The Ultimate Guide to Choosing Heat Pump

The most common type of heat pump, called an air-source heat pump, works by absorbing heat from the air and moving it either from outdoors to indoors (in heating mode) or vice versa (in cooling mode). It's the same way an air conditioner works, and in cooling mode, air-source heat pumps work identically to ACs. The two types of appliances look similar, are generally manufactured by the same companies, and use almost all the same parts. Heat pumps just have a few small differences that allow them to move heat in two directions, in and out.

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Until relatively recently, air-source heat pumps were predominantly used only in the southern U.S., where they're a natural fit for hot summers and mild winters. But the technology has improved, making air-source heat pumps a practical choice almost anywhere in the country, even in places with cold winters. As counterintuitive as it seems, there's always some free heat energy in the air, even on frigid winter days. Today's cold-climate heat pumps can efficiently collect that free heat and move it into your home.

That's why heat pumps offer a lower-carbon way to heat your home than other options, even if they run on electricity that's mostly generated by fossil fuels. When they're powered by renewable energy, whether that's solar or a cleaner grid, they become even more sustainable. Because of their energy savings and environmental benefits, some states and utility companies offer rebates or other incentives to homeowners who install heat pumps.

You can use a heat pump as the sole heating and cooling appliance in your home or combine a heat pump with an existing heating system. Many homes with existing ductwork for forced-air HVAC systems can be adapted to heat pumps. Ductless heat pump systems, called mini-splits, can provide heating and cooling in a home without ducts or add climate control to rooms that the main system doesn't reach.

Living with a heat pump is a bit different from using a traditional heating system. A modern heat pump is most efficient when your thermostat is set at a constant temperature. It actually saves energy if you don't turn it down overnight. They also blow cooler air than furnaces and run almost constantly at a low level rather than blasting heat for short periods throughout the day. Good insulation and air sealing of your home and duct system are important regardless of how you heat your home, but they're even more beneficial with heat pumps.  

In the U.S., we typically use air-source heat pumps and, most often, a subset known as air-to-air heat pumps. That means they absorb and release heat from the air (rather than water or earth) and deliver heating or cooling to homes through a forced-air system (rather than radiators). Among air-to-air heat pumps, two types are most common in residential homes.

Ducted Air-Source Heat Pumps
This type of heat pump looks and operates a lot like a central AC. There's an outdoor unit and an indoor unit, both of which have aluminum fins and coils to release or collect heat, connected by a refrigerant line filled with fluid that transports heat between the two units. The outdoor unit also has a compressor, which compresses and circulates the refrigerant. The indoor unit hooks up to ducts inside your home, and a blower circulates the warm or cool air through those ducts and out of air vents placed around your house. According to CR's member surveys, the overall median price paid for the purchase and installation of a ducted heat pump between and was $8,348. Most homeowners choose a 3-ton-capacity heat pump, which is good for about a 2,000-square-foot home, according to HomeAdvisor, a home-improvement services marketplace.

Ductless (aka Mini-Split) Air-Source Heat Pumps
This is a common, straightforward way to add a heat pump to a house or section of a house that doesn't have ducts. Instead of relying on ductwork to move warm or cold air through a house, it connects to one or more individual indoor air handlers, or 'heads,' which are installed throughout the home. The air-handler heads are usually placed high on a wall, but for homeowners who don't like the look or don't have the space, there are heads that can be placed inside the ceiling or floor. Mini-splits are also more energy-efficient than ducted heat pumps because they avoid the energy losses associated with ductwork. CR doesn't have enough brand-specific data yet to report on the prices members paid to purchase and install ductless mini-splits. According to HomeAdvisor, the average cost to install one unit is $3,000, but the price could range from $2,000 to $6,000 depending on how it's mounted and installed. For multiple mini-splits, plan to spend up to about $14,500, depending on home size, heat pump capacity, type of heat pump, and how many units you choose.

Other Types of Heat Pumps
There are a few other types of heat pumps that have proved to work well in some situations but are less common than air-source heat pumps.

Ground-source or geothermal heat pumps absorb and release heat underground, where the temperature is a constant 50° F to 60° F all year. They are highly efficient because they don't have to compensate for big temperature swings the way air-source heat pumps do. But because the heat-exchanging pipes are buried underground (either horizontally or vertically), ground-source systems can be impractical for small lots or those with certain types of soil or landscapes. Ground-source systems can cost from $6,000 to $30,000 or more. Federal and local incentives can reduce the cost significantly, and the systems are so energy-efficient that the savings from your utility bills could offset the cost of installation within 10 years, even by conservative estimates.

Water-source heat pumps work like ground-source systems, except they're laid at the bottom of a pond rather than underground. If you have an appropriate body of water on your property, these can be easier and less expensive to install than ground-source systems.

Air-to-water heat pumps use outdoor units similar to air-to-air models, but they distribute heat through a hot-water radiator system. They're common in much of Europe but not currently in the U.S., even though many homes in the Northeast and Midwest rely on hydronic radiators for heat. 

You already have one and need to replace it. If your home already relies on a heat pump and you're happy with it, the simplest thing to do when it wears out (generally after 10 to 15 years of service) is to replace it with a similar model, which will likely be more efficient. CR members can see which brands of ducted heat pumps make their owners the happiest, based on data we've collected from our member survey.

You need to replace your central AC (or add new built-in air conditioning). In cooling mode, a heat pump works exactly like an air conditioner. The installation process for both systems is essentially the same, too. The cost of installing a heat pump tends to be higher than it is for installing a central AC with a similar efficiency rating and capacity, though the exact amount can vary. Some state governments and utility companies offer tax incentives or cash rebates if you install a heat pump, mitigating some of the cost.

So if you're replacing (or adding) an AC anyway, whether it's a central system or a room unit, it may make sense to pay a little extra for a heat pump and keep your existing heating system as a backup for the coldest days and reap the rewards of high-efficiency heating on the milder days of the year. (More on this kind of hybrid system later.)

You want to add heat to a chilly room. A ductless mini-split heat pump is an affordable and effective way to add climate control to parts of your house where the main system may not reach'such as a finished attic, garage workshop, or home addition.

You heat with 'delivered' fuels like propane or heating oil, an electric-resistance furnace, or electric baseboard heaters. These are all expensive ways to heat a home, and depending on such factors as where you live and the cost of electricity, you're likely to save money over time if you switch to a heat pump, even when you include the cost of installing it.

You want to significantly reduce your carbon footprint. Almost half of a typical home's energy use goes toward heating. So anything you do to heat more efficiently, and with cleaner sources of energy, will go a long way toward making your home more sustainable. Switching from a gas furnace to an electric-powered heat pump will reduce a home's heating-related carbon emissions by an average of 40 percent, according to a study from the University of California, Davis. It's one of the most impactful ways to reduce your carbon footprint, and it doesn't require a lifestyle change.

Your home has ductwork. More than half of all homes in the U.S. already use ducts to distribute heating and cooling. A ducted heat pump can be connected to the existing ductwork to provide whole-home heating and cooling. The only caveat: Leaky, uninsulated ducts are bad for any heating system, but especially for heat pumps.

You live somewhere with heat pump subsidies. Heat pumps'particularly models that work well in very cold climates'may cost more upfront than other types of heating appliances. For example, CR members surveyed paid a median price of $8,348 to purchase and install a heat pump vs. $6,221 for gas furnaces. And sources we spoke to said whole-house heat pumps for cold climates can easily cost more than $10,000. But with state or utility-based subsidies, such as tax incentives or cash rebates, a heat pump can cost less than other heat-only systems. That's especially true when combined with the federal tax credit.

Heat pumps aren't the most practical heating solution for every house. Here are some cases in which it can be expensive, difficult, or impossible to install one.

Your house has no ducts. It can be difficult and expensive to add ducts to a home that doesn't have them, and heat pumps built to work with hydronic heating systems are uncommon and expensive in the U.S. In this case, a ductless mini-split system is usually the easiest way to add a heat pump.

Your house is poorly insulated or leaky. If yours is an older home, it's always a good idea to first upgrade your insulation and seal any air leaks, regardless of how you heat the house. It's also wise to wrap and seal your ductwork, if you have any. Good insulation is especially beneficial in homes that use heat pumps. Heat pumps heat more gently than other systems; it's a constant trickle of warm air rather than blasts of heat every few hours. If you have poor insulation, you'll notice drafts and cold spots more often than you would with the higher temps of a traditional system. Keep in mind, though, that you can offset the cost of improving your home's insulation with another federal tax credit worth up to $1,200.

Your electrical service is underpowered. Some homes, particularly older ones, have only 100-amp or even 60-amp electrical service. Technically you can run a heat pump on a system like this, especially if it's a smaller-capacity mini-split. But if it's a bigger heat pump and you turn on too many additional appliances'or plug in an electric vehicle'you could trip the breaker and have to reset your system. If you have your heat pump professionally installed, a good contractor will check your panel for capacity and may advise hiring an electrician to upgrade to the modern standard of 200 amps. That work could cost a couple thousand dollars. But it can be offset by up to $600 through the same federal tax credit used for insulation upgrades. (The annual limits vary depending on the upgrade.)

You live in an extremely cold climate. The Department of Energy divides the U.S. into eight climate zones. The higher the number, the colder the winters. Basic heat pumps have been common in the lower-numbered zones for decades. Modern heat pumps in a properly designed system can provide all the heat a home will need up through zone 6.

In zones 7 and 8'which include the northern parts of North Dakota, Minnesota, Wisconsin, Michigan, Maine, and all of Alaska, where temperatures can drop below -25° F for days at a time'even today's cold-climate heat pumps might not provide adequate heat. You're likely to need a backup heating system if you live in one of those areas.

Size (Capacity)
A heat pump that's too small for your needs will struggle to keep your home comfortable. On the other hand, an oversized unit will cost more, and if it isn't a variable-speed model, it will cycle on and off more often than it should. This decreases efficiency, stresses components, and leaves your home less comfortable.

A heat pump's cooling capacity is measured in British thermal units per hour. Btu/hr. can also be expressed in 'tons,' with 1 ton equaling 12,000 Btu/hr. To ensure that your heat pump is sized correctly, make sure your contractor does a load calculation based on a recognized method, such as the Air Conditioning Contractors of America (ACCA) Manual J. The calculations should be done after any air-sealing or insulation upgrades are made to your home and should be done whether you're replacing a unit or installing a new system.

If you're planning to keep a backup heating system alongside your heat pump, consider getting an undersized heat pump. A contractor can help you figure out whether this makes sense in your home.

If you're switching from a furnace or boiler, note that heat pumps need far less capacity to heat a space because they're much more energy-efficient. For example, if your home needs a 100,000-Btu/hr. furnace, it may need only a 36,000-Btu/hr. heat pump.

Compressor Type
The compressor is the heart of a heat pump'it's the part that actually pumps the heat. Basic heat pumps have a single-speed compressor. It's either on or off. This system works well enough, but the temperature and relative humidity in your home will swing up and down with the cycles. Compressors with two speeds make the swings better but still don't prevent the ups and downs.

The gold standard is a variable-speed compressor. It's designed to run almost constantly, adjusting itself over time to deliver only as much heating or cooling as it takes to keep your home comfortable. It's also much better at keeping relative humidity under control than single-speed models are. Variable-speed compressors not only keep your home more comfortable but also are more energy-efficient. It may seem counterintuitive, but it takes much less energy to move a tiny bit of heat all the time than to move a lot of heat quickly.

Efficiency
Some heat pumps use less energy than others to deliver the same level of comfort. In cooling mode, efficiency is commonly expressed as the seasonal energy-efficiency rating (SEER). The higher the SEER, the greater the efficiency. In heating mode, the measurement used is the heating seasonal performance factor (HSPF). Again, the higher the number, the more energy-efficient the unit.

As of January , the Department of Energy adopted new testing methods for energy efficiency, replacing the SEER and HSPF values with SEER2 and HSPF2.

Heat pumps with higher energy efficiency ratings tend to cost more, but they'll often pay for themselves over time through lower energy costs, and they may be eligible for better tax incentives or rebates than less efficient models. Heat pumps with higher SEER ratings also tend to have higher HSPF ratings, though there's no direct relationship between the two. If you live in a warm climate, pay closer attention to the SEER. In cold climates, look for a higher HSPF.

Climate Performance
If you live in a region with cold winters, you'll need to either pick a heat pump that's rated to work well in the lowest temperatures that your region regularly experiences or have a secondary heating system to back up your heat pump.

All air-source heat pumps struggle to perform as temperatures drop; the space they can effectively heat shrinks and they don't work as efficiently. The threshold for poor performance varies from model to model. Some heat pumps falter at 25° F, others at 17° F or lower.

Models marketed as cold-climate heat pumps can work to their full potential all the way down to 5° F and may deliver some heat even down to -20° F or lower. The best course is to work with a qualified local contractor who knows what kind of equipment works well in your area.

If you live in an area where the temperature rarely or never drops below freezing (32° F), a basic heat pump can handle the bulk of your heating and cooling needs. You can keep a simple electrical-resistance backup system (sometimes built into the heat pump itself) for unusual cold snaps.

Noise
Manufacturers publish the noise levels of their products in the user manual and often on their websites. They tend to include noise estimates across a variety of outdoor temperatures and fan speeds, measured in decibels. A lower number is better, especially if the heat pump will be installed near a bedroom window.

Reliability
In our member survey, heat pumps from eight brands were judged highly reliable, but only two of them also got top marks for owner satisfaction. Consumer Reports members can see the predicted reliability and owner satisfaction ratings for 29 brands of heat pumps, based on data that CR members have shared about 10,158 heat pumps they bought new and installed in their own homes between and . Those findings are summarized in our guide to the Most and Least Reliable Heat Pumps.

As with most heating and cooling systems, it's wise to hire a professional to handle the design and installation of a new heat pump system. The margin for error with heat pumps is smaller than with traditional heating systems, making proper sizing essential. Here are some tips for hiring a good installer.

Ask around. Seek referrals from neighbors, family members, business associates, or local green-energy resource groups. It's wise to get price quotes from at least three contractors.

Check their background. Contractors who bid on your installation should show you verification of bonding and insurance, plus any required contractor's licenses. Check with your local Better Business Bureau and consumer affairs office for complaint records. It's a plus if technicians are certified by a trade organization, such as North American Technician Excellence or HVAC Excellence, to service residential heating and cooling equipment. Those and similar programs assess the technician's knowledge of specific types of equipment and their proper service methods.

Get specific calculations. Be wary of a contractor who bases estimates merely on house size or vague rules. Contractors who bid on your job should calculate the required heating and cooling capacity using a recognized method, such as one found in the ACCA's Residential Load Calculation Manual, also called Manual J. An additional reference for assessing ductwork needs is Manual D. The calculations produce a detailed, room-by-room analysis of heating and cooling needs. Ask for a printout of all calculations and assumptions, including ductwork design.

Make sure your installer scopes out a proper location for the outdoor unit. A compressor needs adequate airflow to operate correctly. Make sure to keep at least 2 to 3 feet of space between the unit and any plants or structures. There should also be 5 feet of clearance between the top of the unit and any trees above. You'll also want to make sure there's enough space for you or a technician to access and service the unit. And local building codes might have regulations about how close an outdoor compressor is allowed to be from a neighbor's window or property line.

If you have experience with electrical, plumbing, and carpentry work, you could save money by installing a mini-split system yourself. Do-it-yourself systems are on the market, and numerous online videos explain what to do. But even with a DIY kit, you'll need to drill a hole several inches through your exterior wall for the refrigerant, drain tubing, and control lines.

With competitive price and timely delivery, Bobiller sincerely hope to be your supplier and partner.

Keep in mind, too, that your municipality may require several permits, including a licensed electrician to do the electrical work.

With the right heat pump and system design for your home and regional climate, a backup heating system shouldn't be necessary.

But in cold climates, keeping a backup system can be the most cost-effective way to keep your home comfortable. You could even think of it as a hybrid setup rather than a system with a backup. You'll use the heat pump most of the time (including in the summer, when it provides all your cooling) and the backup system only on the coldest days when the heat pump can't keep up. A contractor can set up the system to switch automatically at a specific outdoor temperature.

Hybrid systems still save a ton of energy and carbon emissions compared with most other setups and can offer some peace of mind in colder climates.

Here are a few common types of hybrid setups.

Electric strip: Common in mild climates, a simple electric heating element can be built into the heat pump itself or the indoor air handler. These strips use a ton of energy, but they're very inexpensive to install and maintain, and it's a cost-effective way to get through short cold snaps.

Mini-split plus radiators: Radiator systems that run on oil or propane, or 'regular' electric-resistance heat, tend to be expensive to run, but mini-split systems that are big enough to heat your entire home tend to be expensive to install. A popular compromise: Install a smaller mini-split that can handle most of your heating (and cooling) needs and keep the old radiator system for the coldest days.

Ducted heat pump plus furnace: It's the same concept as the mini-split and radiator combo above. You'll install the heat pump just like you'd install a central AC.  

HVAC Tips & Tricks8 min read

By Anne Fonda

What Is a Heat Pump?

While heat pumps are becoming more and more popular, don't feel bad if you don't know a lot about them. An electric air source heat pump is typically an outdoor unit that both heats and cools your home. They are alternatives to the standard central air conditioners and furnace systems.

How does a heat pump work? That's another question we get a lot. Essentially, a heat pump uses heat energy and through heat exchange, transfers it to a cooler environment. 

This means the air source unit takes the heat in the outside air and transfers it into your home in the winter. It then reverses the process and transfers heat inside your home to the outside in the summer. 

For a more detailed explanation, read our blog on demystifying heat pumps.

Benefits of a Heat Pump System

• They are highly efficient.
• Heat pumps use electricity, meaning they don't burn any fossil fuels, and therefore reduce your climate footprint.
• A heat pump system can provide long-term cost savings on your energy bills.

How to Choose the Right Heat Pump

Choosing the right unit starts with asking some questions and finding the right answers. Some top heat pump considerations are size, energy efficiency, cost, and brand. Keep reading to learn more about each factor.

1. What size heat pump do I need?

Determining the correct sizing for your home involves either the Manual J load calculation or estimating based on the square footage of your home. 

Manual J Load Calculation

The Manual J load calculation is a series of calculations that HVAC contractors or technicians use to determine how much heating or cooling your home needs. It includes several factors, including:

• The square footage of your home
• Height of the ceilings
• Your home's insulation
• Your climate and how many days you will need heating and cooling
• How often you use the space (does anyone work from home?)
• How many people use the space
• Heat-producing appliances
• Your preferred temperature
• Number of exterior doors
• Number of windows

The technician enters these numbers into a formula to determine the precise size of the unit you need. 

A calculation that is simpler but not as precise is calculating the size heat pump you need based on your home's square footage. In general, Every 500 square feet needs a capacity of one ton for air conditioning. 

For example, a -square-foot home would need a 3-ton unit, and a -square-foot home would need a 5-ton unit. But you also need to understand what each ton means in British Thermal Units (BTUs). You might find the chart below helpful in sizing your heat pump. 

Home size (sq. ft.)Heat Pump Size (tons)Heat Pump Size (BTUs)500 sq. ft.1-ton heat pump12,000 BTUs sq. ft.2-ton heat pump24,000 BTUs sq. ft.3-ton heat pump36,000 BTUs sq. ft.4-ton heat pump48,000 BTUs sq. ft.5-ton heat pump60,000 BTUsHome size (sq. ft.)Heat Pump Size (tons)Heat Pump Size (BTUs)500 sq. ft.1-ton heat pump12,000 BTUs sq. ft.2-ton heat pump24,000 BTUs sq. ft.3-ton heat pump36,000 BTUs sq. ft.4-ton heat pump48,000 BTUs sq. ft.5-ton heat pump60,000 BTUs

2. What energy efficiency ratings should I look for?

In general, we would recommend opting for the most energy-efficient heat pump you can afford. Prices generally go up the larger the unit and the higher the energy efficiency. But remember that the more efficient a unit is, the more it can save you on heating and cooling costs in the future.

SEER2

SEER stands for Seasonal Energy Efficiency Rating, and SEER2 is the latest version that took effect in . It measures the cooling efficiency of air conditioning units and heat pumps. The higher the SEER2 rating, the more efficient the unit is. 

HSPF2

HSPF2  stands for Heating Seasonal Performance Factor and HSPF2 is the latest standard that took effect in . It's a measurement of how effectively your heat pump can heat your home in the colder months. The higher the rating, the more efficient the unit is in heating mode.

3. What does a heat pump cost?

There is no simple answer to this question because we don't know all the factors - the size of your home, the type of unit you need/want, and more. In general, the cost of getting a heat pump installed will be more than a standard system with an outdoor AC unit and an indoor furnace. For Trane products specifically, we provide a price range for some units in our pricing guide.

But because of the increased energy efficiency, you may see a near-immediate decrease in your heating and cooling bills, which will last for the life of your system. Add to that the availability of federal heat pump tax credits (up to $2,000) for Energy-Star-qualified units, and buying a heat pump can become a cost-effective home improvement.

You can also use the Energy Star Rebate Finder, which can help you find state and utility company rebates in your area.

4. What brand should I buy?

Research reputable brands in the heat pump industry. Check reviews from websites such as Consumer Reports and others. Look for brand reputation, reliability, and quality. Trane recently achieved the honor of being ranked as the Most Trusted® HVAC Brand for the 10th year in a row, and we are excited to share this news.

You can explore our heat pumps to see the features and efficiency ratings available.

Consider a Dual Fuel System

If you live in a colder climate such as Minnesota, you may be wondering if a heat pump vs furnace is right for your home. Heat pumps are very common in the southern states, but heat pumps in cold climates are a viable heating solution when you install a dual-fuel system. 

This is when you install a cold climate heat pump that can operate efficiently in colder temperatures, and connect it to a gas furnace which kicks in only in extreme temperatures that the heat pump can't handle. 

You get the energy efficiency of the heat pump and you pay less for natural gas or propane. Plus, you get air conditioning during those summer heat waves that are growing more common in northern climes.

Consider a Mini-Split Heat Pump/Ductless Heat Pump

A mini-split heat pump, also known as a ductless heat pump is a heating and cooling system designed for rooms or spaces that don't have ductwork. This could include a garage, an enclosed porch, an attic, or a lake cabin - you get the idea. 

Options include:

• Mini-split single-zone heat pump for one space such as a garage or enclosed porch
• Multi-split ductless systems where you can heat and cool up to five spaces without ductwork. This can be a great option for a remote cabin, an older building, or even a historic home where installing ductwork would be cost-prohibitive. 

An experienced HVAC contractor can help you determine the best solution for your home.

Find the Perfect Contractor for Heat Pump Installation

Finding the perfect HVAC contractor for your heat pump installation doesn't have to be hard. But it will require some research. Here are some quick tips on steps to take to find the right company to do the job:

• Ask friends and family for recommendations. NextDoor and Facebook community groups are also good places to ask for recommendations.
• Google heat pump installation near me and check out the top 5 results, visiting their websites for valuable information.
• Look for industry credentials and certifications, as well as licenses where applicable.
• Read their reviews and customer testimonials, and look for how responsive they are to negative feedback, if any.
• Confirm that they offer HVAC maintenance and repair services as well as installation.
• Choose 2-3 HVAC contractors to visit your home and discuss the type of heat pump system they recommend for your needs, and the sizing that will offer the best comfort and efficiency.
• Discuss the installation process and timeline with each contractor.
• Discuss project cost and any financing options.
• Choose the company you want to work with.

Be sure to keep your receipts for the work you have done and the certificates for the equipment you have installed so that you can claim your tax credits when you file your taxes. Enjoy the comfort of a new heat pump system and watch your utility bills go down.

Are you ready to upgrade your heating and cooling system? From a standard heat pump system to a dual fuel system to a mini-split system, your local Trane Comfort Specialist can help you make the right choice for your home and your family. Reach out today to find the perfect heating and cooling solution for your home. 

Anne Fonda, Content Writer

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A Content Writer with Trane Technologies, Anne Fonda researches topics and writes for Trane® and associated residential HVAC brands. She works in collaboration with Trane Technologies subject matter experts, offering easy-to-understand, informative content on complex topics. Her goal is to help consumers make informed decisions on the products and services they need.

She has written for HVAC and other service provider websites for over 16 years. Before transitioning to web content writing, Anne had a 14-year stint as an award-winning journalist. She graduated cum laude from the University of Missouri-Columbia School of Journalism.

When she's not working, Anne enjoys playing word games, reading, gardening, spending time with family, and visiting gardens and museums.

Expert review by Mark Woodruff, Senior Product Manager, Ducted Outdoor