Heat Pump VS Furnace | Which One Is Right For You?
As a multifamily building owner, choosing the right heating and cooling system is crucial for ensuring comfortable living conditions for your tenants, saving on electricity bills, and making the best decision for your asset in the long run. With so many options available in the market, it can be overwhelming to decide which one is right for your property. Two of the most popular options for heating your buildings are heat pumps and furnaces. In this article, we will compare both systems to help you make an informed decision.
Heat Pump VS Furnace
Before we dive into the comparison, let's first understand the general difference between heat pumps and furnaces.
Functionality: Single Function of Heating With A Furnace VS Dual Functioning Heat Pumps
A furnace only provides heating, whereas a heat pump can provide both heating and cooling functions. This means that with a heat pump, you don't need to install a separate air conditioning system, making it a more cost-effective option in the long run. Heat pumps also help in filtering and dehumidifying the air inside the home.
Mechanism Of Heat Pump VS Furnace
The mechanism of both systems is also different. A furnace uses fuel combustion to produce heat, while a heat pump transfers heat from one place to another using electricity, both in the summer and winter seasons. This means that a furnace requires a fuel source, while a heat pump requires only electricity to function. Additionally, when compared to electric resistance baseboard heating, heat pumps are 75% more efficient. This means that while heat pumps use electricity, the technology is designed to use a very small amount.
Size & Type Of Equipment To Be Installed
Another factor to consider is the size and type of equipment to be installed. Furnaces are typically larger than heat pumps and require more space for installation. On the other hand, heat pumps come in various sizes and configurations including mini-split, VRF, and through-wall. Heat pumps come in various sizes and shapes, making them a versatile option for different types of buildings. They require less space than furnaces, and some heat pump models don't require an outdoor unit. Heat pumps can be installed in a variety of ways, including low, high, vertical, and horizontal mounting. They're ideal for buildings with no balcony options or limited outdoor space.
Costs Of Installing: Heat Pump VS Furnace
The cost of installation is an essential factor to consider when choosing a heating and cooling system. The cost of a furnace installation is typically lower than that of a heat pump installation. However, heat pumps are more energy-efficient, which can lead to significant savings on electricity bills in the long run. Heat pumps also add to the value of your asset, due to their energy efficiency and ability to provide air conditions.
Incentives/Rebates For Heat Pumps VS Future Carbon Taxes And Fines With Furnaces
With the Inflation Reduction Act passed in the US and the Canadian Rebate, governments in both countries and all across the world are actively promoting the retrofitting of multifamily and commercial buildings. Currently, there are many incentives and rebates available for the installation of heat pumps, including federal tax credits, state incentives, and utility rebates. These incentives can help to offset some of the upfront costs of installing a heat pump, making it a more affordable option for many building owners.
In addition, there is a growing concern regarding carbon emissions, which can result in future carbon taxes and fines for furnaces. Governments will soon be issuing fines to building owners that fail to retrofit their buildings from gas to electric in an effort to reduce their greenhouse gas emissions. We are already seeing this in New York City with Local Law 97. As governments around the world work to combat climate change, it is likely that carbon taxes and fines will become more common for buildings that rely on fossil fuels for heating. Heat pumps are a more environmentally friendly option, making them a safer long-term investment.
Maintenance Costs
The maintenance costs of both systems are also different. Furnaces require regular maintenance to ensure they function correctly, which can add to the overall cost of the system. While heat pumps require significantly less maintenance.
While heat pumps require significantly less maintenance. Some of the maintenance tasks that may be required for a heat pump include cleaning or replacing air filters, checking and adjusting refrigerant levels, and inspecting and cleaning the outdoor unit to remove any debris or obstructions. However, these maintenance tasks are typically less frequent and less costly than the maintenance required for traditional heating and cooling systems, making heat pumps a more cost-effective option in the long run.
Energy Efficiency Rating
Energy efficiency ratings are a crucial factor to consider when choosing a heating and cooling system. Heat pumps are typically more energy-efficient than furnaces, which can lead to significant savings on electricity bills. Heat pumps have a higher SEER (Seasonal Energy Efficiency Ratio) rating than furnaces, making them a more energy-efficient option.
Electricity Bills
As mentioned earlier, heat pumps are more energy-efficient than furnaces, which can lead to significant savings on electricity bills. With a heat pump, you can expect lower electricity bills.
Effects On The Climate Crisis
HVAC systems play a vital role in energy consumption and carbon emissions. Heat pumps are a better option for the environment as they use renewable energy sources such as air, water, and ground to heat or cool buildings, in combination with a small amount of electricity. In contrast, furnaces rely on burning fossil fuels to generate heat, which results in the emission of harmful gasses like carbon dioxide, sulfur dioxide, and nitrogen oxide. A heat pump is the most sustainable and eco-friendly choice as compared to other traditional equipment for heating and cooling.
Carbon Footprint Comparison
The carbon footprint of a heating system refers to the amount of greenhouse gas emissions generated during its operation. A heat pump produces fewer emissions than a furnace due to its use of renewable energy sources. According to the Department of Energy, heat pumps can reduce energy use and greenhouse gas emissions by 50% compared to a furnace.
Renewable Energy Sources
Renewable energy sources are critical in reducing carbon emissions and mitigating the impact of climate change. Heat pumps are designed to work with renewable energy sources, such as solar panels or wind turbines, making them a better option for environmentally conscious building owners. In contrast, furnaces rely on non-renewable sources such as natural gas or oil.
Air Quality
Heat pumps improve indoor air quality by filtering, purifying, and dehumidifying the air. They also maintain a consistent temperature, which reduces humidity levels and prevents the growth of mold and mildew. Additionally, some heat pumps on the market offer ERV add-on modules that offer MERV 13 filters to purify the air to high standards. In contrast, furnaces don't filter or purify the air, which can lead to poor indoor air quality and health issues such as allergies and respiratory problems.
Life Expectancy: Heat Pump VS Furnace
Heat pumps have a lifespan of around 15 years, while furnaces have a little longer lifespan, typically lasting up to 20 years with proper maintenance. The lifespan of a heating system depends on various factors such as usage, maintenance, and environmental conditions. However, the lesser maintenance cost and the lower energy bills with heat pumps make them the ideal choice for heating and cooling.
Factors To Consider Before Choosing The Right Heating & Cooling System For Your Building
Before making a decision, there are several factors to consider when choosing the right heating and cooling system for your multifamily building. These include the size of the building, budget, climate change goals, dual functionality, geographical location, rebates, and carbon taxes. Additional factors to consider include the mechanism of operation, installation costs, maintenance costs, energy efficiency, electricity bills, climate crisis impact, carbon footprint, renewable energy sources, space requirements, air quality, and lifespan. Each option has its advantages and disadvantages, and the choice depends on the building owner's specific needs and goals. Consult with one of our heating and cooling experts to determine the best option for your building and climate goals as well as your tenants' comfort.
