Following a winter in his new 1970s-era house heated with electric heat, East Lyme resident Shaun Baker decided to look into switching to an air source heat pump. He had read about the rebates and tax breaks, so he called 10 contractors from his utility’s approved list.

“I was thinking about getting a conventional central air system. The cost was much greater than a ductless heat pump system. Several contractors explained the old ducted systems were not as energy efficient; there could be leaks over time,” he said. “If I got the central air system, I would need propane or oil, which is another cost. The mini-split ductless system seemed more attractive for the price and the time to install.”

He chose a five-zone system for his 1,360-square-foot ranch, with heating units in each of the three bedrooms, one in the living room and one in the dining room and kitchen area. His contractor, AM Solutions, finished the installation over four days in August. After sweating through July’s heat wave with one window air conditioner, Baker said, he’s happy with the system.

“The whole ecosystem in the house has changed. It’s really cool,” he said. “It’s pretty nice. It does a very good job of circulating the air.”

Lately, news of heat pumps ― which reduce emissions, and save money ― has been ubiquitous. Recent engineering improvements have made heat pumps in cold-weather climates a much more viable heating and cooling solution than they were a decade ago.

How many of these are being installed in southeastern Connecticut? Norwich Public Utilities reports, over the past five years, NPU customer have installed nearly 280 units; another 15 are in process and the utility has received about 750 inquiries on the program, a spokesman said.

Eversource reports, in the 19 communities it serves in New London County, 6,111 heat pumps were installed between 2020 and so far this year. Groton Utilities has given its customers 256 rebates for air-source heat pumps during that period.

Why the growing interest in heat pumps? Even the colder state of Maine, whose residents largely relied on oil heat, has become known as a leader in heat pump installation, according to a Feb. 24 story in MaineBiz. The U.S. Environmental Protection Agency recently awarded the New England Heat Pump Accelerator Coalition, which includes Connecticut, $450 million to help more homeowners install heat pumps. Connecticut is estimated to receive up to $100 million to help residents install heat pumps.

The funds can be used to increase the installation of cold-climate air-source heat pumps, heat pump water heaters and ground-source heat pumps in single-family and multifamily houses.

“The coalition’s intention is to center approximately half of the investment and benefits in historically overburdened and underserved communities, including New London, consistent with the EPA’s Justice40 initiative,” according to a state Department of Energy & Environmental Protection statement.

How do heat pumps work?

Powered by electricity, heat pumps move heat from the outdoor air to inside in the winter and draw heat outside in the summer. They use a refrigerant cycle like that used inside air conditioners and refrigerators. Heat pumps pull air from the outside, run it through the liquid, anti-freeze type refrigerant in a tube and move it inside to heat a building. To cool, they draw hot air out of a building and send it outside.

For people who have electric heat, heat pumps will use 50% less electricity and save money. Window air conditioners use up to three times as much electricity as heat pumps. Heat pumps are the most efficient cooling option because they generally dehumidify the air more consistently and efficiently than central air conditioners. For those heating with natural gas, oil or propane, their electricity use will likely increase; but since heat pumps are so energy-efficient, they will save on heating costs because unless temperatures plunge to lower than 10 degrees below zero, they will not have to pay for natural gas, oil or propane.

There are ground source, or geothermal, heat pumps, and air source heat pumps. Geothermal heating systems are highly efficient because the air underground averages about 50 degrees Fahrenheit year-round in Connecticut.

Because they’re expensive to install, especially for an existing house, geothermal systems make sense for new construction, large buildings such as offices or schools or “if money wasn’t an option,” said Deborah Roe, program manager with People’s Action for Clean Energy (PACE), a public health and environmental nonprofit.

Installing a geothermal heat pump system requires digging beside a house, and the depth and width vary depending on whether a vertical or horizontal ground source system is being installed.

The most common system type in Connecticut is a closed-loop vertical system, reports EnergizeCT. The system circulates an anti-freeze mixture through pipes that extend about 500 feet into the ground within one or more boreholes that are at least 20 feet apart from each other, the site says.

The second most common type of ground-source heat pump in Connecticut is an open-loop system, reports EnergizeCT. This system exchanges water directly with an underground well. Ground water is returned to the well after passing through the heat pump.

Another ground-source heat pump option that is less common in Connecticut due to space requirements is called a closed-loop horizontal system, EnergizeCT says. Similar to the closed-loop vertical system, an antifreeze solution is circulated through pipes that are laid out horizontally at a depth of about 6 or more feet underground, the site says. Horizontal loop systems require more yard space than vertical loop systems. Horizontal systems can cost less to install if the digging conditions are favorable. Closed-loop horizontal systems can be less efficient than vertical systems, due to the greater ground temperature fluctuations at shallower depths, according to EnergizeCT.

Most people in single-family and multi-family homes who are switching their heating systems opt for air source heat pumps, said Bernie Pelletier, vice president of PACE.

Air source heat pumps include an outdoor unit installed on a concrete slab that contains a compressor, reversing valve, heat exchanger and expansion device. The outdoor unit is connected to one or more indoor units by small refrigerant piping, which enables it to absorb and release heat.

Mini-splits? Ductless?

With air source heat pumps, there are ducted and ductless systems, also called mini-splits.

“Ductless systems are less expensive and more efficient,” Pelletier said. “Ductless systems are simple to install. The contractor drills holes through any wall and they can be installed in any house. If you have lots of small rooms, you would have to stick a ‘head’ (heating unit) in every room you wanted heated.”

The heating units can be installed low on the wall, high on the wall or in the ceiling. Baker said if he had chosen the wall units, the whole project would have cost about $16,000. He preferred the aesthetics of the ceiling units to the wall or floor-mounted units, so his system cost about $28,000. The ceiling unit requires about twice as much labor to install, said Baker’s contractor, Aalim Mohamed, owner of AM Solutions of East Lyme.

“I think it’s worth it. If you’re going to have the work done, do it the way you want because it’s going to be there forever,” Baker said. “They look better. They’re out of the way.”

Another East Lyme resident, Tom Mickus, has had heat pumps installed in two houses he and his wife own: their primary house, a Dutch colonial that relied on window air conditioners, and the family’s summer vacation house, which they rent out in the off-season. The couple uses only the first floor, so they had a ductless or “mini-splits” air-source heat pump installed on the first floor, with wall units in each room to cool and dehumidify the house in the summer. They don’t use it for heat in the winter.

Installing window units each year “gets a little problematic when you get into your late 70s. They’re heavy,” Mickus said. They’ve gone through two summers with it and appreciate how quiet it is. “It has worked out exceptionally well. You can cool the whole house for less than with four or five window units.”

Actually, when he compared his kilowatt usage during August 2022 before the heat pump and after it was installed, his usage in August 2022 was 1,322. After installation, his August 2023 usage was 1,019 kWs and in August 2024, 949 kWs. Meanwhile, Eversource’s rates have increased, and so have his costs. His Eversource bills for August 2022, 2023 and 2024 were $347.27, $267.38 and $370.15, respectively.

He is still waiting for his rebate. His contractor helped him fill out the paperwork and gave him a number to call, he said, but he hasn’t followed up.

For people who already have central air conditioning, their homes have heating and cooling ducts in place. They would replace the outside air conditioner with a central ducted heat pump.

Operation costs

For those heating with electricity, switching to a heat pump is a no-brainer, experts said. People with electric heat, like Baker, will see their overall electric use decline because heat pumps are efficient. Electric heat is considered 100% efficient, and heat pumps are considered 300% to 400% efficient.

“It’s always beneficial because a heat pump will take one unit of electricity and turn it into three to four units of heat,” Pelletier said.

In other words, for every one unit (kW) of energy used to power a heat pump, up to three or even four units (kW) of heat energy are supplied.

Those with other sources of heat will see their electricity use increase but their gas, propane or oil heating costs will decrease. For people who use window air conditioners, their cooling costs should decrease, Pelletier said. Energy use for central air conditioners and heat pumps is fairly comparable. For people using only fans to cool their homes, if they run the heat pump air conditioner consistently in the summer, cooling costs will increase. Heat pumps lower homeowners’ carbon footprint by emitting less greenhouse gas, said Jeff Brining, energy services director of Norwich Public Utilities. Electricity companies get a growing percentage of energy from renewable sources such as wind and solar, he added.

On average, customers of Norwich Public Utilities and Groton Utilities should see their energy costs decrease because, while Eversource’s rates have increased, those other utilities’ rates have decreased. Specific savings are impossible to calculate because every home is different and people heat and cool at different temperatures.

Installation costs

The average cost of an air source heat pump in Connecticut is about $20,000; and depending on the size of the house and the type of system installed, most range from $5,000 to $25,000 to purchase and install, said Paul Perkins, owner of Air Flo Mechanical in Colchester. A home’s electric panel must be able to accommodate 100 amps of electricity.

Energy company representatives, heat pump installers and PACE leaders recommend getting a home energy audit before installing a heat pump system. If a home lacks sufficient insulation and has drafty windows and doors, the energy and cost savings will be limited. Eversource and Norwich Public Utilities require customers to pay a co-pay fee, $75 and $50, respectively. Groton Utilities offers the services free to its customers and Eversource offers it free to customers who meet income eligibility requirements.

Timing matters. Homeowners who have just installed a new central air system may not want to remove it, Pelletier said. For homeowners with an older central air system old or boiler, he suggested, “explore your choices now so you’re ready before something breaks down.”

Picking a contractor

Before getting quotes, spend some time learning about heat pumps. Talk to neighbors and friends who have had a heat pump installed and ask for suggestions and contractor recommendations, said Baker, PACE leaders and heat pump installers. Utility companies provide a list of approved contractors on their website, but homeowners, PACE leaders and energy company representatives suggested homeowners do their own vetting. They advise homeowners to get at least three quotes and be clear about what they want a quote for ― so it’s easier to compare estimates.

Consider the business providing the estimate. “A lot of fuel dealers are now installing heat pumps. They might give you a heat pump only designed for AC,” Roe said, since they don’t want to lose you as a customer for the oil, gas or propane they sell. “Look for a cold climate heat pump. Make sure it’s doing heating and cooling.”

Research heat pump companies and compare product warranties. Ask contractors for the manufacturers of the heat pumps they install and why they prefer those brands, suggested Mohamed, of AM Solutions.

If the contractor balks at providing proof of workers’ compensation insurance, their license and insurance and references, consider that a red flag, Mohamed and Perkins said. Contractors are required to pull a permit with the municipal building office so the installation of the heat pump or heat pump water heater work can be inspected.

Baker suggested picking an installer who is local so if there’s a problem in the middle of winter, the contractor will come. Heat pump systems need to be checked spring and fall, he said, so ask contractors if they provide that service and what they typically charge for routine maintenance. He chose Mohamed out of the 10 who provided estimates, in part because he was the only contractor who mentioned the rebates and offered to help complete the paperwork.

The utility companies offer customer service people who can help customers figure out what questions to ask and they can help customers fill out the rebate forms. Representatives suggest homeowners ask the contractor to help them fill it out as well. While it’s the homeowner’s responsibility, reputable contractors and utility companies want customers to qualify for the rebates.

“The rebates are designed to make us do what we should do,” Pelletier said. “The equipment must replace oil, propane, natural gas or electric. It has to have an integrated control” so when temperatures plunge lower than 10 degrees below 0 degrees, the house can supplement with heat from the prior heating source.

After his contractor finished the heat pump system, Baker asked him to come back to install a heat pump water heater before his 25-year-old water heater conks out.

Despite the initial expense, he’s glad he made the switch.

“I chose the heat pump because it’s going to save energy,” said Baker, noting how much hotter summers have become. “I’m all for saving on my electric bill and helping the environment.”

Local resources for information on heat pumps

EnergizeCT: https://energizect.com/explore-solutions/heating-cooling/heat-pumps-heating-cooling

HeatSmartCT: https://www.heatsmartct.org/

Norwich Public Utilities: https://norwichpublicutilities.com/residential/chipp/ or

Groton Utilities: https://grotonutilities.com/232/Energy-Saving-Tips