Stay comfortable all year
Benefits:
- One unit to heat and cool your home
- 3-4 times more efficient than standard air conditioners or gas furnaces
- More consistent
- More control
- Quieter
What is heat pump technology?
Home appliances that use heat pump technology run on electricity and transfer heat depending on where it is needed. A heat pump HVAC system pulls heat from outside for heating indoors and pulls out heat from indoors for cooling. Heat pump technology is continuing to grow and can currently be found in water heaters, heating and cooling, and clothes dryers.
Types of Heat Pump HVAC Systems
There are different types of heat pump HVAC systems available:
Energy sources:
- air-source (most common and affordable)
- water-source (need water source nearby)
- ground-source (more expensive but most energy efficient)
Setup type:
- ducted (can connect to central ductwork already in place)
- ductless mini-split (no need to install ducts)
- ducted mini-spilt (works for short lengths of already installed duct work)
Average Project Costs
The average project costs for a single family home in San Jose (including equipment, installation, and permits) is $14,000 to $19,000 before incentives. If a panel upgrade is needed, this can add an average additional $3,000 to $5,000. For comparison, replacing gas heating and cooling equipment costs $17,000-$23,500.
By switching from a central A/C system to a heat pump system, your household can save $300-400 per year on operational costs.
Rebates and Incentives
Residential
$1,000 rebate for replacing gas furnace and air conditioner with ducted heat pump or replace wall/floor furnace with ductless mini-split heat pump. You must work with a BayREN contractor for the BayREN rebates.
Bonus rebates:
- $500 for combining system upgrade with qualifying attic or wall insulation
- $100 for downsizing heating and/or cooling system
- $100 for combustion appliance safety (CAS) test out of unit shared an exhaust pipe with a gas appliance still in operation. Not available as a standalone rebate
Inflation Reduction Act (IRA) – Rewiring America
Tax credit of 30% of the costs (including labor) up to $2,000 per year for adding a heat pump system to an existing home
Contractors
Incentives starting at $200 and up for replacing an existing residential central air conditioner and natural gas furnace for a new split system heat pump
$1,000 per unit (limit of 2 per household) for installing a new heat pump HVAC system. Must be replacing a non-heat pump system in an existing home.
Permits
More information on specific permit requirements coming soon
