Every home has the potential to save on heating costs by installing a mini split heat pump. However, not every home can save enough to justify the cost.
In order for a heat pump purchase to pay for itself over 5 – 7 years, a homeowner needs to be spending a certain amount of money on electric or oil heating per year.
Some customers have decided to purchase a heat pump even after they learn they may not see a huge savings. We call these comfort decisions, rather than savings decisions.
In this post, we’ll share with you the minimum amount you need to spend each year on oil or electric heating, in order for a heat pump purchase to make smart financial sense.
How much do I need to be spending to justify the cost of a heat pump?
We’ll break this down into the three main types of heating in HRM:
To make the payback of a heat pump worthwhile you need to be spending $2500.00 a year or more on electricity. Why so much? Because only 60% of your electric bill is actually heating costs, the rest is hot water, lights and other electric appliances in the home.
Oil Hot Water
For payback of a heat pump to be worth while with oil hot water baseboard or in-floor heating you should be spending $2000.00 a year or more on oil.
Oil Forced Hot Air
You need to be spending about $2500 a year or more on oil each
year, because the equipment required to install a heat pump with a forced air furnace is more expensive upfront.
Alright, so now you know if you’re spending enough to justify the cost of installing a heat pump. Let’s go a little deeper to look at how much you could potentially save.
No two homes are alike in their layout, square footage or how you live in them. The following information is a general calculation based on average size homes.
We’ve used a table format to display this information easily, the row across the top is how much you’re spending per year on oil or electricity.
|< $2000||$2001 – $3000||$3001 – $4000||$4000|
|Electric Baseboards||$200 to $400||$350 to $500||$500 to $750||$600 to $1000|
|Oil Hot Water||<$180 -$500||$300 to $1000||$400 to $1400||$700 to $1600|
|Oil Forced Air||$300 to $600||$400 to $900||$900 to $1600||$1600 to $2200|
If you are currently spending more than $2000 a year on oil or $2500 a year on electricity, give us a call . You have the potential to cut your home heating costs and increase your comfort this winter.
If the upfront cost is an objection for you right now, not to worry! Nova Scotia Power offers on-bill financing, so you can have a unit installed quickly without making a payment for at least a month.
All you have to do is take the first step and give us a call at (902) 461-0600 to book a 30 minute appointment, or request an appointment online by submitting the form on this page.
One of our representatives will assess your home’s layout, square footage and electrical service to determine the best heat pump for you.
There’s still time to have a unit installed before the snow hits this season, so what’s holding you back from taking the first step?