Whether you’re looking to get your very first home heating system or are in the market for a replacement system, there are many options out there to choose from. If you’re like most homeowners, you want to choose a heating system that’s energy efficient to help save money on your utility bills throughout the year. Two systems that tend to be most popular are the heat pump and the furnace.
Furnaces
Furnaces are one of the most popular heating systems on the market today due to their versatile fuel offerings and affordable pricing. Furnaces can run on one of four different types of fuel sources including natural gas, propane, heating oil, and electricity. Furnaces that use propane, heating oil, and natural gas all burn fuel to create heat and require adequate ventilation to get rid of the toxic by-products of the combustion process. Furnaces that run on electricity use internal heating elements to warm up the air and don’t require any sort of ventilation to operate effectively.
The overall operating efficiency of a furnace is going to depend on its overall Annual Fuel Utilization Efficiency (AFUE) rating and the type of fuel that it uses. In general, electric furnaces operate at a 100% efficiency rating. This means that for every unit of energy input into the furnace, all that energy is used to create heat for your home. When it comes to furnaces that burn fuel like natural gas or propane, they can have different efficiency ratings. Standard efficiency models operate at around 84% efficiency, while high-efficiency models can operate at 90% efficiency or above.
Heat Pumps
A heat pump is unique in the fact that it only runs on electricity to both heat and cool your home. There are two different types of heat pumps that you can purchase: the air-source heat pump and the geothermal heat pump. The geothermal heat pump pulls heat from the soil and brings it into your home, while the air-source heat pump will pull heat from the air outside and pump it into your home. Heat pumps have a very high operating efficiency, which may reach levels up to 400%.
Upfront Costs
When it comes to determining the cost-effectiveness of both a furnace and a heat pump, it’s important to first take into account their upfront purchase price and overall longevity. This will allow you to take the total price and divide it by its expected lifespan so that you can compare both systems accurately.
The upfront cost for a furnace installation is going to vary widely depending on the type of fuel that it uses and any existing infrastructure you have in place. In general, electric furnaces are going to be the cheapest for homeowners to purchase and require minimal installation. Both propane and natural gas furnaces tend to be very similar in price, sitting slightly just above the cost of an electric furnace. Typically, furnaces that run on heating oil are going to be slightly more expensive than all the other types of furnaces. Electric furnaces have a lifespan of around 25 to 30 years. Furnaces that burn fuel will have a lifespan of closer to 15 to 20 years.
When it comes to the upfront cost of the heat pump, it tends to be more expensive than a furnace. In general, you can expect to pay about one and a half to two times the price of a furnace to purchase a new air-source heat pump for your home. If you opt to go with a geothermal unit, it can be four to five times the cost of purchasing a new furnace due to its extensive installation process. Air-source heat pumps have a lifespan of around 10 to 15 years, while geothermal heat pumps have a lifespan of up to 50 years.
Fuel Costs
Another key factor to look at when comparing the cost-effectiveness of different types of systems is the cost of electricity or fuel. Each type is going to have varying prices depending on where you live. For example, you may find that electricity is more expensive in your location than natural gas. Understanding the fuel price for your system makes a big difference in determining how cost-effective it is to run.
Putting It All Together
When you take into account the overall efficiency of the unit, its fuel cost, and overall lifespan, a heat pump tends to be the most cost-effective method for household heating. While electricity tends to be more expensive in most locations, the cost of electricity that’s used is less than fuel would be to produce the same amount of heat for your home.
Heating and Cooling
Apart from just the overall cost-effectiveness of running a heat pump in your home, there are many other great benefits that it can provide you with. One of the most desirable is that it can both heat and cool your home. This eliminates the need to purchase two different HVAC systems to stay comfortable throughout the entire year.
No Toxic Exhaust Fumes
Because a heat pump relies solely on electricity to create heat for your home, there is no combustion process. This means that no toxic exhaust fumes are being created as there would be with a furnace that burns fuel. Without toxic fumes, you don’t have to worry about any of the safety concerns that come along with them, like carbon monoxide poisoning or a buildup of natural gas in your home.
Tax Incentives
Most, if not all, heat pumps qualify you to receive some sort of tax credits and local rebates. Under the Inflation Reduction Act of 2022, homeowners who purchase eligible heat pump systems can receive up to a maximum amount of $3,200 back in the form of a tax credit. This tax credit essentially reduces the amount of federal income taxes that you owe for the year that you have your system installed. This type of system can also make you eligible to receive local rebates from your utility company, local government, and even the system manufacturer.
Ducted and Ductless Options
One cool feature of heat pumps is that they can be integrated into an existing ducted setup, or you can use them as a ductless system. The latter version is great for households that don’t have any existing ductwork, as ductwork can be extremely expensive to install in an already finished home. Plus, the ductwork installation process can be very invasive and require wall and floor repairs. Ductless systems also give you the added advantage of zone temperature control and more comfort throughout the different rooms of your home.
Helpful Heat Pump Installation Service
Cool Power LLC offers comprehensive heating services, including furnace and heat pump installation, for the Ronkonkoma, NY area. We can also help with all your furnace and heat pump replacement, repair, and maintenance needs. Call Cool Power LLC today to book a service consultation with one of our friendly technicians.
