Summer heat is rolling in, which means you need cooling. On the other hand, if you’re in a cooler area, you may need heating. Either way, a heat pump is a solid choice for temperature control year-round. In fact, heat pumps outsold gas furnaces in 2023 and that’s not surprising. Heat pumps do a better job than air conditioners and they also cost less to run in comparison to gas furnaces and other traditional temperature control methods. A recent CNET survey revealed that 78% of Americans are stressed about high electricity bills, and if that sounds like you, a heat pump may be able to save you some money. Your mileage will depend on the circumstances. No matter where you live, there’s a heat pump for you.

Director of product management for the heat pump manufacturer Carrier, Brooke Greenwood, says that heat pumps “really are technological advancements, and they perform better, which is why you’re seeing a lot more of them.”

Although the HVAC industry is already big on heat pumps, the average American homeowner still isn’t all that aware of heat pumps and how they work. A 2024 survey (PDF) by Mitsubishi Electric Trane HVAC US says 44% of homeowners know and understand how heat pumps work, while 27% have never heard of them or are unaware of how they function. This stat shows that people don’t really know enough about heat pumps and their advantages, which points to a need for better awareness.

But are heat pumps as good as they’re made out to be? Or are there disadvantages that homeowners should know more about? Here’s everything you need to know about these appliances. 

Are there hidden costs of getting a heat pump?

Whether it’s your cable bill, your cellphone or buying a car, we’ve all experienced the “too good to be true” hidden costs that catch up with you after time. 

While there aren’t necessarily “hidden costs,” there are things that could affect the cost of installing a heat pump.

“It’s generally straightforward,” Greenwood said. “There’s really no hidden cost. But there are some things that you need to be aware of.” 

New ductwork

Not every heat pump will require new ductwork or even changes to existing infrastructure in your home. Traditionally, Greenwood said, “heat pumps will use the existing ductwork and just replace your air conditioning unit.” 

But there are some exceptions. 

For instance, very old homes — especially in the Northeast and South — may need some adjustments, such as ductwork or additional wiring. But generally speaking, if your ductwork is fairly new, you should be set for a heat pump. 

“It’s really about the contractor who built the house or installed the ductwork,” Greenwood said. “Those really haven’t changed a lot over the years. So if it was done correctly, you’re pretty much good to go.” 

If you don’t have ducts at all,  there’s a solution for that as well. 

“Some historic homes don’t actually have ductwork going through the home,” Greenwood said. “But we have a solution, which is our ductless heat pumps. They require minimal construction but would give you a heating and cooling solution that’s quicker and more cost effective to install in that application.” 

Permitting

Broadly speaking, Greenwood said most homeowners don’t require any permits to change to a heat pump. 

But every city is different, and some areas will have different requirements. 

And if you do find yourself in a home that requires a ductless heat pump, it may be because you live in a historic or otherwise protected district, which can be very strict on changes. So be sure to check with your local municipality’s guidelines before making any decisions. 

Improving your electrical system

The most likely change you’ll need to make in order to accommodate the installation of a heat pump will be electrical upgrades. 

Greenwood said often, when replacing a gas furnace and an air conditioning unit with a heat pump, you’ll require an electrical upgrade to move the connection from 115 volts to 230 volts. You may also need a larger electrical panel or additional wiring work.

The good news is that there are federal, state and local incentives available to help you make that upgrade. One easy way to ease the burden is with a tax credit for a new electrical panel from the IRS. 

Higher electricity costs

Electricity costs can vary dramatically depending on where you live. According to a Sondaj CNET, 78% of Americans feel stressed about high energy bills. So if you’re switching from a gas furnace to a heat pump that runs on electricity, you’ll want to account for the difference in cost between natural gas and electricity. 

“[Heat pumps] can be more expensive to run with higher electricity costs, compared to the gas heat provided by a furnace,” Greenwood said. Your utility company may also charge a disconnect fee if you’re canceling your gas service altogether. 

In a recent Reddit thread about heat pumps, people expressed concern about the cost of switching to a heat pump. Some tout the benefits of a solar power system to offset electric costs.

Home insulation 

It’s not a requirement for adopting a heat pump, but Greenwood said upgrading insulation could be a key to ensuring your new appliance is working efficiently. This problem would affect air conditioners, furnaces and heat pumps alike. But if efficiency is your overall aim, the installation of a heat pump would be a great time to improve your home’s insulation. 

Your home’s insulation plays a vital role in how hard your HVAC equipment must work to maintain a comfortable temperature.

“[In a poorly insulated house], to maintain the level that you want, your equipment would have to operate more, as compared to a home that’s better insulated and would hold the warmth or cool in,” Greenwood said.