How to: Heating goes electric

Thinking about a heat pump or an electric furnace? Here’s what you need to know about your options to rely on clean heat.

Staff | TPIN
A heat pump installation.

You’ve decided to invest in a new appliance to heat your home and want to go electric. But changing out appliances for home heating can be complicated – many people don’t know where to start. We’ve put together this guide to help you figure out what electric furnace or heat pump is right for you.

Why go electric for heat?

As long as your home relies on fossil fuels like methane gas, heating oil, or propane for heating, you’re missing out on reaping the benefits of clean energy. Every day that we don’t switch over, we’re missing an opportunity to improve our health and save money long term.

By relying on electricity to heat your home, you can avoid the hazardous health impacts of burning fossil fuels anywhere in your home. When a fossil fuel is combusted, it releases harmful toxins like carbon monoxide, nitrogen oxide, and particulate matter, all of which have an adverse impact on human health.

So what appliance to get?

If you’re going to go electric, we recommend using a heat pump. A heat pump is a device which moves heat from one place to another, rather than creating heat. This makes heat pumps much more efficient at using electricity because they don’t lose energy through resistance. Where gas or electric furnaces are only able to get out 60-80% of the energy put in, heat pumps can provide up to 6 times (600%) the amount of energy used in heat. The cost for a heat pump, while typically a bit more expensive, is also comparable to that of a gas or electric furnace, particularly given that heat pumps tend to save you more money over time. Heat pumps do this primarily by replacing not only a furnace or boiler, but also an air conditioner – a heat pump can work in either heating or cooling mode year-round. For more on what types of heat pumps there are and how they work, read our article on considering a heat pump.

What kind of heat pump would I need?

The kind of heat pump you need depends on where you live. Although heat pumps traditionally work very well in places where there is a large demand for cooling and a smaller demand for heat like in many southern states, more cold-climate heat pumps are entering the market. These heat pumps are designed to work in places with more extreme temperature differences between seasons, making heat pumps a viable option even in much colder areas.

You’ve settled on getting a heat pump … now what?

1. Determine if you need to upgrade your electrical panel

The first step is to determine if you need to upgrade your electrical panel. This has to do with the amperage in your house, or the amount of electricity that flows into your home. Amperage is a big factor in what electric appliances you can use because larger electric appliances like a heat pump or induction stove require much more electricity at any given time to run.

Most modern homes are installed with 100 amps (100A), with some larger homes having 200A and some older homes having 60A. Older homes should almost certainly upgrade their electrical panel – it is likely that the older panels will fail and/or be unable to accommodate the amount of electricity that many Americans now expect.

If you’re only installing a heat pump, 100A will more than likely suffice. However, if you’re looking for a little more flexibility or looking to add on more electric technologies, like an electric or induction stove or buying an electric vehicle with an at-home charger, 200A would be best. Any electrician in your area should be able to help you there. Rebates will be available for electric panel upgrades starting in 2025 through the Home Electrification and Appliance Rebate Program, which was funded by the 2022 Inflation Reduction Act.

2. Air source or geothermal?

As we talk about in our article on considering a heat pump, heat pumps are generally either air source or geothermal (ground source). The source is where the heat pumps draws heat from – either the air or the ground. While both function the same way, they have their differences. Air source heat pumps are relatively easy for contractors to install, causing no more trouble than a new furnace or water heater. They are generally less expensive and require less space overall.

In contrast, geothermal heat pumps are generally more expensive and the installation process is much more involved because pipes have to be laid into the ground. That said, geothermal heat pumps also last the longest of any type of heat pump and are the most efficient option available. This is because geothermal heat pumps pull heat from underground, where the temperature is relatively constant year-round. Some communities are exploring geothermal networks, where multiple homes share common pipes in the ground, making geothermal more accessible.

There are also other, smaller options like mini-split heat pumps. These function somewhat like window AC units – they don’t require intensive installation, are less expensive, and generally more accessible to renters. However, they are also less efficient.

3. Sizing your heat pump

If you look up “what size heat pump do I need?” you’re likely to encounter a myriad of rules of thumb and standard sizing – most of these will give you wildly inaccurate results, from being far too small to accommodate the heating needs of your home to being far too large. While it may not seem like a big deal to err on the side of caution and oversize your heat pump, this can actually lead to worse performance for the heat pump over time. Plus, it will increase your electricity bills significantly.

The best thing to do here is leave this to a professional, but to compare their options. Shopping around will give you a good, realistic estimate of how large your heat pump should be.

Finding a contractor

The first thing to know is that not all contractors even know what a heat pump is or how to install one. Many of them are still learning about these technologies, just as we are, so you might have to ask around and talk to your neighbors to find a contractor that works for your needs.Some contractors may even try to dissuade you from going all electric, or give wildly inaccurate estimates for a heat pump that are both too big and too expensive. This is why it’s important to get multiple opinions and to always stay persistent! 

There are many contractors who are able to install heat pumps for a reasonable price, and remember, if a contractor says that heat pumps don’t work in Illinois or in cold areas in general, they are wrong.

How to save while going electric

While heat pumps are much more affordable now, they do have a not-insignificant upfront cost. However, in Illinois, there are a number of resources to help you save money.

Illinois provides rebates for heat pumps through the Illinois ENERGY STAR Appliance Rebate Program using federal funds from the Inflation Reduction Act. There are also tax credits available directly through the Inflation Reduction Act for up to 30% of the heat pump’s installation costs. ENERGY STAR also provides a rebate finder that will help you find rebates from the state or federal government in your area.

Your electric utility may also have rebates available for heat pumps. ComEd, for example, provides a rebate of up to $1400, as long as your machine meets minimum efficiency requirements. Ameren, similarly, provides rebates for heat pumps after households have completed a free energy assessment.

And finally, depending on where you live, there may be funds available through your local government. In Oak Park, for example, residents can apply for the Oak Park Energy Grant, which can provide up to $10,000 for energy-saving measures in the home. 

Other things to consider

It would be worthwhile to first see where your home could be better insulated or if you have leaky air ducts to begin with. Improving these areas of your home by “tightening your envelope”, or reducing the amount of air and heat that leaks out of your house first will lead to an overall reduction in energy bills.

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Authors

Kaleigh O'Brien

Clean Energy Associate, Illinois PIRG Education Fund

Kaleigh works on clean energy campaigns in Illinois. Kaleigh lives in the Chicago suburbs, where she can be found with her nose in a book.