Material & Equipment Choices

Heating & Cooling

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Heating and Cooling

Heat pump technology used to be limited to southern regions of the country. Over the past 5-10 years, heat pumps have been improved and designed to operate in cold climates. The result is a new product category, cold climate heat pumps, which can now perform well year-round, even in the coldest counties in Colorado.

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See the video above to learn how a heat pump can heat your house during the cold winter months. Heat pumps run on electricity but are 2-3 times more efficient than electric resistance heating. Heat pumps provide both heating and cooling for your home, all in one unit. Heat pumps consist of an outdoor unit connected to one or more indoor units by refrigerant lines.

Air-source heat pumps (ASHPs)

Air-source heat pumps (ASHPs) are reversible air conditioners. Just like an air conditioner, in the summer they transfer heat from inside your home to the outside. In the winter they “concentrate” and transfer heat from the outside to inside your home. ASHPs can use ducts to transport the warm or cool air throughout your home, like most home heating and central air conditioning systems. There are also “ductless mini-split” and “mini-duct” systems (the latter being a hybrid of ductless and ducted systems). Air-Source heat pumps can also be used to supply heat to in-floor radiant heating systems. These systems are called air-to-water heat pumps.

Ductless heat pumps

Ductless heat pumps, also known as “mini-splits,” move refrigerant, rather than heated or cooled air, from the outdoor unit to one or more indoor units. The indoor units are typically wall-mounted and include a small fan. (See ductless heat pump diagram to right.) Ductless mini-split heat pumps tend to be more energy-efficient than ducted systems, in part due to eliminating ducts and requiring smaller fans. Read more

Ground source heat pumps

Ground source heat pumps, also known as geothermal heat pumps, operate similarly to an air source heat pump but utilize the relatively constant temperature of the ground rather than the outside air. A ground source heat pump relies on piping buried in the ground either vertically, horizontally, or through an existing groundwater source. These systems can be installed with ductwork or with hydronic distribution systems in a home. The video found here, https://youtu.be/y_ZGBhy48YI, can provide more information on how a ground source heat pump works. Many ground source heat pumps can often be used to provide domestic hot water when operating through a desuperheater. Desuperheaters transfer excess heat from the heat pumps compressor to a hot water tank. For more information, visit: the EPA or Energy Saver

How to use a heat pump

Heat pumps can get some getting used to, as they work very differently from gas or electric resistance heating. Find out how to save money and best maintain your heat pump with the guides below:

Geothermal / Ground Source Heating & Cooling

Cost Comparison of Ground Source Heat Pump v. Natural Gas Heating for a 4,300 Square Foot House

Geothermal Heat Pump (GSHP)		Natural Gas Furnace, Natural Gas Water Heater & Air Conditioner
4-Ton Geothermal Heat Pump w/10kW aux heater 240V 40A & 60A. Desuperheater for Domestic Hot Water. Ductwork for three conditioned levels. Ecobee w/Alexa & Remote Sensor. Venting of Bath Fan	$38,764	96% Natural Gas Furnace. 20-SEER A/C. Natural Gas Water Heater. Ductwork for three conditioned levels. Ecobee w/Alexa & Remote Sensor. Venting of Bath Fan	$35,159
Geothermal Ground Loop	$14,750	No Ground Loop Needed	N/A
240V 40A & 60A Circuits ($350)	$700	Internal Gas Piping Furnace & WH ($450)	$900
Investment Before Federal & State Income Tax Credits, Grants & Rebates	$54,214		$36,059
Federal Tax Credit (26% for 2022) (lowered to 22% in 2023 $-10,221)(GSHP Equipment , Ground Loop, Electric Outlets, Installation Labor, etc. ~$46,460)	($12,080)		N/A
*Xcel Energy Rebate ($400/ton, $1,600)	N/A?	*Xcel Energy Rebate	($300)
Manufacturer Rebate & Distributor Incentives	($2,400)		N/A
CO Energy Office Geothermal Grant HB22-1381 $2k/ton-12kBtu/h	($8,000)		N/A
SB22-051 10% 2023 CO Income Tax			N/A
GSHP Equipment Rebate (~$-600)
Investment After Tax Credit & Rebates	$31,734	**Investment	$35,759
Initial Investment Savings	($4,025)
Lifetime Savings (incl. 25 yr * $280/yr = $7k)	($11,025)

*To apply for any applicable Xcel Energy rebate, you must use a contractor participating in Xcel’s programs

** Does not include NG Furnace, A/C & WH equipment replacement costs in year 10-15 (~1/2 life of GSHP)

Estimates provided by local geothermal heat pump HVAC & ground loop installation experts in February 2022 and are subject to change based on equipment choice, supply chains, site conditions, building design, etc. Comparison provided by Walter M. Sharp, Sharper Energy Technologies.