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Oct 21, 2024

Heat Pump Buying Guide: Everything to Consider

It's the high-efficiency way to heat and cool your home — plus other uses for the game-changing technology. We've been independently researching and testing products for over 120 years. If you buy

It's the high-efficiency way to heat and cool your home — plus other uses for the game-changing technology.

We've been independently researching and testing products for over 120 years. If you buy through our links, we may earn a commission. Learn more about our review process.

The heat pump is the most exciting innovation in home heating and cooling that you’ve maybe never heard of — especially if you live in a part of the country with cold winters. Only about 15% of all U.S. residences currently have a heat pump, according to the National Bureau of Economic Research, even though the technology is so much more energy efficient than traditional HVAC equipment and it can make a home more comfortable and convenient too. It's also better for the planet, reducing carbon dioxide emissions for the typical home by 38% to 53% compared with a gas furnace, based on a study published in Energy Policy.

Fortunately, awareness around heat pumps is building at a rapid clip as heat pumps become better equipped to handle all climates. “Heat pumps have always been great for cooling, which is why they’re fairly common in Southern states,” explained Emily Moder, Director of New Products at EnergySage, an alternative energy marketplace that connects homeowners with pre-screened professionals. “In the past, the systems became inefficient below 40°F, but thanks to new variable-speed compressors, they now perform all the way down to –13°F.”

What’s more, heat pumps aren’t limited to HVAC equipment anymore. At the Good Housekeeping Institute, we’re seeing the technology crop up in a variety of products, including water heaters, clothes dryers and combo washer/dryers.

Here, our experts talk through the ins and outs of heat pumps to help you figure out the best use of the technology in your home.

A heat pump is an electric-based technology that heats and cools the home, among other applications. Instead of buying and maintaining two major systems (a furnace and central AC, let’s say), you can cover all your air conditioning needs with a single setup. That two-for-the-price-of-one value helps offset the steep upfront cost of heat pump systems.

The basic mechanics of a heat pump is the same found in a refrigerator or window air conditioner. These devices all use electricity to transfer heat from a cool space to a warm space. In the summer, a heat pump sends heat from your house to the outdoors; come winter, it moves heat from outside (even on frigid days, there’s enough heat energy in the air) into your house.

There are three main types of heat pump: air-source, ground-source and water-source. Almost all heat pumps installed in American homes use air-source technology. Within this category, there are two sub-types:

These systems resemble central AC units, with an outdoor unit, an indoor unit and ductwork that circulates air throughout the home. The outdoor unit houses a compressor, which sends refrigerant to the indoor unit, where an internal coil converts it into hot or cold air, depending on the time of year. A blower then moves the conditioned air through the ductwork and out of air vents placed in walls, ceilings or floors throughout the house.

Two things to keep in mind: It’s expensive and complicated to add ducts to a home, so this option is best for homes with existing ductwork. Also, while heat pump technology is highly energy efficient, some air leakage is inevitable with all ducted, forced-air systems.

Pros

Cons

Also known as mini-split heat pumps, these systems use the same basic mechanics as a ducted heat pump to create hot and cold air. But instead of moving the conditioned air through ducts, it relies on individual indoor air handlers positioned throughout the home.

The indoor air-handling units connect to the outdoor compressor via flexible conduit that is only a couple inches in diameter (versus 4- to 6-inch ducts), so installers only need to punch a few small holes in the wall. The handlers are usually placed high on a wall, but they can also be recessed into ceilings or floors, for a more discreet look.

Pros

Cons

Sometimes referred to as geothermal heat pumps, these systems use a network of subterranean tubes to transfer heat between your house and the ground. Because they take advantage of relatively constant ground temperatures (between 50° F and 60° F year round, regardless of the region), the systems are extremely efficient. But installation of the vast network of tubes is not practical for the smaller lot size of most American homes, so they’re more common on commercial applications.

Pros

Cons

Water-source heat pumps work like ground-source systems, except the heat-exchanging tubes sit in a body of water, usually a pond or lake. If you happen to have one of those on your property, water-source heat pumps are another exceptionally efficient option. Plus once they're installed, very little maintenance is required.

Pros

Cons

While heat pump technology is a true game changer in the HVAC category, it’s not right for everyone. Here are the factors to consider in determining if a heat pump is right for you and, if the answer is yes, which type to go for.

✔️ Your current heating fuel. This is usually the biggest determining factor of whether a heat pump makes sense. If you heat your home with oil or electric resistance heat (i.e. baseboard heaters), you will almost certainly save money with a heat pump system. On the other hand, if you heat with inexpensive natural gas, and the furnace is in good shape, it doesn’t make sense to rip it out and install a heat pump.

✔️ You live in an old, drafty house. Heat pumps are designed to heat and cool a home slowly and then maintain a steady temperature. “It’s more of a trickle then the blast of hot or cold air that homeowners are accustomed to with a furnace or central AC,” said Moder. The systems work best in a well-insulated, tightly sealed home, versus one that is full of drafts, which will force the equipment to overwork.

✔️ You have — or are considering — solar. Even though heat pump technology is energy efficient, it still runs on electricity, which is expensive in many states (as an example, residents in Louisiana pay 11.5 cents per kilowatt hour while those in Hawaii pay nearly four times as much, 42.67 cents per kilowatt hour, according to the U.S. Energy Information Administration). If your state has high electricity rates and you heat and cool with electricity, investing in a heat pump makes sense.

✔️ You want zoned heating and cooling. Homeowners who live in large houses usually prefer zoned systems because they allow you to set different temperatures for different parts of the home (or turn it off completely for areas that aren’t in use). Heat pumps, in particular mini-splits, are extremely conducive to this type of heating and cooling, since it’s simply a matter of running additional conduit to wherever you want climate control, along with the additional air handler. Of course, the added equipment means more cost, so the sweet spot in terms of value and performance is usually two to three zones. After that, it probably makes more sense to stick with a traditional ducted HVAC system.

Once you've determined that a heat pump makes sense for your home, here's how to find the best system for you in today's ever-growing market.

✔️ Size: As with traditional HVAC equipment, it’s important to size the system properly to ensure the best performance and efficiency. Heat pump size (a.k.a. “capacity”) is measured in tons, with 1 ton being equal to 12,000 British thermal units per hour (Btu/hr.). Smaller heat pumps start at 2 tons and the biggest top out at 5 tons. Your home’s square footage is a key factor here, but things like insulation and air sealing also play a role, so it’s important to have a load calculation done by a certified professional to determine what size heat pump is right for you.

✔️ Efficiency: Though all heat pumps are energy efficient, some are more so than others. In cooling mode, the spec to look for is SEER2 (short for Seasonal Energy-Efficiency Rating), while heating efficiency is measured by HSPF2 (short for Heating Seasonal Performance Factor). In both cases, the higher the number, the more efficient the heat pump. SEER2 ratings for heat pumps range from 13 to 25, while HSPF2 ratings range from 7 to 13. Highest efficiency units cost more, but you'll make up the difference over time through lower utility bills.

✔️ Compressor design: The compressor is the engine of the heat pump. Basic models are single speed, meaning the compressor is either on or off (think of a refrigerator, with its compressor cycling on and off throughout the day). The latest technology is variable-speed, in which the compressor runs constantly, making tiny adjustments to maintain precise temperature levels. Besides delivering optimal comfort and efficiency, variable speed compressors are extremely quiet, since they’re not constantly powering on and off.

✔️ Temperature performance: While the latest heat pump technology can withstand extreme climate conditions, not all models have the necessary upgrades, which include refrigerants with a lower boiling point and advanced compressors. Standard models without these features still struggle when outside temperatures dip below 25° F. If you live in a region with harsh winters, look for a heat pump that’s Energy Star-certified with an added cold-climate certification. Manufacturers might also include temperature-related language in their specs, for example, “100% heating capacity at –5 degrees and 70% to 81% heating capacity at –13°F.” Cold-climate heat pumps (CCHPs) cost more, but they will pay for themselves over time in the form of even lower energy bills.

✔️ Connectivity: Because heat pumps are an innovative category, many systems feature Wi-Fi-connectivity with advanced programming and features through a companion app. This allows you to monitor and operate the system remotely, for example, turning off the heat or AC if you forgot to do so before an extended vacation. In some cases, you can also give your service technician access to the app so that they can monitor the maintenance schedule and be on the lookout for any unusual activity, say, sudden temperature fluctuations.

There’s a wide variation of costs with any heating and cooling equipment, depending on factors like house size, installation method and and how well insulated and air-sealed the home is. Heat pumps are no different. According to the latest data from EnergySage, based on hundreds of real-world quotes, most heat pumps installations cost between $7,120 and $36,000 (including equipment and labor) with an average project cost of just over $16,000.

That is a major investment, no doubt. But it’s important to remember that a single heat pump system both heats and cools the home, so an apples-to-apples comparison with a traditional HVAC system would need compare the heat pump cost with that of a central AC plus a furnace or boiler.

Heat pumps that meet certain efficiency thresholds are also covered by many federal and state tax incentives that can dramatically lower the cost. For example, a federal tax credit covers 30% of the project cost up to $2,000. (For homes in the South, any Energy Star-qualified heat pump is eligible, while in the North, the heat pump must be designated as Energy Star Cold Climate.) Income-eligible homeowners in New York and Florida can receive another $8,000 off the project cost under their state’s Home Electrification and Appliance Rebate Program.

Hybrid systems pair a heat pump with some kind of backup heating system, like a furnace or a boiler. The approach was more common when heat pumps didn’t perform well in cold temperatures, but it still makes sense for some homeowners, for example, those looking to add supplemental heating and cooling to a new addition or previously uninhabited basement or attic.

"Hybrid heating systems can also make sense from a cost perspective,” added Moder. "CCHPs tend to be significantly more expensive than standard models, so if you live somewhere with cheap gas prices and high electricity prices, it can make financial sense to continue using your furnace on the coldest days and buy a cheaper, simpler heat pump that covers a narrower temperature range."

Our experts like Friedrich’s Breeze Universal Heat Pump, which we tested in a home in Texas. The versatile system can replace an entire heating and cooling system or be paired with an existing gas furnace.

While heating and cooling is the most common application, heat pump technology is making other home appliances more energy efficient. Here are a few examples we’re seeing more at the Good Housekeeping Institute.

✔️ Heat pump water heater: Water heating accounts for nearly 20% of a home’s total energy consumption, according to the U.S. Energy Department, so air-source heat pump water heaters can save homeowners money, especially if they’re switching from a traditional electric water heater. Consider the A. O. Smith’s Signature 900 66-Gallon Smart Hybrid Heat Pump Water Heater with Leak Detection & Automatic Shut-Off. Our analysis found that it could save homeowners close to $600 a year in reduced energy costs. Though the water heater is premium priced, it’s eligible for up to $2,000 in federal tax credits.

✔️ Heat pump clothes dryers: Clothes dryers that run on a heat pump have been available in the U.S. for about a decade. They used to be much more expensive than conventional dryers, but costs have leveled out. Our cleaning experts like the Miele 4.2 Cu. Ft. Heat Pump Dryer. Like all heat pump dryers, it doesn’t need outside venting, nice if your laundry room is far from an exterior wall.

✔️ Heat pump combo washer/dryers: Heat pump technology has also been key to the development of combo washer/dyers that handle both laundry tasks in a single machine. The GE Profile UltraFast Combo Washer & Dryer is our top overall pick, thanks to its impressive cleaning performance and fast, effective drying. No outside venting is needed.

Most of the biggest innovators around heat pump technology are brands that are well established in the HVAC and/or appliances categories. Here are five that our experts recommend, based on their reliable track record over decades of product testing.

Water heating is one of A.O. Smith's core businesses, along with water treatment solutions. It's a leader among hybrid water heaters, which feature a heat pump on top of a standard electric tank, for added efficiency.

Since the company was founded in 1883, it's been a major player in commercial air conditioning. It entered the heat pump category in 2017 with a range of solutions aimed at homeowners and commercial applications alike.

For more than a century, Trane has been of the most recognized and reliable brands in heating and cooling equipment. We've been testing its Trane XV20i Variable Speed Heat Pump for two years and have been impressed by its performance and efficiency; see the video below for more details.

The brand that started out as a lightbulb company has branched out into many product categories that leverage heat pump technology, from laundry appliances to whole-house heating and cooling equipment.

The German manufacturer has a well-deserved reputation for innovation and sustainability, so our cleaning experts were not surprised to see it play a leading role in the development of heat pump dryers.

I've covered the renewable energy market for nearly 25 years, working closely with agencies like the Office of Energy Efficiency & Renewable Energy and Lawrence Berkeley National Laboratory, as well as leading brands in the alternative energy space. I also keep up with the latest innovations by attending trade shows and industry events. Since joining the Good Housekeeping Institute in 2022, I've overseen the testing and evaluation of any alternative energy equipment that passes through the Lab. I also run our annual Home Renovation Awards, which surfaces many of the latest innovations in energy efficiency.

For this heat pump guide, our team pulled together insights from trade shows and industry events, like CES and the International Builders' Show, and interviewed various experts from the field. We also drew on our hands-on experience overseeing the installation of a pair of heat pump systems in the homes of expert testers as part of our annual Home Reno Awards; one in New York that was installed in 2023 and one in Texas that was installed in 2024. This experience has given us deep insights into the installation process and allowed us to measure performance and energy savings over time. The hands-on process has also helped us better understand issues around usage and maintenance.

Having written thousands of product reviews and how-to articles on all aspects of home ownership, from routine maintenance to major renovations, Dan (he/him) brings more than 20 years of industry experience to his role as the director of the Home Improvement & Outdoor Lab at the Good Housekeeping Institute. A one-time roofer and a serial remodeler, Dan can often be found keeping house at his restored Brooklyn brownstone, where he lives with his wife and kids.

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