 | Medium: Adding a Dual Fuel Heat Pump Can Run $2,500-$5,500 |
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 | High: Adding a Duel Fuel Heat Pump and a Furnace Can Run $5,000-$10,000 |
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| Most air-source heat pumps are all-electric, providing warmth by using electric resistance heat in the indoor air handling units. Also called add-on or hybrid, dual-fuel heat pumps are designed specifically to work as a single system with a natural gas, propane or oil-fired furnace. The furnace acts as backup to the heat pump when outside temperatures drop below freezing, making dual-fuel heat pumps less expensive to operate in colder climates than all-electric models. | | |
| Typical costs: | - Adding a dual-fuel heat pump to an existing fossil fuel (natural gas, propane or oil) ducted system runs about $2,500 -$5,500 for just the heat pump unit in an average home (3 ton capacity). More expensive models include options such as a two-stage compressor or a hot water heater.
- Installing a completely new dual-fuel system with both electric heat pump and fossil fuel furnace can run $5,000 -$10,000 or more, depending on the type and quality of heat pump and furnace.
What should be included: | - A dual fuel or add-on heat pump is most effective in areas where winter temperatures are usually above freezing, but can drop below freezing at times. Most often a dual-fuel system pairs an outdoor electric air-source heat pump with an indoor natural gas or propane furnace, although there are some packaged, single-unit systems and a few systems use a geothermal (ground-source) heat pump.
- In existing homes with separate heating and cooling systems, a dual-fuel heat pump is most often used to replace the outdoor air conditioning unit, creating a dual-fuel system with the existing furnace. Similar to a hybrid car, the two units work in tandem and switch depending on which fuel source is more economical and efficient. Most systems allow you to select the outdoor temperature (usually 25 to 35 degrees) at which the switch is made. In summer, the heat pump provides cool air by transferring the indoor heat outdoors. EnergyRight.com gives an overview.
Additional costs: | - In an older home adding an electric heat pump might require hiring an electrician to upgrade the electrical panel to 200 amps, which can cost an additional $1,300 -$3,000.
Discounts: | - Utility companies and other agencies may offer rebates when you purchase an energy-efficient dual-fuel heat pump; check with your local power company or search for rebates listed at EnergyStar.gov.
- Some energy-efficient heat pumps may qualify for a federal tax credit.
Shopping for a dual fuel heat pump: | - Major manufacturers include Armstrong Air, Carrier and Lennox. The Department of Energy lists factors to consider in buying an energy-efficient air-source heat pump.
- The Cornhusker Public Power District provides a checklist for hiring a heat pump contractor. Contractor referrals are available from the North American Excellence certification program and the Air Conditioning Contractors of America -- and your local power company may have a list of contractors in your area.
- Get several estimates, making clear what is (and isn't) include in each quote. Request and check references; ask about the contractor's length and type of experience; and be sure the company is properly bonded, insured and licensed in your state. Check whether there are any complaints with the Better Business Bureau.
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Article updated February 2009 |
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