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What Happens to My Electric Bill After Installing Heat Pumps?

March 18, 2024 | Reading Time: 8 minutes

Congratulations! You’ve installed your solar system and now want to utilize it to its full potential. Naturally, you’re considering switching to electric heat to minimize your reliance on nonrenewable resources like oil and hope to decrease your total utility bills.

We absolutely encourage you to take this step! Electric heat is proven to be a more sustainable and economical option for maintaining the temperature of your home and since you now have your own solar system to pull energy from, the decision to switch to electric heat makes perfect sense.

In order to minimize any confusion, we want to outline some key considerations so you’ll have a better idea of what to expect when you get your new electric bill.

Your Electric Bill Will Increase

There is no way around it. When you increase your electric consumption, your electric bill is going to increase. Despite having installed your solar system, the energy demanded of your home from a consistently running heating or cooling system will likely outpace the energy generated by your solar system. You may have built up credits from net-metering which can come in handy and be utilized before your home pulls electricity from the grid, but sooner or later you’ll likely demand grid-originated electricity.

We have found that many customers are surprised to learn that their electric bill has increased after installing electric heat. We want to clarify that your system’s production is certainly helping to balance out your demand from the grid, but if your system isn’t extremely oversized for your property, then it’s likely it will not be able to produce enough energy to maintain a zero dollar electric bill, especially in seasons of low production.

Your New Electric Bills Should Be Less Than Your Oil Deliveries

Despite your increased electric bills, we encourage you to compare the total monthly cost of your electric bills in one year by the total amount of money you were spending on oil deliveries in one year.

As oil becomes more scarce and prices increase, we know that the probability of someone spending more annually on electric heat than oil is even less likely.

Your Electric Consumption is Going to Spike

Heating and cooling systems hold one of the highest energy demands of any household appliance. Their function is to achieve and maintain a comfortable indoor environment which becomes increasingly difficult as temperatures become more extreme. Buildings with poor insulation will have a harder time maintaining their temperature and therefore, will demand more work from the system itself.

You’ll Have Plenty of Electric Heat Technology Options

There are various kinds of electric heat technologies and choosing the right type for your home is a crucial piece of reducing electric bills. In maximizing the efficiency of your heating and cooling system, you’ll run a system that works best with your household’s energy demands.

Heat Pumps

Heat pumps transfer heat from one area to another. Depending on its current function (heating or cooling) it may extract heat from the outside and send it into the home or remove it from the home and release it outside.

Heat pumps require air ducts which may make this system more difficult to be retrofitted into a home.

Mini-Splits

Mini-splits are ductless heating and cooling devices that allow for zoned temperature control. Each system is typically made up of an outdoor compressor and condenser unit and one or more indoor air-handling units.

Mini-Split Heat Pumps

This technology combines the best of both worlds with heat pumps and mini-splits. Mini-split heat pumps are ductless, allow for personalized temperature settings in different rooms, and are highly efficient.

Electric Heating and Cooling is Economical and Sustainable

Even though your electric bill will increase because your energy consumption has increased after installing an electric heating or cooling system, electric heat is still the most economical and sustainable option for temperature control in solar homes.

Your solar system will help to offset your demand for electricity which will keep your electric bill prices as low as possible while maximizing your use of the renewable energy you’re generating.