Solar or Heat Pump?
Author: Bill Hoelzer / Published: June 2022 / Read Time: Four Minutes
Which should you install first? Solar or a heat pump?
If you have a limited budget for home improvement, then you have to prioritize. To talk through the priorities that matter most for your home, start by giving us a call at: 541.330.8767
No other contractor in the country has won the ENERGY STAR Contractor of the Year title more times than GreenSavers. We specialize in home energy projects in Portland and Central Oregon.
Your priorities will depend on the details of your home. In this article, we'll share a few general considerations to help homeowners choose between solar, heat pumps, and other home energy upgrades.
Heat Pump vs. Solar
Let's start with the obvious: If your budget can accommodate a new heat pump and solar panels, then install both systems. They complement each other to reduce the total amount of energy that you draw from the grid.
When you install a heat pump, you'll use energy more efficiently, so that you need less to heat and cool your home. When you install solar panels, you’ll meet your energy needs with clean, renewable energy from the sun.
Combining energy efficiency with renewable energy generation is how we get to net zero energy consumption. It’s where we all need to go eventually.
If you have to choose between installing solar or a heat pump, then in general, it makes sense to install a heat pump first. You’ll get a better bang for your buck.
We’ll explain:
You’re likely to save more energy at a lower cost when you install a heat pump compared to solar panels. This is especially true if your heat pump replaces an older gas, oil, or resistance electric heating system. Heat pumps can save up to 50% on annual heating costs.
That said, there are other considerations that may tip the scales in favor of solar panels. For example, federal tax credits step down and expire over time. It may make sense to install solar first to make sure that you don’t miss out on tax credits before they expire.
Again, to talk about your home and what makes the most sense for you, please give us a call at 541.330.8767, or schedule a Home Energy Audit online:
Heat Pump Water Heater vs. Solar
If you have an older tank water heater, you should definitely swap it out with a heat pump water heater before installing solar panels in Portland or Central Oregon.
Compared to rooftop solar, a heat pump water heater doesn’t cost much, and it saves significantly on water heating - the second biggest energy expense for most homeowners. If you’re an average American homeowner, your water heater accounts for about 20% of your energy bills.
How much energy does a heat pump water heater save?
A heat pump water heater uses 866 kWh (or $100) of electricity to heat water for an average family for the year. An electric resistance water heater would use 3,493 kWh (or $400), which is four times the electricity and cost compared to a heat pump. The difference is 2,627 kWh - about 25% of an average home’s electricity usage.
How many solar panels would it take to power the extra electricity needed for an electric resistance water heater as opposed to a heat pump water heater? This case study in CleanTechnica estimates that you’d need about seven solar panels to make up the difference.
Compared to a heat pump water heater, seven solar panels cost four to six times more. That’s why it makes sense to install a heat pump water heater first.
Other Home Energy Upgrades
What makes sense for your neighbor may not make sense for you. If you'd like a list of priorities for your home in Portland or Central Oregon, please give us a call at: 541.330.8767.
Here’s a general overview of the energy saving priorities that we recommend for our clients:
#1. Lighting and HVAC Maintenance
Simple steps can make a big difference. For example:
Lighting: Swap out incandescent light bulbs with LEDs. LED bulbs use up to 80% less energy and last up to 25 times longer. Check out our article on how to save $145 a year with your lighting and electronics.
HVAC Maintenance: If you take care of your heating and cooling systems, you’ll get better performance, and they’ll last longer. Replacing a dirty air filter can save up to 15% on your heating and cooling costs. Make maintenance easy and automatic by signing up for a plan with GreenSavers.
#2. Air Sealing and Insulation
We generally recommend sealing air leaks and sorting out any issues with your insulation before upgrading your HVAC systems or installing solar panels.
There are two reasons:
First, if you don’t first address issues with air leaks and insulation, then it’s likely that you’ll still have comfort issues (like temperature differences between rooms or floors) even after installing a new heat pump, furnace, or air conditioner. You’ll learn more in our article about why it gets so hot and cold upstairs.
Second, when you seal air leaks and add insulation to under-insulated attics, floors, and walls, you’ll reduce the amount of heating and cooling that you need. This means that you can install a smaller (and generally less expensive) heating and cooling system.
#3. Mechanical Systems
The third priority for many homeowners is to upgrade their HVAC systems. Of course you have lots of options. We generally recommend energy efficient heat pumps in Portland and Central Oregon.
Read more:
Heat Pump vs. Furnace + AC in Oregon: Should you replace your gas furnace with an electric heat pump or install another furnace? What if want to cool your home in the summer? Is a heat pump your best bet, or are you better off with central air conditioning?
How Does a Ducted Heat Pump Work: A heat pump is a highly efficient heating and cooling system powered by electricity. Here’s an inside look at how they operate.
Case Study: Replace Furnace with Heat Pump: “I stressed about the decision to switch fuels for weeks and am happy to ease other customers' minds in the future.” - Galen L. (Homeowner in Bend, Oregon)
#4. Windows / Solar
In terms of energy savings, windows tend to fall lower on the list, but they may be a higher priority for you because of safety, aesthetics, usability, or resale value.
A couple articles we’ve written about energy efficient windows for homeowners in Oregon:
Should I Repair or Replace My Windows: If you have older windows, you may notice issues like drafts or foggy window panes. Does it make sense to repair your windows or replace them?
Milgard vs. Andersen vs. Marvin Windows: This article compares the costs and features of three leading window brands - Milgard, Andersen, and Marvin.
There aren’t clear generalizations about whether it makes sense to prioritize windows or solar panels. The best thing to do is schedule an energy audit with GreenSavers. You’ll get a full breakdown of the costs and incentives available for each of the upgrades.
We love helping our clients save energy at home. If you have questions, please don’t hesitate to get in touch: 541.330.8767.
Learn More About Rooftop Solar
Start by visiting our solar resource page for homeowners in Portland, Oregon. You can also keep reading our latest blog articles about solar energy in Oregon.
