Rather than generating heat like gas-powered furnaces do, electric heat pumps simply move it from one area to another. When your home is cold, the heat pump moves heat from outside indoors. When your home is too hot, a heat pump can cool it down by transferring the heat outdoors. This technique makes heat pumps much more efficient than gas furnaces, saving energy and money, and reducing greenhouse gas emissions.  

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There are two common types of heat pumps: ductless mini splits (for homes without existing heat ducts) and ducted split heat pumps (for homes with existing heat ducts).  

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Rebates

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You can currently receive between $4000 and $8000 in incentives for a heat pump!

 

The City of Albany is currently offering a rebate for heat pumps. Learn more here!

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A Federal Tax Credit of up to $2000 is available for heat pumps.

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BayREN offers rebates for home energy improvements.

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TECH Clean CA offers a $1000 rebate per heat pump unit, up to $2000 per home.

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*Please note that to take advantage of BayREN or TECH rebates, you must use a BayREN or TECH participating contractor. 

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Costs and Savings

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On average, heat pumps are $5,000 more expensive than a standard gas furnace. However, this can vary significantly depending on the type of heat pump and the specifics of your home. Heat pumps are also much more efficient and thus could result in savings on your energy bill, especially if paired with solar. 

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Energy Bill Costs/Savings

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Heat pumps are much more efficient than gas furnaces and can potentially save roughly $150 per year on your energy bill, even considering the fact that electricity is more expensive than gas. If you replace a gas furnace and an air conditioning unit, a heat pump will save between $200-$400 a year.

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Contractors  

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Visit BayREN to find participating contractors that are specially trained to provide the highest quality service and installation for qualified home energy improvements. Participating BayREN contractors will also assist you through the rebate process to make sure you get the best price on your projects.

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Permitting

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Installing a heat pump requires a building permit.   To receive your permit, fill out this application and email it to permits@albanyca.org.  This is an over-the-counter permit that is typically issued within 1-2 business days. 

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Please note that your outdoor condenser unit cannot be located in a sideyard within 5 feet of the property line.  Your permit application should include a site plan showing the location of the condenser unit and distance to property lines.

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Learn more about permits here and for more information contact jerlich@albanyca.org.

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Learn more about heat pumps and other ways to lower your carbon footprint at Carbon Free Albany.