Why have my electricity costs increased since installing my heat pump?

Why have my electricity costs increased since installing my heat pump?

When a heat pump is installed in a home it will use electricity to heat and cool your home.  If a gas/propane or oil heating system was replaced, your electricity costs will increase.   The increase in the cost of electricity should be considerably lower than decrease in cost of gas/propane or oil and more than offset the difference.

When a heat pump is added to an existing gas/propane or oil system to compliment it, there will still be an increase cost to your electricity.  It will again be offset be the decrease of your other utility bills.

When a heat pump is installed in replacement of an electrical heating system such as baseboard or electric heating, there will be a significant decrease to your electricity costs.

Other things that will affect your electricity costs:

Extreme Winter Temperatures: in the event of an extreme winter, your heat pump will work harder to maintain the temperature inside the space.  Comparing month over month or year over year costs must take outdoor temperature and weather patterns into account.

Improper Set up: There are several key field settings that should be taken into account when installing and setting up your system.  In cold climates, the balance point must be set correctly to ensure optimal savings.  Balance point refers to the temperature at which you switch from your heat pump over to your gas/propane or oil heating system.  There is a point at which those systems are more cost effective and must be taken into account.  The balance point can vary depending on the system you installed and what your other form of heat is.  Refer to FAQ ‘What is a Balance Point’ for a better understanding and some guidance.

It is recommended to have a licensed HVAC technician review all settings an parameters for your system to ensure optimum efficiency.