Homeowner’s Guide to Cut Heating and Cooling Costs

There are certain indisputable truths every Minnesotan accepts: winters are freezing, summers can be sweltering, and heating and cooling costs can be a major line item in our household budgets. Luckily, modern technologies are now making it possible to stay comfortable in all seasons while using only a fraction of the energy of conventional heating and air conditioning—yes, even in Minnesota.

All-in-one, energy-efficient climate control

Air-source heat pumps (ASHPs) provide versatile, energy-efficient climate control in all seasons—functioning both as air conditioners and heaters. They do this while using 72% less electricity than the air conditioners and furnaces you’re used to.

Here’s how they work: When it’s hot out and you want to cool your home, ASHPs extract existing heat from inside the home and pump it outside. When it’s cold outside and you want to heat your home, the process is reversed: The AHSP pulls warmth from the outdoor air and pumps it into your home. That gives your furnace—and your bank account—a much needed break.

Why more and more Minnesotans are installing ASHPs in their homes

ASHPs are increasingly popular among Minnesotans for a number of reasons. Here are a few:

• They deliver more energy than they consume. Thanks to advanced technology, an ASHP “can deliver one-and-a-half to three times more heat energy to a home than the electrical energy it consumes,” according to the US Department of Energy (DOE).
• They save money. The DOE points to a study that found that using an ASHP for heating can save 3,000 kWh (or $459) per year compared to electric resistance heaters and 6,200 kWh (or $948) per year compared to oil systems.
• They’re quiet and clean. ASHPs are whisper-quiet, and they don’t require an open flame. That means no combustion byproducts (like carbon monoxide), and no need for venting.
• They provide high-quality heat. When used for warmth, ASHPs provide a heat that distributes more evenly and holds its moisture better than that produced by conventional furnaces. The result is a more comfortable, natural-feeling heat.

Rebates from Energy Wise MN

For a limited time, members of participating cooperatives, are eligible for an increased rebate based on a measure called the heating seasonal performance factor (HSPF). This standardized rating is used by all heat pump manufacturers, and it makes it easy to compare energy efficiencies between different pumps. Just like when you’re comparing the efficiency of cars by looking at the MPG, you can tell how efficient an ASHP is at heating by looking at the HSPF number. The higher the number, the more efficient the system.

You may also see SEER ratings when looking at ASHPs. SEER stands for seasonal energy efficiency ratio, and it’s used to measure the efficiency of the pump when it’s in cooling mode.

Current promotional rebates* are based on the pump’s HSPF rating.

Rebates for ducted systems

Rebates for ductless systems with HSPF > 9.0

> 8.2 HSPF – $1,000

Delivered fuels – $450

> 9.0 HSPF – $2,000

Electric heat – $750

Standard rebates* are based on the pump’s SEER rating:

Rebates for quality installed ducted systems

Rebates for ductless systems with HSPF > 9.0

SEER 14.5 – $480

Delivered fuels – $300

SEER 15 – $580

Electric heat – $500

SEER 16 – $630

To learn more about installing an ASHP in your home—or to check if your cooperative is participating in this offer, visit Energy Wise MN.

*Promotional and standard rebates vary by cooperative, so please be sure to check with your cooperative prior to making a purchase to ensure you qualify.