Heat Pump vs Furnace - Are Heat Pumps Worth it?
Climate change is a hot topic in Canada these days and Heat pumps are at the forefront of this debate since heat pumps are expected to replace older HVAC appliances like Furnace and Air Conditioners. However, switching to heat pumps is not a trivial decision and many queries come of homeowners mind on whether they should replace their existing appliances with heat pump or not.
In this blog, we will specifically analyze Heat Pump vs Furnace. We will attempt to answer whether heatpump is worth it or not and whether there is a long term savings in replacing furnace with heat pump.
What is a Heat Pump ?
A heat pump is a versatile HVAC system that efficiently regulates indoor temperature by transferring heat between the indoors and outdoors. Its acts as both a heater and an air conditioner.
How does a Heat Pump work ?
Heat Pump's working mechanism is different from furnace. It utilizes a refrigeration cycle to extract heat from the air or ground outside and distribute it inside during colder months (yes even the cold air has heat that can be extracted as far as refrigants temperature is lower than the air itself). In warmer weather, the process is reversed, expelling indoor heat to maintain a cooler environment.
Unlike traditional heating or cooling systems, heat pumps are claimed to be energy-efficient and eco-friendly, as they move existing heat rather than generating it. We will analyze this in detail in this blog.
How many types of Heat Pumps are there?
In Canada, there are several types of heat pumps available for installation, each with its own characteristics and suitability for different applications. Here are the main types of heat pumps:
1. Air Source Heat Pumps (ASHP):
- Description: ASHPs are the most common type of heat pump. They extract heat from the outdoor air and transfer it inside during the heating season. In the summer, the process is reversed to provide cooling.
- Suitability: ASHPs are effective in moderate climates and these are the ones that are recommended in Canada mostly.
2. Ground Source Heat Pumps (GSHP or Geothermal Heat Pumps):
- Description: GSHPs extract heat from the ground through a series of pipes buried underground. They are highly efficient as ground temperatures remain relatively stable throughout the year.
- Suitability: GSHPs are well-suited for areas with enough land space for the ground loop installation. While the initial cost is higher, they can offer significant long-term energy savings.
3. Ductless Mini-Split Heat Pumps:
- Description: These systems consist of an outdoor unit and one or more indoor units. They are called "ductless" because they don't require ductwork. Each indoor unit can be controlled independently.
- Suitability: Ductless mini-split heat pumps are ideal for homes without existing ductwork, or for room additions where extending ducts may be impractical.
4. Hybrid Heat Pumps (Dual-Fuel Systems):
- Description: Hybrid heat pumps combine the efficiency of a heat pump with a backup heating source, usually a furnace. The system automatically switches between the two based on outdoor temperatures to optimize efficiency.
- Suitability: Hybrid systems are suitable for areas with varying climate conditions, ensuring optimal performance in extreme cold temperatures.
5. Absorption Heat Pumps:
- Description: Absorption heat pumps use heat as an energy source, typically from natural gas or solar energy. They are less common in residential settings but are considered environmentally friendly.
- Suitability: Absorption heat pumps are suitable for specific applications where alternative energy sources are preferred. This is not the kind of heat pump that one will prefer in Canada especially if it uses natural gas.
6. Water Source Heat Pumps:
- Description: Water source heat pumps transfer heat to or from a water source, such as a lake or well. They are energy-efficient but require access to a water source.
- Suitability: Water source heat pumps are suitable for properties with access to a consistent and adequate water source.
While considering a heat pump for a specific installation in Ontario, factors such as the local climate, available space, budget, and the existing HVAC infrastructure play crucial roles. Consulting with an HVAC professional can help determine the most suitable type of heat pump for your particular needs and circumstances.
Heat Pump Vs Furnace: Is Heat Pump worth it?
Now that, we have analyzed what a heat pump is and what are the various types of heat pumps, we shall now dive down into Heat Pump Vs Furnace Comparison and whether it is worth installing a heat pump instead of a new furnace or even replace an existing furnace with heat pump.
Heat Pump vs. Furnace - Cost Benefit Analysis
For the Cost benefit analysis of Heat Pump vs Furnace we will need to consider many factors:
1. Initial Investment:
The first and foremost thing to check is the initial investment involved in the purchase and installation of a heat pump system.
Cost of Heat Pump Installation:
The initial cost includes the purchase and installation of the heat pump. This cost can vary based on the type, size, and efficiency of the heat pump. On average, expect to pay between $4,000 to $8,000 or more. Further, heat pumps are available in very different SEER ratings from 10-42, the cost goes up with SEER rating. in Canada SEER rating of upto 18 should be good enough, otherwise one is not able to recover the cost with the energy savings.
Since you already might have AC or furnace in the home, this is the one time cost that most of the homeowners will need to shell out. However Government rebates in Canada for energy efficient homes can bring this upfront investment down to as low as 1500$.
2. Operating Cost:
Heat pumps are overall more efficient than AC so in summer operating electricity cost will be lower in heat pump as compared to air conditioner. Similarly for temperatures lower than -5C, heatpumps will cost lower than natural gas required for operating natural gas furnace.
3. Energy Efficiency:
Heat pumps are generally more energy-efficient than traditional furnaces. They work by transferring heat from the outside to the inside during the heating season and vice versa during the cooling season. This efficiency can lead to lower monthly energy bills.
4. Savings:
Potential Savings: While the initial investment might be higher, the long-term savings on energy bills could offset this cost. Heat pumps are known for their efficiency, especially in milder climates.
5. Furnace Use After Heat Pump Installation:
One very contentious points with heat pumps these days is the efficiency of heat pumps in colder temperature.
Supplemental Heating:
In colder temperatures, especially during the winter months, a heat pump's efficiency may decrease. In such cases, a backup heating system, like a furnace, might be needed to maintain comfort. The frequency of furnace use depends on the specific conditions and the heat pump's capacity. These days there are heat pumps that can operate in very low temperatures but the cost of those heat pumps wont justify the hassle.
When you live in an area where average temperature in winters goes below -10 C (which is most of Canada), you will inevitably require an supplemental heating since heat pump is either not that efficient at lower temperatures or is prohibitively expensive. On the other hand, furnace can operate on temperatures as low as -50 C without a hiccup!
Dual-Fuel Systems:
Some homeowners opt for dual-fuel systems, combining a heat pump with a furnace. This allows for optimal energy efficiency, as the system can switch between the heat pump and the furnace based on outdoor temperatures.
6. Heat Pump Maintenance and Lifespan:
Maintenance Cost: Since the heat pump functions both as AC as well as furnace, the maintenance cost for one equipment will come out to be lower than two. With that said, though heat pumps generally require less maintenance, but regular check-ups are still necessary to ensure optimal performance.
Lifespan: Heat pumps typically have a longer lifespan than traditional furnaces. This longevity can contribute to long-term cost savings.
7. Environmental Impact:
If you are an eco-friendly person, by installing a heat pump you can contribute your part in doing good for the environment.
Reduced Carbon Footprint:
Heat pumps are considered more environmentally friendly as they don't burn fuel directly. This can be a significant factor for homeowners concerned about reducing their carbon footprint.
Carbon Tax:
Government of Canada applies Carbon tax on top of fossil fuel burning which includes the natural gas used in furnace. The carbon tax goes up every year which increases the cost of operating the furnace. However, it might be still few years where Carbon Tax would become prohibitive amount. Also, the carbon tax equation can also change with change in political environment.
You may also like to know the Best Central Air Conditioner Brands in Canada.
Heat Pump vs Furnace - Which is Better Option for Home Heating?
Overall, there are both pros and cons of installing heat pumps instead of furnace in Canada. Its not a straight forward decision. Though if you are going to install a new appliance then considering heat pump is worthwhile. But, getting the an additional heat pump alongside furnace with additional investment requires a lot of thought!
Last Updated:
Jan-30