So, do you really save money with a heat pump? 

Absolutely. But to determine how much you’ll save, you’ll need a professional assessment from experienced installers. Factors that affect heat pump savings include building size, location, and the efficiency of your old heating system. 

BlocPower specializes in heat pump system design and installation for buildings of all shapes and sizes with considerable experience in cold climates. During the first phase of our process, we analyze your building and provide a preliminary Scope of Work (SOW) that estimates potential savings. 

By working closely with trusted contractors and taking advantage of energy incentive programs, we’re able to reduce installation expenses. Our financing options help many building owners enjoy immediate savings without paying upfront installation costs.

Start saving 20–40% on your energy bills today. Answer a few quick questions to get started. 

Don't convert from oil to gas!

Many building owners discover heat pumps when exploring an oil to gas conversion. It's true that gas furnaces and boilers are a better choice than heating oil, but heat pumps offer a range of additional benefits.

When you replace an old heating oil (or gas) fueled system with ENERGY STAR heat pumps instead, you're not only shielding yourself from rising fossil fuel prices, but also benefitting from precise, room-by-room temperature control plus built in air-filtration from a system that comfortably heats and cools.