A homeowner is trying to decide between a 13 SEER, 7 HSPF standard efficiency heat pump and a 16 SEER high efficiency heat pump. The 16 SEER, 8.5 HSPF system costs $1,000 more. Which system should the homeowner purchase?

Based on energy modeling of the home, we know that the homeowner will spend $1,000 on heating and cooling each year. Energy modeling also tells us that the high efficiency system will save the homeowner $75 per year over the standard efficiency system. If the system lasts 15 years, which is common, the homeowner would have saved $1,125 in electricity! In this case, the homeowner should opt to purchase the high efficiency system.