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Smart Choices

Save Money on a Heat Pump Installation

Updated: Apr 3, 2023


Photo of two men installing a heat pump at a home.
Heat pump installation is more economical than ever before.

Last month’s article about heat pumps pointed out the value of air-source heat pumps as a clean-energy source, their efficiency, the ease of use for both heating and cooling your home and that cold-climate units are now appropriate for Iowa homes.


This month’s focus is on saving money when you install a heat pump. Here’s how:

  • Any time you install a new HVAC system, it’s important to tighten up your home first so your new system will reach maximum potential. That task may include replenishing insulation, caulking and/or conducting an energy audit to determine if additional steps are needed. These actions can jump-start your path to saving on your utility bills.

  • Recognize that because of their high efficiency, your heat pump will be more cost-effective than other heating systems in the long run. The savings will accumulate year after year.

  • Check with us to learn more about rebates. At the same time, we can also provide more details on the process and answer your questions.

  • Review federal tax credits. Beginning in 2023, there are Inflation Reduction Act federal tax incentives available of 30% of the total cost and labor (up to $2,000), in addition to $1,200 in tax credits for other energy-saving renovations and appliances. These additional credits are available for air sealing; home energy audits; and upgrading your electrical supply, if necessary, for the efficiency projects.

For more information:

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