Ready to efficiently heat up (and cool down) your home or business? Click here to browse our flexible financing options.
Demystifying Air-Source Heat Pumps
Air-Source Heat Humps (ASHP) not only heat spaces during the colder months but they also cool down spaces during the heat of summer. This eliminates the need for separate heating and cooling systems, saving space and maintenance costs. But, how? Air-source heat pumps transfer heat from one medium to another. To cool your house, they pull heat from the air in your home and transfer it outside. In colder months, air-source heat pumps warm your house by pulling in heat from the outdoors (even in colder weather).
What exactly are the benefits of air-source heat pumps? In addition to their versatility of heating and cooling, they are very efficient and can generate three times more heat energy than the electrical energy they consume. Depending on your previous heating and cooling system and utility rates in the area, it’s possible that these heat pumps can reduce your utility bills. Air-source heat pumps can create a healthy living and working environment by improving indoor air quality and reducing greenhouse gas emissions when powered by renewable energy generation.
Rebates & Incentives
Compared to installing a gas furnace, air-source heat pumps have a higher upfront price tag. Luckily, there are a handful of incentives and rebates programs available to make them more affordable for consumers. For instance, the Inflation Reduction Act (IRA) includes a 30% tax credit, up to $2000, for Energy Star air-source heat pumps. In Colorado, a $1,500 tax credit can be applied to Energy Star-certified air source heat pumps. You can learn more about eligibility and how the process works here.
For Colorado residents, Xcel Energy offers substantial rebates on air-source heat pumps, making energy-efficient heating and cooling more accessible. As of October 2023, if you work with a qualified contractor, you can receive up to $2,200 off the installation cost for a cold-climate heat pump or mini-split system. There’s also a $1,700 rebate for other air-source heat pumps that meet specific efficiency and performance criteria. Check out this new tool developed by Rewiring America to help you find all applicable incentives.
Heat Pump Water Heaters
Heat pump water heaters use an air compression process to increase water temperature. This method works by extracting air from your home and moving into an evaporator where it is compressed. The temperature of the air increases as it compresses which then increases the temperature of water in the tank. This equipment is a great option for homeowners seeking an efficient water heating solution.
Local and state entities have put together regulations related to heat pump water heaters. In California, consumers can no longer purchase new gas water heaters and furnaces starting in 2030. Other states, including Colorado, signed a new agreement aimed at increasing sales of zero-emission heats pump equipment to make up 90% of high-efficiency electric technology sales in residential areas by 2040.
How CCEF Can Help
Whether you’re a homeowner or small business owner, we have a variety of loan options available to help you install a heat pump, which can help lower utility costs, improve air quality, and reduce greenhouse gas emissions.
Click here to view our residential loan programs and click here to view our commercial loan products.
