Author Joe Obresley owner at Right Now Plumbing and Heating, Missoula, Montana
The future of home comfort is electric heat pumps paired with water efficient plumbing. Cold-climate heat pumps now hold their heating output well below zero, heat pump water heaters use less than half the energy of a standard electric tank, and new refrigerant rules changed what gets installed starting in 2025.
For most homeowners, the smart play is planning these upgrades around the age of the equipment you already own.
We install and service this equipment in Western Montana homes at Right Now Plumbing and Heating. Here's what we're seeing on the job.
What Is a Heat Pump, in Layman's Terms?
A heat pump doesn't burn fuel. It moves heat. In winter it pulls warmth out of the outdoor air and carries it inside. In summer it runs in reverse and works as your air conditioner.
Because it relocates heat rather than generating it, a heat pump can deliver 2 to 3 units of heat for every unit of electricity it draws in mild weather. That's the whole reason the industry is moving this direction.
Do Heat Pumps Really Work When It's Below 0º?
Today the answer is yes, with the right equipment and the right sizing.
The U.S. Department of Energy ran a Cold Climate Heat Pump Challenge with eight major manufacturers, including Bosch, Carrier, Daikin, Lennox, Rheem, and Trane.
Units had to deliver full rated heating capacity at 5°F without backup heat. One prototype held 77% of its rated capacity at -15°F and kept running at -23°F.
Pacific Northwest National Laboratory then tracked these systems in real homes from 2022 through 2024.
On our end, cold climate success comes down to 3 things:
- A proper room-by-room heat load calculation
- Equipment rated for low ambient temperatures
- A backup heat source for the coldest stretch of the year.
That backup can be electric strips or the gas furnace you already have.
The Refrigerant Switch Homeowners Should Know About
Under the federal AIM Act, new residential systems now ship with lower-impact A2L refrigerants, mainly R-454B and R-32, in place of R-410A. R-32 carries roughly one third the global warming potential of R-410A, and R-454B is lower still.
What this means for you is existing R-410A systems can still be legally serviced, but that refrigerant is getting scarcer and pricier. You also can't pour the new refrigerant into an old system.
If your unit is 12 or more years old and leaking refrigerant, a replacement usually is the smarter move.
Eco-Friendly Plumbing Is the Other Half of the Equation
Heating water is one of the biggest energy loads in a typical home too, pair a heat pump water heater with WaterSense fixtures and you cut both your water bill and your energy bill.
Heat pump water heaters. ENERGY STAR reports these units can save a family of 4 about $550 a year versus a standard electric tank, with the extra upfront cost paying back in roughly 3 years. They pull heat from the surrounding air, so they need some breathing room.
WaterSense fixtures. Swapping old toilets for WaterSense models (1.28 gallons per flush or less) saves the average family around 13,000 gallons a year, according to the EPA. A WaterSense showerhead saves another 2,700 gallons. Less hot water down the drain also means less energy spent heating it.
Leak repair. The EPA estimates household leaks waste about 9,400 gallons per family annually. A dripping fixture is the cheapest efficiency upgrade there is.
What Changed With Incentives in 2026
The federal 25C tax credit, which covered up to $2,000 for heat pumps and heat pump water heaters, ended for equipment placed in service after December 31, 2025. Utility rebates are still on the table.
A Roadmap for Making the Switch
- Know your equipment ages. Furnaces, AC units, and water heaters past the 12 year mark deserve a plan now.
- Get a load calculation. Rule-of-thumb sizing leads to short cycling and cold rooms.
- Check your electrical panel. Some older homes need added capacity before going all electric.
- Seal the house first. Air sealing and insulation shrink the size of system you need.
- Replace the water heater before it fails. Emergency swaps leave no time to choose the efficient option.
- Hire licensed, A2L-trained technicians. The new refrigerants require updated tools and safety practices.
Frequently Asked Questions
How long does a heat pump last?
Most heat pumps last 12 to 15 years with annual maintenance. Because they run in both heating and cooling seasons, yearly service matters more than it does with a furnace.
Do I have to remove my gas furnace to get a heat pump?
No. A dual fuel setup keeps your furnace as backup for the coldest days while the heat pump handles the rest of the year.
Will a heat pump water heater work in a cold basement?
Most models need the surrounding air to stay above roughly 40°F to run in heat pump mode. Below that, built in electric elements take over so you still get hot water.
Is the federal heat pump tax credit still available?
Not for new installs. The 25C credit only covers equipment placed in service on or before December 31, 2025. Utility rebates remain available in many areas.
Sources
- U.S. Department of Energy, Residential Cold Climate Heat Pump Challenge
- Pacific Northwest National Laboratory, Performance Results from DOE Cold Climate Heat Pump Challenge Field Validation (2025)
- ENERGY STAR, Heat Pump Water Heaters: Benefits and Savings
- U.S. EPA WaterSense, Statistics and Facts
- U.S. EPA, Technology Transitions Rule under the AIM Act
- IRS, Energy Efficient Home Improvement Credit (Section 25C)
Right Now Plumbing and Heating is a licensed plumbing, heating, and cooling contractor serving Missoula and Western Montana.
