Heat Pumps

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Heat Pump​​ Basics

​What is a heat pump and how does it work? 

Heat pump technology can heat and cool a home, multi-family residence or a commercial building, heat water (Heat Pump Water Heaters), and dry clothes (Heat Pump Clothes Dryers). 

Heat pumps are efficient devices that operate on the principle of heat transfer, moving heat from one place to another rather than generating heat directly like a furnace.  This technology has been used in refrigerators for decades, pulling and transferring warm air out of the refrigerator which cools the space inside.

A heat pump system can complement or be an alternative to a traditional furnace or electric resistance baseboard heating. It can also provide a simple way to introduce air conditioning to a space. Overall, heat pump technology can help reduce energy use while increasing comfort.  However, any significant home upgrade should first start with an energy assessment from a qualified contractor to weigh the pros and cons of an upgrade. 

How do heat pumps work?
A heat pump mechanically transfers heat from outside and moves it indoors to heat your home – or in reverse to pull heat from your home to cool it down. The same concept also applies to water heating and clothes drying. 

In heating mode, a heat pump extracts heat from the outside air, even in cold conditions, and transfers it indoors. In cooling mode, a heat pump works like a traditional air conditioner. It absorbs heat from the indoor air and expels it outdoors, thereby cooling your home. 

Depending on the building and its setup, heat pumps can be ducted or ductless.  Ducted units usually connect to a larger heat pump unit outside and use the building’s duct system like a traditional air conditioner or furnace system.
 
Ductless units can be installed inside the building on a wall, in-ceiling cassette, or floor unit that are connected to single smaller unit outside. Ductless units can work well for a single room, ductless buildings, and/or to augment an existing system.

There are also geothermal or ground source heat pumps.  These use the relatively stable temperatures of the ground just below the surface for heat transfer, absorbing heat from the ground in the winter and moving it indoors to warm the building. In the summer, it releases heat from the building into the ground effectively cooling the building.  These typically require installation of coils in the earth that are necessary for the heat transfer. 


​Learn More About the Types of Heat Pumps


Can heat pumps work in Wisconsin and the cold weather?​

Cold Climate Heat Pumps and Dual Fuel Systems 

Cold climate heat pump technology has progressed significantly over the past decade. Systems available today can efficiently heat your home even in extreme cold, with certain systems capable of operating effectively in outdoor temperatures as low as -22° F.  

In colder areas of the state, or for homes that are not adequately insulated, a contractor may recommend a dual fuel heating system. In this configuration, the heat pump is attached to an existing natural gas or propane furnace. Centrally ducted heat pump systems can easily integrate with most newer furnaces, just like a central air conditioner would. In the winter, when the outdoor air cools to a predetermined temperature, the electric heat pump shuts off and the natural gas or propane furnace takes over, supplying heat as usual.

A dual fuel system allows for flexibility and confidence that heat will be there when it is needed but allows for the increased efficiency and comfort enhancements that a heat pump can provide.

Learn More about Dual Fuel Heat Pumps
U.S. Department of Energy Cold Climate Heat Pump Challenge
The U.S. Department of Energy’s Residential Cold Climate Heat Pump Challenge recently stimulated manufacturers to develop heat pumps with 100% heating capacity without using auxiliary heat and with significantly higher efficiencies at 5 degrees Fahrenheit or colder. The outcomes of the challenge  have helped manufacturers introduce new products in the market: ​

​Explore Cold Climate Heat Pumps

Follow the link for a compilation of Industry Educational Pages on Cold Climate Heat Pumps: Cold Climate Heat Pump Industry List


Advantages of Heat Pumps

Heat pumps have several advantages that can make them an attractive option for heating and cooling:

  • Efficiency: Heat pumps are energy efficient because they transfer heat rather than generate it. This uses less energy, which could mean potential savings on energy bills.
  • Convenient: Heat pumps use electricity, meaning time and effort at filling tanks, splitting wood, or dealing with fuel shortages is not needed.
  • Versatility: They can both heat and cool, allowing them to provide support in all seasons. The variety of configurations allows them to complement a current heating system, offering flexibility.
  • Environmentally Friendly: Because heat pumps use less energy, they reduce greenhouse gas emissions compared to traditional heating and cooling systems.
  • Healthier: A heat pump that offers both air filtration and dehumidification keeps a space cleaner and reduces the chance of mold and mildew.
  • Cost Savings: Due to their efficiency, heat pumps can result in lower energy bills over time.

​Despite these advantages, the initial cost of installing a heat pump can be higher than other systems, and their effectiveness can vary with the local climate.  However, with advancements in technology, heat pumps are becoming an increasingly viable solution for a wide range of climates and settings.


Heat Pump Technology in Other Appliances​

Heat Pump Water Heater

​ 

(Image from U.S. Department of Energy: ​Heat Pump Water Heaters | Department of Energy​)

While heat pump technology is commonly used for heating and cooling, it also appears in other household appliances like water heaters and clothes dryers.

Heat pump water heaters work like refrigerators in reverse. Rather than transferring heat from inside and pumping it outside, a heat pump water heater pulls heat from the surrounding air and transfers it at a higher temperature to heat the water in the storage tank. This process can cause the heat pump water heater to be two to three times more energy efficient than a standard water heater.

Heat Pump Clothes Dryer​


 
(Image from U.S. Department of Energy: Heat Pump Clothes Dryer | Department of Energy)

Heat pump clothes dryers use heated air to remove moisture from the clothes. The saturated air is then reused by going through an evaporator, and the dry warm air is sent back to gather more moisture in a closed loop process. By using a refrigerant in the process, less electricity is used to generate heat.  Also, by reusing the air, rather than releasing it, these dryers do not require ventilation and carry lower risks for fire.  Heat pump dryers do create condensation that must be drained, often by running a hose to a nearby sink or drainpipe.

Heat pump dryers can be stand alone or part of Washer-Dryer combos, where the washer and dryer are all part of one machine.  In this set up, the washer washes clothes in the way a normal washer does. Then the heat pump dryer takes over. A dryer will use condensing or heat pump technology to remove the moisture, usually without needing a vent.  The heat pump set up works the same way as described above.​

Learn More About Heat Pump Technology in Other Appliances

Additional Resources​

​Need help? Use the U.S. Department of Energy and Pacific Northwest National Laboratory's Heat Pump Water Heater Installation Tool:​ Heat Pump Water Heater Installation Tool | Building America Solutions Center PNNL​

​For Information on Heat Pump and Other Energy Upgrade Opportunities: ​Home Upgrades | Department of Energy


Available Rebate and Incentive Programs

​The tables below provide links to utility and electric cooperative webpages on available heat pump rebates and incentives. Most electric providers in Wisconsin, including all investor-owned and municipal utilities that partner with Focus on Energy, who supports the rebate process and is currently offering rebates on heat pumps. A list of participating utilities can be found here: ​Participating Utilities | Focus on Energy. Focus on Energy's own webpages on heat pumps can be found below.

Source
Rebates and Tax Credits
IRA Home Energy Rebates, delivered by Focus on Energy​
IRA Home Energy Rebates - Air Source Heat Pumps, Heat Pump Water Heaters, Heat Pump Dryers
Focus on Energy
Heating & Cooling Focus on Energy Rebates
Energy STAR®
Energy Star - Air Source Heat Pump Tax Credit (expiring 12/31/2025)
Energy STAR® Energy Star - Heat Pump Water Heaters Tax Credit (expiring 12/31/2025)
Because of the partnership between Focus on Energy and Wisconsin electric providers, many of the links below will take you to the provider’s general Focus on Energy webpage, which will show the heat pump rebates along with other energy efficient rebates and incentives you may be eligible for and interested in.  These utility specific webpages are valuable tools to help consumers find rebates, incentives, and information on energy efficiency offerings through Focus on Energy, as well as any other rebates and incentives that may be available through their provider.

The list of available heat pump rebates and incentives is accurate to the best of OEI's knowledge, but interested customers should double check with their provider or Focus on Energy for the specific programs, rebates, and incentives that are available, as well as eligibility requirements.

Investor-Owned Utility Rebates and Incentives 

The OEI has compiled a list of investor-owned utilities currently offering heat pump rebates and incentives to customers. Find your participating utility and follow the link below to read the details about their offering.  If you do not see your utility listed, the OEI recommends inquiring directly with the utility.​

Source
Heating and Cooling Rebate
Alliant Energy
Alliant Energy - Heating and Cooling Equipment Rebates and Discounts (Wisconsin)
Consolidated Water Power Company
Heating & Cooling | Focus on Energy
Dahlberg Light & Power Company
Dahlberg Light & Power Company | Focus on Energy
Madison Gas and Electric
Heat Pumps - Madison Gas and Electric​
North Central Power Company
North Central Power Co. Inc. | Focus on Energy
Northwestern Wisconsin Electric Company
Northwestern Wisconsin Electric Company | Focus on Energy
Pioneer Power & Light Company
Heating & Cooling | Focus on Energy
​Superior Water, Light, & Power
Superior Water, Light & Power | Focus on Energy
​WE Energies
Rebates and Programs | We Energies
​Westfield Milling and Electric Company
Heating & Cooling | Focus on Energy
​Wisconsin Public Service
Rebates and Programs | Wisconsin Public Service
​Xcel Energy
​Xcel-HVAC_Rebates_Overview_Clean.pdf


​​​Cooperative Utilities Rebates and Incentives 

The OEI has compiled a list of Electric Utility Cooperatives currently offering heat pump rebates and incentives to customers.   Find your participating cooperative and follow the link below to read the details about their offering.  If you do not see your cooperative listed, the OEI recommends inquiring directly with the cooperative.  A list of Wisconsin’s Electric Cooperatives can be found here​: Wisconsin Electric Cooperative Association.

Source
Heating and Cooling Rebate
​Adams-Columbia Electric Cooperative
Adams-Columbia Electric Cooperative | Focus on Energy
Barron Electric Cooperative
Heating and Cooling - Heat Pump Rebate
Bayfield Electric Cooperative
HVAC – Heat Pump Rebate
Chippewa Valley Electric Cooperative
HVAC Incentive Form – Heat Pump Rebate
Clark Electric Cooperative
Heat Pump System Rebate
Dunn Energy Cooperative
Heating & Cooling – Heat Pump Rebate
East Central Energy
Heating & Cooling – Heat Pump Rebate
Eau Claire Energy Cooperative​
Eau Claire Energy Cooperative | Focus on Energy
Jackson Electric Cooperative​
Heat Pumps and ECM Blower Motors Rebate
Jump River Electric Cooperative
HVAC – Heat Pump Rebate
Oakdale Electric Cooperative
Oakdale Electric Cooperative | Focus on Energy
Oconto Electric Cooperative
Oconto Electric Cooperative | Focus on Energy
Pierce Pepin Cooperative Services
Pierce Pepin Cooperative Services | Focus on Energy
Polk-Burnett Electric Cooperative
HVAC - Air Source Heat Pump, Geothermal Heat Pumps, New Furnace ECM Blower
​Price Electric Cooperative
HVAC – Heat Pump Rebate
Richland Electric Cooperative
Richland Electric Cooperative | Focus on Energy
Rock Energy Cooperative
Rock Energy Cooperative | Focus on Energy
​Scenic Rivers Energy Cooperative
HVAC – Heat Pump Rebate
​St. Croix Electric Cooperative
HVAC – Heat Pump Rebate
​Taylor Electric Cooperative
HVAC – Heat Pump Rebate
​Vernon Electric Cooperative
​Vernon Electric Cooperative | Focus on Energy


Municipal Utility Rebates and Incentives  

The OEI has compiled a list of municipal utilities currently offering heat pump rebates and incentives to customers.   Find your participating municipal utility and follow the link below to read the details about their offering.  If you do not s​ee your municipal utility listed, the OEI recommends inquiring directly with the utility.  A list of Wisconsin’s municipal utilities can be found here​: Municipal Electric Utilities ​of Wisconsin​.

​​Source
Heating and Cooling Rebate
Algoma Utility Commission
Arcadia Electric Utility
Arcadia Electric Utility | Focus on Energy
Argyle Electric & Water Utility
Argyle Electric & Water Utility | Focus on Energy
Bangor Municipal Utility
Bangor Municipal Utility | Focus on Energy
Barron Light & Water
Barron Light & Water | Focus on Energy
Belmont Municipal Light & Water
Belmont Municipal Light & Water | Focus on Energy
Benton Electric & Water
Benton Electric & Water Utility | Focus on Energy
Black Earth Electric Utilities
Black Earth Electric Utility | Focus on Energy
Black River Falls Municipal Utilities
Black River Falls Municipal Utilities | Focus on Energy
Bloomer Electric Utility
Bloomer Electric & Water Utility | Focus on Energy
Boscobel Utilities
Boscobel Utilities | Focus on Energy
Brodhead Water & Light
Brodhead Water & Light | Focus on Energy
Cadott Light & Water Department
Cadott Light & Water Department | Focus on Energy
Cashton Municipal Light & Water Plant
Cashton Light &Water | Focus on Energy
Cedarburg Light & Water Commission
Cedarburg Light & Water | Focus on Energy
Clintonville Water & Electric Utility
Clintonville Utilities | Focus on Energy
Columbus Water & Light Department
Columbus Utilities | Focus on Energy
Cornell Municipal Electric Utility
Cornell Municipal Light Department | Focus on Energy
Cuba City Light & Water Plant
Cuba City Light & Water | Focus on Energy
Cumberland Municipal Utility
Cumberland Municipal Utility | Focus on Energy
Eagle River Light & Water Department
Eagle River Light & Water Utility | Focus on Energy
City of Elkhorn Electric Department
Elkhorn Light & Water | Focus on Energy
Elroy Electric & Water Utility
Elroy Electric & Water Utility | Focus on Energy
Evansville Water & Light Department
Evansville Water & Light | Focus on Energy
Fennimore Municipal Utilities
​​​Fennimore Municipal Utility | Focus on Energy​​
​Florence Utility Commission
Florence Utilities | Focus on Energy
​Gresham Municipal Utilities
Gresham Water & Electric Plant | Focus on Energy
​Hartford Utility Department
Hartford Electric | Focus on Energy
Hazel Green Light & Water Utility
Hazel Green Light & Water Utility | Focus on Energy
​Hustisford Utilities
Hustisford Utilities | Focus on Energy
​Jefferson Utilities
​Jefferson Utilities | Focus on Energy
Juneau Utility Commission
​Juneau Utilities | Focus on Energy
​Kaukauna Utilities
Kaukauna Utilities | Focus on Energy
​Kiel Electric Utility
​Kiel Utilities | Focus on Energy
​La Farge Municipal Utilities
​La Farge Municipal Utilities | Focus on Energy
​Lake Mills Utilities
Lake Mills Light & Water | Focus on Energy
​Lodi Municipal Light & Water Plant
​Lodi Utilities | Focus on Energy
​Manitowoc Public Utilities
Manitowoc Public Utilities | Focus on Energy
​Marshfield Utilities
Marshfield Utilities | Focus on Energy
​Mazomanie Electric Utility
Mazomanie Electric Utility | Focus on Energy
​Medford Electric Utility
​Medford Electric Utility | Focus on Energy
​Menasha Utilities
Menasha Utilities | Focus on Energy
​Merrillan Electric Light & Water Department
Merrillan Electric & Water Utility | Focus on Energy
​Mount Horeb Utilities
Mount Horeb Utilities | Focus on Energy
​Muscoda Utilities
Muscoda Utilities | Focus on Energy
​New Glarus Municipal Light & Water Works
New Glarus Utilities | Focus on Energy
​New Holstein Utilities
New Holstein Utilities | Focus on Energy
​New Lisbon Municipal Light & Water Department
New Lisbon Municipal Light & Water | Focus on Energy
​New London Utility Commission
New London Utilities | Focus on Energy
​New Richmond City Utilities
​New Richmond Utilities | Focus on Energy
​Oconomowoc Utilities
Oconomowoc Utilities | Focus on Energy
​Oconto Falls Municipal Utilities
​Oconto Falls Municipal Utilities | Focus on Energy
​Pardeeville Electric Commission
Pardeeville Public Utilities | Focus on Energy
​Plymouth Utilities
Plymouth Utilities | Focus on Energy
​Prairie du Sac Electric Department
​Prairie du Sac Utilities | Focus on Energy
​Princeton Light & Water Department
Princeton Light & Water Department | Focus on Energy
​Reedsburg Utility Commission
Reedsburg Utility Commission | Focus on Energy
​Rice Lake Utilities
Rice Lake Utilities | Focus on Energy
​City Utilities of Richland Center
Richland Center Utilities | Focus on Energy
​River Falls Municipal Utilities
River Falls Municipal Utilities | Focus on Energy
​Sauk City Utilities
​Sauk City Utilities | Focus on Energy
​Shawano Municipal Utilities
Shawano Municipal Utilities | Focus on Energy
​Sheboygan Falls Utilities
​Sheboygan Falls Utilities | Focus on Energy
​Shullsburg Electric Utility
​Shullsburg Electric Utility | Focus on Energy
​Slinger Utilities
​Slinger Utilities | Focus on Energy
​Spooner Municipal Electric Utility
Spooner Municipal Electric Utility | Focus on Energy
​Stoughton Utilities
Stoughton Utilities | Focus on Energy​
​Stratford Water & Electric Department
​Stratford Water & Electric Department | Focus on Energy​
​Sturgeon Bay Utilities
​Sturgeon Bay Utilities | Focus on Energy
​Sun Prairie Utilities
​Sun Prairie Utilities | Focus on Energy
​Trempealeau Municipal Electric Department
​Trempealeau Municipal Utilities | Focus on Energy
​Two Rivers Water & Light
Two Rivers Utilities | Focus on Energy
​Viola Electric Utility Plant 
Viola Municipal Electric Utility | Focus on Energy
​Waterloo Utilities
Waterloo Utilities | Focus on Energy
​Waunakee Utilities
Waunakee Utilities | Focus on Energy
​Waupun Utilities
​Waupun Utilities | Focus on Energy
​Westby Electric & Water Utility
​Westby Utilities | Focus on Energy
​Whitehall Electric Utility
Whitehall Electric Utility | Focus on Energy
​Wisconsin Dells Water & Light Utility
Wisconsin Dells Water & Light Utility | Focus on Energy
​Wisconsin Rapids Water Works & Lighting Commission
​Wisconsin Rapids Water Works & Lighting Commission | Focus on Energy
​Wonewoc Municipal Water & Light Department
​Wonewoc Water & Light Department | Focus on Energy
​​