The ABCs of Heat Pump HVAC Systems

couple turning on heat pump above desk

Installing a heat pump HVAC system is an essential electrification upgrade that will help you transition away from fossil fuels and create a more sustainable home. 

If you’re thinking about installing a heat pump but want to learn more about them first, you’re in the right place. In this comprehensive guide, we cover everything you need to know about heat pump heating and cooling systems, including how they work, how much they cost, and how to find a reputable heat pump installer. 

What Is a Heat Pump? 

A heat pump is a type of HVAC system that provides both heating and air conditioning in one. They work by moving heat, rather than creating it, which is more energy efficient than boilers and furnaces, which burn fuel to generate heat. Heat pumps have been around for decades, but their popularity has spiked in recent years thanks to technological advancements that have improved their capabilities and efficiency. 

How Does a Heat Pump Work? 

Heat pumps work by moving heat from one place to another. In cooling mode, they absorb heat and humidity from the air inside your home and release it into the outside air. This is the same process an air conditioner uses to cool your home. But a heat pump can also work in reverse. In heating mode, they extract heat from the air outside (even in cold weather), increase the temperature by compressing refrigerant, and release it inside your home. 

Types of Heat Pump HVAC Systems 

There are several types of heat pump heating and cooling systems

Air-Source Heat Pumps 

Air source heat pumps work by transferring heat through the air. They are the most common type of heat pump HVAC system because they are the easiest and most affordable option to install. 

Ducted Air-Source Heat Pumps 

ducted air-source heat pump connects to your home’s central ductwork and uses supply vents to deliver heated or cooled air to its various rooms, the same way a central heating or air conditioning system operates. 

Ductless Air-Source Heat Pumps 

Ductless air-source heat pumps, also called mini splits, work without ductwork. They consist of an outdoor unit and one or more indoor units, called air handlers or “heads.” The air handlers are connected to the outdoor unit via a narrow line set that’s run through an exterior wall. 

Since there is no ductwork, ductless heat pumps can be installed almost anywhere in your home. They’re ideal for houses that don’t have central ducts and for adding supplemental heating and air conditioning to additions, bonus rooms, and other rooms that are hard to heat and cool. 

Ground-Source Heat Pumps 

Ground-source heat pumps, also known as geothermal heat pumps, use the earth’s consistent temperature to heat and cool a home or building. In heating mode, geothermal heat pumps extract heat from deep in the ground and bring it indoors for space heating. In cooling mode, they absorb heat from the air inside and dump it into the ground. Ground-source heat pumps are highly efficient but expensive to install. 

Water-Source Heat Pumps 

Water-source heat pumps use submerged pipes to absorb heat energy from a body of water, like a pond or lake, and bring it into a home or building for space heating. The also work in reverse—extracting heat from inside a home or building and dumping it into the water to provide 

cooling. Water-source heat pumps are the least common type of heat pump because they are expensive to install and very location-dependent. 

Benefits of Heat Pump HVAC Systems 

Heat pump HVAC systems have many advantages over other types of heating and air conditioning systems. 

  • Dual Functionality - A heat pump is an all-in-one system that can heat, cool, and dehumidify your home.
  • Energy Efficiency - Heat pumps can deliver up to three times more heat energy to a home than the electrical energy they consume, according to the Department of Energy
  • Environmentally Friendly - Heat pumps reduce greenhouse gas emissions, especially when paired with a renewable energy source like solar power
  • Safer - Since they don’t burn fuel, heat pumps are not susceptible to carbon monoxide leaks or gas explosions. 
  • Healthier - Heat pumps don’t release harmful pollutants, helping to prevent indoor air quality issues in your home. 
  • Incentives - Heat pumps qualify for incentives like the 25C tax credit that can significantly reduce your installation costs. 

How Much Does a Heat Pump Cost? 

Heat pumps are typically more expensive to install than conventional HVAC systems like furnaces, boilers, and central air conditioners. But the cost of a heat pump can vary widely based on several factors. 

Factors that Impact Heat Pump Installation Costs 

  1. Type of Heat Pump - Ground-source and water-source heat pumps are generally more expensive than air-source heat pumps. 
  2. Heat Pump Brand - Big-name brands like Carrier are typically more expensive than lesser-known brands. 
  3. Size and Capacity - Larger units with higher capacities are more expensive to purchase and install.
  4. Efficiency Rating - Higher efficiency units (measured by SEER and HSPF ratings) cost more upfront but also save more on energy bills.
  5. Installation Complexity - Complex installations can increase costs.

Average Cost of a Heat Pump in California 

According to a study conducted by Opinion Dynamics in 2022, the average cost of an air-source heat pump in California is $11,534. That’s likely more than you would expect to pay for a gas furnace, but keep in mind that heat pumps are a heating system and air conditioner in one, so you’re getting double the use out of a heat pump as you would a furnace. Heat pumps also qualify for incentives that can significantly reduce the upfront cost. 

Heat Pump Incentives 

The 25C Tax Credit - Save up to $2,000 on air-source heat pumps 

Air-source heat pumps are eligible for a 30% federal tax credit, up to $2,000. If you owe federal income tax for the year you install your heat pump, you can take the credit! 

Residential Energy Efficient Property Tax - Save 30% on geothermal heat pumps 

Ground-source heat pumps are eligible for a 30% federal tax credit with no limit. If you owe federal income tax for the year you install your geothermal heat pump, you can take the credit. If your credit is worth more than you owe, you can roll the remainder over to the following year. 

How to Find a Heat Pump Installer in California 

Heat pump HVAC systems have gained popularity fast in California, and hundreds of installers have popped up to meet the growing demand. Unfortunately, not every heat pump installer offers the same level of quality and service. So how do you find a contractor you can trust with your heat pump installation? 

Search the Clean Energy Connection 

The Clean Energy Connection is a non-profit organization that connects clean energy contractors with homeowners who want to improve their energy efficiency. Our free online directory features the best heat pump installers in California. Every contractor has undergone a stringent vetting process that includes customer satisfaction surveys to ensure they provide the highest level of service and quality. You can search the directory based on location, services, and languages spoken to find the best heat pump company for your HVAC system upgrade.

Upgrade to a heat pump HVAC system!