Can You Have Comfy Temps While Reducing Your Bill?
By: James Flippin · October 26, 2022 · Reading Time: 3 minutes
What is a Heat Pump?
The costs associated with staying warm in the winter have steadily crept up the past few months. President Biden recently signed a climate, tax, and energy bill that offers incentives for using alternative energy sources. This could mean it’s a good time to consider using a heat pump to regulate your home’s temperature.
Heat pumps are clean energy sources that work somewhat like air conditioners. They use a refrigerant to absorb heat from your home and push it outside. On the flip side, they can pull heat from the outside air into your home.
Installation costs for a heat pump range from $10,000 to $30,000, but you could receive a tax break up to 30% — or $8,000 for low-income homeowners — for installing one in your home.
Better Heating
The main difference between a heat pump and a traditional furnace is that a heat pump uses electricity instead of burning natural gas. They work more efficiently by using electricity to manipulate and move heat that’s present in your home’s atmosphere, as well as the outside air.
Heat pumps are also quieter and more environmentally-friendly than furnaces, and they give you more control over your interior air quality.
If the price of electricity and natural gas were the same, then installing a heat pump would be a no brainer. Unfortunately, that’s not exactly the case.
Is Your Utility Bill Insulated?
Right now, the primary concern for many homeowners is saving money. Transitioning to a heat pump could help you save, but it depends on where you live in the country — as well as the state of your current heating system.
As a rule of thumb, the warmer your climate, the more cost-effective heat pumps will be. If it rarely drops below freezing, like in Florida or Southern California, you’re almost guaranteed to save money with a heat pump. But, if you live in the Northeast, you’ll want to do more research.
Even if a heat pump isn’t the right option for you, rising energy costs are still a good catalyst to look for alternative ways to use energy and keep your home comfortable.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS22102603