How is your home or business being heated?
The payback of an air source heat pump investment varies based on what existing heating system you are replacing. Replacing electric or propane heating will yield the most savings – up to $2,000 a year for the average home.
Clean heating and cooling can be an excellent investment for a home or business owner. Nearly 60% of homes around New England are still heated with oil, electricity, or propane. A third of homes lack air conditioning of any kind. Air source heat pumps are a great fit for many of these homeowners. A family of four in a 2,000 to 2,500 square foot home can expect the following savings from installing an air source heat pump:
Air Source Heat Pump Expected Savings**
| Fuel Type | Oil | Electricity | Propane | Natural Gas |
|---|---|---|---|---|
| Fuel Cost | $3.13/gallon | $0.157/kWh | $3.09/gallon | $1.38/therm |
| Annual Savings | $250 | $1,230 | $1,000 | $(660) |
| Lifetime Savings | $5,400 | $20,200 | $16,800 | N/A |
| Years to Payback | 9.1 | 3.9 | 4.5 | N/A |
Home and business owners heating with natural gas will see fewer gains in heating efficiency, though air source heat pumps still provide value in the form of high-efficiency air conditioning and improved indoor air quality. Air source heat pumps can always provide cost-effective heating and cooling when an existing system is overdue for replacement.
With New Englanders spending over 60% of their energy bills on heating, a high-efficiency system that provides both heating and cooling just makes sense. Home and business owners still heating with electricity, oil, and propane can’t afford to not invest in clean heating and cooling.
**Annual savings are average expected savings over 15-year lifetime. Assumptions for expected savings include: fuel prices of $3.13/gallon for oil, $3.09/gallon for propane (Massachusetts winter 2014/15 average, MA DOER), 15.72 cents/kWh for electricity, and $1.38/therm for gas (Massachusetts averages from 2011-2014, EIA) and escalators ranging from 0.8% to 2.1% EIA Annual Energy Outlook 2015, Reference Case for New England); installed cost of $8,200 (average from MassCEC ASHP rebate Dec 2014-May 2015); and use of all available incentives, including a 0% interest Mass Save Heat Loan (see here for more information on ASHP incentives)