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From Heating Oil to Heat Pump: One Homeowner's Savings Story
From Heating Oil to Heat Pump: One Homeowner's Savings Story

CNET

time13-05-2025

  • Business
  • CNET

From Heating Oil to Heat Pump: One Homeowner's Savings Story

Heating and cooling your home make up the biggest chunk of your home's energy costs. But not enough people are considering a heat pump as a solution. The Energy Information Administration data shows 31% of energy consumption comes from air conditioning and space heating. It's no wonder CNET's latest energy cost survey found 78% of Americans are stressed out about their utility bills. While these energy-efficient HVAC systems have gained popularity in recent years -- outpacing gas furnaces for the past three years -- the same CNET survey also showed only 14% of respondents plan to upgrade to a heat pump to help reduce those energy costs. At CNET, we are big fans of heat pumps because of their efficiency and ability to both heat and cool your home by transferring heat rather than generating it. While heat pumps are often advertised as a money-saving home upgrade, the actual savings depend on where you live, electricity rates and the HVAC system you're replacing. So, how much can you really save with a heat pump? We asked home electrification expert and Pennsylvania homeowner Wael Kanj, who is also a senior researcher at Rewiring America, a nonprofit that advocates for home electrification efforts. A heat pump case study: Pennsylvania Heat pumps are an energy-efficient way to keep your home comfortable year-round. Heat pumps run on electricity and move heat from inside your home to outside to cool it. Then it reverses the process for heating by pumping the heat inside. We spoke with a homeowner in Pennsylvania who tracked their heating and cooling costs for the past nine years. The home was built in the late 1950s and used an air conditioner and heating oil before installing a heat pump in January 2022. Prior to installing a heat pump, the homeowner's electricity costs included air conditioning, lights and home appliances. In 2019, the homeowner completed an energy audit to evaluate the home's efficiency and made weatherization improvements in 2020. We reviewed their energy cost data to assess the overall energy savings from switching to a heat pump compared with using electricity and heating oil. Before installing a heat pump, the homeowner's average electricity bill totaled $138 per month. After the heat pump, their average bill increased to $153. While the homeowner's total electricity costs increased, they saved on total heating and cooling expenses by installing a heat pump. Here's how. Total energy costs The following table displays the total costs for heating and electricity from 2016 to 2024. There's a significant decrease in overall costs after heat pump installation in 2022. Year Annual energy cost 2016 $2,800 2017 $2,700 2018 $4,000 2019 $3,050 2020 $2,100 2021 $2,500 2022 $1,700 2023 $1,900 2024 $1,850 Does a heat pump save you money? The short answer is yes, heat pumps save you money. But how much you save depends on the system you're replacing, how much energy you use and where you live. Your electricity bill might go up because heat pumps use electricity for both heating and cooling. But heat pumps will save money overall because you won't pay for heating fuels. Natural gas is cheaper than delivered fuels, like propane or heating oil. So if you're replacing delivered fuels, you will save more than someone replacing a natural gas heating system. You can determine your home's potential energy savings using the Energy Star calculator or Rewiring America Personal Electrification Planner. Energy savings depend on where you live As mentioned, location plays a big role in potential heat pump savings due to the climate, home size, insulation and energy costs. In cold climates where heat is used more frequently, those using delivered fuels will save more money with a heat pump than those using natural gas. However, some are concerned that extreme cold temperatures affect heat pump efficiency. "A lot of folks will probably hear heat pumps don't work where it's really cold. And that's just not true," Kanj said. "Many of the modern heat pumps work into negative Fahrenheit temperatures." For example, the Mitsubishi H2i still keeps working down to minus 13 degrees Fahrenheit. Below these temperatures, heat pumps can lose efficiency and need more energy to operate. Electricity costs in your area can also impact how much you save with a heat pump. Homes with poor insulation or drafty doors and windows may use more electricity to maintain indoor temperatures. Kanj recommends a home energy audit to make your home as efficient as possible. Expensive electric bills might be an issue for those in states with high rates, such as Hawaii, Connecticut and Texas. But heat pumps are more efficient than traditional systems, so it may not be as much as you think. For example, the Pennsylvania homeowner's electricity bill increased by only $15 after switching to a heat pump, and they still saved money overall by eliminating heating oil costs. It depends on your heating fuel The type of fuel you use for heating impacts how much money you can save with a heat pump. "If folks are using delivered fuels in their household, then we think there's a high likelihood those would save by switching to a heat pump," Kanj said. "Folks in the southeast and areas with more tempered climates have a higher likelihood of saving money too." The homeowner from the Pennsylvania case study saved $800 in their first year with a heat pump compared with the previous year using air conditioning and heating oil. The estimated annual savings from switching to a heat pump from delivered fuels is $810 more than switching from natural gas. "The savings in natural gas is less, but if you live in a place where you use more air conditioning a heat pump could help you save more," Kanj said. Heat pumps may not drastically reduce your bill if you already have cheap heating fuel, like natural gas. But prices are expected to rise in 2025. So installing a heat pump offers long-term energy efficiency, savings and potential environmental benefits when powered by renewable sources like solar energy. Heat pump savings comparison Here's how much you could save with a heat pump based on your current fuel type, according to Rewiring America. Fuel type Annual estimated savings Delivered fuels (propane or heating oil) $840 Furnace or baseboard heat $780 Natural gas $60 How much does it cost to run a furnace and air conditioner? Heating and cooling costs vary, and your heating fuel also plays a major role. Natural gas, electricity, propane and heating fuel are the most popular heating fuels, but usage varies by region. Natural gas is the most common heating fuel, used in 47% of US households. It's the main source in the northeast, the Midwest and the West. Electricity is more common in the South where winters are milder. Generally, heating and cooling costs are more expensive in regions with extreme temperatures. For example, Massachusetts uses more heat in the winter than warmer climates like Florida. This means homeowners in colder climates spend more on heating, while those in hotter areas pay more for air conditioning. The type of heating fuel also impacts your costs. Natural gas tends to be cheaper than electricity or delivered fuels, like propane and oil. Here's an idea of how location and heating source affect costs based on EIA data. State Average natural gas usage (million British thermal units) Average annual heating cost Primary heating source Details Hawaii 30.3 $1,538 Minimal heating (6%) Warm climate, only 57% homes use AC Alaska 125.1 $1,509 Space heating (99% use) Cold climate, only 7% homes use AC North Dakota 94.3 $1,648 Natural gas Cold climate, higher heating costs due to natural gas use Florida 50.3 $1,654 Electricity Mild winters, high cooling costs due to AC use The different types of heat pumps Air-source heat pumps are the most common type, but you have other options to choose from based on your home and budget.

Recent report finds new home appliance could save thousands of lives each year: 'Most people don't realize'
Recent report finds new home appliance could save thousands of lives each year: 'Most people don't realize'

Yahoo

time28-01-2025

  • Health
  • Yahoo

Recent report finds new home appliance could save thousands of lives each year: 'Most people don't realize'

Heat pumps help save the planet and can provide cost savings, but did you know they're better for human health too? That's the word from a new study by Rewiring America, which helps Americans electrify their homes and turn down the thermostat on the overheating planet. "Switching to heat pumps is one of the most energy-efficient and cost-effective ways to reduce the climate impact of buildings, which account for more than a third of U.S. carbon emissions," Canary Media reported. "It can also save lives by cleaning the air we breathe." The study evaluated what would happen if every household in the United States switched to a heat pump, heat pump water heater, and heat pump clothes dryer. The result? It would keep 300,000 tons of fine particulate matter out of the atmosphere, which is like 40 million cars vanishing from roads. That means 3,400 fewer premature deaths, 1,300 fewer hospital visits, 220,000 fewer asthma attacks, and 670,000 fewer days of missed work and activities annually — or $40 billion of health improvements every year. Burning dirty fuels produces toxic gases such as ammonia, sulfur dioxide, and nitrogen dioxide. Such pollutants come from gas stoves and other appliances, which are known to reduce indoor air quality. What's more, these harmful pollutants are also released outside via vents connected to traditional furnaces, water heaters, and dryers. The reduction in outdoor pollution would impact areas differently, Canary Media explained. Those with high population densities and heavy reliance on dirty fuel-powered heating and cooling equipment — such as the Northeast — would benefit most. "Most people don't realize that improved air quality is a benefit of home electrification because the connection is less obvious than, say, energy efficiency and utility savings," the outlet stated. Lead author and senior research associate Wael Kanj noted that it's difficult to link indoor appliances to outdoor air quality. Do you think all new homes should use heat pump technology? Definitely Let each state decide Let homeowners decide No way Click your choice to see results and speak your mind. "Our hope is that by quantifying them more granularly, we'll make the data available to folks who are making the case for electrification, whether it's through different policy initiatives, advocacy, or public education," Kanj said, per Canary Media. The analysis assumed the grid will be 95% decarbonized by 2050. If it's more or less than that, the benefits would increase or decrease. Join our free newsletter for weekly updates on the latest innovations improving our lives and shaping our future, and don't miss this cool list of easy ways to help yourself while helping the planet.

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