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Dual fuel systems, with their combination of an all-electric heat pump and gas furnace, give homeowners the best of both worlds: comfort and energy savings, topped off with a healthy dose of saving the planet. And with a functioning furnace as a safety net when temperatures plummet, they can take a huge step toward reducing their home’s carbon footprint without having to worry about sacrificing warmth in the winter.

However, not all homeowners are aware of these benefits. At a roundtable on heat pumps held at the White House in April, Thomas Yoon, president and CEO of LG Electronics North America, said that “lack of awareness and familiarity about the benefits of heat pump technology is a barrier to market adoption.” At least right now, the responsibility of explaining these benefits falls squarely on the HVAC contractor discussing a new system at the kitchen table.

Following are several key numbers that contractors will want to keep in mind as conversation-starters when it comes to dual fuel heat pumps.

Zero

An electric system produces zero carbon emissions. A dual fuel heat pump allows for automatic use of the most efficient heat source available at the time: gas or electric.

“This allows you to maximize comfort or utility costs depending on the cost of energy or the weather conditions,” said Tim Brizendine, director of product management, Lennox.

MAXIMIZE: Dual fuel systems allow consumers to maximize comfort and utility costs. (Courtesy of Lennox)

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When compared to a traditional heating system, dual fuel systems can reduce site energy usage by as much as two-thirds.

“This is true of both dual fuel heat pump systems and heat pumps with electric backup. The actual energy savings will vary based on the efficiency of the heat pump and the legacy heating system, as well as the climate and operating conditions of the system,” said Mark Lessans, senior director of sustainability and regulatory affairs at Johnson Controls.

Dual fuel systems can help offset price hikes between electricity and gas because the system shares the load. So they provide added insurance as gas and electricity prices vary.

Jeff Goss, director of product management, residential systems at Rheem, said the energy savings of the dual fuel system come from two main areas: the overall efficiency based on SEER2, EER2 and HSPF2, and the heat pump’s ability to provide strong heating capacity at cold ambient temperatures.

“In regions where heating the home or building with electricity is more cost effective than carbon based fuels, performing well in both those areas can mean significant utility cost savings,” Goss said.

1

Both the heat pump and the gas furnace are controlled by 1 thermostat in a dual fuel system. But today’s thermostats can do much more than measure temperature — they are smart enough to not only maintain a comfortable environment for the occupants, but do it cost-effectively while reducing carbon footprint, said Lessans.

“Most of the time, the heat pump will be the optimal heating source in a dual fuel system … but location, utility prices, and the performance of the heat pump in cold climates will all influence the optimal heating source,” he said. “This is especially true in locations that have variable or time of use electricity rates and a mix of electricity generation sources on the grid. And in the event of a grid emergency, dual fuel heat pumps can provide a lifeline to utilities by shifting its fuel source almost entirely away from electricity.”

35°F

As long as the outside temperature is in the mid-30s or above, dual fuel heat pumps can pull from the outdoor air and heat spaces for less than it costs to do so with a furnace. Some of the latest dual fuel models can operate in heat pump mode in temperatures even lower than that, further lowering the homeowner’s environment impact.

Dual fuel systems are critical to the electrification movement, especially when considering how the adoption of heat pumps has become a major focus of federal and state regulators (as well as public figures like Elon Musk) as its ability to decarbonize spaces while maximizing occupant comfort, becomes more apparent.

“Any step we take to reduce secondary fossil fuel usage (gas burned at the home with the primary being at the power plant) is a good step to take. [Dual fuel systems] are a bridge to full home electrification and a cleaner environment,” said& Chris North, senior specialist, residential product marketing at Mitsubishi Electric Trane HVAC US (METUS).

40%

HVAC and water heating account for roughly 40% of a home’s energy consumption. So the highly efficient systems also offer a solution for contractors to offer to customers simply looking to reduce utility bills.

“This will become especially important as energy costs evolve into time-of-use rates that change with demand,” said Brizendine.

Dual fuel heat pump systems make the changeover to all-electric HVAC more feasible and cost-effective, Lessans pointed out.

“Replacing an air conditioner outdoor unit with a heat pump can be relatively straightforward, but replacing a furnace with electric resistance heat often requires electrical service upgrades, and if relied on too heavily for the home’s heating load, will lead to significant increases in utility costs and strain on the electric grid,” he said. “Dual fuel heat pump systems … maximize the scale of heat pump deployment.”

$2,000

The IRA offers up to $2,000 in 25C federal tax credits to consumers for qualifying heat pumps, in addition to $600 in tax credits for qualifying furnaces.

“It also allocates $4.3 billion in funding for state run rebate programs to serve low- and medium-income households who install Energy Star certified equipment,” said Goss. “The High Efficiency Electric Home Rebate Program allows for up to $8,000 in rebates for eligible heat pumps. Many local utility and energy efficiency programs also offer incentives for high-efficiency dual fuel systems, so it’s important to check local resources for more information.”

Rebates can also be paired with a new or existing furnace as well as installing a standard air conditioner. Many times, the amount of the rebate can more than offset the cost difference of the heat versus the air conditioner, Brizendine said, “providing the homeowner with a lower-cost system that provides better comfort and utility savings.”