When examining the value of your home, one of the things to consider should be the heating and cooling system (HVAC) setup that is currently installed.
Installing a new and more modern heating and/or cooling system, such as an air source heat pump that can be future proof as fuels such as gas are phased out, could help to increase the value of a home.
Studies have shown that the installation of a heat pump can increase the value of a home by over $10,000 on average and can be well worth the investment compared to other types of heating systems. However, the exact premium value added to a home can depend on a range of factors including location.
Although our air source heat pump was installed when the house built, it no doubt added to the asking price of the property.
With our home also running solely on this air source heat pump (ASHP) for both central heating and domestic hot water, the whole system should add value if we ever come to sell it.
The following sections will further outline and describe how an air source heat pump can add value to your home. We’ll also discuss why an ASHP adds value, how it works, and the different types of air source heat pumps available.
Recent data suggests that installing an air source heat pump in your home will indeed increase its value.
According to a study undertaken by the University of Maryland and School of Public Policy, adding air source heat pumps to homes increases the value of the average American household by up to nearly 7%.
In nearly 50% of the states across America where the price of around 500,000 homes were examined, an air source heat pump increases a home’s value by approximately $10,000 to $17,000 on average.
Just like a home with solar panels can be worth more on the for-sale market, a home with an air source heat pump is outfitted with a level of energy efficiency that can grow its value.
While the value of a home can statistically increase more than the cost of installation, an increase in house value is never guaranteed.
However, installing an ASHP system has a number of other benefits such a reducing a home’s carbon usage and relying on a renewable source of energy for heating or cooling.
Air source heat pumps grow the value of a home because they’re environment friendly. As more and more research urges homeowners to make energy-efficient choices, homes that consume energy in a way that lessens our carbon footprint are growing in value and demand.
Data from the U.S Energy Information Administration (EIA) states that the cost of electricity has risen about 2% per year during the past 25 years in the United States.
Compared to other standard heating systems, an air source heat pump can provide your home with three times more heat energy than the energy it uses.
For example, our air source heat pump has a Coefficient of Performance (COP) of over 3, meaning that it produces over three units of energy for every 1 unit of electrical energy consumed.
This makes air source heat pumps a perfect energy-efficient home solution for the energy worries and the increasing drain of natural resources. The savings of replacing a standard HVAC system with an air source heat pump can amount to $300 – $500 per year.
Not only this, but the increase in value of your home can still be more significant than the average cost of installation, which sits between $6,000 and $8,000, making an ASHP installation a worthwhile investment in many cases.
See our article on the cost to install and run and air source heat pump for more information.
An air source heat pump is different from traditional HVAC systems in many ways. For one, standard heating and cooling systems usually create heat by burning fuel or consuming electricity.
An air source heat pump doesn’t generate heat directly. Instead, it moves existing heat from the outside air into your home.
Here’s how an air source heat pump works:
- The system contains a compressor accompanied by coils that help heat transfer. When heating, an outer coil with refrigerant absorbs heat from outside air flowing through and boils to a gas.
- The gas is pushed through the compressor to further increase pressure and therefore heat.
- Heat is released internally for use as central heating or even domestic hot water purposes.
- Through heat being released, the gas turns back to a liquid and the cycle is repeated.
- A valve located near the compressor can change the direction of the heat flow between the coils so that the pump may be used for both heating and cooling purposes.
For more information see our main article on how an air source heat pump works.
Like most heating and cooling systems, an air source heat pump has several sub-types.
If you’re considering purchasing an air source heat pump, here’s a quick breakdown of all the different types:
- Air to air: The first air source heat pump type is the classic air to air. In this system, the heat source comes directly from the outside air. Heat energy is extracted from the air, converted, and pushed inside your home.
- Air to water: This type of air source heat pump functions similarly to the air to air pump, with one key difference. Instead of being released into your home as air, the heat this pump produces is pushed through a central water heating system, which can also provide your home with hot water for showering and doing the dishes.
See our article covering the main differences between air to air and air to water heat pumps.
Our air source heat pump is the air to water type.
- Ductless: A ductless air source heat pump is one of the most accessible systems to install. Hence its name, it doesn’t require a duct, which means if not already installed, you can add one to your home with more ease. For more information see our main article comparing ducted and ductless heat pump systems.
- Split: As explained above, an air source heat pump comprises two coils. In a split system, the coils are located inside and outside. The heat is released through a fan and ducts.
- Packaged: In this type of pump, both coils are found outside the system. The air produced is dispersed through ducts, usually located inside a wall.
- Multi-zone: A multi-zone pump is perhaps the most complex but also the most programmable type. This system includes several coils spread out into different areas, allowing other rooms to be cooled or heated to different temperatures.
Installing an air source heat pump in your home can statistically add value to it and will on average add more value than the cost of installation.
However, an increase in value isn’t guaranteed but installing one still carries a variety of other benefits.