As energy costs continue to climb and extreme weather conditions caused by climate change push homeowners toward cleaner and more efficient heating and cooling solutions, heat pumps have emerged as a compelling alternative to traditional HVAC systems.
Sales of these efficient devices doubled between 2015 and 2020 and continue to climb, even outselling furnaces in 2023, according to the American Council for an Energy-Efficient Economy. More than 17.5 million American households now rely on heat pumps for for year-round comfort, industry studies show.
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While heat pumps can slash heating costs by more than $1,000 per year compared to electric resistance heating and reduce cooling expenses by 30% versus standard air conditioners, making the switch isn’t always as simple as a direct replacement. One crucial factor that many homeowners overlook is whether their existing electrical panel can handle the additional load.
Before joining the heat pump revolution to help both your pocketbook and the planet, it’s essential to understand the electrical requirements and potential upgrades needed to power these energy-saving systems.
Why your electrical service and electric panel limit your options
You’ll need to make sure that a heat pump is compatible with the electric panel in your home.
Your home’s electrical service and panel determine the total power available to your home at any given moment. The service, which brings electricity from the utility company, has a maximum capacity. For most homes, that capacity is 100 to 200 amps. Your electrical panel then distributes this power through individual circuit breakers, each designed to handle a specific maximum load to prevent overheating and fire hazards.
The capacity of your electrical service may limit your options when it comes to heating and cooling solutions. “Many older homes only power 100 amps or so,” said Gabe Abshire, CEO of Move Concierge. “That’s not quite enough power to operate the heat pump and everything else in the home that uses electricity.”
What happens when you try to draw more electricity from your service than capacity allows? You get a power outage.
“Think of the scene in A Christmas Story where the dad finds an open plug for the Leg Lamp, but he’s plugged too many things into the outlet,” said Jason Altshuler, founder and CEO at My Electric Home. “Just because there was a space open to plug in something doesn’t mean that the system is not at capacity.”
Run multiple high-draw appliances simultaneously — for example, an electric dryer, oven, air conditioner, and electric vehicle charger — and you may approach or exceed your system’s capacity. This can trip circuit breakers or, in a whole-house scenario, cause the main breaker to shut off power entirely.
Your electric panel can limit you in another way, too. Altshuler said there can be a “physical limitation, with no open breaker spaces in the panel,” which could prevent you from adding a heat pump without rewiring the circuits.
“Think of the scene in A Christmas Story where the dad finds an open plug for the Leg Lamp, but he’s plugged too many things into the outlet. Just because there was a space open to plug in something doesn’t mean that the system is not at capacity.”
– Jason Altshuler, founder and CEO at My Electric Home
Do you have the capacity to add a heat pump?
Once you’ve made sure you’ve got the capacity for a heat pump, you can proceed with getting one installed.
The first step in determining if you can add a heat pump is to examine your electrical panel’s capacity. Abshire said to check the main breaker, which should have a breaker rating listed. This will typically appear on or near the large switch on the panel. The most common ratings for modern homes are 100, 150, or 200 amps.
Additionally, you’ll want to check how many physical breaker spaces are available on your panel. Altshuler said you will ideally want two open spots next to each other. If you have two open spots but they aren’t side-by-side, don’t fret. “Sometimes an electrician can rearrange the circuits to make room,” he explained.
Why two breaker spaces? A heat pump usually requires a dedicated 240-volt circuit and a double-pole breaker rated between 20 and 60 amps, depending on the unit’s size.
To properly assess your capacity, consider all your existing major electrical loads. A licensed electrician can perform a load calculation to see if your current service can handle the additional load of a heat pump. A professional can help to evaluate your home’s total electrical usage patterns and determine whether you need a panel upgrade or a service upgrade from your utility company to support the addition of a heat pump.
What options do you have?
If your home’s electrical panel does not have the capacity to support the load of a heat pump, you may be able to upgrade to a 200-amp panel. This will typically cost between $1,000 and $3,000.
For homes with older or smaller electrical panels, investing in a smart panel, like those offered by SPAN, could help facilitate a heat pump. These energy management systems allow 100-amp or 150-amp homes to support new electric loads without the need for expensive feeder wire upgrades.
“Basically the panel’s software can regulate the loads, and power shed or temporarily turn off circuits based on set priorities,” Altshuler said, enabling households to become fully electric without upgrading to 200-amp service. It could also help cut as much as 10% off your electricity bill, per the Department of Energy.
While smart panels are more expensive upfront — costing $2,000 to $5,000 — they could save homeowners thousands of dollars in avoided panel upgrades and infrastructure costs. This makes them an attractive option for those looking to incorporate energy-efficient technology like heat pumps while keeping overall project costs manageable.
If this proves cost-prohibitive, Altshuler suggests looking into a less electricity-intensive heat pump, typically one with a smaller capacity, like a 240 volt, 15 amps option. Heat pumps like this require “less power for the coil but [have] a slower recovery rate for hot water.”
These types of models are often considered “plug-in” which don’t require load calculations or significant electrical work. However, because of the lower capacity, these models are typically less suited for high-demand households or colder climates where inlet water temperatures are lower. Using this model typically requires planning hot water usage throughout the day since recovery can take 3 to 6 hours, or even longer in colder conditions.
