A report on the 2021 Pacific Northwest heatwave by RMI found that a Seattle home equipped with a heat pump would save $228 annually compared to conventional cooling and heating systems and reduce the building’s carbon dioxide emissions by about 25%.

“While more and more people in the United States and around the world look to add cooling to their homes, it’s important to ensure that cooling equipment has minimal climate impact,” the report stated.

Equipment and installation costs typically run from $4,000 to $12,000 for an air-source heat pump, depending on the size of the pump, the brand, and whether you use a ductless system. The price of a conventional air conditioning system ranges from $3,800 to $7,500 while a gas furnace costs $2,000 to $6,000. In other words, installing a heat pump to cool and heat your home costs roughly the same as buying a separate air conditioner and furnace.