Heat Pump Pros and Cons: A Comprehensive Guide

HVAC Logo IconBy Tom MoorFebruary 9, 2024
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Heat pump system

While heat pump technology has been around for decades, the modern heat pump’s rise to popularity as an alternative to traditional HVAC systems is a relatively recent phenomenon.

Backed by federal tax credits and other rebates, there has been a push in recent years to entice more homeowners to switch to heat pumps. Heat pumps use electricity and refrigerant instead of fossil fuels to produce heat during the cold-weather seasons, potentially making them an energy-efficient and environmentally friendly HVAC option.

While there are many reasons why heat pumps are a compelling heating and cooling option, it’s important to note that they may not be suitable for everyone based on certain factors. HVAC.com explores the pros and cons of heat pumps to help homeowners decide whether one is right for their home and budget.

When you receive a quote for a new heat pump system, QuoteScore from HVAC.com will thoroughly analyze it to determine what’s good, what’s not, and recommend clear next steps. Your QuoteScore report will help you understand if the proposal is fair so you can buy with confidence.

What Makes a Heat Pump Unique?

While about 20 million homes in the United States use heat pumps, many homeowners don’t understand how heat pumps operate and what climates they may be best suited for. One of the biggest differences to know between heat pumps and traditional HVAC systems is that heat pumps can provide both heating and cooling functions for year-round comfort.

So, how do heat pumps work? Air-source heat pumps exchange heat between the inside and outside of a home. During the warmer months, heat pumps work similarly to central air conditioning systems, using refrigerant to remove warm indoor air and transport it outside through the compressor. During the cold months, heat pumps use a reversing valve to switch the flow of refrigerant. The refrigerant extracts warmth from the outside air to provide heating for a home.

One of the perceived drawbacks of traditional air-source heat pumps is that they don’t operate as effectively once the temperature dips below about 40 degrees, requiring a backup heating source such as electric resistance heating or a gas furnace on those really chilly days. Dual fuel HVAC systems combine an electric heat pump with a gas furnace, which is typically the best option for comfort and price for those who live in climates that see temperatures drop to freezing during the winter.

However, recent technological advancements have made some heat pumps significantly more efficient in the winter. Cold-weather heat pumps utilize advanced compressors and refrigerants that are optimized for low-temperature operation, allowing them to maintain high electrical efficiency even in cold temperatures.

Heat Pump Pros

Some of the reasons to consider a heat pump include:

Energy Efficiency

One of the primary benefits of heat pumps is their energy efficiency during the cold-weather seasons, primarily when the outside temperature is 40-60 degrees. Unlike traditional furnaces, which burn natural gas or oil to produce heat, air-source heat pumps transfer heat from outdoors to the inside of homes to provide warmth, using only electricity and refrigerant. This process makes heat pumps highly efficient and environmentally friendly, potentially reducing monthly energy costs.

Cost Savings

According to the U.S. Department of Energy (DOE), heat pumps can reduce electricity use by about 65% compared to resistance heating, including baseboard heaters and electric furnaces. The DOE estimates homeowners can save as much as $500 per year by switching to a heat pump, with factors such as your home’s size, efficiency, and the local climate determining exact savings amounts.


Offering both heating and cooling, heat pumps are a year-round home comfort solution for homes in certain climates. In mild winter climates such as the South and Southeast, heat pumps can often eliminate the need for separate heating and cooling systems, allowing homeowners to fully capitalize on the efficiency and cost-effectiveness of heat pumps.

Tax Credits and Rebates

The federal government is offering substantial heat pump tax credits and rebates for the cost of buying and installing a heat pump. Homeowners can receive a 30% tax credit of up to $2,000 for new heat pumps. Significant rebates are also available for low- and middle-income Americans.

Improved Dehumidification

According to the DOE, heat pumps outperform traditional central air conditioners in dehumidifying the air, leading to enhanced comfort and reduced energy expenses.

Environmentally Friendly

Heat pumps don't rely on fossil fuels to produce heat, making them an environmentally friendly HVAC option.

Heat Pump Cons

Some of the disadvantages of heat pumps include:

Cold-Weather Limitations

As outdoor temperatures dip below 40 degrees, the efficiency of older or traditional heat pumps decreases due to the refrigerant’s reduced ability to absorb and release heat. This decline in efficiency can lead to higher energy costs, prompting the need for a backup electric heating element or a gas furnace (dual fuel system), especially in colder climates in the Midwest and Northeast.

However, even in relatively mild winter climates, most heat pumps require an auxiliary heating option – such as an electric resistance heating element – for days the temperature drops around freezing, which can increase system price.

Another factor that can lower heat pump efficiency during the heating season is the system’s defrost mode, which kicks on to melt ice and snow. When this occurs, the heat pump will use electric resistance heating to warm homes, which can elevate energy expenses.

Cold-weather heat pumps can operate more efficiently in below-freezing temperatures but are typically more expensive.

Higher Installation Costs

While long-term savings are possible, the initial installation costs of a heat pump is often higher compared to traditional HVAC systems. Homeowners should carefully weigh the upfront expenses against the expected efficiency gains and long-term benefits, especially if they live in a colder climate and require a backup heating source.

Noisier Operation

Heat pumps can sometimes be noisier than alternative heating systems due to the outdoor unit’s compressor and fan operation. However, advancements in technology have led to quieter models. Proper maintenance and installation can also help reduce noise levels.

Conclusion: Is a Heat Pump Right for You?

Buying a new HVAC system is a significant financial investment, so you want to choose the system that best fits your home comfort needs and budget. If you’re considering buying a heat pump, carefully weigh the pros and cons of heat pumps with a qualified HVAC contractor. By understanding how heat pumps perform under different conditions, homeowners can make well-informed decisions that match their climate needs and energy-efficiency goals.

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