2024 Heat Pump Buying Guide
Buying an electric heat pump for your Scottsdale home has never been easier.
The Inflation Reduction Act (IRA), adopted by Congress in 2022, provides plenty of financial incentives for homeowners to upgrade to high-efficiency heat pumps. You can save thousands of dollars by buying a heat pump this year.
Plus, you save on operating costs by switching from a furnace to a heat pump. The U.S. Department of Energy (DOE) notes a heat pump can reduce your electricity use for heating by approximately 50 percent compared to electric resistance heating such as furnaces and baseboard heaters.
But is a heat pump the best solution for your Arizona home in 2024? Let’s find out!
Desert Diamond Air believes in selling and servicing eco-friendly heating, ventilation, and air conditioning (HVAC) products that provide comfort, safety, and efficiency. Indoor air quality (IAQ) is an issue everyone in our state cares about, as all of us are searching for ways to lower our carbon footprint.
Want to go green? A heat pump might be your solution.
How Does a Heat Pump Work?
Heat pumps look like air conditioning units—and they work like them, running on electricity and using a refrigerant to absorb heat in your home and transfer it outdoors.
The big difference? A heat pump can reverse the flow of refrigerant to extract heat from the outdoors and transfer it into your home during the colder months.
Why Are More Homes Using Heat Pumps?
Congress approved the IRA as a way to reduce fossil-fuel appliances and promote home electrification. While heat pumps cost more upfront than an air conditioner and furnace, they save money in the long run. Other benefits include:
- Lower operating costs
- Less maintenance
- Reduces your CO2 emissions
- Long service life
- Provides both heating and cooling
How Popular Are Heat Pumps in the United States?
In 2022, annual sales of heat pumps in the U.S. rose above 4 million units for the first time, outpacing the sale of gas furnaces, according to the Air-Conditioning, Heating, and Refrigeration Institute (AHRI).
Heat pumps are the perfect heating and cooling choice for your Scottsdale home. Our team can replace your furnace and air conditioning unit with a ducted air-source heat pump with minimal impact on your home.
Air-Source Heat Pumps vs. Geothermal Heat Pumps
Desert Diamond Air can help you choose the best model based on your property and budget. Here are your choices:
- Air-source heat pumps: These models are the most common, using outdoor air to heat your home. A high-efficiency air-source heat pump can extract heat from outdoors even when temperatures fall below freezing.
- Geothermal heat pumps: Also known as ground-source heat pumps, these models use an underground closed-loop system to harvest heat from below the earth’s surface, where temperatures hover consistently between 45 and 75 degrees. They are the most efficient models and also the priciest.
Geothermal heat pumps are costlier to install, but they operate more efficiently and last longer.
What Federal Tax Credits Are Available on New Heat Pumps?
Beginning January 1, 2023, the 25C Residential Energy Efficiency Tax Credit provides a capped 30 percent tax credit for qualifying air-source heat pumps. The maximum amount you can claim is $2,000.
Upgrades must be to an existing home and your principal residence. New construction does not apply. Products must be in the highest efficiency Consortium for Energy Efficiency (CEE) tier.
The 25D Clean Energy Tax Credit is uncapped and covers 30 percent of geothermal heat pumps regardless of the total cost.
The 25C tax credit extends through 2032 before it drops below 30 percent. The 25D tax credit extends through 2034.
But keep in mind that equipment costs will continue to rise, making now the perfect time to determine if a heat pump is a good choice for your home.
Our team can help you find energy-saving models that meet CEE standards while also meeting the needs of your Scottsdale home.
What About Heat Pump Rebates?
Rebates on heat pumps are expected to become available in mid-2024. A low-income household, for example, might qualify for up to $8,000 in rebates toward a new heat pump.
However, the rebates are based on household income and vary from state to state. The tax credits, on the other hand, are now in place and will continue over the next decade.
Be sure to consult with a professional tax consultant on which credits and rebates work with your income.
Ductless or Ducted Heat Pump?
Heat pumps offer greater flexibility than furnaces. You can install a heat pump in a home with air ducts—or go ductless! Older homes without ductwork are perfect candidates for ductless heat pumps, also known as mini splits.
Are you adding a new room to your home but don’t want to extend the air ducts? You can install a ductless system for one location while using your furnace and air conditioning for the rest of your home.
Learn More About Heat Pumps Today
Let Desert Diamond Air help you decide the best heat pump for your Scottsdale, AZ, home. Call us today at 602-362-4599 or request service online.