Heat Pump vs Air Conditioner: Which One Is Right for You
Learn what you need to know about heat pumps and air conditioners to help you make the right choice when purchasing a new HVAC system.
By Anne Fonda
If you’re looking at replacing your heating and cooling system, you’re smart to be doing some research. If every home you’ve lived in has had a traditional central air conditioning system, you may not know much about heat pumps.
Let’s fix that, so you can make an informed decision in the heat pump vs AC debate.
What is a heat pump and how does it work?
Air source heat pumps have been around for more than a hundred years. The heat pump was invented in Europe in the 1850s, and they have been in use in the United States since the 1960s. Despite that, a lot of people still don’t know what a heat pump is, or how it works.
An electric heat pump is an AC and heating unit in one outdoor condenser unit. In warmer months, the heat pump works like a central air conditioner, using the refrigeration cycle to remove warm air and replace it with cooled air. Except for a few small technical differences, heat pumps and air conditioners cool your home in the same way, with no real difference in comfort quality, energy efficiency, or energy costs.
Differences between a heat pump and air conditioners
The biggest difference between a heat pump and a central AC unit is that the heat pump can both cool and heat your home. How does it do both? The heat pump includes a critical part called the reversing valve that allows it to reverse the refrigeration cycle.
Even in air that seems too cold, heat energy is present. When it’s cold outside, the heat pump extracts heat from the outdoor air and transfers it inside during the heat exchange process. When it’s warm outside, it reverses the cycle and acts like an air conditioner, removing hot air from your home.
Energy efficiency AC vs heat pump
Our most efficient air conditioner, the XV20i TruComfort Variable Speed Air Conditioner has a seasonal energy efficiency ratio (SEER2) of 21.5. Our most efficient heat pump, the XV20i Variable Speed Heat Pump, has a SEER2 of 20.5. Both units can automatically adjust the compressor speed across 700 speeds for the AC unit and 750 speeds for the heat pump.
They run between 25 and 100% of capacity and adjust the speed to meet demand. This means the units may run longer at a lower speed. It uses less energy to keep you more comfortable than a single or two-stage unit. This provides you with precise cooling within half a degree. The heat pump also provides heating within half a degree of your set temperature. The XV20i heat pump can also heat effectively at temperatures as low as 17 degrees Fahrenheit.
For optimal results, you will need to pair the AC unit with a compatible gas furnace. The heat pump must be paired with a compatible air handler or gas furnace, depending on your choice of systems.
In heating mode, a heat pump can be up to 300% efficient without burning fossil fuel. The most efficient gas furnace is about 98% efficient. Learn more in our Heat Pump vs Furnace blog.
Heat pump vs air conditioner cost
Your heat pump cost and AC unit cost will be comparable for comparable units within the same HVAC brand. However, with a new heat pump system, you may need to improve your ductwork system or update your electrical panel, which can add to the upfront cost.
Is it cheaper to run the AC or heat pump? If the efficiency of the unit is equal, there won’t be much difference between the two for cooling costs. Over time, a heat pump can offer long-term savings on your heating AND cooling costs, whereas a new AC would only reduce your cooling costs.
Tax credits and heat pump rebates
Under the Inflation Reduction Act (IRA) of 2022, the federal government offers several incentives to get homeowners to buy and install more energy-efficient HVAC systems, with a special focus on heat pumps, because they can help reduce carbon emissions.
Incentives include:
- A $600 tax credit on qualifying air conditioners
- A $2,000 tax credit on qualifying heat pumps and mini-splits
- Up to $8,000 state heat pump rebate depending on your state and your income
In addition, there are tax credits and rebates for home improvement projects that make your home more energy efficient, such as replacement windows, upgrading insulation, and more. Learn more about what’s available in your state and how you can stack these HVAC tax credits and rebates for the greatest effect.
Not sure how you would pay for a new HVAC system? Explore your HVAC financing options and how each option works.
Durability and maintenance comparison
With proper maintenance, you can expect a central air conditioner to last about 15 years. A unit might wear out sooner if you live in Florida or south Texas, where you run the air conditioner for more than a few months in the summer.
For a heat pump with proper maintenance, you can expect the unit to last 12-15 years. The somewhat shorter lifespan is because the heat pump runs nearly year-round. Extra wear and tear can take a toll.
An AC unit should be serviced each spring before the cooling season begins. A heat pump should be serviced in the spring and the fall to help ensure optimal performance. DIY maintenance includes changing your air filter regularly and keeping the outdoor unit free of obstructions.
Climate suitability comparison
A central air conditioner will work well in any part of the country. The higher the SEER2 rating and the higher the brand quality of the unit, the better it will perform.
A heat pump paired with an air handler will be most suitable for mild to moderate climates, with the caveat that a variable-speed heat pump can provide effective heating down to 17 degrees Fahrenheit.
For colder climates
If you live where the winters are especially harsh, you have the option of a cold climate heat pump (CCHP) which can perform well in very low temperatures (down to -20 degrees Fahrenheit). Trane is in the process of developing our CCHP and we hope to have it available to homeowners in 2025.
Another option is a dual-fuel heat pump or hybrid heating system that pairs a heat pump with a gas furnace. You get the energy efficiency of the heat pump and the peace of mind of knowing the furnace will keep you warm in harsh winter weather.
“For homes with an existing AC + furnace system, a Hybrid, or dual fuel system is a fantastic option because you get the benefits of the heat pump but with the safety net of a gas furnace for those especially cold days plus you can avoid any additional cost for wiring which may be required when replacing the gas furnace with an air handler.”
- Mark Woodruff, Senior Product Manager, Ducted Outdoor, Trane Technologies
Choosing the right HVAC system for your home
People sometimes ask is a heat pump better than AC. The answer is different for every homeowner. The answer depends on where you live, your budget, whether you currently have an AC unit or a heat pump, whether you currently have a furnace as part of your HVAC system, how much sustainability matters to you, and much more.
If you’re considering going all-electric with a gas furnace to heat pump conversion and you’re concerned about electrical upgrades and retrofitting, don’t be. If you pair your heat pump with our 120V Modular Variable Speed Air Handler, you get a plug-and-play solution that eliminates those concerns.
If you’re worried about heating your home during a harsh winter or polar vortex, you can install a cold climate heat pump when they’re available, or install a highly efficient gas furnace to minimize your carbon emissions.
The best way to figure out the right HVAC system for your home is to work with HVAC professionals experienced in both AC and heat pump installation. Because your HVAC system is only as good as the installation. Improper sizing or shoddy installation will leave you disappointed and not as comfortable as you should be.
Work with the HVAC experts
Work with your local Trane dealer to learn more about the heating and cooling options for your home. From energy ratings and energy savings to future energy costs, they’ll help you look at the big picture and consider everything.
They can also tell you which units qualify for federal tax credits or heat pump rebates, and discuss HVAC financing options.
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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