Heat Pump Buying Guide

Does my home have a central air (ducted) system?

If so, consider a ducted air source heat pump. Consider a ductless mini-split heat pump if there is no usable ductwork or existing ductwork is insufficient to maintain comfort. There may also be opportunities to reuse some ductwork for a combination of ducted and ductless multi-split systems. 

I want to install a heat pump to add cooling to my home, but I have a new furnace. Is a heat pump compatible with my furnace?

Most heat pumps will need a furnace with a variable-speed motor or ECM. Tell your contractor you would like to keep your existing furnace and ask if they can look for models that are comparable to the existing furnace.   

Am I installing a heat pump for a single room, addition, or another partial area within a larger house?

If so, consider a ductless mini-split heat pump.

Do I need a backup heat source?

The contractor should run a Manual J and Manual S analysis to determine if you need backup heat. Manual D calculation often accompanies a Manual J/ S as it informs system design. You will do this calculation before system selection.

Cold climate heat pumps can serve many Denver homes without a backup heat source. The higher the heating load, the more likely you will need backup heat. Higher heating loads can occur with homes with a large area, more windows, poorly insulated envelopes, and/or more leaks in the exterior walls or roof. You should consider air sealing and insulation with any HVAC upgrade.

I need a backup heat source. Should it be gas or electric?

If you install a mini-split heat pump as a space's only heating system, backup heat will typically be electric. Mini-split systems don't have integrated gas backup options. Installing gas backup heat with mini-splits would require a separate gas heat system with associated ductwork or hydronic piping, gas service, and flues.  

If you're installing a ducted air source heat pump, existing gas service and easy flue routes to the heat pump location will reduce the installation cost of backup gas heat.   

Adding electric backup heat may require upgrading electrical panel capacity on older homes, which can add cost to a project. If your electrical panel is newer and has enough capacity, backup electric heat will likely be less expensive than backup gas heat. 

I'm on a tight budget. Keeping installation costs low is most important to me.  

• Consider a standard heat pump model instead of cold climate technology to reduce installation costs.
• A mini-split may be the most cost-effective option if it is appropriate for your installation. 
• If backup heat is needed and there is sufficient electrical service, backup electric heat may be the lower-cost option. If insufficient electrical service and the natural gas supply already exists, natural gas backup may be the lower-cost option.   
• Secure rebates from Xcel Energy and Denver and claim Colorado and Federal tax credits as detailed in this guide. 

I care about the environment and want to reduce my carbon footprint as much as possible.  

• An all-electric installation will have lower emissions than a dual-fuel heat pump with gas backup heat. 
• A cold climate heat pump will have lower emissions than a standard one. 
• A ground source heat pump typically has the lowest emissions profile but can have high installation costs and may not be feasible for many homes in more urban environments. 
• In general, equipment with higher COP and SEER ratings operates more efficiently with fewer carbon emissions. The ability of a heat pump to operate at a higher COP at lower outside air temperatures is a key driver of lower emissions. 

I care about operating costs and want to keep my utility bills low.

• A cold climate heat pump with no backup heat source will lower operating costs. However, some homes may require backup heating to meet all loads. 
• If backup heat is present, a dual fuel system with natural gas can provide operating cost flexibly in an evolving utility rate environment.   
• A ground source heat pump typically has the lowest operating cost but can have high installation costs. 

I care about comfort, especially on the coldest nights of the year.  

• Consider investing in insulation and air sealing retrofits along with your heat pump installation. 
• A backup heat system can provide extra confidence that sufficient comfort will always be available. 

Prior to Installation

What percentage of your business is heat pump installations? How long have your installers been putting in heat pumps?  

The higher the percentage of heat pump installations, the more likely the installer has ample experience troubleshooting common issues. Ideally, the contractor has been installing heat pumps for over two years.   

Are you on the Xcel Energy Registered Trade Partner list?  

Contractors registered on Xcel Energy's list undergo quality installation training and are familiar with applying for instant rebates on qualifying equipment. You can search for contractors by technology type by clicking "Heating and Cooling" and choosing the technology you want: "Mini-Split / Centrally Ducted / Ground Source Heat Pumps." Note: Xcel's Mini-Split rebate program is open to all registered installers, a registered installer will have an Xcel Trade Partner number but may not show up on Xcel's list if they have not yet received a rebate for a mini-split heat pump system.  

Will you be performing a Quality Installation per Xcel Energy's rebate requirements?   

Even top-end equipment won't perform as you'd like without proper installation. Listen for indicators that the system will be sized through a load calculation, that ducts will be sealed and sized sufficiently, and that the refrigerant charge will be set per the manufacturer's specs. For more information, check out this guide.  

Will I need any other home updates to facilitate my heat pump installation?  

If you have a gas furnace and no air conditioning, or have chosen electric resistance backup, you may need an upgrade to your electrical panel. If you need new ductwork in an older home, you may also need to do asbestos remediation as part of a new HVAC installation. Leaky homes with poor insulation should consider additional air sealing and insulation before selecting a heat pump.  

How long will the process take, including Manual J/S calculations, ordering equipment, and installation?  

Heat pumps are becoming more popular. Some installers work with preferred vendors that could have a limited supply. Other contractors have prior commitments. Understanding a prospective contractor's installation schedule may prompt you to investigate alternative options if you need a shorter timeline.  

Will your quote qualify for Xcel Energy, Denver CASR, and Inflation Reduction Act rebates and tax incentives and show deducts for rebate amounts? 

Xcel Energy and CASR provide "instant rebates" to qualifying contractors. These rebates should be itemized on your quote as cost deducts, and the contractor should warrant that the proposed equipment will qualify for rebates to reduce your heat pump's installed cost. Tax credits from the IRA are active now, but state funding through the IRA will be available at the earliest in the summer of 2023. 

After Installation

How does my backup system work (if applicable)?  

If you installed a backup electric or gas system with your heat pump, ask your installer how it's controlled and how often you should expect it to run. Some systems don't have a set switchover temperature and will provide supplemental heat or switchover once the system cannot maintain the desired indoor temperature. 

How does my thermostat work?  

You can program some smart thermostats to tap into local utility rates and understand their associated demand and time-of-use charges. They might be able to automatically switch between the heat pump and the backup system to optimize operating costs. Ask your contractor to explain how your thermostat operates so that you can get the most value out of your new heat pump installation.