Heat Pump Applications And Energy Savings
Learn how reversible heat pumps keep your home comfortable year-round while reducing your energy bills and carbon footprint.
Which air-source Heat Pump do I need? Ducted or ductless mini-split?
-If you are looking to replace an aging furnace or central A/C in a home with ducts, a ducted heat pump (or ‘central’ heat pump) is often the superior choice, as it allows you to upgrade your efficiency and comfort using your existing infrastructure without the need to install wall-mounted units in every room.
-If you only need to fix the temperature in one or two rooms, a mini-split is your most cost-effective and efficient choice. If you are looking to replace an aging furnace or central A/C in a home without ducts, look into a larger-capacity multi-zone system designed to handle the load of the entire house.
Annual energy savings estimates:
[Gas furnace + AC] [Electric baseboard + AC] [Heat Pump]
Heat Pump Operating Savings
Estimated annual savings for a 2,500 sq ft single-family home (4-ton unit).
Annual energy savings estimates.
[Liquid propane furnace + AC] [Heating oil furnace + AC] [Heat Pump]
Heat Pump Operating Savings Calculator
Estimated annual savings for a 2,500 sq. ft. single-family home (4-ton unit):
Vs. AC + Propane Furnace: $0
Vs. AC + Heating Oil Furnace: $0
Sources: EIA STEO (April 2026); EIA SEDS (Table F51). Estimates are for a 2,500 sq ft home (4-ton unit). Actual savings vary based on insulation, local rates, and equipment efficiency.
Disclaimer regarding the energy savings calculators: These are estimates based on regional averages. Your actual savings will vary based on your home’s insulation, local utility rates, and specific equipment efficiency.
Estimated installed cost comparison – Before State HEAR/HEEHR instant discounts and Utility rebates.
| HVAC System Configuration | Estimated Equipment Cost | Estimated Labor & Install | Total Installed Cost | Primary Advantage |
|---|---|---|---|---|
| Central AC + Gas Furnace | $6,500 – $9,500 | $4,500 – $7,500 | $11,000 – $17,000 | Reliable in extreme cold climates |
| Central AC + Electric Baseboard | $4,500 – $7,000 | $3,500 – $6,000 | $8,000 – $13,000 | Lowest initial investment cost |
| Reversible Heat Pump | $7,000 – $12,500 | $5,000 – $8,500 | $12,000 – $21,000 | Highest efficiency; All-in-one system |
*Note: Estimates are based on a 2,500 sq ft home requiring approximately a 4-ton capacity. Actual costs vary by SEER2/HSPF2 ratings, ductwork requirements, and local labor rates.