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Heat pumps are known for being energy-efficient because they consume less electricity than conventional propane, electric, or oil heating systems. Heat pumps do not generate heat by converting it from fuel. Instead, they simply transfer or redistribute heat from the air or ground to address your home’s heating and cooling requirements. A heat pump can transfer as much as 300 percent more energy than the electricity required to power it.
Though initial costs of purchasing and installing a heat pump can be high, over the long run it is far less expensive to operate than a traditional furnace. This blog post discusses the factors influencing heat pump costs and why you should partner with a trusted HVAC professional to get the best value for your money.
Factors Influencing Heat Pump Costs
The total cost of a heat pump includes the equipment and installation charges. The following factors influence the total cost of purchasing and installing a heat pump.
Type
The type of heat pump you select—referring to the power source, output, and configuration—greatly influences the price and installation charges. For example, a ductless or mini-split heat pump can cost anywhere from $1,300 to $8,000 and beyond. Such heat pumps provide zoned heating and cooling with one outdoor condenser matched to one indoor head.
The cost of basic single-zone units can run anywhere between $700 to $2,200. Multi-zone units have two or more indoor coils connected to the outdoor condenser and cost up to $13,000. Split systems are usually pricier than packaged heat pump systems. Compared to air-source heat pumps, the costs of geothermal and solar heat pumps are on the higher end of the price range.
Size and Capacity
It is critical to select a heat pump in the right size to meet your home’s heating and cooling needs efficiently and run sustainably. In addition to regional weather, architectural factors such as floor area, layout, high ceilings, and window placement should be considered when calculating a heat pump’s load capacity. Heat pumps with higher capacities are obviously pricier. The total costs associated with a 2-ton heat pump are anywhere between $3,000 to $5,000, while a 5-ton heat pump costs more than $8,000. But if you try to cut costs by installing a lower-capacity heat pump that’s too small for your needs, it will run constantly, eventually eating up your energy savings and increasing your utility bills.
Efficiency Rating
The higher the heating season performance factor (HSPF) and seasonal energy efficiency ratio (SEER) ratings, the higher the cost of the heat pump unit. Some highly efficient heat pumps have an HSPF rating of 10 and SEER ratings up to 20.5. The price of systems with even higher HSPF (10+) and SEER (19+) ratings ranges between $3,000 to $4,000.
Brand
High-quality heat pump models and brands have additional features like demand-defrost control, scroll compressors, variable speed motors, and backup heat. Such models also come with extended and more robust warranty protection, making them more expensive than the basic models.
Permits
A Mechanical, Electrical, and Plumbing Engineering (MEP) permit is usually required for heat pump installation in California. Skipping the permitting process can lead to fines and penalties, and may also compromise your insurance rates and coverage. Permit fees vary depending on your township or city. Apart from permit costs for heat pump installation, you will also need to pay for a third-party post-installation duct audit.
Installation Charges
Installing geothermal heat pumps is labor-intensive because it requires extensive excavation and ductwork modifications. The installation of solar heat pumps is also costly, as it requires installing solar panels and connecting them to the heat pump system. For air-source heat pumps, installations that require additional ductwork means greater expenses.
The California Energy Commission has approved the first building code in the U.S. that emphasizes highly efficient electric heat pumps as a baseline technology. When the code goes into effect in January 2023, most new homes and buildings will be subject to a gas-free mandate, and install highly efficient heat pumps instead of gas furnaces. The code would also stall the installation of any new gas furnace in residential homes and buildings. For homeowners in SoCal, the sooner you install a heat pump, the better.
Partnering with An HVAC Professional for Heat Pump Installation
Switching to heat pumps is a significant investment and you need a trusted HVAC expert to ensure you have the right-sized system and that it’s installed properly. At Baker Electric Home Energy, we understand your concerns about heat pump costs, installation, and repairs. As a team of experienced HVAC experts, we have been providing clean energy solutions to the southern California region for over 15 years. Our licensed technicians assess your home’s heating and cooling needs, recommend the right-sized unit, advise financing options, provide a hassle-free installation, and take care of maintenance and repairs. We are committed to keeping your family comfortable throughout the year while helping you save energy costs.
Are you wondering about heat pump cost before making a switch? Baker Electric Home Energy is your one-stop solution for all HVAC-related issues and concerns. Our outstanding customer service has earned us the Torch Award for 2021. For more information on heat pump costs, contact us.
When it comes to heating your home, heat pumps and gas furnaces are both popular options. Each system works differently, and each comes with its own set of pros and cons. While traditional furnaces burn fossil fuels to produce heat, heat pumps use electricity to collect and transfer heat from the air or the ground.
In this post, we’ll take a closer look at the comparison between air source heat pumps vs natural gas furnaces to help you decide the best heating option for your home.
Air Source Heat Pump vs. Natural Gas Furnace: A Comparison
It’s helpful to understand how each of these systems works before comparing heat pumps and furnaces. Let’s look at some of the specifics.
Air Source Heat Pump
An air-source heat pump consists of the following components:
- an indoor unit,
- an outdoor unit
- a refrigerant line connecting the two units
- a compressor
- reversing and expansion valves to change heating and cooling modes
As the outside temperature drops, an air source heat pump absorbs heat energy from the outside air and transfers it to the indoor air. In the outdoor unit, the heat energy is absorbed by the liquid refrigerant and turned into a cold gas.
The compressor applies pressure to heat up the cold gas. When the gas travels into the indoor unit, it is then condensed into warm liquid. As this warm liquid enters the outdoor unit, it is relieved of pressure and cools down to repeat the cycle.
Natural Gas Furnace
The critical components of a gas furnace include:
- a burner
- heat exchangers
- a blower fan
- ducts to circulate hot air
When you increase the temperature on your thermostat, the burners inside your furnace’s combustion chamber ignite and burn natural gas to produce heat. This, in turn, heats up the heat exchanger. The blower fan moving air around the heat-exchanger is what sends hot air throughout your home.
Side-By-Side Features
When you are looking for the right heating solution for your home, the most common worries include installation costs, equipment performance, energy efficiency, maintenance, and life expectancy. Based on these key aspects, here is a side-by-side comparison of air-source heat pumps vs. natural gas furnaces:
| Feature | Air-Source Heat Pump | Natural Gas Furnace |
|---|---|---|
| Installation cost | The upfront installation costs are higher for heat pumps than replacing a gas furnace. However, in the long run, a heat pump generally costs less to operate than a furnace. | A number of factors can affect the cost of installing a natural gas furnace, including the available natural gas lines running to your home, existing ductwork, and your new system’s configuration. |
| Performance | Heat pumps are more likely to work better in moderately cold temperatures. | A natural gas furnace can continue to generate heat in freezing temperatures. |
| Energy Efficiency | Though electric, heat pumps use less energy and heat more efficiently than gas furnaces. An air-source heat pump can provide up to three times more heat energy than the electric energy it consumes. | Natural gas is cheaper than electricity. However, in SoCal’s moderately cold temperatures, gas furnaces are not always cost-effective. ENERGY STAR-certified gas furnaces for the southern half of the U.S. are up to 11% more efficient than standard models. |
| Maintenance | To ensure optimal performance, schedule regular cleaning and inspections for the indoor and outdoor units. | The maintenance requirements of a natural gas furnace are lower than those of a heat pump. |
| Lifespan | Heat pumps are used for both heating and cooling, which increases wear-and-tear. The average lifespan of a heat pump is around 10-15 years. | Natural gas furnaces have a few motorized parts, used only during colder months. As a result, natural gas furnaces can last beyond 15 years. |
In Southern California where winters are milder, a gas furnace can produce extreme heat to reach the temperature set on your thermostat quickly. This can result in uneven heating and leave cold spots around your home. The hot air from the furnace can also lead to dry skin.
Furthermore, natural gas furnaces put your life as well as your family’s lives at risk from dangerous carbon monoxide (CO) leaks. This has led to stronger kitchen ventilation standards to improve indoor air quality in all new buildings using natural gas furnaces. More than 40 cities and counties across the state have tightened rules, with some banning natural gas usage in new homes.
Because California aims to eliminate statewide carbon emissions by 2045,
the California Energy Commission is phasing out natural gas furnaces,
which account for 10% of greenhouse gas emissions.
Given these health, safety, and environmental concerns, electric furnaces would seem to be the preferred source of heat over natural gas furnaces. The upfront cost of installing an electric furnace is less than installing a natural gas furnace, and electric furnaces are quieter and more durable than their gas counterparts.
However, electric heating is inherently inefficient, resulting in higher energy bills. This is why an air-source heat pump is your best option for cost-effective and efficient heating in the SoCal region.
Partner with A Heating Expert to Select the Right Air-Source Heat Pump for Your Home
Have you checked the heating efficiency (HSPF) and the cooling efficiency (SEER) for your air-source heat pump? Are you planning to install a ductless air-source heat pump or a ducted one? Should you choose a multi-zone or a single-zone system? Are split-system air-source heat pumps better than the packaged ones?
These are some of the questions that only a heating expert can answer. At Baker Electric Home Energy, we are committed to helping you select the right-sized energy-efficient system. Our team of certified and licensed technicians provides you with free consultations, recommends the most trusted brands, and guides you through pricing, warranties, and financing options. As highly experienced heating and cooling professionals in the SoCal region, we not only install the system that fits your home’s heating requirements but we also ensure its proper maintenance and repair.
Baker Electric Home Energy is the one-stop solution for all your heating and cooling requirements. For more information on air-source heat pumps vs natural gas furnaces and on selecting the right system for your home, contact us or call us at 760.208.2622.
Though no one can confirm Mark Twain actually said, “The coldest winter I ever spent was a summer I spent in San Francisco,” many Californians can relate to the sentiment. Unfortunately, confusion around California weather is not limited to the upper parts of the state.
Many who have never visited the Golden State assume Southern California days are filled with endless sunshine beaming from cloudless skies. Sometimes, yes. But residents of North County know that being comfortable here requires a good heating and cooling system, or you will discover the challenges of spring temperatures firsthand.
North County Spring Heating and Cooling Challenges
Another misconception about California is that people living near the beach or other waterways don’t need air conditioning because the ocean breezes keep them cool.
However, as far back as 2006, over 80 percent of people living in the Sunbelt region, which includes SoCal, considered air conditioning a necessity. In the spring, average temperatures typically hover around a comfortable 65°F. However, daytime highs can reach into the 80s, and then plummet to the low 50s or upper 40s at night.
Comfort is the number one consideration for heating and cooling in the spring, and all other seasons, for that matter. Many factors can contribute to feeling uncomfortable in your own home, including the following:
Causes for Spring Heating and Cooling Concerns
- Allergies
If you or a member of your household suffers from allergies, spring weather can be infuriating. Although you can’t control the outdoors, keeping your internal humidity low and dust-free can help avoid some uncomfortable allergy symptoms.
- Mold
Mold thrives in high humidity environments, which is typically due to a lack of consistent air flow or air conditioning. Excessive exposure to mold can lead to wheezing, difficulty breathing, fatigue, headaches, and other health issues.
- Age
As we age, our bodies become more sensitive to our climatic surroundings, and the discomfort of being too cold or too hot is more keenly felt. Subtle effects, such as altitude changes or lack of sleep, can affect energy level, quality of work, and other health aspects.
A lack of climate control in your home can lead to serious issues that don’t respond to thermostat settings. That makes finding a solution to meet your heating and cooling needs a major consideration.
How to Mitigate North County’s Spring Weather Challenges
Ensuring the best climate control for your home is through investing in a good HVAC system. Residential AC units usually provide BTU outputs ranging from 18,000 to 60,000. Finding the right-sized cooling unit with optimal BTU output is tricky and critical as the efficiency of an HVAC system reflects in your utility bills. Some of the key factors that determine how much HVAC BTU output your home needs for cooling include —
- Height of the ceiling
- The number of doors and windows
- Type of flooring (carpet/ wood)
- The level of insulation
- The floor area
You also need to determine the type of heating system best suited for your home. Whether it is a heat pump unit, gas furnace, dual fuel system, or a ductless heating system, it should be energy-efficient with minimal maintenance required. Considering these points, you have two options to upgrade your existing HVAC system — either through repair or replacement.
Heating and Air Conditioning Repair Option:
In most cases–but not all–repairing your HVAC system is less expensive than replacing it. This is especially true if your current system or systems were installed recently and are functioning well. In this case, make sure to schedule service for your system(s) once a year by an experienced, certified professional.
Outside of an annual checkup, your HVAC system(s) may require immediate repair. Some reasons include:
For AC systems
- Increased electricity bills
- Unusual or loud noises
- Irregular starting and stopping
- Reduced airflow
- Unusual odors
- High humidity
For Heating systems
- Increased electricity bills
- Unusual noises
- Cold spots in your home
- A burning odor that doesn’t go away
Heating and Air Conditioning Replacement Option:
If your HVAC system is over ten years old, it may be time to consider a replacement instead of a repair. Initial costs will likely be more than a repair, but the long-term benefits will more than make up for this in lower electricity bills, better service, and quieter operation. Additionally, installing a new system(s) adds value to your home.
There are many options for a new installation. For example, your cooling system can be a split system air conditioner, which has a number of advantages compared to both central and window units. Choosing a new heating and cooling solution is a major decision. Seek the advice of an experienced HVAC provider with a track record of satisfied customers in the North County area.
Baker Electric Home Energy has served the Southern California area for nearly two decades, providing residents with the best solution for their heating and cooling needs. Our HVAC services range from tuneups and safety inspections to complete overhauls; including the most advanced and energy-efficient equipment available in the industry. With us, you gain an expert partner committed to delivering extraordinary service, which is exemplified by our being awarded the Torch Award for 2021. For more information on spring heating and cooling solutions, contact us.
Make Sure Your
Home Environment
Is Comfortable
This Summer
San Diego residents know comfort is a major concern, especially when year-round high temperatures are at least 65° and peak during hot, arid summers. That’s just one reason the world-renown San Diego Zoo takes pride in providing comfortable environments for over 6,000 different species of animal residents.
You may not require your own polar-bear plunge, but you can still keep cool when temperatures rise by taking advantage of some other, more affordable options. If you need to create and maintain a comfortable environment in your home, installing a split system air conditioner could be an ideal solution.
What Is a Split System Air Conditioner?
The many options available for home cooling include window units, central air systems, and split system air conditioners. Basically, a split system air conditioner uses both external and internal sections, as shown below.
A split system divides, or “splits,” air conditioning components between external and internal units. The design strikes a balance between a window unit, with all components—fan, condenser, evaporator, blower, and compressor—inside a single unit, and a central system that distributes cool air via ductwork inside the home from an external unit with all the components. A counterbalanced cooling system may be your best option.
Is a Split System AC Your Best Cooling Solution?
San Diego’s coastal location keeps average annual temperatures in the moderate range. Nevertheless, SoCal can get especially hot and dry during the summer months, which makes a good climate control system a necessity. For air conditioning, several advantages make a split system an attractive option, as listed below.
Advantages of Installing Split System AC
In addition to your home’s decor and space, noise can also enhance the ambiance—unless it creates discomfort. While common with noisy wall units, a split system can ameliorate the issue and also maintain a constant temperature throughout the house.
Split system air conditioners offer flexibility in terms of location, while window units have limited capability—typically covering a single room.
Window units are not necessarily easy to install. Depending on the window and its location, you might need additional materials to ensure a good fit, like side panels, caulking, and other sealants, as well as stabilizing braces. The internal ductwork of central AC systems may require some demolition before installing vents (or ducts). Split systems are much easier to install than either of these two, which means the installation will probably go faster.
Central AC (or Heat + AC) systems require the biggest upfront investment, while window AC units occupy the other end of the cost spectrum. Due to the latter’s limited range, you may require several window units to cool your entire home adequately. In comparison, a split system offers wider coverage; installation that’s simpler, faster, and less destructive; and quiet operation, placing the cost-value ratio much higher than alternative air conditioners.
Just like the time spent researching and comparison shopping before buying a home, deciding to install a split system air conditioner requires a similar level of consideration. This article should help with your research.
The Best Option for Installing a Split System Air Conditioner
Your air conditioning system, which is a major part of your home’s overall heating, ventilation, and air conditioning (HVAC), is a considerable investment that will typically last 10 to 15 years. Choosing the right system as well as the right installation company can position your home for greater savings, plus increased value, comfort, and ambiance. Before committing to any HVAC installation, make sure the vendors you interview can answer the following questions:
- Will the system cool my entire house?
- Will this install save me money on my electric bill? If so, how much?
- Does this system include Energy Star®-certified products?
- What types of energy rebates or credits are available for this system?
- How long is the warranty period?
- What type of service plan does your company offer?
- How much experience does your company have with this type of install?
Any reputable company experienced with installing split system air conditioners should welcome the opportunity to answer these and any other questions you have to establish confidence that they have the solution to your air-conditioning needs.
Baker Electric Home Energy has served the Southern California area for nearly two decades, providing residents with the best solution for their heating and cooling needs. Our HVAC services range from tune-ups and safety inspections to complete overhauls; including the most advanced and energy-efficient equipment available in the industry. With us, you gain an expert partner committed to delivering extraordinary service, which is exemplified by our being awarded the Torch Award for 2021. For more information on installing a split system air conditioner, contact us.
Do you know what utility rate plan you’re on? Most homeowners do not, and that can cost you a lot of money over time. Unless, however, you take the time to learn about the different rate plans and determine which one’s right for you. In this case, a few minutes’ worth of preparation could save you a substantial amount in the long run.
This blog post answers some common questions about the San Diego Gas & Electric (SDG&E) time-of-use (TOU) energy rate plan in simple terms. This information can help you get control of your home energy usage and make a plan for installing solar before net-energy metering (NEM) 3.0 goes into effect.
What is TOU Billing?
Time-of-use (TOU) billing plans describe how utilities charge different rates for electricity used during different times of the day. Rates are highest during “peak hours,” when demand for usage is at its greatest, and lowest during “off-peak” hours, like late at night.
Three major California public utilities have implemented customer transitions to TOU billing: Pacific Gas & Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E).
Will Time of Use (TOU) rates affect me if I don’t have solar?
The short answer? YES.
If you’re a current SDG&E customer and don’t have home solar, you’ve probably noticed some significant billing changes. Beginning in 2019, SDG&E implemented a passive transition in how they calculate billing rates—moving from a four-tiered system to “time of use” (TOU) electricity rates. By now, all SDG&E customers have been affected by the conversion.
Tiered billing incentivizes customers to conserve energy by charging the lowest rates (Tier 1) for the least usage, and the highest rates (Tier 4) for the highest overall consumption. This functions like the inverse of a volume discount in which, rather than a discount, customers pay higher rates for greater usage.
In contrast, TOU billing incentivizes customers to reduce energy use during peak times—when energy is in high demand—to ease the load on SDG&E’s system to meet this elevated energy usage. SDG&E offers several options so you can choose a plan that works best for your family.
Whether or not you have a solar system, you can proactively choose to remain on a tiered billing plan. While the old four-tier system has been discontinued, SDG&E offers a non-TOU tiered plan with a baseline amount. If you wish to continue tiered utility rates, you must select the Standard DR Pricing Plan from the website.
Am I grandfathered in from a TOU shift?
The short answer? Maybe.
SDG&E customers who activated their solar energy system before June 29, 2016 have the option—as long as tiered billing plans remain available—to stay on a tiered billing plan and sell back power on the Net Metering 1.0 plan until their system’s 20-year anniversary (June 28, 2036, at the latest).
What is the best TOU pricing plan?
The short answer? It depends.
You should choose a rate plan based on the times during the day when your household uses the most energy. The current SDGE TOU plans include:
TOU-DR1 Pricing Plan
You have three time periods to choose from:
For savings and discount offers on energy usage:
- Super off-peak (12 a.m. to 6 a.m., 10 a.m. to 2 p.m.)
- Off-peak (6 a.m. to 10 a.m.)
OR - Peak hours (4 p.m. to 9 p.m.)
TOU-DR2 Pricing Plan
It is a simple, two-time-period plan:
- Off-peak (12 a.m. to 4 p.m., 9 p.m. to 12 a.m.)
- On-peak (4 p.m. to 9 p.m.)
**It is worth noting that these Tier 1 and Tier 2 rates are higher than TOU-DR1.
TOU-DR-P Pricing Plan TOU
Similar to the TOU-DR1 plan, there are three pricing periods and it also includes a Reduce Your Use (RDU) event day to encourage energy conservation. The Reduce Your Use event day is between 4 p.m. to 9 p.m. and pricing is based on your baseline allowance.
Standard DR Pricing Plan
This plan is best suited for lower-use households or consumers who prefer to save energy irrespective of the time of the day.
Whether or not you own a solar home system, you’re automatically enrolled in a Time-of-Use (TOU) plan if you haven’t actively selected a different option. However, you can still switch to another plan at any time.
How TOU affects households with solar:
Be warned if you don’t think any of this conversion business applies to you. Many households that installed solar panels before March 30, 2018, were told that their current tiered electricity rates were grandfathered. Those customers still need to confirm their plans; some have found they have already been switched to a TOU plan or will be shifting to one soon.
- If you activated your home solar system before March 30, 2018
These SDG&E customers had an option to delay the passive shift to TOU until June 2021. - If your home solar system was activated after March 30, 2018
These SDG&E customers are already on a TOU plan; the default is the DR-SES plan, but you can select an alternate plan.
Another factor for residential solar customers to consider is the effect TOU has on Net Metering. With TOU rates, solar customers can sell excess produced energy back to SDG&E at the lower mid-day Off Peak rates but need to use SDG&E energy during the costlier On-Peak hours.
What is net energy metering?
The short answer? Net Metering is the buy/sell rate plan for public utilities.
The phrase “net energy metering” refers to a simple mathematical function to determine utility bills for early residential solar customers. Similar to “net pay,” which is the amount of your paycheck that’s left after taxes, net energy describes the amount of energy consumers still paid for after selling back their unused solar energy. Now, however, “net energy metering” has been codified as state legislation; no longer a simple mathematical function, NEM is law.
How to change your rate plan or contact SDG&E:
Your San Diego Gas Electric bill will tell you which SDG&E billing plan you’re on. To actively choose your plan you’ll want to log into your SDG&E account at https://myaccount.sdge.com or call 1.877.558.1674. If you’re an SDG&E customer and haven’t yet been switched over, and you qualify to remain on tiered billing, you can prevent shifting to a TOU plan by mailing your request to SDG&E at SDG&E, P.O. Box 129831, San Diego, CA 92112-9831.
Transitioning Your Household to Solar
The best defense against high energy costs, regardless of billing structure, is to produce your own energy. As a region with a lot of sunny days and high energy costs, Southern California is an ideal location for homeowners to invest in a home solar panel installation. A solar energy system allows families to produce their own renewable energy for use during the day, and sell the excess solar energy back to the utility.
Another factor that makes NOW the very best time to get into solar or solar + a home battery system is The Investment Tax Credit (ITC), a federal program developed under the Energy Policy Act of 2005 to encourage home solar usage.
With the significantly increasing number of residential solar PV systems over the years, and the Inflation Reduction Act of 2022, the federal investment tax credit (ITC) incentives been extended. Systems installed up to and including 2022 are eligible for a 30% credit, which Congress recently extended through 2034. Even if the tax credit wasn’t already in place, however, solar panels are still a smart financial investment.
Solar Storage Benefits
Solar customers interested in expanding their energy independence via non-billing measures should consider residential energy storage solutions, which enable you to charge a home battery using your solar system. Installing a home battery system offers your home greater protection during power outages—with lower energy costs as a secondary benefit.
At current electricity prices, savings is not the primary benefit of energy storage. But as rates increase overall, and TOU billing becomes standard in more households, energy storage may become a more attractive option for mitigating peak rates. You might also want to practice some additional household energy management options.
It’s important for you and your family to consider your electricity needs—for now as well as what you might need in the future (will there be a plug-in electric vehicle in your garage in the next 10 years?) Select the right rate structure so your plan helps you maximize savings and gives you the best value for your energy. Understand your SDGE TOU rate schedule choices today!