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

Installing a heat pump can change how you use energy in your home, particularly your electricity usage. Here's why your electricity costs may have increased and what that means overall:

1. Replacing a Gas, Propane, or Oil System

If your heat pump replaced a traditional heating system (like gas, propane, or oil), it will use electricity instead of fuel. While your electricity bill may increase, this is typically offset by a much larger decrease in fuel costs, resulting in lower overall heating expenses.

2. Supplementing an Existing Heating System

If your heat pump was added to work alongside an existing system, you may see a rise in electricity costs. However, this is usually balanced by a reduction in gas, propane, or oil usage, leading to overall energy savings.

3. Replacing an Electric Heating System

Replacing electric baseboard or resistance heating with a heat pump should significantly reduce your electricity costs. Heat pumps are much more energy-efficient than older electric heating systems.

Other Factors That Can Affect Electricity Costs:

• Extreme Winter Temperatures: In very cold weather, your heat pump works harder to maintain your indoor temperature, increasing electricity usage. When reviewing your bills, compare them alongside outdoor temperature trends to get a clearer picture.
• Improper System Setup: Efficiency depends on correct system configuration. A key setting in colder regions is the balance point—the temperature at which your system should switch from the heat pump to a backup heat source (e.g., gas or oil). An incorrect balance point can lead to inefficient energy use and higher bills.
  
  The ideal balance point varies by system. For more information, refer to our FAQ: “What is a Balance Point?”

Recommendation:

We recommend having a licensed HVAC technician review your system's settings to ensure it's configured for maximum efficiency and comfort.