Heat Pumps

In the simplest terms, a heat pump is a piece of HVAC equipment that transfers heat from outdoors to indoors and vice versa, working as both a furnace and air conditioner, switching between the two functions with a device known as a reversing valve. The two main types of heat pumps are water source and air source.

Water source heat pumps either transfer heat from a building supplied closed loop water source or from an in-ground closed loop water piping system. Systems that utilize a closed loop underground water source are known as geothermal or ground source heat pumps. The layout of structures and utilities of existing properties makes geothermal heat pumps impractical or too costly for most existing homes as a retrofit option. However, if you are building from the ground up, geothermal systems offer the most efficient means of heating and cooling your home compared to conventional air source heat pumps.

Air source heat pumps or air-to-air heat pumps are what are the most practical and commonly utilized for single family homes today.  The two main types of air source heat pumps are centrally ducted or ductless mini split systems. Centrally ducted systems utilize either air handlers or gas furnaces to serve the entire house or large sections of the house. However, ductless mini split systems serve individual rooms which allows for greater energy efficiency and as well as zoning for improved comfort.

Tobin provides:

Centrally Ducted Air Source Heat Pump Installation, Service and Maintenance Ductless Mini Split Heat Pump Installation, Service and Maintenance Air Source Heat Pump Installation Considerations:

The cost for a standard heat pump installation in the Denver area for a new Lennox central Heat pump system starts at $7830 with Model # ML14XP1 which typically includes the installation of outdoor heat pump condenser(s), indoor air handler section(s), materials, labor & tax*.

Most Centrally Ducted Air Source Heat Pump units in Colorado require a backup heat source for the extreme cold days typically a newer gas furnace to function as a dual fuel high efficiency system. If your furnace is newer than 5-years old, it may be compatible with the newest high efficiency air source heat pump systems.

If your house has duct work and a forced-air heating system, air-source heat pumps retrofit into your existing HVAC infrastructure. If you don’t have duct work, consider a ductless mini split system. Ductless mini split systems use the same approach as centrally ducted heat pumps as the outside air as the source but they are typically for houses without a centrally ducted forced-air heating system.

Most homeowners of existing homes that have a gas furnace will find that retrofitting to a dual fuel system will offer the best energy efficiency regardless of what Colorado’s weather has to offer. The gas furnace heats the house with a lower energy cost during the extreme cold weather events and the heat pump will handle the milder temperatures more efficiently using electricity.

If you have a solar array with net metering, heat pumps can utilize unused power generated by solar for your heating system and lower your energy bill with reduced gas consumption. Fully electrified cold climate air source heat pumps are available as well to further reducing gas consumption by handling the heating requirements during extreme cold conditions.

Ductless mini splits are ductless systems designed to heat and cool homes with no ductwork. Single zone (one indoor unit and one outdoor unit) range in price from $3800 for an air source heat pump to $18,500 for a cold climate air source heat pump.  Multi-zone (multiple indoor units and one outdoor unit) range in price from $8500 for an air source heat pump to $26,500 for a 4 zone cold climate air source heat pump*.

Heat Pump Incentives:

Current Federal tax credit of up to $2000 for a heat pump, and up to $3200 if a new electrical panel is needed.

Xcel Energy Rebates: High 95% high efficiency furnace $300. High efficiency heat pump $1700. Cold climate high efficiency heat pump $2200.

Denver County Residents have a climate action program in addition to Xcel energy until the funds are exhausted for preferred contractor which Tobin is on their list:  $1500 High efficiency heat pump. $2000 for Cold climate heat pump. Each of these programs help pay for a significant amount of upfront costs.

*Assumes standard installation or replacement, permit and electrical upgrades extra. All installs are up to code for the city or county in which you reside. Most installs are custom based on the needs and design of your home. Any code upgrades or additional work such as new duct-work, system sealing or cleanup, or retrofitting are extra. Current rate as of March 2024.