Energy Costs
Energy Costs | HVAC Unit Replacement | Heating and Air Conditioning
Feeling the pinch of rising energy bills or noticing hot and cold spots around your home? HEP’s Energy Costs Heating and Air Conditioning team specializes in smart, seamless HVAC unit replacement that instantly boosts comfort while slashing monthly utility costs. Our certified technicians evaluate your current system, right-size the new equipment, and install high-efficiency technology that can cut energy consumption by up to 40%, all while keeping noise levels and maintenance hassles to a minimum.
From the first free assessment to final thermostat calibration, we handle every detail—permitting, ductwork optimization, and even rebate paperwork—so you can relax in a perfectly balanced environment. Whether you’re upgrading before the next season hits or responding to an unexpected failure, we’ll help you choose a unit that matches your budget, qualifies for the latest incentives, and protects your family with industry-leading warranties. Discover how much more comfortable—and affordable—home can feel with HEP on your side.
FAQs
How do I know when it’s more cost-effective to replace rather than repair my existing HVAC system?
Most HVAC equipment has a service life of 12–20 years. If your unit is over 10–15 years old, needs frequent or costly repairs, or uses the now-phased-out R-22 refrigerant, replacement usually makes better financial sense. Modern systems with SEER2 ratings of 15–20+ and AFUE ratings of 90–98% can cut operating costs 20–40%. When the annual energy and repair expenses for an older unit approach 50% of the cost of a new, high-efficiency system, replacement is typically the smarter long-term investment.
How much can I expect to save on my energy bills with a high-efficiency replacement HVAC unit?
Savings depend on the efficiency of your current equipment, local utility rates, and how well your home is insulated. Upgrading from a 10 SEER air conditioner to a 16 SEER2 model can reduce cooling costs by about 38%. Replacing an 80% AFUE furnace with a 96% AFUE model trims heating costs roughly 20%. Homeowners who switch from electric resistance heat to an ENERGY STAR® air-source heat pump often see overall HVAC energy bills drop 40–60%. A contractor can perform a load calculation and energy-cost comparison to give you a precise estimate for your home.
Which efficiency ratings should I focus on when comparing new HVAC systems?
For air conditioners and air-source heat pumps, look at SEER2 (Seasonal Energy Efficiency Ratio 2) for cooling efficiency and HSPF2 (Heating Seasonal Performance Factor 2) for heating efficiency. Higher numbers mean lower operating costs. Furnaces use AFUE (Annual Fuel Utilization Efficiency); 90% AFUE means 90% of the fuel becomes heat for your home. Also check ENERGY STAR certification and any local minimum standards. A reputable contractor should show you lifetime operating cost comparisons, not just equipment price.
Are heat pumps a good replacement option in colder climates, and will they really save money?
Yes. Modern cold-climate air-source heat pumps can efficiently heat homes in temperatures as low as ‑15 °F. They move heat instead of generating it, so they can deliver 2–4 units of heat for every unit of electricity used (COP 2–4). Compared with resistance strip heat or older oil furnaces, that can cut annual heating costs by 30–60%. In shoulder seasons they also provide efficient cooling, replacing or supplementing central AC. If you have access to natural gas, a dual-fuel system (heat pump plus high-efficiency gas furnace) often delivers the best blend of comfort and energy savings year-round.
What rebates, tax credits, or financing options are available to help offset the cost of an HVAC replacement?
Federal incentives under the Inflation Reduction Act offer up to a 30% tax credit (max $2,000) for qualifying high-efficiency heat pumps and $600 for efficient furnaces, ACs, and advanced controls. Many utilities provide $200–$1,000 rebates for high SEER2/AFUE equipment or smart thermostats. State programs and low-interest energy-efficiency loans can further reduce out-of-pocket costs. Ask your contractor to supply a rebate worksheet and verify that the equipment model numbers meet each program’s criteria before installation.
How do I calculate the payback period for a new HVAC system?
1. Determine your current annual HVAC energy cost from utility bills (heating + cooling). 2. Obtain the predicted annual cost for the new system from an ACCA Manual J/S load calculation or energy modeling. 3. Subtract the projected new annual cost from the current cost to find your annual savings. 4. Divide the net installed price of the new system (after rebates/tax credits) by the annual savings. For example, if a new $10,000 heat pump (after incentives) saves $1,800 per year, the simple payback is $10,000 ÷ $1,800 ≈ 5.6 years. Because most systems last 15+ years, everything after the payback period is net savings, and you benefit from improved comfort, better indoor air quality, and a higher home resale value.