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A Heat Pump Can Be More Than 100% Efficient. Yes, Really — Here’s How

By Lisa Johnson

2 days ago

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A Heat Pump Can Be More Than 100% Efficient. Yes, Really — Here’s How

Heat pumps can achieve over 100% efficiency by transferring heat rather than generating it, offering potential savings on utility bills and environmental benefits compared to traditional gas furnaces. Experts highlight how factors like temperature and local energy prices influence their effectiveness, with newer models maintaining high performance in cold weather.

In an era where homeowners are increasingly focused on slashing utility bills and reducing their environmental footprint, heat pumps are emerging as a standout option for heating and cooling. According to experts in the HVAC industry, these systems can achieve efficiency levels well above 100%, sometimes reaching 200% to 400%, meaning they deliver more energy than they consume. This counterintuitive feat is drawing attention from consumers and energy professionals alike, as detailed in a recent analysis by CNET, highlighting how heat pumps could transform residential energy use.

The concept of energy efficiency boils down to getting the most output from the least input, as explained by Cristi Pedotto, portfolio director for Trane and American Standard residential ducted equipment. "An efficient solution allows you to achieve the same outcome with less input," Pedotto said. For traditional fossil-fuel systems like gas furnaces, efficiency is measured by the Annual Fuel Utilization Efficiency (AFUE), which typically ranges from 80% to 98%. However, U.S. regulations require new furnaces to meet at least an 80% AFUE rating, a standard set to increase to 95% by 2028, according to Pedotto.

Despite these ratings, real-world efficiency for gas furnaces can dip lower due to factors such as heat loss in air ducts. Gwendolyn van der Linden, a principal algorithm engineer at San Francisco-based heat pump startup Quilt, noted that as heat travels through ducts to vents, some energy is wasted. Additionally, the electricity powering fans or blowers isn't factored into standard AFUE calculations, Pedotto added, which can further reduce overall performance.

In contrast, electric heat pumps operate on a different principle, using the coefficient of performance (COP) to gauge efficiency. This metric compares the electricity input to the heat or cooling output delivered. Even older heat pumps can achieve a COP of 2, equating to 200% efficiency, Pedotto said. "It's remarkable what it can do," she remarked. Newer models push this further; van der Linden reported that Quilt's system averages a COP of 4, or 400% efficiency.

The key to surpassing 100% efficiency lies in how heat pumps function. Unlike furnaces that generate heat by burning fuel, heat pumps transfer existing heat from one location to another. In winter, they extract heat from outdoor air—even in cold conditions—and move it indoors using refrigerant. "You're not creating heat, you're grabbing it from the outside and transferring it inside," Pedotto explained. This process requires less energy than generating heat from scratch, allowing for those high efficiency ratings.

However, efficiency isn't constant. In extreme cold, such as temperatures dropping to 5 degrees Fahrenheit, a heat pump's COP can fall, sometimes below 1, meaning it uses more energy than it delivers. Van der Linden pointed out that newer designs mitigate this; Quilt's model maintains a COP of 2 at 5 degrees Fahrenheit. The U.S. Department of Energy sets a minimum COP of 3.1 for newer heat pumps, ensuring better performance across various climates.

When you're trying to lower your utility bills, you might be tempted to reach for the thermostat. That's a good instinct. Setting your thermostat strategically can help reduce your heating or cooling costs, but it's not the only way to spend less on energy. One big variable is built right into your HVAC system itself: energy efficiency.
This excerpt from the CNET article underscores the broader context of energy-saving strategies, emphasizing that while thermostats help, system efficiency is crucial.

For homeowners considering a switch, the decision between a heat pump and a gas furnace involves more than just efficiency numbers. Gas furnaces burn fuel to produce heat, which inherently caps their efficiency below 100% since some energy is lost as waste. Heat pumps, by moving rather than creating energy, can exceed that threshold. But as Pedotto noted, "Simply put, the more efficient we are with the energy we consume, the less energy we need" to maintain comfort.

Geographic and economic factors play a role too. In regions with mild winters, heat pumps excel because milder outdoor temperatures mean more ambient heat to extract, boosting efficiency. On frigid days, however, the system works harder, potentially lowering COP. Van der Linden highlighted that if the temperature difference between indoors and outdoors is large, efficiency drops, but advancements in technology are addressing this for colder climates.

Cost savings are a major draw, with efficient HVAC systems potentially reducing utility bills by requiring less energy for the same comfort level. Yet, switching to a heat pump isn't always a guaranteed money-saver. In states where natural gas is cheaper than electricity, or in areas with prolonged cold spells, a gas furnace might remain more economical, according to the CNET report. Installation could also involve upfront costs, such as upgrading electrical panels, which might offset initial savings.

Beyond finances, environmental benefits are compelling. Heat pumps run on electricity, which can come from renewable sources, and they avoid burning fossil fuels directly, helping cut greenhouse gas emissions. This aligns with broader pushes for sustainable living, even if it doesn't immediately lower bills for everyone. As Pedotto put it, efficiency matters because it reduces overall energy needs, contributing to a greener future.

Industry experts like those at Trane, American Standard, and Quilt are at the forefront of these innovations. Quilt, based in San Francisco, is developing heat pumps tailored for high efficiency in diverse conditions. The company's focus on maintaining COP in cold weather addresses a common criticism of earlier models. Meanwhile, regulatory changes, such as the upcoming 95% AFUE minimum for furnaces in 2028, signal a shift toward higher standards across the board.

Consumers weighing options should consider their local climate, energy prices, and home setup. For instance, homes with existing ductwork might integrate heat pumps more easily, while ductless models offer flexibility. The CNET analysis advises evaluating total costs, including potential rebates or incentives for energy-efficient upgrades, which are available in many U.S. states.

Looking ahead, the rise of heat pumps could reshape the HVAC market, especially as efficiency standards evolve. With the Department of Energy enforcing minimum COP levels and furnace regulations tightening, more households may adopt these systems. This trend supports national goals for energy conservation and climate action, potentially leading to widespread adoption in the coming years.

In summary, while heat pumps' ability to exceed 100% efficiency sounds like science fiction, it's grounded in smart engineering that moves heat efficiently. As experts continue to refine these technologies, they offer a promising path for cost-effective, eco-friendly home comfort, though individual circumstances will determine the best fit.

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