Larry Heiman is no stranger to making clean energy upgrades to his Dunwoody, Georgia home – from solar panels, to do-it-yourself weatherization upgrades, to driving an electric vehicle. In our Part 1 blog of Larry’s home energy improvement journey, he explained the long-term planning of his clean energy projects, the savings he has already made along the way by using federal tax credits and local utility rebates, and his motivation to reduce his community’s carbon footprint by addressing energy inefficiencies in his own home.
Next up, Larry planned to replace his aging AC with a heat pump HVAC system this May, then make the switch from gas to a heat pump water heater in 2025 in order to disperse the costs and use financial incentives to their fullest potential. In other words, heat pumps galore! And rightfully so: both heat pump HVACs and water heaters are much more energy efficient than their counterparts, so they use less power to produce the same amount of heating and cooling.
But a not-so-fun surprise shook Larry’s plans while in the midst of his planned HVAC upgrade: his gas water heater sprung a leak, and he had to act fast.
Follow along for Part 2 of Larry’s home energy journey, this one with a heat pump focus: which systems he found best for his lifestyle, how prepared he was for an emergency water heater installation, what role tax credits and rebates played this go around, and more!
And don’t worry – it can get a little confusing, but we’ve placed some resources throughout this blog to help you in your own heat pump journey, whether you’re just here to learn, you’re looking to prepare for an emergency replacement, or you’re all ready to take the plunge.
Planned: Heat Pump HVAC System
Explain the heat pump HVAC system you chose to best fit your situation.
We installed what is called a “dual-fuel heat pump HVAC system” – something we planned to do – in May. I knew our air conditioner was going to die at some point soon, and I didn’t want it to be this summer and be stuck with no air conditioning. Something that people forget is that the heat pump is both your air conditioner and your heater. We’re glad we planned and installed our system during a shoulder season, because in the summer and winter months, contractors tend to be busy responding to more desperate situations due to the harsher temperatures. We got a lot of attention and questions answered from our contractor, and it’s better not to be desperate when making such an investment.
With an all-electric heat pump HVAC system, you don’t have a gas furnace. But, with the “dual-fuel” system we opted for, you keep your gas furnace for backup heating – you just set a cold temperature at which the system switches over from electric to gas. This dual-fuel system exists because heat pumps use more power when temperatures reach a certain low outside, at which point a dual-fuel heat pump switches from electricity to gas automatically. It can be more efficient if you live in a colder climate.
Our system can efficiently run down to 10 degrees outside, which we only get in Atlanta once every few years. I plan to set our heat pump to switch to gas heating only once the outside temperature reaches maybe 20 degrees, and since that kind of low is not common for us, our dual-fuel system will basically always run on electricity, functioning the same as an all-electric system. It just felt like the right choice for us.
Our new heat pump is also variable-speed, which means it runs at a lower power level – determined by what the inside and outside temperatures and humidity levels are – for a longer period of time, and it dehumidifies the house constantly. With our old HVAC, the AC would come on full blast and cause the lights in the house to flicker, and it would only stay on for ten minutes, shut off, then come on again ten minutes later. But this variable-speed system can run at different speeds other than full blast, 100%.
We also wanted to zone our home’s heating and cooling but only have one HVAC unit, unlike other zoned homes that have an HVAC unit for each floor. The variable-speed system we chose allows us to zone without ripping up walls to install ductwork for a second HVAC.
For us, this dual-fuel, variable-speed system felt like the best of both worlds. And it so far cools our home in the Atlanta summer with no problem.
Larry’s new heat pump HVAC system.
This year brought the hottest summer on record. Have you noticed increased comfort, cooling capability, or energy savings with your new heat pump HVAC system?
It’s absolutely more comfortable because it’s simply a more efficient, higher functioning machine than our old air conditioner. It dehumidifies: there are times in the summer when it’s rainy and humid and you don’t really need the air conditioner – you need a dehumidifier to get you to a comfortable temperature, and this has that. Instead of running the air conditioner at a lower temperature than normal to dry out the humidity, wasting energy and money, the system uses dehumidification.
This new heat pump HVAC system used about 40% less electricity this July than our old system used in August 2022, before we’d made other energy upgrades that could skew the data, such as installing solar panels.
By looking at power bills from then and now, viewing data in the app used to control the new system, and factoring out power usage from charging our EVs, I can estimate that our HVAC used about 800 kilowatts of energy back in August 2022, compared to the heat pump only using 421 kilowatts this past July. And whatever we’ve saved on energy this summer, we’re saving in money on our power bill.
Surprise: Heat Pump Water Heater
Had you done research to prepare for replacing your gas water heater with a heat pump water heater for when the time came?
Our gas water heater was 20 years old, much like our HVAC, so I’d planned to replace it with a heat pump water heater maybe next year. But, while down in the basement during our planned heat pump installation in May, we noticed liquid around the gas water heater tank – and when your water heater starts leaking, it basically means it’s unfixable. I thought: okay, this changes my plans a little bit.
I had researched heat pump water heaters a bit before this surprise. I had listened to a podcast to learn how they work. I knew that they were more efficient than even traditional electric water heaters. I knew that the newest models of heat pump water heaters only have a heat pump function, but I wanted a hybrid – one with a normal, traditional electric resistance element – in case I needed to heat up more water much faster, like when I have extended family visiting from out of the country.
And, I knew from research beforehand that while heat pump water heaters are more expensive than gas or even traditional electric resistance water heaters, there’s a $2,000 tax credit from the Inflation Reduction Act for heat pumps, and my utility, Georgia Power, offers a $500 rebate. Though, that local rebate could be different for other utilities, so is worth researching beforehand.
Were there any particular challenges you faced during your emergency heat pump water heater installation?
The thing I was most worried about going into the installation was the electric hookup in the basement – we had a gas water heater before, so we had no electric hookup down there. Often, the costs associated with running those thick wires – the wiring itself plus the work to have an electrician do it – is expensive, and it did end up adding $700 to the final installation cost, to run wiring from the heat pump water heater in the basement to the electrical panel in the garage above.
Larry’s new heat pump HVAC system.
If someone already has an electric water heater, whether it’s because they lack access to gas or just happen to have an electric water heater, that process is much cheaper and easier.
How knowledgeable did you find vendors and installers to be of heat pump water heaters?
The company I used installs all types of water heaters, including heat pump water heaters, so they were knowledgeable about them. They came to take a look and installed it the next day. They sent an electrician out in the morning to run the wiring to the garage, and they had someone come out to install the water heater in the afternoon.
Because it was an emergency, I didn’t get a chance to shop around, I just luckily found the right one pretty quickly. It is really important to research beforehand so you have the chance to talk to multiple vendors.
Explain the financial incentives you planned to take advantage of – whether federal tax credits or local utility rebates – to help make your heat pump installation(s) more affordable.
This is where it got a little tricky. You can get the IRA tax credit of up to $2,000 a year for installing a “heat pump” of any sort in your home, but that means if you use that tax credit on a heat pump HVAC system, you can’t get the credit again for installing a heat pump water heater in the same year. I planned to split the two heat pump projects into separate years and therefore be eligible for the $2,000 tax credit for both.
That turned out not to matter, because the heat pump HVAC system we wanted turned out to be ineligible for the IRA tax credit this year, despite being more efficient than many of the heat pumps that were eligible. But, we needed the variable-speed system to zone our home, so we stuck with it despite losing the $2,000 tax credit. But, since we didn’t use it on the HVAC, we were then able to use it on the water heater for this year, so it worked out in the end.
What’s next in your home energy improvement journey?
Hopefully, I won’t be doing any more large home improvements this year. I hope next year to do either the duct sealing project or the air sealing and insulation project. We’d thought about doing those before the heat pump HVAC installation, for energy efficiency. But, we went ahead and got the heat pump first because our old HVAC needed to go, and our insulation works for us for now and is not terrible.
As far as space heating goes with the new heat pump HVAC, we’ll see how this winter goes. I’m interested to find out…maybe that will be a “part three.”
Get Involved in the Clean Energy Generation
As members of the Clean Energy Generation, we’re alive during a time of unprecedented climate funding, support, and technology, and there are all kinds of ways to get involved in the movement. Like Larry, each of us has the power to spark clean energy change in our lives, homes, or communities – but it doesn’t have to be a heat pump! Spreading the word with your community, making DIY weatherization upgrades to your home, and sharing what motivates you to fight for a safer, cleaner future can inspire others.
If you’re looking for a place to start, join our next Clean Energy Generation member call, every second Friday of the month. All are welcome! We have the power to make our clean energy future a reality – especially when we rise up together.
Join the Clean Energy Generation
The post Demystifying Heat Pump Water Heaters & HVACs: Comfier Home, Lower Bills appeared first on SACE | Southern Alliance for Clean Energy.
Demystifying Heat Pump Water Heaters & HVACs: Comfier Home, Lower Bills
Most Americans, me included, are puzzled as to how the Trump administration can openly thumb its nose to the findings of our courts. Until recently, behavior like this would have wound you up in jail.
Over the decades, many households across Victoria have resided in older suburban homes equipped with traditional ducted gas heating and aging split-system air conditioners.
However, today the scenario has changed significantly. As energy prices rise, families are feeling the pinch, with annual heating and cooling costs often rising $2,000.
But what are the main issues?
Gas systems that waste energy heating unused rooms, old non-inverter aircons that struggle to maintain even temperatures, and confusion among residents about how rebates, such as the Victorian Energy Upgrades (VEU) program, actually work.
That’s where trusted providers like Cyanergy Australia step in!
By replacing outdated systems with efficient reverse-cycle multi-split air-conditioning and applying VEU rebates, we help many households to cut energy bills, reduce emissions, and enjoy year-round comfort, all in one smart upgrade.
This air conditioning upgrade can lead to a smoother transition from gas to clean, efficient electric heating and cooling, building a smarter, more sustainable home.
So, let’s break down how the household saved $1,200 with the VEU & Air-Con upgrade, what the program offers, and how you can take advantage of similar rebates to cut costs and enjoy a more energy-efficient home.
Cyanergy’s Energy Assessment: What We Found!
From the beginning, Cyanergy’s focus was to remove or disconnect the old gas ducted heater, install a modern
reverse-cycle multi-split air conditioning system, claim the VEU discount, and significantly reduce your annual
energy bills.
Simply via the effective air-conditioner upgrade, households can “Save
up to $2,000 a year on your energy bill.
Here are the findings after Cyanergy’s initial home energy visit:
- In many Victorian households, the ducted
gas heater is still in use, with high standing and fuel costs. - The older split system had poor efficiency. Some of them were oversized for the room and lacked zoning
options. -
The electrical switchboard had spare capacity to support a multi-split installation. For example, one
outdoor unit
with multiple indoor units for different zones.
Home Heating & Cooling Upgrade| The Step-by-Step Path
It’s well-known that the upgrade path usually involves replacing old systems with modern, energy-efficient solutions.
So, from gas to an energy-efficient electric system, let’s have a look at the upgrade story:
Choosing the right system
For the households that want to upgrade under the VEU air
conditioner rebate, we proposed a multi-split reverse-cycle system:
- One efficient outdoor inverter unit connected to three indoor units
- One in the main living area, one serving the upstairs bedrooms, and
- One for the downstairs zone, which had very little heating or cooling.
- Going multi-split provides flexibility: you only run the zones you need, resulting in lower energy
consumption.
However, in Victoria, Cyanergy is a renowned company that handles design, quoting, installation, and also guides
families through rebate
eligibility.
Decommissioning the old gas ducted heater
As part of eligibility for the VEU discount, the existing gas heater needed to be decommissioned in most cases.
This involves removing the system or disconnecting the ducted unit from the gas supply, following proper procedures
and obtaining certification, and utilizing expert installers.
Installation Process & Timing Period
- Initially, after checking the eligibility, apply for the quotes.
- The quote needs to be accepted and dated.
- Then the installers will remove the old ducted heater, seal off the vents, and remove or disconnect the gas
appliance. - The outdoor inverter unit should be mounted externally in these households. The indoor units need to be
installed in each zone, minimising the intrusion of ductwork and piping. - The wiring and electrical breaker must be upgraded as needed.
- The system will then be commissioned, and the necessary documentation will be submitted to the accredited provider for the VEU scheme.
Choosing efficiency over just cooling
Rather than improving just cooling, the Victorian households treated the upgrade as a heating & cooling renovation, switching to a system that uses electricity rather than gas.
Modern inverter systems are more efficient, as they modulate their output, offer better zoning, and can both heat and cool, allowing you to enjoy both winter comfort and summer cooling in one system.
At Cyanergy, we emphasise this home upgrade path:
“Efficient and Eco-Friendly Electric Multi-Split Air Conditioner. Take advantage of up to $7,200 in Victorian Government Energy Upgrade incentives, save big this winter on your gas bill.”
Out-of-pocket and rebate
Here is recent data from the average estimation for a household from the aircon rebate case study in Victoria.
In the quotation, the family had an installation cost of approximately $8,000 for the new multi-split system, including the decommissioning.
The VEU discount for gas-ducted to multi-split upgrades in Victoria was approximately $2,500.
So, their net out-of-pocket cost was ($8,000 – $2,500), which is approx $5,500.
How to Apply for the VEU Rebate: Are You Eligible?
The Victorian Energy Upgrades (VEU) program provides rebates for eligible energy-efficient upgrades such as
installing a high-efficiency reverse-cycle air conditioner to replace an older heating or cooling system.
Before we discuss how
the rebate works, here are the eligibility criteria.
So, to qualify under the VEU program:
- The property must be more than two years old.
- The existing heating or cooling system must be removed or replaced.
- The new system must be an eligible high-efficiency reverse-cycle unit installed by an accredited
provider.
How the Rebate Works
In this case, the quote from Cyanergy already included the VEU discount, meaning the price shown was the net cost
after applying the rebate allocated to the installer.
After installation:
- The accredited provider registers the upgrade with the VEU program.
- They create and claim Victorian Energy Efficiency Certificates (VEECs) for the upgrade.
- The value of those certificates is passed on to the customer as an instant discount on the invoice.
The homeowner simply has to:
- Signs off that the old system was removed or decommissioned.
- Provides any required evidence or documentation, like serial numbers or photos.
The Result
The rebate is applied instantly at the point of installation, reducing the upfront cost — no need for the homeowner
to submit a separate claim.
Why is the VEU rebate significant?
Rebates like this make a big difference in the decision-making process. As the website says:
On average, households that upgrade
can save between $120 and $1,100 per year on their energy bills.
Additionally, the government factsheet notes that households can save between $120 and over $1,000 annually,
depending on the type of system and upgrade.
Thus, the rebate reduces the payback period, making the system more widely available.
Energy Bill Before vs After: See the Savings!
Here’s where the real story says: the household’s actual bills before and after the upgrade.
Before Adding Air Conditioning System
- Ducted gas heating and an older split system.
- In Victoria during winter months, the average monthly gas cost is approximately $125, and for electricity,
and other supplementary costs, an additional $30. So roughly $155 per winter month. Therefore, over the
course of four months, the price can reach nearly $620. - In summer cooling months, if their older split system ran for 2 hours per day, for example, from May to
October, it would cost around $50 per month. Over the 6 months, it will be, $300. - Total annual heating and cooling cost is approximately $920
After Adding the Air Conditioning System
- Household that installed a Multi-split reverse-cycle system.
- During the winter months, running the zones efficiently and utilizing the inverter system resulted in a
decrease in heating electricity costs.
Let’s say the average is around $70 per month over four months, totaling approximately $280.
- In the summer months, efficient cooling costs approximately $30 per month over six months, totaling around
$180. - So, the annual heating
and cooling cost is approximately $460.
Net Savings
Annual savings: $920 (before) – $460 (after) = $460 per year.
At that rate, the upgrade pays for itself in net savings and an upfront rebate.
However, as they also removed gas connection fees and standing charges, improving comfort, therefore, the “effective”
savings were perceived to be higher, around $1,200 in the first year with the air conditioning upgrade.
This figure also includes avoided gas standing charges of $150, lower maintenance costs of the old system, and
improved efficiency.
Maximising Your Savings| Key Insights from the VEU Rebate Program
Based on the case study and Cyanergy’s experience, here are some lessons and actionable tips for homeowners
considering an upgrade.
- Don’t wait until your system dies.
Replace outdated or inefficient gas or electric resistance systems immediately. Once the system starts
failing, you
may have fewer options or higher installation disruption.
- Choose a provider who handles the rebates.
Dealing with the rebate or discount component (VEU) on your own adds complexity, like documentation,
compliance, and
installation. So look for an accredited provider.
- Understand the actual savings potential.
It’s not just the rebate amount; consider running costs, efficiency improvements, zoning, and the ability to
heat and
cool.
- Ensure proper sizing and zone control.
As many families discovered, the benefit came from zoning: you only heat and cool rooms you use. Oversized
units or
whole-home heating can reduce savings.
- Factor in non-energy benefits.
Better comfort, for example, quieter systems and more consistent temperatures, as well as the removal of gas
standing
charges, less
maintenance, and improved resale appeal for eco-conscious buyers, all benefit you.
- Check the accreditation and compliance.
With rebate programs, there’s always a risk of non-compliant installations or companies that don’t follow
through.
So, do your homework: check that the installer is accredited for VEU, ask for references, and ensure that the
documentation is completed appropriately.
- Request detailed quotes that include estimates for both “before rebate” and “after rebate”
costs.
This helps you see how much you’re actually paying, the discount you receive, and ensures transparency. The
rebate is
not always the full difference; minimum contribution rules apply.
- Monitor your bills after installation.
Keep track of your energy bills (gas & electricity) before and after for at least 12 months. This will
indicate
whether the savings are as expected and aid in budgeting.
Be realistic about pay-back
Although the rebate helps upfront, large systems still cost thousands of dollars. Don’t expect payback in one
or two
years (unless you have extreme usage).
However, with a well-designed system, rebates, and efficiency gains, a payback of 5-10 years or better is
possible,
depending on usage.
Final Notes
This aircon rebate case study illustrates the VEU saving. By working with Cyanergy Australia, households transformed a traditional, inefficient gas-ducted heating and older split cooling system into a modern, efficient, zone-controlled multi-split reverse-cycle air-conditioning system.
This was made more affordable through the VEU scheme discount.
The result? A net cost of around $5,500, improved comfort, and savings of approximately $1,200 in the first year.
This real-world “VEU saving example” shows that:
- Rebates matter as they make the upgrade financially viable.
- Efficiency matters as modern multi-split reverse-cycle systems deliver lower running costs.
- Removing inefficient gas heating can unlock significant savings.
- A reliable installer who navigates the rebate process effectively is crucial.
So, if you are looking for an accredited provider in Australia, Cyanergy is here to help!
Contact us today to receive a free solar quote. We will handle all your paperwork to ensure a fast and smooth installation process.
Your Solution Is Just a Click Away
The post How Households Saved $1,200 with VEU & Air-Con Upgrade? appeared first on Cyanergy.
About 20 years ago, a friend asked me if I was aware that cars could run on air. I asked, delicately, what she meant, and she explained that cars can run on compressed air.
“Ah,” I replied. “Of course they can. But where does the energy come from that compresses the air?” End of conversation.
Now, it’s back. Now there are enormous swaths of the population who know so little about middle school science that they believe we can put cars on the road, in an ocean of air, and extract energy out of that air to power our automobiles.
If you’re among these morons and want to invest with some heavy-duty fraud/charlatans, here’s your opportunity. They say that it’s “self-sustaining and needs no fuel.” If that makes sense to you, be my guest.
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