Sunday, July 2, 2023

Information on Replacing Your Air Conditioning with Heat Pumps/Mini Splits

 

Information on Replacing Your Air Conditioning with
Heat Pumps/Mini Splits




Hi, all - a neighbor reached out to me recently asking for contractor and financial information around heat pumps.  Below is a slightly more polished version of what I sent her.
(Note:  I refer to heat pumps, which are used with furnaces because the venting is already in place.  If you have a boiler, you would want to ask about mini-splits.  Same mechanics, just no vents.  Information on contractors and finances is the same.)

1) One thing to know is that you will still need a backup to the heat pump, since it only works down to a certain temperature.   15 degrees is usually the cutoff point, but the heat pump should work down to negative 15 degrees.  (15 degrees is the most efficient.)   A furnace should be fine.

2) Here is a link to an article on how they save you money in the long run - https://carbonswitch.com/heat-pump-vs-ac/#Is-there-any-reason-to-go-with-traditional-A-C-

3) I now have 2 heat pumps since I live in a duplex.  The one downstairs (installed in 2021) is backed up by a gas furnace and cost about $11,000 - $12,000, which included replacing my furnace with a high efficiency furnace.  Perfection Heating put it in.    The upstairs unit (installed this past spring)  is backed by an electrical coil, cost about $13,000 (including the coil) and was put in by 4Front Energy.    I would recommend both companies.  The only reason I switched to 4Front Energy was they provided a lower bid than Perfection Heating, which I believe was caused by the electrical coil.    I don't know what impact the electrical coil will have on my electric bills this coming winter, so can't yet recommend it.  

If you are wondering how I afforded this, I signed up for Minneapolis' 4D Program for landlords -  4d Affordable Housing Incentive - City of Minneapolis (minneapolismn.gov), which paid 70% of the cost.   If you are a landlord and have questions about that, feel free to reach out.

4) If you want more names of contractors you could call, check out this list - https://www.mnashp.org/preferred-contractor-network-homeowners.   You can try other contractors, but may get someone who tries to talk you out of it.  Heat pumps are relatively new in Minnesota and some HVAC companies aren't quite comfortable with them yet.

5) MNCEE offers 0-2% financing if you've had an energy audit in the last 3 years.  https://www.mncee.org/mpls  

6) There should be a rebate with the unit as well, which the contractor should take care of for you.

7) I'm attaching a summary of what tax credits you would also get.  Be sure to read the second page.   MNCEE can help you walk through these decisions as well.
https://mcusercontent.com/8a12b3152d8f70e97e090b501/files/91022625-c715-4f1e-c2ab-1c105c0e7081/IRA_Tax_Credits_for_Households_compressed_1_1_.pdf

Mary Britton
'25% by '25' Initiative