Heat pumps have the potential to deliver significant savings on your home heating bill because they deliver energy more efficiently than other sources. Heat pumps are actually air conditioners that include a reverse cycle for heating, so they cool homes in summer and heat them in winter.
Use our heating comparison calculator to compare costs of different heating methods.
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We offer incentives for the installation of heat pumps in electrically heated homes. You may qualify for a rebate of between $500 and $2,000, depending on the efficiency rating and your existing heating method. The heat pump must be installed to “Performance Tested Comfort Systems” standards by a contractor participating in the utility’s Contractor Network. Here are some of the specific utility incentives currently offered for heat pumps.
Air source heat pump (*Limited time promotion rebate amounts below)
- $1,500 rebate for electric forced air furnace conversion to heat pump.
- $2,000 rebate for electric forced air furnace conversion to variable speed heat pump.
- $750 rebate for heat pump replacement.
- $1,000 rebate for heat pump variable speed replacement.
- $500 rebate for heat pump commission and controls.
We also offer loans for heat pumps.
- If the loan applicant is legally married, the spouse must also apply for the loan as a co-applicant.
- Loans for work on manufactured homes are limited to $7,500 or less.
- Heat pump loans are available and are based on the contractor’s proposal.
- Loans are repayable over five years for amounts less than $10,000 and seven years on amounts at $10,000 or more, but your monthly payment will be at least $25.
- Processing fees: $290 for loans at $7,500 or less; $725 for loans more than $7,500. Fees can be paid upfront or added to your loan.
- Loan payments are billed monthly, separately from your energy bill.
- Options or extra costs not eligible for financing must be paid directly to your contractor.
- Applicable Clark Public Utilities incentives will be deducted from your total loan amount.
- Loans are not transferable, so if you sell your home you must pay the unpaid balance on the loan in full.
- Financing is not available for new construction.
- Existing loans cannot be refinanced by the Utility.
- Loans are subject to credit and equity approval.
- A lien is filed on the home for loans above $7,500.
- The current loan program interest rate is 4.99%
How Heat Pumps Work
With a process similar to refrigeration, the heat pump system picks up heat from the air and releases inside the home or outside depending on the season. In winter, heat is extracted from the outside air by a refrigerant, concentrated by a compressor, circulated through the heat pump’s coils and sent into your home’s duct system. In summer the process is reversed: The pump extracts heat from the air inside and transfers it outside.
When the outside temperature drops below approximately 35 degrees (or if the heat pump fails) a backup system kicks in (usually a gas or electric furnace). The back-up system will also switch on to speed up heating when the thermostat setting is increased, but this auxiliary heat is more expensive to operate than the heat pump. Consider using a special heat pump thermostat, which will regulate temperature changes during the day and night, and operate your heat pump more efficiently.
Heat Pump Operating and Maintenance Tips
- Insulate your home and ductwork for greatest cost savings.
- Check and clean air filters regularly and replace them when needed.
- Keep all registers open fully to maintain airflow balance.
- Keep the area around your outdoor condensing unit clear of weeds and other obstructions that might interfere with the air flow.
- Remove grates and vacuum heat registers occasionally to clear away dust and other debris.
- Check ducts yearly for loose connections and holes.
- Inspect the indoor cooling coil in the fan unit to make sure the condensate drain is draining water properly.
Your energy savings and project costs will vary. Program requirements and rebate amounts are subject to change without notice. We do not endorse any particular contractor, manufacturer or product. We make no express or implied warranties of these products or installations. There are limits to loans, rebates and grants.