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 year.
$8500 for install divided by $510 = 16.6 years for my return of investment.
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 even longer!
I really would like to justify the purchase but can't.