AIR CONDITIONING AND HEAT PUMP SYSTEM REPLACEMENT

A heat pump looks and operates just like your central air conditioner in the summer. A heat pump can reverse the refrigeration cycle and very efficiently produce heat in the winter. High efficiency heat pumps can heat your home for less energy dollars than a high efficiency gas furnace when the outdoor temperature is about 40 degrees and above. Below 40 degrees, the gas furnace will be more efficient than the heat pump, so the system automatically switches to the furnace when the temperature outside is colder. If you think about it, most of the spring, fall and even in the middle of the daytime on many winter days, the outdoor temperature is 40 or above. Traditionally, we haven’t used heat pumps in Utah because we have some of the lowest natural gas costs in the country and the heat pumps aren’t as efficient at cold temperatures outside. In warmer climates (California, Arizona, Florida, Texas type climates) it rarely gets below freezing and heat pumps have been the preferred heating source for about 40 years; so, the technology is proven and reliable.

The benefits to a Dual Fuel System are mostly found in the unprecedented rebates available. This year (2023) has brought a unique opportunity to save a lot of money on a new heating and cooling system. Congress just passed the "Inflation Reduction Act" which ear-marked billions of dollars in incentives to promote residential high efficiency heating and cooling systems among other home energy upgrades. The specific dollar amounts are listed in the next section.

Energy Efficiency:
As you probably know, your heating and cooling systems consume roughly half of all the energy you use in your home. Generally we are using fossil fuels (natural gas, coal, propane, etc) which create air pollution. Here in the Salt Lake Valley, the vast majority of our electricity is created with a coal or natural gas power plant (solar and wind make up about 6-7% of our energy production). When we burn that fuel it creates air pollution, mostly in the form of carbon dioxide, but there are other air pollutants that we signs of in the nasty brown haze that forms during an inversion. The hope is that eventually, most of our electricity production will be from cleaner forms of energy. But for now, the best thing we can do to help clean up the air in the Salt Lake valley is to install higher efficiency heating and cooling systems. The most efficient system that we can install today is a dual fuel heat pump system.

Rising Utility Prices:
Historically, Utah has had inexpensive gas prices that have kept heating costs low. However, as gas prices rise, it may become more cost effective to heat your home with electricity when possible. Installing a heat pump, gives you that option. Because Dual Fuel systems use both gas and electricity, you can choose the most cost effective utility to heat your home. When gas prices are low, you can continue to heat your home with your furnace like you always have, but if the prices rise and it becomes more cost efficient to run your electric heat pump, you will have that option! Whatever the future holds, a dual fuel system will prepare you to save money!

Taking advantage of rebates for the best possible system can save you more than $5,500 in rebates! 
Rocky Mountain Power's Wattsmart program will currently give you up to $1,800 (this is likely being reduced in March of 2023). Dominion Energy's Thermwise program will give you up to $1,200 in rebates with the installation of a new high efficiency "dual fuel (also called a "hybrid") heating and cooling system. As part of the Inflation Reduction Act (the I.R.A.), there is a $2,000 tax credit for high efficiency heat pumps and a $600 tax credit for a high efficiency furnace (AFUE must be greater than 97%). That's a total of $5,600 for a high efficiency heat pump! A breakdown of the available rebates in Salt Lake City, UT are listed below. In order to get all of the rebates, Dominion Energy and Rocky Mountain Power must be your service providers.

Inflation Reduction Act (IRA) Federal Tax Credits Available for High Efficiency Heating and Cooling Systems:
Split System Heat Pump: $2,000
Ductless System Heat Pump: $2,000
Split System Central AC: $600
Natural Gas or Propane Furnace: $600

Wattsmart (Rocky Mountain Power) Rebates available for High Efficiency Heating and Cooling Systems:
90% Dual Fuel Ducted Heat Pump Tier 1: $1,400
90% Dual Fuel Ducted Heat Pump Tier 2: $1,600
90% Dual Fuel Ducted Heat Pump Tier 3: $1,800
80% Dual Fuel Ducted Heat Pump Tier 1: $1,400
80% Dual Fuel Ducted Heat Pump Tier 2: $1,600
Smart Thermostat: $50

Thermwise (Dominion Energy) Rebates available for High Efficiency Heating and Cooling Systems:
Dual Fuel Ducted Heat Pump Tier 1: $1,000
Dual Fuel Ducted Heat Pump Tier 2: $1,200
95% High Efficiency Gas Furnace: $300
97.5% High Efficiency Gas Furnace: $350
Smart Thermostat: $75

The refrigerant (often referred to as Freon) we have used for air conditioners for the past 50 years or so has been determined to be harmful to the atmosphere, specifically the ozone layer.

Ozone is present in the upper atmosphere and protects the earth from the harmful UV rays of the sun. You have probably heard about the hole in the ozone layer that has appeared over Antartica. Scientists have determined that the chlorine that is present in many refrigerant chemicals makes its way up into the upper atmosphere and when chlorine atoms come in contact with ozone (O3) and a new molecule forms called chlorine dioxide (ClO2). This reduces the amount of ozone present in the atmosphere and allows more harmful UV rays to enter our environment. This also contributes to global warming and the additional UV rays can be harmful to the earth and its inhabitants (increases skin cancer for example).

Whether we agree with the science or not, the United States has entered into an international treaty that regulates the use of refrigerants and over time, eliminates the use of any refrigerants that contain chlorine. Since the early 1990s, scientists have developed new, non-chlorinated refrigerants that do no harm to the ozone layer. These new refrigerants have been commonly available since the late 1990s and Refrigerant 22 (R-22) is now being phased out over the next few years due to federal law. R-410A is the most common new refrigerant for air conditioning applications and since 2000 has been chosen as the refrigerant of choice by all major manufacturers.

Due to the above schedule in accordance with federal law, we feel it is irresponsible for any contractor to sell any new or replacement air conditioning unit today that uses R22. They are still available today but will become largely obsolete by 2015, surely so by 2020. Whenever any customer has a major repair that requires the addition of any significant amount of refrigerant or replacement of the refrigerant, we strongly recommend considering replacement of the unit with a new unit that uses chlorine free R410A, especially if that unit is over 15 years old (the average life of a residential AC unit in the US). In the long run, it is a better value for the customer and it's better for the environment.