Isn’t It Really Expensive to Heat with Electricity?

Today’s heat pumps are extremely efficient and affordable to operate — especially when compared to oil, propane, or conventional electric resistance.

Highly Efficient & Affordable Heating and Cooling

Unlike outdated forms of electric heating, such as electric baseboards, today’s heat pumps are extremely efficient, making them affordable to operate. The cost of heating your home with a heat pump is less than electric resistance (and less than oil or propane, too). During the summer, heat pumps are more affordable to operate than a window AC unit — and geothermal heat pumps, also known as ground source heat pumps, in particular, are much more efficient than other air conditioning options.

Hear from Seth, a Coxsackie, NY, homeowner who installed heat pumps in 2017. Seth has reduced his family’s reliance on fuel oil (a fossil fuel) and saved money on his energy costs. He describes the heat pump installation process and what life has been like since his installation.

NYSERDA has compiled a summary of findings from a series of heat pump performance studies conducted across the State. Some key findings, related to cost, include:

  • Homeowners with existing heating systems that use electric resistance heat and delivered fuels save the most money, but all get comfort and health benefits.
  • Energy savings won’t be fully realized unless heat pumps are used by homeowners as originally intended: optimize heat pump use first and prioritize over fossil fuel equipment.

Review all the findings or read the reports in full on NYSERDA’s Clean Heating & Cooling research page.

How Heat Pumps Are More Efficient

Modern heat pumps are three times more efficient than conventional oil, propane, or electric resistance heating. That’s because heat pumps only need to use electricity to power the system’s fans and pumps — they don’t need to use electricity for the generation of heat itself. They simply transfer heat (or “thermal energy”) from the outdoor environment to the indoor space. Traditional electric resistance heating systems do use electricity to create heat, meaning they must work much harder than a heat pump in order to make an indoor space feel comfortable.

Installing a Properly Sized Heat Pump

When purchasing and installing a heat pump, it is important that the size and location of the system matches the size and layout of the home. An oversized heat pump system is inefficient and could lead to a heat pump project costing more than it needs to. On the other hand, an undersized heat pump system may not be able to adequately heat and cool a home. Working with a NYS Clean Heat participating contractor will ensure your installed heat pump system is properly sized to meet your home’s needs.

Weatherization Helps Homeowners Spend Less

Before purchasing a heat pump, remember that air sealing and insulating first can help homeowners save money on heat pump installation costs by making it possible to effectively heat and cool a home with smaller, less expensive equipment. Air sealing and insulating also helps cold-climate heat pumps operate more efficiently, which can mean even lower monthly energy bills — and even greater comfort. To identify where your home may need air sealing or insulation, connect with a NYSERDA participating contractor to schedule a no-cost home energy assessment.