Heat pumps are becoming more popular in Wisconsin and the U.S. They even sold more than traditional systems in 2022 and 2023, according to MIT Technology Review. However, many homeowners may not know about their benefits.

Heat pumps are a great solution for sustainable home energy. They run completely on electricity! If your home has solar power, or plans to get it, you can offset their use substantially.

Image from New York Times

We all know that solar panels generate electricity from sunlight, but what about heat pumps? This new technology is a hybrid system that can heat and cool your home by connecting to or replacing your HVAC system.

Here, we will explore how solar panels and heating/cooling systems work well together. When used together, they can help homeowners save thousands of dollars over time and offer clean, reliable energy without relying on the utility grid.

What Are Heat Pumps?

At their core, these systems use electricity to move heat from one place to another. One good example is from a similar appliance – the refrigerator. Refrigerators extract heat from inside the appliance and release it outside. Similarly, an A/C absorbs warm air from the inside and moves it outside while moving cold air inside.

Image from Focus on Energy.

Some of the main advantages for these systems include:

• Energy efficiency
  • Heat pumps use less energy because they are moving heat, not generating it.
    
    
• Dual function
  • One system for heating and AC eliminates the need for both. In Wisconsin, many builders integrate heat pump systems into the furnace for our extremely cold weeks. Some also have an electric heater attached.
    
    
• Environmentally friendly
  • Heat pumps operate on electricity rather than fossil fuels which produce greenhouse gasses. Especially when paired with solar, they are by far the greenest option for home comfort.
    

Heat Pumps & The Wisconsin Climate

One question we get often is not only about if solar works in winter, but if heat pumps are effective in Wisconsin climates.

Cold climate heat pumps work well in our cold Wisconsin weather. However, their efficiency may drop when temperatures fall below -5°F. You will still save money, but the system must work harder to get the little heat available at that low temperature.

Our local Johnson Controls is making progress in overcoming cold climate challenges. They are trying to improve energy efficiency of heating and cooling systems in cold weather.

Read more about heat pumps from Johnson Controls.

How Heat Pumps Improve Energy Efficiency

Modern heat pumps are most efficient because they transfer heat instead of generating it. Traditional heating systems burn natural gas to heat homes instead of using electricity. This process is usually less efficient. It requires a lot of energy to create a certain amount of heat.

Heat pumps can create 3 to 4 times more heat than the energy they use. This is because of modern technology and the fact that they do not lose heat through burning.

Image courtesy of Smart Energy Illinois

Unlike traditional furnaces, heat pumps take heat from inside the home and release it outside. They can also pull heat from the outside air, even when it’s cold, and bring it indoors. 

Curious about how they can pull heat from outside when it’s cold? Read more at Yale Climate Connections.

The Environmental Protection Agency says air-source heat pumps can reduce electricity use for heating by up to 50% compared to electric furnaces or baseboard heaters.

They also dehumidify your home better than regular central A/C units. This helps to lower energy use even more.

Environmental Benefits of Heat Pumps

Heat pumps offer more than just savings: they can help your home reduce greenhouse gas emissions. High efficiency, electrical based home heating and cooling combined with complementary solar power maximizes emission reduction. 

A study by the National Renewable Energy Laboratory found that heat pumps can save energy. This is true for the average American home. They lower energy demands by 36% to 64%. This means a reduction of 2.5 to 4.4 metric tons of CO2 each year for each home.

Solar clean energy powers the heat pump with clean electricity. This reduces the need for grid power, which may come from fossil fuels.

Heat Pumps & Solar

Benefits of Pairing Heat Pumps and Solar Panels

Heating and cooling make up about 40-50% of your monthly bill. Additional electrical demands, such as those from the refrigerator, lighting, and television, further increase consumption. Heat pumps are able to drastically cut that average due to their increased energy efficiency.

The system can meet the deferred energy demand during the day and night. Installing a battery can also cover energy usage during an outage. This use of solar energy is free and speeds up the return on investment for both systems.

Incentives

There’s no beating around the bush – both solar and heat pumps are substantial investments into your home. However, Wisconsin does offer various financial incentives, including tax credits and rebates, to make the choice of heat pumps and solar more accessible.

Federal Solar Investment Tax Credit (ITC)

The ITC offers a 30% tax credit for solar installations through 2032. Arch customers have seen an average of $10,000+ in credits after project completion.

Note: this is a tax credit. You will still need to pay the upfront installation costs in full, and specific tax circumstances may apply. Please consult with your tax professional.

Focus on Energy Program
Wisconsin specific program program offering financial incentives for installing energy-efficient technologies

Heat Pump

Up to $1000 rebate.

Solar

$300 cash rebate.

Renewable Energy State Sales Tax Exemption

Solar systems are exempt from sales tax.

Read more about specific energy saving incentives on our residential solar incentives page.

How One Wisconsin Homeowner Ditched Natural Gas

One Wisconsin homeowner installed both solar and heat pumps and is very happy with the results.

“In 2020, I added insulation and solar panels to my 90-year-old, 18,000sf house and then transitioned my house and automobile to “all electric.” Ever since, I have had the pleasure of living in a reliably comfortable, easy-to-energize home and car, and of receiving bills indicating that my utility company owes me money most months of the year. The upfront cost and effort would have been much less now, due to help from the Inflation Reduction Act, but I’d do it all again even without the IRA!”

Read more about how Susan’s home beats the cold while keeping costs down at Yale Climate Connections.

Your Unique Home Circumstances

There are many factors to consider with solar and heat pumps. However, if your home is suitable, this combination is a great choice. The combined power of solar and heating/cooling can help you save thousands of dollars over their lifespan.

Heat pumps are much more efficient than standard furnaces. Combining heating and air conditioning into one system is smart. Using clean solar energy to power it is a great way to be more self-sufficient.

To get a free solar assessment for your home and see if solar is a good fit, schedule a time for home solar consultation today.

To get a quote on heat pumps, contact Professional Services.

More about paring solar with heat pumps from Arch and Professional Services.