Our AC + furnace system is close to 10 years old, and the utility bills have been climbing every year — high gas costs in the winter and steep electric bills in the summer. It still runs, but efficiency clearly isn’t what it used to be.
I’m considering replacing everything before summer with a 2 ton central heat pump from Costway. We already have ductwork, so installation wouldn’t require major changes.
From a purely frugal standpoint, here’s how I’m looking at it:
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Estimated total upgrade cost (equipment + install): ~$5–6k
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Current annual heating + cooling cost: roughly $2,800–3,200
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Neighbor who upgraded to a newer heat pump said their total energy use dropped around 25–30%
If those savings are realistic, that’s roughly $700–900 per year, which puts payback somewhere around 6–8 years, potentially faster if energy prices continue rising.
For those who’ve switched from an older AC + furnace to a modern central heat pump, did your savings actually match projections? And did you feel upgrading before a full system failure was the right financial move?
Trying to determine if this is genuinely a long-term frugal decision or just a big purchase that feels smart in theory.
Is Upgrading to a Heat Pump Actually a Frugal Move?
byu/Lil_SweetCream inFrugal
Posted by Lil_SweetCream
6 Comments
[https://www.youtube.com/watch?v=K2c6Rucbi84](https://www.youtube.com/watch?v=K2c6Rucbi84)
I would go for a programmable thermostat first and manage use patterns before I’d throw the baby out with the bath water.
Much cheaper venture
Please take the time to actually assess your required loads, because your assumptions of cost might be based on an overly conservative basis of design and therefore oversized system.
Its not the easiest thing to do, but its worthwhile. You can get a really close estimate without being an expert.
We took a community college extension course to learn the procedures and did the installation ourselves. Spent $3K on equipment, tools, and training. It’s paid for itself many times over.
That amount of DIY isn’t for everyone. Yet if you cut out the contractor, the savings come quickly.
Incidentally, the change also gained us a closet in the laundry room where the old furnace used to be. We now use that space to grow microgreens.
Yes, frugal if sized right, but 6-8 yr payback assumes your house isn’t a heat sieve. Heat pumps save 25-50% vs old furnace/AC by moving heat (COP 3+), but only if insulation and windows seal drafts; poor envelope means constant runtime/no savings.
Make sure you are using the correct energy costs when projecting future costs many companies use base electrical pricing not mentioning the fact you will be in teir 2 or 3 pricing due to monthly consumption.
We have a new 97% gas furnace and 8 yr. old air to air heat pump.
The furnace easily out performs the heat pump in comfort, noise and operating cost.
The heat pump requires the furnace fan to run full speed its noisey and you have very high air flow out the registers.
Its half the cost to run our furnace vs. the heat pump.
We only use the pump for A/C now.