<img src="https://vcrmgzeqocxazlfekysq.supabase.co/storage/v1/object/public/web-images-public/money-orange-bg-1100.jpeg" />Here at <a href="/" target="_blank">Coral</a>, we talk about heat pumps a lot. You could say we're obsessed. And why wouldn't we be? Upgrading to a heat pump will help you <a href="/blog/the-top-5-reasons-to-install-a-heat-pump" target="_blank">save money, live more comfortably, and reduce your carbon footprint!</a>But heat pumps are a bit more expensive than a furnace or A/C unit. The exact cost depends on where you live and the details of your home, but they're typically 20–25% more expensive than traditional systems. For most US households, <a href="/blog/the-energy-savings-equation" target="_blank">the energy savings that heat pumps deliver</a> more than make up for the upfront cost— especially when incorporating local incentives and new subsidies from the Inflation Reduction Act — but the initial cost of a heat pump can still be a barrier for many.Luckily, there are several affordable ways to finance a heat pump! Here's a primer on the financing options to consider when planning your heat pump purchase:First, check for energy efficiency programs: Many state and local governments offer subsidized loans to help homeowners purchase heat pumps and other energy-efficient upgrades for their homes. These programs typically offer the best rates and repayment terms, especially when compared to personal loans. Often these financing plans only apply when working with pre-approved contractors and specific heat pump models, which are usually listed on these programs' websites, so check these requirements first before reaching out to contractors or lenders.Talk to your local contractor: Many contractors will also help you finance your heat pump, offering financing plans from leading manufacturers or 3rd party lending partners. These plans can include low-interest loans or deferred payment plans, and your contractor can often help you confirm eligibility and process your application. When meeting with contractors we always recommend asking about the financing options they can offer.Home Equity Loan or Line of Credit: If you own your home, you can also consider using the equity in your home to finance a heat pump purchase through a home equity loan or a home equity line of credit (HELOC). These options typically have lower interest rates than personal loans, but your home will be used as collateral. This can be an attractive option, but make sure to speak to your bank to fully understand the terms before refinancing.Personal Loans: Finally, you can apply for a personal loan from a bank or a credit union to finance your heat pump. Personal loans typically have fixed interest rates and repayment terms, though the specific rate and terms will depend on your credit score, income, and other factors. Financing a heat pump with a personal loan can still pay off, but the terms will likely be the worst compared to the other options above, so we recommend exploring other options before applying for a personal loan.Hopefully, this explains the many ways you can afford a heat pump, but before choosing a financing plan make sure you fully understand the interest rates, fees, and repayment terms of your plan. Consider your budget and financial goals before deciding on a financing option.For a personalized estimate and more heat pump and home electrification resources, sign-up for <a href="/" target="_blank">Coral</a>. We're on a mission to help homeowners sustainably heat and cool their homes — and we'd love to help you too!

Here at Coral, we talk about heat pumps a lot. You could say we're obsessed. And why wouldn't we be? Upgrading to a heat pump will help you save money, live more comfortably, and reduce your carbon footprint! But heat pumps are a bit more expensive than a furnace or

Heat pumps sound great, but can I afford it?

Upgrading to an energy-efficient heat pump would lower heating costs for the vast majority of US homeowners. Switching to a heat pump has <a href="/blog/the-top-5-reasons-to-install-a-heat-pump" target="_blank">many other advantages too</a>, but direct savings on your monthly utility bill are the most tangible. So the natural question for homeowners is: “How much can I expect to save?”The answer depends on your home, your existing heating system, and where you live…but we know “it depends” isn't enough to help you decide on a major purchase. At <a href="/" target="_blank">Coral</a> we're here to help, so we've laid out the energy savings equation that shows how and why these factors impact your potential energy savings.Starting next month, we'll do the savings math so you don't have to, and will show homeowners a personalized estimate of their energy savings within minutes on our platform. But in the meantime, here's the 411 on the energy savings equation:Factor 1: How big is your home?Bigger homes have bigger energy bills because heating a larger home simply requires more energy. Due to their higher baseline energy costs, larger homes will save more money from upgrading to a heat pump. The percentage of energy savings is similarly higher across home types — heat pumps are typically 3-4x more efficient than traditional heating systems — but the total dollar savings will be greater for larger homes.Factor 2: How good is your insulation?That amazing 3–4x improvement in energy efficiency we mentioned earlier? That goes out the window (literally!) if your home is not well insulated. Heat naturally flows from warmer to cooler areas, which means the hard-earned heat your heat pump has generated is constantly fighting to get outside. Good insulation keeps the heat from escaping, but without it, heat pumps are far less efficient.Ask your contractor to evaluate your insulation before you install your heat pump. You may want to upgrade your insulation at the same time you install the heat pump to maximize your savings and comfort.Factor 3: How do you heat your home today?Heat pumps are the most energy-efficient heating system on the market, but the amount of savings homeowners can expect depends on how efficient their existing system is. Homeowners with inefficient electric furnaces, baseboard heaters, or propane and oil-based heating systems will save the most from switching to heat pumps. Those with natural gas furnaces will save less money, though most will still save from upgrading.Factor 4: Where do you live?Geography impacts potential energy savings in two ways: temperature and local energy costs. Modern heat pumps have been shown to perform well even in cold environments, but in extreme temperatures (e.g. below zero degrees F) heat pump efficiency and savings can decline. Savings will also be impacted by the cost of natural gas, oil, and electricity in a homeowner's local geography — savings are greatest where fossil fuel costs are high, and electricity costs are low.The bottom line: Regardless of the size of your home, insulation rating, existing heating system, and location, the vast majority of homeowners will reduce their energy costs with a heat pump. But it's important for homeowners to understand how much they can realistically expect to save by upgrading.For a personalized estimate and more heat pump and home electrification resources, sign-up for <a href="/" target="_blank">Coral</a>. We're on a mission to help homeowners sustainably heat and cool their homes — and we'd love to help you too!

Upgrading to an energy-efficient heat pump would lower heating costs for the vast majority of US homeowners. Switching to a heat pump has many other advantages too, but direct savings on your monthly utility bill are the most tangible. So the natural question for homeowners is

The Energy Savings Equation

Last year marked a major milestone for climate advocates and the HVAC industry, as for the first time more heat pumps were installed in the US than gas furnaces. Still, nearly 4M homeowners did not install a heat pump and are now locked into their furnaces for the next decade or more. For the vast majority of those homeowners, this is a missed opportunity — heat pumps are not only better for the environment, but they provide many other advantages over traditional heating systems.<figure><img alt="" src="https://vcrmgzeqocxazlfekysq.supabase.co/storage/v1/object/public/web-images-public/heat-pumps-v-gas-furnaces-chart.png" /></figure>At Coral we want to help homeowners understand how impactful heat pumps can be, and help them easily find and install the best heat pump system for them. If you're considering a new HVAC system for your home, here are the Top 5 reasons to install a heat pump.<ol><li>Lower energy bills: Heat pumps are 3-5x more efficient than traditional heating systems, which means they use far less energy than a furnace. With the cost of oil and gas increasing significantly in recent years, heat pumps can save homeowners between $100-1,300 a year depending on their existing heating system and local energy costs.</li><li>Take advantage of tax credits and rebates: Heat pumps have traditionally been more expensive to install than gas furnaces, but new tax incentives and rebates can make the upfront costs very similar. Because of the Inflation Reduction Act, homeowners that install a heat pump can earn a $2,000 federal tax credit. In addition, many state governments and local utilities offer additional rebates worth thousands of dollars, and new federal rebates worth up to $8,000 will kick in later this year. In many cases, these incentives will make the upfront cost of heat pumps cheaper than a traditional furnace.</li><li>Improve air quality and comfort: Research has shown that electric heat pumps produce better air quality than gas or oil-powered furnaces. Many homeowners also find heat pumps to be more comfortable since they don't dry out circulated air like furnaces do and they generally maintain a more consistent temperature.</li><li>Increase home value: Research has shown that upgrading to a heat pump can significantly increase home values. One study analyzed data across 23 states and found homes with a heat pump had a $10-17K price premium over comparable properties.</li><li>Reduce your carbon footprint: On top of the significant economic and comfort benefits that heat pumps provide, they are also far better for the environment. They run entirely on electricity without any gas or oil, and when powered by renewable energy, produce zero carbon emissions. Since heating and cooling drive roughly 50% of emissions for the average home, installing a heat pump is a major step towards reducing your environmental impact.</li></ol>Especially with incentives from the Inflation Reduction Act, heat pumps would help the vast majority of homeowners save money, improve comfort, and reduce carbon emissions. Want to learn more? At Coral, we're here to help — <a href="/">click here to find the best heat pump system for you.</a>

Last year marked a major milestone for climate advocates and the HVAC industry, as for the first time more heat pumps were installed in the US than gas furnaces. Still, nearly 4M homeowners did not install a

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