Case Study- Hsiu-Chin W. and Steve S.
Embracing the Future of Heating: The Hsiu-Chin W. and Steve S. Story on Switching to Heat Pumps
In recent years, there has been a noticeable shift in homeowner preferences from traditional gas furnaces to more energy-efficient and environmentally friendly heat pumps. This case study explores why homeowners choose heat pumps and heat pump water heaters over conventional gas HVAC appliances.
When choosing between a heat pump and a gas furnace for home heating, homeowners must consider various factors, including efficiency, cost, environmental impact, noise levels, and the specific climate of their region. I asked Hsiu-Chin and Steve of Lawrence Township, New Jersey, who recently went through the Home Performance program with Allied Experts, to upgrade their home HVAC appliances and air seal and add insulation to their home while using the rebates and incentive set forth by PSE&G Energy-Efficient program.
Efficiency and Operating Costs:
Heat pumps stand out for their superior energy efficiency compared to gas furnaces, especially in regions with milder winters. These systems can deliver up to three times more energy than they use, offering both high efficiency and cost savings. Steve S. from Lawrence Township, New Jersey, shared his experience. “Our new heat pump significantly lowered our energy bills, outperforming our old gas furnace in terms of efficiency.” Despite this, heat pumps experience a slight drop in efficiency in very cold temperatures, whereas gas furnaces might be a better fit. Gas furnace efficiency varies from 56% to 98.5%, influenced by factors like age and design. Nevertheless, modern heat pumps have advanced to maintain efficiency even at 0 degrees, thanks to recent technological improvements.
Steve & Hsiu-Chin’s PSE&G bill comparison:

Installation and Upfront Costs:
While the upfront cost of installing a heat pump may be higher than that of a gas furnace, the long-term energy savings provided by heat pumps can balance this initial expense. Many view their heat pump as a wise long-term investment, such as Steve, who noted, “Our heat pump not only reduces our current energy costs but also promises a longer lifespan compared to a furnace.” The financial appeal of heat pumps is further enhanced by tax incentives, such as those offered under the Inflation Reduction Act 2022. This act provides a tax credit of up to 30%, capped at $2,000, for heat pump installations. Additionally, heat pumps are recognized as eligible HVAC equipment in programs like the Home Performance program, providing further support and benefits for their adoption.
Integration with Solar Panels:
Steve and Hsiu-Chin, who have invested in solar panels, stand to gain significantly from integrating a heat pump heating system. Solar panels generate renewable electricity, which can power heat pumps, creating a highly sustainable and energy-efficient heating solution. This synergy allows for a reduction in reliance on the grid, especially in sunny climates where solar energy production is high. Additionally, using solar-generated electricity to power heat pumps can further decrease energy bills, as the cost of solar energy is generally lower than that of grid electricity. Moreover, this combination aligns with environmental goals by maximizing the use of clean energy and minimizing carbon emissions. The integration of solar panels and heat pumps represents a smart investment for eco-conscious homeowners, enhancing both their homes’ energy efficiency and environmental sustainability. This is particularly beneficial for those looking to maximize their return on investment in solar panels, as it allows them to utilize the generated power effectively within their home, thereby achieving greater energy independence and resilience.
Environmental Impact:
Gas furnaces burn fossil fuels and emit carbon dioxide, nitrogen oxides, sulfur dioxide, and particulate matter, harming health and the environment. Heat pumps, on the other hand, are a greener choice as they rely on electricity and do not produce such emissions, contributing to a reduction in carbon footprint. “Choosing a heat pump was part of our commitment to reducing our carbon footprint. Knowing it doesn’t emit harmful pollutants like a gas furnace does make us feel we’re doing our part for the environment.” Like Steve, Many homeowners echo this concern, noting the eco-friendly aspect of heat pumps that don’t emit carbon dioxide or other harmful pollutants.
Noise Levels:
Gas furnaces can be quite noisy, producing sound levels between 50-80 decibels. Heat pumps are generally quieter, making them preferable for maintaining a peaceful home environment. “The peace and quiet is remarkable. Our heat pump runs so much quieter than the old furnace. It’s a relief, especially at night,” says Steve.
Climate Considerations:
Regional climate conditions greatly influence the performance of heat pumps and gas furnaces. Heat pumps are particularly effective in areas with milder winters, as their efficiency can decrease in extreme cold. For instance, New Jersey, known for its moderately cold winters but not for constant severe temperatures, presents an ideal climate for heat pumps to maintain energy efficiency and functionality. In contrast, gas furnaces are more appropriate for regions experiencing consistently cold winters. In some areas, a hybrid system that merges the benefits of a heat pump and a gas furnace could be the optimal choice, ensuring efficient heating and adaptability to fluctuating temperatures. “A heat pump was the ideal choice for our home, given that our area doesn’t experience severe winters,” Steve stated. This reflects the suitability of heat pumps for regions like ours, where winters are relatively mild, allowing these systems to operate efficiently. “Our area doesn’t get too cold in the winter, so a heat pump was the perfect fit for our heating needs.” – This comment from Steve aligns with the advice that heat pumps are particularly suitable for regions with milder winters, as they remain efficient in such climates.
In conclusion, a heat pump is a highly efficient, cost-effective, and environmentally friendly heating solution for homeowners in regions with generally mild winters. However, a gas furnace or a hybrid system might be more appropriate in colder climates. The choice between a heat pump and a gas furnace should be based on the home’s specific needs, considering the local environment, long-term cost implications, and environmental considerations.