I have a single story 1600sq ft home in the Pacific Northwest, it was
built in 1981. I'm currently looking at replacing my electric furnace
with a heat pump. Gas isn't an option at my home. Up here I'm looking
at heating my home as the primary usage. A/C would be a nice benefit
but really isn't a big deal.
After getting estimates from two heat pump installers they tell me that
it typically takes 4 years for a return of investment. I also heard
that a heat pump is 33 - 50% more efficient then my current setup. They
both gave me estimates between $8000 - $9000 for an install.
So looking at last years bills I spent a total of $1800 on electricity.
I figure to run the basics (hot water, lighting, basically everything
without heat) costs $65 a month. That's my August bill.
So $1800-($65x12) = $1020 on heating.
If I were to save 50% on heating (the high estimate) I'd save $510 a
$8500 for install divided by $510 = 16.6 years for my return of
I understand there are other benefits (a/c in the summer, better
resale, etc...) but looking at my math it just doesn't make sense to
me. Am I missing something here? Is the 4 year return of investment
marketing b.s.? Or is my math wrong?
I should also add that I have a hot tub that I turn off and on as I use
it. So that $1020 number is high, which would mean my roi should be
I really would like to justify the purchase but can't.