Heat pumps are an energy upgrade for homeowners that’s becoming a climate and financial winner
Heat pumps are becoming more popular for residential housing with energy prices increasing and the need to reduce use of fossil fuel heating systems.
Andrew Aitchison | In Pictures | Getty Images
Thinking about a home heat pump? New and expanded government incentives, coupled with sharply rising utility costs, make it more compelling.
Especially when used in connection with clean electricity sources like rooftop or community solar, a heat pump — a single electric appliance that can replace a homeowner’s traditional air conditioner and furnace system — can warm and cool a home with less planetary harm.
These investments are becoming more appealing to consumers, too, given inflation’s heavy hand. A whopping 87% of U.S. homeowners surveyed said they experienced higher prices in at least one household service or utility category over the summer, according to SaveOnEnergy.com. There’s another possible bonus: Incentives being offered through the recently passed Inflation Reduction Act of 2022.
“These incentives are not only saving you money now and in the long run on your utility bills, but they are putting our economy on track to reduce consumption of fossil fuels that contribute to climate change,” said Miranda Leppla, director of the Environmental Law Clinic at Case Western Reserve University School of Law. “It’s a win-win.”
The use of heat pumps will become more common as governments legislate their adoption. Washington State recently mandated that new homes and apartments be constructed with heat pumps. In July, California Governor Gavin Newsom announced a goal of 3 million climate-ready and climate-friendly homes by 2030 and 7 million by 2035, supplemented by 6 million heat pumps by 2030.
Here are four important things to know about upgrading your home to a heat pump system.
Heat pump cost, savings and efficiency considerations
Heat pumps are appropriate for all climates and are three to five times more energy efficient than traditional heating systems, according to Rewiring America, a nonprofit focused on electrifying homes, businesses and communities.
Rather than generating heat, these devices transfer heat from the cool outdoors into the warm indoors and vice versa during warm weather. Heat pumps rely on electricity instead of natural gas or propane, both of which have a higher carbon emission than renewable electricity such as wind or solar, said Jay S. Golden, director of the Dynamic Sustainability Lab at Syracuse University.
With installation, heat pumps can range from around $8,000 to $35,000, depending on factors such as the size of the home and heat pump type, according to Rewiring America, but it estimates the savings could amount to hundreds of dollars per year for an average household. What’s more, it’s a long-term play, since heat pumps that most people will consider installing have an average lifespan of 10 to 15 years, according to Rewiring America.
Electricity costs also tend to be more stable, insulating consumers against gas price volatility, said Joshua Skov, a business and government consultant on sustainability strategy who also serves as an industry mentor and instructor at the University of Oregon.
“While there’s an upfront cost, millions of homeowners would save money with a heat pump over the life of the device,” he said. “You’ll save even more with the federal government covering a chunk of the upfront cost.”
Inflation Reduction Act incentives
The Inflation Reduction Act — an expansive climate-protection effort by the federal government — includes multiple incentives to lower the cost of energy-saving property improvements. These incentives significantly exceed what’s available to homeowners today, said Jono Anzalone, a lecturer at the University of Southern Maine and the executive director of The Climate Initiative, which empowers students to tackle climate change.
For low-income households, the Inflation Reduction Act covers 100% of the cost of a heat pump, up to $8,000. For moderate-income households, it covers 50% of your heat pump costs, up to the same dollar limit. Homeowners can use a calculator — such as the one available from Rewiring America — to determine their eligibility.
If you’re considering multiple green home improvements, keep in mind that the law’s overall threshold for “qualified electrification projects” is up to $14,000 per household.
Federal tax credits for homeowners
For those who exceed the income threshold for a rebate, there’s the option, starting Jan. 1, to take advantage of the nonbusiness energy property credit, commonly referred to as 25C, said Peter Downing, a principal with Marcum LLP who leads the accounting firm’s tax credits and incentives group.
Homeowners can receive a 30% tax credit for home energy efficiency projects such as heat pumps. In a given year, they can get a credit of up to $2,000 for installing certain equipment such as a heat pump. This credit will expire after 2032, according to the Congressional Research Service.
There can be another tax credit to homeowners who purchase a geothermal heat pump, which is a more expensive, but longer-lasting option on average. Homeowners can receive an uncapped 30% tax credit for a geothermal heating installation, according to Rewiring America, which estimates an average geothermal installation costs about $24,000 and lasts twenty to fifty years. That means the average tax credit for this type of pump will be around $7,200, Rewiring America said.
The ventilation system of a geothermal heat pump located in front of a residential building.
Picture Alliance | Picture Alliance | Getty Images
Rulemaking is still underway for the Inflation Reduction Act. But it is possible eligible consumers will be allowed to receive both a rebate and a credit, Downing said. But the math is not likely to be as straightforward, based on previous IRS guidance on energy rebates backed by the federal government. Say a consumer is entitled to a 50% rebate for a heat pump that costs $6,000. For purposes of the tax credit, the remaining $3,000 could be eligible for a 30% tax credit, resulting in a possible credit of $900, he said.
State and local financial support
States, municipalities and local utility companies may provide rebates for certain efficient appliances, including heat pumps. “Check with all of them because there are so many different levels of programs, you really need to hunt around,” said Jon Huntley, a senior economist at the Penn Wharton Budget Model who co-authored an analysis of the Inflation Reduction Act’s potential impact on the economy.
Also be sure to check back frequently to see what new state, local and utility-based incentives may be available because programs are often updated, Golden said. Reputable local contractors should also know about locally available rebates, he said.
Many installers have aggressive financing packages to make heat pump installation more feasible, Anzalone said.
Polestar’s electric SUV set a new Guinness World Record after travelling over 580 miles (935 km) on a single charge. The trip took nearly 23 hours, but the Polestar 3 now claims the world record for the longest journey travelled by an electric SUV.
The Polestar 3 sets a new Guinness World Record
The record was set by an unmodified Polestar 3 Long Range Single motor model. Polestar launched the new variant in Europe last summer, followed by the US and other global markets in late 2024.
Powered by the same 111 kWh battery as the Dual Motor Polestar 3, the entry-level version features a single 295 hp (220 kW) rear-mounted motor. It’s also the most efficient model, rated with a WLTP range of 706 km (435 miles).
However, after a record-breaking trip this week, the Polestar 3 proved it’s much more efficient than the numbers show.
The Polestar 3 drove 935.44 km (581.3 miles) on public roads in the UK, setting a new Guinness World Record for the longest journey traveled by an electric SUV and smashing its range estimates by almost 230 km (143 miles).
According to Polestar, the electric SUV reached its WLTP range figure and still had 20% battery capacity, which allowed it to travel an additional 12.8 km (8 miles) before reaching 0%. And it did make it to a charger, in case you were wondering.
“While the drivers pushed the Polestar 3 to the boundaries of its range capability, it goes to show how battery range has improved exponentially over the past few years,” Polestar’s UK Managing Director, Matt Galvin, said.
Galvin added that “For a large premium SUV to go way beyond a London to Edinburgh distance is truly impressive and with this the adage that ‘EVs can’t go far’ has been very much consigned to the history books.”
The trip took 22 hours and 57 minutes, but the electric SUV delivered an impressive performance. Professional efficiency drivers, Sam Clarke, Kevin Booker, and Richard Parker, took turns driving every three hours.
The unmodified Polestar 3 was fitted with standard 20″ wheels and Michelin Sport 4 EV tires. Guinness World Record judge, Paulina Sapinska, verified the attempt. You can watch it in the video above.
Electrek’s Take
With an efficiency of 12.1 kWh/100 km (19.5 kWh/100 miles), or 5.13 miles/kWh, the Polestar 3 proved to be even more efficient than the Lucid Air Pure.
Lucid introduced the 2025 Air Pure last summer as the “World’s most efficient car” with an EPA estimated 5.0 miles/ kWh.
Last month, the Lucid Air Grand Touring model set a new Guinness World Record for the longest journey by any electric car on a single charge after driving 1,205 km (749 miles) through the Alps and into Germany.
And last week, GM announced the 2025 Chevy Silverado EV Work Truck set a world record after it drove 1059.2 miles on a single charge.
With most automakers and many other companies chasing more efficient batteries with new chemistries, this could be just the start.
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Forget fiddling with derailleurs and gear levers mid-commute. Instead, Bafang wants to make urban e‑biking smoother than ever with its all-new H730 hub motor, featuring its patented GVT (Gear Variable Transmission) technology. The idea is to combine the advantages of internally geared hubs with Bafang’s own hub motors to create an internally geared hub motor.
We covered Bafang’s GVT technology after seeing it first-hand on a tour of the company’s headquarters in China. Now we’re getting a look at a new 3-speed version, which takes the original 2-speed concept even further.
Launched this summer, this new hub motor packs a 3‑speed automatic gearbox that shifts gears seamlessly based solely on riding speed – no rider input needed.
The benefits are immediate: durability, simplicity, and less maintenance. Without derailleurs, cables, or external shifters cluttering the setup, the H730 boasts a clean, minimalist rear-end design, not to mention the benefits of weatherproofing the transmission to handle rain, mud, and debris.
The 250W motor includes a torque sensor and smart controller to analyze riders’ pedal input in real time, suppressing pedal lag while delivering smooth acceleration up to 25 km/h (15.5 mph). It’s an ideal match for daily commuting, where energy efficiency and responsiveness matter. The speed limit fits European-regulation bikes, but it would make sense to see Bafang introduce a slightly faster 20 mph (32 km/h) version for the North American market.
That’s even more likely considering Bafang seems to be targeting broad compatibility, with the company highlighting how the H730 plays well with belt-drive systems and minimalist e‑bike frames.
The GVT system itself is the culmination of nearly two decades of innovation, Bafang explained. Since its introduction with the H700 motor in 2022, over 40 global e‑bike brands, covering everything from urban commuters to fat‑tire and cargo e-bikes, have adopted GVT-powered solutions.
Bafang seems to be positioning the GVT as the foundation of a platform, with the company seeing the H730 as a springboard for integration into shared‑bike fleets, folding bicycles, and e‑bike systems built to last. That’s a compelling narrative for urban mobility: fewer moving parts, smarter automation, and a ride experience tuned for simplicity and longevity.
Electrek’s Take
I love this solution because we’ve normally had to choose between an internally geared hub OR a hub motor, but not both. Getting an IGH normally meant shelling out for a more expensive mid-drive motor, but now it’s possible to get the benefits of both. An economical hub motor can keep prices more affordable, while the IGH means you don’t have the muss and fuss of a derailleur.
I wish the system also worked through the motor itself (i.e. could downshift the motor for more torque on hill climbs), but this is still great progress for the industry. And who knows, maybe Bafang has gear-shifting hub motors in development somewhere to give us the multi-ratio motors we want. Until then, this looks pretty cool.
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EV charging is everywhere now, and it’s reliable, accessible, and affordable. There thousands of public chargers are already out there – and, in some places, you’ll find more plugs than pumps. But if you don’t drive electric, you’d never know it. That’s because gas stations don’t just exist, they announce themselves with giant, illuminated signs that can be seen for miles, while EV chargers tend to just sort of sit, nestled away in the back of the parking lot.
That’s why the new EV Totem from Blink Charging is such a big deal. It doesn’t just charge your car, it stands tall, lights up, and tells the world: electric fuel is here, now.
If you were on a road trip, and your tank was low, how confident would you be in your ability to find gas if you were greeted by the sight of Breezewood, PA, above? We might shake our heads at late adopters of EVs, we might dismiss the things we don’t notice ourselves, but the fact remains that my father-in-law can drive some sea-to-shining-sea of this still (relatively) great country with no plan, no map, and no app, and feel pretty secure in his ability to find gas.
Can you honestly, before spirits of Henry, Lee, God, and the DSM-V, look at that picture and believe that your parents would have similar confidence in their ability to find charging?
Now, imagine that all those thousands of EV chargers that you and I both know are out there. Imagine they were Blink EV Totems. Twenty feet tall, fully illuminated, and proudly proclaimed that here, weary traveler, was a place that you could – if you had an EV – simply pull up and plug in. Just like the gas stations out there have been proclaiming for nearly a hundred years.
Do you think they’d feel better slipping behind the wheel of an EV then?
No need to imagine
Co-developed by Blink Charging and Universal Media, the EV Totem concept combines Blink car chargers with elevated, 55″ screens to help maximize their eye-catching visibility. It’s a clever solution, and, while we’ve seen chargers with screens before, lifting the screens up above the cars in a parking lot makes them significantly more visible.
But because it’s 2025 and everything is terrible, instead of the EV Totem’s screens simply announcing the availability of reliable EV charging nearby or educating consumers about off-peak savings and duck curves, they’re designed to serve non-stop ads while collecting data that, “provides real-time insights for brands and property partners.”
“The EV Totem is designed to transform EV charging into a smarter, connected platform — one that delivers value for drivers while unlocking new opportunities for brands, property partners, and communities,” said Todd Cohen, Co-founder and CEO of Universal Media LLC, without even the slightest hint of remorse.
Blink’s EV Totem units are available now, with the first units already in service at Mountain View Village, a retail and lifestyle destination (read: strip mall) in SLC.
Electrek’s Jo’s Take
Visibility matters, and electric charging stations are almost totally invisible in real life. What that means for most drivers is that, unless they’re in a Tesla or using a third-party app, they might have a tough time seeing public charging stations, even if they’re relatively close as the crow flies. Even if they’re plentiful.
The reality is that all those signs advertising gasoline create confidence on a subliminal level that gas, snacks, and restrooms are everywhere. Meanwhile, the EV charging signs (where they exist at all) are just too small, too bashful to be effective. EV charging is invisible to generations of ICE drivers, and we – as EV ambassadors – need to put ourselves in those drivers’ shoes, meet them where they are, and demand that the electric fuel industry do a better job of selling that same institutional kind of confidence.
SOURCES: Blink, Universal EVX; featured image by Ben Schumin, under Creative Commons Attribution Share Alike 2.5 Generic license.
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