Does a Heat Pump Increase Your Electric Costs?

An elderly woman is sitting at a table with documents, counting the costs of energy bills.

Heat pumps provide energy efficient heating and cooling in one and are quickly becoming the go-to HVAC system for saving energy and reducing carbon emissions. 

Heat pumps run on electricity, which means they can be powered by clean energy sources like solar panels. But it also raises questions about electricity consumption. Do heat pumps use a lot of electricity? And, will a heat pump increase your electric costs?

Neeeco is an energy efficiency expert and a Mass Save® partner that is committed to helping Massachusetts residents save energy and money. We’re sharing the facts about heat pumps to help you learn more about how heat pump installation will impact your energy costs. 

Heat Pumps & Electricity Usage

All air-source heat pumps, including ductless mini split heat pumps, are electric appliances. That means they will add to your home’s electrical load, which can increase your electric bills. But heat pumps are also highly energy efficient and can reduce electricity consumption compared to other types of heating and cooling systems. 

How much a heat pump adds to your home’s electrical load depends on a number of factors, including what type of heating system you currently use, whether you have an air conditioning system, and whether you install a whole-home or partial-home heat pump system. 

If you don’t already have an air conditioning system, for example, a heat pump will add to your home’s electrical load. But if you replace an old AC system with a mini-split heat pump system, you will be using less energy to achieve the same goal of cooling your home, which can reduce your electric bills.

How Can a Heat Pump Save You Money?

Heat pumps provide high-efficiency heating and cooling, which can reduce energy consumption year-round. They use the same technology an air conditioner uses to move heat into and out of your home. (Technically speaking, an air conditioner is a type of heat pump.) In the summer, heat pumps transfer heat out of your home, and in the winter they bring it in. Moving heat with electricity is a much more efficient process than creating heat by burning fuel, which can lead to energy savings. 

The actual energy savings you see depends on the cost of combustion fuel compared to the cost of electricity in your area. But, in most cases, a heat pump will save you money if: 

  • You have electric resistance heating. Heat pumps can reduce electricity consumption for heating by 50% compared to electric resistance heating. 
  • You use room or central air conditioning to cool your home. High-efficiency heat pumps dehumidify better than standard air conditioners, which reduces energy consumption and increases comfort.
  • You use oil or propane for heating fuel. Switching from oil or propane to a heat pump will likely increase your electric bills but save you money on other fuel costs.

Whole-Home Efficiency Impacts Heat Pump Performance

Whole-home energy efficiency is one of the most important factors to consider when installing a heat pump system. If your house or apartment is wasting energy due to poor insulation and air sealing, your heat pump will have to work much harder to keep up with the constant loss, reducing its efficiency and increasing energy costs.  

If you plan to install a heat pump system, it’s important to first make sure your house or building is properly insulated. Neeeco offers a no-cost Mass Save Home Energy Assessment, which evaluates your home’s overall energy efficiency and qualifies you for Mass Save rebates. You may be eligible for 75-100% off insulation plus no-cost air sealing to prepare your home for heat pump installation. You may also qualify for Mass Save heat pump rebates up to $10,000!*

*Some restrictions apply. Offers are subject to change or cancellation. Visit for full details

Save up to $10,000 with heat pump rebates! Call (781) 309-7540 or schedule a no-cost Home Energy Assessment online now.