Should you replace your air conditioning system with another air conditioner or a heat pump?
It's a question more homeowners are asking, especially now that energy efficient heat pumps qualify for thousands of dollars in government rebates.
But rebates aside (we'll talk more about them later in the article), deciding between an AC and a heat pump depends on a few different factors. These include the attributes of your home, your budget, and individual preferences.
It's also important to understand the differences between an AC and a heat pump so that you truly understand what you're getting with each option.
Let's start there. After considering what ACs do vs. what heat pumps do, we'll go over some reasons to select one over the other for your next HVAC system purchase.
What does an air conditioner do?
An air conditioner removes heat from your home and pumps it outside. That's really it!
Ok, there are some other things it does in the meantime. While it's removing that heat, it also removes humidity from the air. Moisture from the incoming air condenses on the AC's evaporator coil and is eventually piped out of your home via a PVC drain line.
Air conditioners also contain a filter. Air entering the air conditioner is filtered of dust, debris, and contaminants before the heat and humidity are removed.
Ultimately, the air that comes out of an AC is cooler, drier, and cleaner than the air that went in.
Of course, there are different kinds of air conditioners. There are old school window units (loud, not so pretty), ductless mini-splits (quiet, prettier… maybe?), and central air conditioning systems that use ducts.
For the heat pump vs. AC debate, we're typically talking about this last type. People want to know if they should replace their central air conditioner with a similar machine or get a heat pump, which is a slightly different machine.
While an AC uses the same ducts as your furnace, it's important to remember that an air conditioner and a furnace are different pieces of equipment that use different fuel sources.
An air conditioner uses electricity. Most residential furnaces in the Atlanta area burn natural gas.
So when you have an air conditioner, you also need something that will heat your home in the winter. Most people with ACs also have furnaces.
What does a heat pump do?
A heat pump removes heat from your home and pumps it outside. Notice how that's the exact same thing an air conditioner does!
So, wait a second. Are heat pumps and air conditioners the same?
Yes, and no. A heat pump can do everything an AC does: remove heat, lower humidity, filter your air, and cool your house down when it's hot outside.
But a heat pump also does something an AC can't do.
A heat pump can work like an air conditioner in reverse.
Instead of removing heat from your home and sending it outdoors, a heat pump can remove heat from the outdoors and send it into your home.
So if you've got a heat pump, you don't technically need a separate machine to heat your home. The heat pump does both.
How does a heat pump remove heat from the outdoors when it's cold outside?
We thought you might ask that! It's almost always the next question.
Although it might feel cold to you, there is still some heat in the air during the fall and winter months. A typical heat pump can efficiently remove heat from the ambient environment until temperatures dip into the 30s. After that, you've got three options:
- Rely on the heat pump's heat strips. Heat pump systems are equipped with heat strips, also known as auxiliary heat. When it's too cold to remove enough heat from the outdoors to heat your home, the system will activate these. Heat strips will heat your home, but they're basically giant heating coils that use a lot of power. They're a rather inefficient way to heat your home in the winter.
- Use a dual fuel system. Many people with heat pumps also have a gas furnace. However, they only use the gas furnace on the coldest days and nights when they would otherwise have to use heat strips. With these dual fuel systems, they enjoy better efficiency than what they would get with heat strips.
- Get a cold climate heat pump. Also known as hyper-heat pumps, these systems use an inverter driven design to continue cranking heat out of sub-30-degree outdoor air. They're the most efficient heat pump systems you can buy.
So, there you have it! A heat pump can cool and heat your home. It's an AC and an electric heating system. Plus, you've got multiple options for the coldest times of year.
When should you choose an air conditioner over a heat pump?
You should choose an air conditioner over a heat pump when any of the following are true:
- You've run the numbers and an AC/furnace combo is a better long-term buy.
- You prefer the heat from a gas furnace compared to heat produced by a heat pump (it does feel a little different).
- You've already got gas lines and want to optimize efficiency with a dual fuel system.
- The cost of a cold climate heat pump exceeds your budget for a new HVAC system.
Most homes in the Atlanta area have air conditioners and furnaces. That being the case, lots of folks just stick with what they know.
"I've already got gas lines," they reason. "I may as well use them."
And while that's totally fine with us, this way of considering the AC vs. heat pump question neglects the potential cost savings of a heat pump system and/or a dual fuel arrangement.
At the time of publication, heat pumps almost always cost less than AC/furnace combos thanks to Georgia's energy rebate programs. Plus, there's the dual fuel option if you want to keep a furnace but minimize operating costs.
That being the case, we think it's also smart to ask…
When should you choose a heat pump over an air conditioner?
You should choose a heat pump over an air conditioner when any of the following are true:
- Your home doesn't have gas lines, so a heat pump it is!
- You want to use a dual fuel system, so you get a heat pump in conjunction with a furnace.
- You're on a mission to electrify your home in preparation for a future with cleaner energy.
- You want to save thousands of dollars on your next HVAC system via Georgia's HEAR and HER rebate programs.
- You find the heat from a gas furnace to be too dry and would like a less dry-feeling heat.
We're publishing this article in 2025. At present, it's more economical than ever to get a heat pump for your home.
The limited rebates for heat pumps are truly out of this world. As in, people are saving thousands of dollars on heat pumps, making them a better buy than literally anything else.
What is the cost of a heat pump vs. an air conditioner?
Before the era of multi-thousand dollar energy rebates from Georgia's HER and HEAR programs, upfront costs for heat pumps and ACs were comparable. The operating costs were comparable as well.
But that was in the before times. The current rebates make heat pumps way more affordable for most homeowners in the Atlanta area.
Here's an example. Say you want to replace your AC/furnace system with a heat pump. HEAR rebates are partially based on area median income (AMI) for your area. If you earn 120% of AMI (that's more than the median for your area), you're able to save 50% of the cost of the new unit.
Plus, you can still claim a tax credit of 30% of the remaining balance afterward.
Here's how it breaks down for a heat pump that costs $10,750 with required wiring upgrades of $1,250:
- Heat pump rebate: $5,375 (HEAR rebate)
- Wiring rebate: $650 (HEAR rebate)
- Federal tax credit: $1,793 (30% of the remaining balance)
Net cost for the new heat pump system: $4,182.
There's almost no way you can do better than this, price-wise! Keep in mind that when the rebate funds run out and/or federal heat pump tax credits expire on December 31, 2025, your costs for a heat pump will be higher.
Conclusion: There's no universal answer to the AC vs. heat pump question.
The answer depends on your budget, your priorities, and the attributes of your home.
While many folks are benefiting for the unprecedented reduction in heat pump prices due to limited energy rebates, you will need to run the numbers and consider your preferences when choosing between an AC and a heat pump.
If you live in Metro Atlanta and are considering replacing your AC, PV Heating, Cooling & Plumbing can help! We're also an approved contractor for Georgia's energy rebate programs, so we can handle all of the rebate paperwork for you.
Call us today at (404) 798-9672 or schedule an appointment online!
