Heat Pump Replacement: A Buying Guide
Get some handy tips to help you navigate the heat pump replacement process.
By Anne Fonda
So, your old heat pump finally gave out – or the latest heat pump repair estimate made your jaw drop and made buying a new heat pump a smarter financial decision than dumping more money into repairing your outdoor unit. Or maybe you read our blog on warning signs that it’s time for heat pump replacement and you came here next.
With heat pumps, there are other possibilities as well. Maybe you’ve decided the heat pump wins the heat pump vs furnace debate and you’re a convert to an all-electric, sustainable heating and cooling system. Or maybe a dual-fuel system where you pair a furnace with an air-source heat pump makes the most sense for your heating and cooling needs.
Whatever brought you here, you’re in the market for a new electric heat pump for your home. You’re looking for information that will help you make the best decision for your comfort and your budget.
We’ve pulled together some tips to help you do just that. This article will focus on split-system heat pumps rather than ductless mini-split heat pumps or heat pump packaged systems, as split systems are the most common. Reach out directly to your Trane dealer if you have questions about the other two types of heat pump systems.
Here are the top 7 tips when it’s time to buy a new energy-efficient heat pump.
Tip #1: Do your homework
Just by reading this, you’re off to a good start. Learn as much as you can about the heat pumps on the market today. Read articles, product reviews, and get recommendations for local HVAC companies you can trust to handle your heat pump replacement professionally.
Tip #2: Learn why SEER2 and HSPF2 matter so much
Heat pump efficiency standards have increased over the years, and updated technology makes them more energy-efficient than ever. Pay attention to the energy efficiency ratings of SEER2 and HSPF2.
SEER2
SEER2 stands for seasonal energy efficiency ratio. It measures a heat pump’s cooling efficiency in a range of 65-104° F. SEER2 standards for heat pumps will vary based on what part of the country you live in. The higher the number, the more efficient the heat pump is.
HSPF2
HSPF2 stands for heating seasonal performance factor. It measures how efficient your heat pump is at heating your home during the colder months. The higher the HSPF2 rating, the more efficient the heat pump is. But the colder it gets outside, the more energy your heat pump uses.
So, if you live in a climate with harsh winters, you might want to opt for a dual-fuel heating system, which combines a gas furnace with an electric heat pump. The heat pump offers high-efficiency heating until it becomes more efficient for the furnace to heat your home in frigid temperatures. The system makes the switch between HVAC units automatically.
The most energy-efficient heat pump will have a high SEER2 and a high HSPF2.
Tip # 3: Consider upgrading your air handler or furnace at the same time
If you’re getting a new heat pump and your air handler or furnace isn’t brand new, you will likely want to plan on replacing your entire HVAC system at one time. This is because you need a matched system to get all of the benefits of a new heat pump system. Benefits include increased efficiency and reliability, which translates into energy savings.
Older HVAC units may have obsolete technology that is not compatible with a new heat pump. In addition, installation will be more cost-effective if you do it all at once. Lastly, you may need to install a matched system to qualify for full warranty coverage and financial incentives. More on the incentives in tip #5.
Learn more about full system replacement in our HVAC replacement guide.
Tip #4: Understand what goes into your heat pump replacement cost
Your heat pump system replacement cost will be different from your neighbor’s, even if the two of you buy the same units. That’s because there are a lot of variables that go into the total heat pump installation cost, including:
- Your climate and heating and cooling needs
- The size and layout of your home
- Your home’s insulation
- Complexity of the installation
- Whether you need new ductwork
- If you’re replacing an existing heat pump or doing a furnace-to-heat pump conversion for an all-electric HVAC system
- If you’re replacing the air handler/furnace at the same time
- The heat pump brand you choose – lower-priced brands may not last as long as premium brands
- The efficiency ratings of the units
- Single-stage, two-stage, or variable-speed system
- Additional features such as a zoning system, humidifier, whole-house air cleaner, etc.
- Whom you choose for installation
- Labor costs in your area
- And much more
Check out our Pricing Guide for some national average price ranges for various HVAC units. The best way to find out the cost of furnace replacement or furnace and AC replacement is to contact HVAC professionals in your area directly.
A recent survey indicated that only about a third of U.S. homeowners know about all the incentives in the Inflation Reduction Act (IRA) passed in 2022 to buy a heat pump – whether you’re replacing an existing heat pump, want to replace a furnace with a heat pump, or opt for a dual-fuel system.
Sadly, some HVAC companies aren’t up to speed on all of the offers, either. Here’s the Cliff Notes version.
- Qualifying systems are eligible for a heat pump tax credit of up to $2,000.
- Qualifying systems are eligible for heat pump rebates of up to $8,000 depending on your state and your income.
- You can stack tax credits and heat pump rebates for maximum savings.
“Qualifying systems” means the heat pump and air handler or furnace are ENERGY STAR®-qualified and meet certain energy efficiency standards. Heat pump replacement costs aren’t cheap, so it pays to opt for a qualifying system where the government incentives will help you pay for it.
Pro tip: Go for the most efficient heat pump system that you can afford. While the upfront cost may seem daunting, you can save on energy costs for years to come. And with all of the financial incentives, a top-of-the-line system may be well within your reach.
Tip #6: Get the size right
Size really does matter. If you get a heat pump with too little cooling capacity, your home will be warm and sticky during the summer. Too little heating capacity and you’ll spend way more heating your home than you had planned.
What size heat pump do you need? That depends on a lot of factors, and your best bet is to work with an HVAC professional who will do a Manual J calculation for heat pump size as well as a duct load calculation.
With a correctly sized system and ongoing maintenance, you’ll have the comfort you need and the energy efficiency you expect.
Tip #7: Hire the right HVAC contractor
A new heat pump system is only as good as the brand reliability, system design, and installation behind it. This is why it is vital to work with an HVAC company with years of experience sizing and installing heat pump systems.
Most HVAC contractors in the southern half of the U.S. have been installing heat pumps for years. If you live in the northern tier of states and you’re opting for a cold climate heat pump or hybrid heating system, be sure to ask how many similar systems a company has installed. Ask for references.
If you’re a new homeowner or new to the area and don’t know who to call, read our blog on choosing the right HVAC contractor for some tips on finding an HVAC company near you that you can rely on.
Get a free heat pump replacement estimate
Find one or more Trane dealers near you to set up an in-home consultation. Ask as many questions as you can to make sure you know what goes into the cost to replace a heat pump and air handler, or to replace a furnace with a heat pump.
While heat pump cost shouldn’t be the only factor you consider, we realize it is a concern for homeowners. Be sure to ask about any rebates or tax credits that can make a new heat pump system affordable.
Where you live and what kind of heat pump rebates your state is offering can have a big impact on your total cost. Make sure you work with an HVAC contractor who can help you navigate the heat pump incentives available to you. Ask about HVAC financing as well.
Anne Fonda, Content Writer
A Content Writer with Trane Technologies, Anne Fonda researches topics and writes for Trane® and associated residential HVAC brands. She works in collaboration with Trane Technologies subject matter experts, offering easy-to-understand, informative content on complex topics. Her goal is to help consumers make informed decisions on the products and services they need.
She has written for HVAC and other service provider websites for over 16 years. Before transitioning to web content writing, Anne had a 14-year stint as an award-winning journalist. She graduated cum laude from the University of Missouri-Columbia School of Journalism.
When she’s not working, Anne enjoys playing word games, reading, gardening, spending time with family, and visiting gardens and museums.
Expert review by Mark Woodruff, Senior Product Manager, Ducted Outdoor
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