do Heat pumps make economical sense?

To assess whether a heat pump makes economical sense, you have to take into account several issues.

Assessing the economical sense

The initial investment on a geothermal heat pump can double the investment in a conventional air-conditioning, and that demands a careful assessment on whether a heat pump makes economical sense. To get it, take into account the following issues:

- the type and the price of the energy you are using or intend to use;
- your climate;
- the possibility of installing a ground heat pump (instead of a air heat pump);
- your energy consumption;
- your duct system.

All these variables should be considered jointly.

Type of energy and prices

If the prevalent fuel in your region is natural gas, than heat pumps may not be a clear economical solution. Since natural gas is typically cheaper than electricity and since heat pumps use electricity, the savings allowed by heat pumps aren't often large enough to make the heat pumps competitive (due to the required higher initial investment).

Note: the market is beginning to offer gas driven heat pumps, but the technology isn't tested and developed enough. By now its mainly used in large buildings.

Climate & Heat Pumps

In mild climates, air heat pumps are competitive with other electric powered systems. In cold climates, below temperatures of 30º F (0º C), air-heat pumps efficiency is reduced, and they will demand supplemental heating. Ground heat pumps solve this limitation, but there is constraints caused by the initial high investment (twice the one in a common air-conditioning system) and the installation.

Geothermal heat pumps installation and prices

Geothermal heat pumps provide an higher efficiency. Their energy savings are likely to amount to the double of air-heat pumps, and they aren’t dependent on climate. But geothermal heat pumps are significantly more expensive than air-heat pumps or air conditioning devices or furnaces. Besides, you should also pay attention to the pre-conditions demanded by heat pumps installation: they demand a hole and sufficient and adequate space or soil under or around your home for the ground loop…

See for details: Geothermal Heat Pumps Installation

Heat pumps & ductwork

The existing duct dimensions are, in some cases, an obstacle to heat pumps systems. Heat pumps usually demand larger ducts than air-conditioning, and that is an important element to discuss with the installer.

Energy consumption

Your specific energy consumption is also an element to consider. If your electricity consumption isn’t large enough, geothermal heat pumps will not provide enough savings to pay the extra initial investment they demand.

Conclusions

Geothermal heat pumps are an-environmentally-friendly solution. If possible, choose it. But take into account some economical assessments.

If you use natural gas for heating and cooling, then heat pumps may not be an economical solution (compared to furnaces and air-conditioners). If your energy consumption is rather limited, the savings provided by heat pumps may not justify the initial investment. If your climate has a significant number of days with temperatures below 30º F (0ºC), then air-heat pumps isn’t probably a good enough alternative (think geothermal heat pumps, in this case).