Home heating for a bargain

Air source heat pumps provide year-round comfort that is efficient and cost-effective

As the summer heat begins to fade away and cooler air returns for another season, consumers may find themselves considering how to efficiently and cost-effectively heat their home throughout another Minnesota winter.

Advances in electric heating technology, particularly air source heat pumps (ASHP), are helping to make electricity the go-to choice. They perform well in cold climates and have quickly become cost competitive with conventional furnaces — even beating them in upfront cost when coupled with federal, state and local utility incentives.

ASHPs are three to five times more efficient than most traditional heating systems because it takes less energy to move heat around than to produce it. With a natural gas furnace, heat must first be created by burning gas and then additional energy distributes it throughout your home.

With an ASHP, the heat energy itself is taken from the air outside (even when temperatures drop well below freezing), meaning energy is only needed to transport and distribute that heat indoors. As a result, ASHPs are often far less expensive to run than other heating systems, translating to hundreds of dollars in annual savings for an average household.

While the annual expected cost of heating a home with a natural gas furnace can be slightly cheaper in some areas, ASHPs are far more affordable than propane. Members could expect to save $600 annually to deliver the same amount of heat by switching from a propane furnace or boiler to an ASHP. Homeowners will also avoid the price volatility of oil, propane and gas.

Factor in available federal tax credits (30%, up to $2,000 when installed before Dec. 31, 2025) and rebates from local electric cooperatives, ASHPs become an even more appealing investment.