Heat Pump ROI Calculator

Versus a natural gas furnace, heat pumps save modestly - typically $200-$600/year in moderate climates. Versus oil or propane, savings jump to $1,500-$3,500/year because those fuels are 2-3x more expensive per BTU. Versus electric resistance heat (baseboards), savings are dramatic: 50-70% cut on heating bills because heat pumps move ~3 units of heat for every unit of electricity.

The Energy Efficient Home Improvement Credit (Section 25C) covers 30% of installation cost up to $2,000 per year for qualifying heat pumps. Cold-climate models must meet stricter performance criteria. The credit is annual - you can claim again in future years for additional efficient improvements (e.g., insulation, windows) up to $1,200/year for non-heat-pump improvements.

Modern cold-climate heat pumps (CCHP) maintain efficient operation down to -15°F or lower. Manufacturers like Mitsubishi Hyper-Heat, Fujitsu, and Daikin offer models rated for performance at zero degrees. NEEP (Northeast Energy Efficiency Partnerships) maintains a list of qualified cold-climate units. Backup heat strips or dual-fuel hybrids handle the rare deep-cold day.

Yes. The IRA's High-Efficiency Electric Home Rebate (HEEHRA) provides up to $8,000 for heat pump installation for households earning under 150% of area median income. Below 80% AMI receives 100% of cost up to $8,000; 80-150% AMI receives 50%. State-by-state rollout has been uneven through 2025 - check your state energy office for current availability.