The Business Benefits of Air Source Heat Pumps
Jul. 14, 2025
The Business Benefits of Air Source Heat Pumps
Air source heat pumps move heat into and out of your building to provide highly efficient heating and cooling, as well as humidity control. Learn how air source units work and how they can benefit your business.
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How air source heat pumps work
An air source heat pump system consists of a compressor and two coils made of copper or aluminum tubing; one coil is located indoors and the other one is located outdoors. In the winter, liquid refrigerant in the outdoor coil converts into a gas after absorbing heat from the air. The warm gas refrigerant then moves to the indoor coil where it releases heat as it condenses back into liquid.
In the summer, an air source heat pump simply works in reverse to provide highly efficient cooling. It takes heat from the warm indoor air and moves it outside.
Two widely used types of air source heat pumps in commercial buildings are unitary heat pumps and variable refrigerant flow (VRF) multisplit heat pumps. Smaller (<65,000 Btuh) unitary heat pumps are typically mounted on the ground outside the building while larger systems are roof mounted.
VRF multisplit systems offer zone control and a variety of design options. They're a good fit for applications such as offices, lodging and multifamily buildings. Packaged terminal air source heat pumps and single-package air source vertical heat pumps are also cost-effective options for certain commercial applications.
Benefits for your business
Air source systems provide efficient and cost-effective cooling. They can also reduce energy use for heating by as much as 50% compared to conventional technologies. In addition to lower energy costs, air source heat pumps can benefit your business in a number of ways:
- Better comfort. Multisplit air source systems provide room-by-room temperature control and excellent humidity control throughout your facility.
- Less maintenance. Air source units are easy to install in most buildings and generally require low maintenance and minimal servicing.
- Environmentally friendly. Heat pumps use less energy and produce no onsite emissions.
- Improved safety. The risk of gas leaks or carbon monoxide poisoning from fuel-fired systems is eliminated.
Air source heat pumps can provide energy-efficient comfort in most commercial building applications. However, their performance and capacity decreases in colder temperatures. Therefore, air source units are best suited for moderate climates. A backup heating system may be required in colder climates.
Upgrade for comfort
Air-Source Heat Pumps | ENERGY STAR
An ENERGY STAR certified ASHP provides highly efficient heating and cooling by extracting heat from outside into your home in winter and pulling the heat out of your home in the summer. For some, it may be helpful to think of a ducted ASHP as a central air conditioner that also works in reverse to provide whole-house space heating in winter. The illustration demonstrates how ASHP works in both cold and warm seasons, doing double duty to keep your home comfortable no matter the temperature outside.
Ducted vs. Mini Split Systems
Ducted ASHP systems can be installed and connected to the conventional forced-air ductwork system that is typical of most American homes. A central ASHP can use pre-existing ductwork in your home to deliver heating and cooling, making installation even easier. In most climate zones, an ASHP can be installed as a drop-in replacement when either a central air conditioner or a furnace needs replacement.
If your home doesn’t have existing ductwork or you are planning an addition or renovation where running ductwork will be difficult, you can still install a heat pump to heat and cool a portion of your house. Mini Split Heat Pumps, also called Ductless Heat Pumps, do not need ductwork in order to be installed—instead they are mounted directly onto an interior wall or ceiling with an accompanying outdoor unit. To learn more about Mini Split Heat Pumps, visit www.energystar.gov/minisplit.
Additional Benefits of ASHPs:
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- Lower energy bills by switching from electric resistance, propane, and oil to heat pumps.
- No combustion means better indoor air quality because there are no direct emissions such as NOx, carbon dioxide, or carbon monoxide.
- No fuel storage or risk of running out of fuel.
Proper Sizing
Installing properly sized HVAC equipment for your home is essential to getting the best performance and comfort. A system that is either too large or too small for its intended space will struggle to meet your home comfort needs. Your HVAC contractor can help determine what size system is right for your home. Your contractor should verify the proper size system for your home using a tool called "Manual J" – a calculation of the amount of heating and cooling your home requires to keep you warm in the winter and cool in the summer.
Dual Fuel
If you have a relatively new furnace with an older central AC, or if you are planning to add a new central AC to the furnace, consider an ENERGY STAR certified heat pump. This creates a dual-fuel system for a modest extra cost over an AC system. Dual fuel systems allow for the flexibility of heating with a heat pump or with a more traditional gas or oil furnace and enables you to use each system optimally based on costs and environmental benefits.
Cold Climate Considerations
Many new ENERGY STAR certified ASHPs excel at providing space heating even in the coldest of climates, as they use advanced compressors and refrigerants that allow for improved low temperature performance. If you live in a climate where winter temperatures regularly dip below freezing, talk to your contractor to choose an ENERGY STAR unit suited to your particular home. When you ask your contractor for an ENERGY STAR certified cold climate ASHP, you can be confident that your new AHSP system will deliver the heating performance and efficiency benefits you expect on even the coldest winter days. A good contractor will work with you to determine the size and potential integration with a back-up heating system that will work best for your home.
Climate ASHP technology has improved significantly over the past several years, and many ASHP systems are capable of delivering heating capacity and efficiency at low outdoor temperatures. The ENERGY STAR certification requires third-party verified performance for low temperatures, testing ASHPs down to 5°F. Testing cold climate ASHP performance at 5°F ensures that your ASHP will provide all the heat you need to keep your home comfortable all winter. Your cold climate ASHP will continue working at temperatures below 5°F, but pairing it with a back-up energy source will heat your home the most efficiently when temperatures are even lower.
Take Advantage of Incentives
Air source heat pumps that earn the ENERGY STAR are eligible for a federal tax credit up to $2,000. This tax credit is effective for products purchased and installed between January 1, , and December 31, . Learn more at www.energystar.gov/taxcredits. Many utilities also offer incentives for installing ENERGY STAR certified ASHPs. Check with your local utility for more details or go to: www.energystar.gov/rebatefinder.
What else should I look for when buying an air-source heat pump?
If you've decided that you need to purchase a new air-source heat pump, learn how to hire a contractor. Remember, even though these products can be more expensive to purchase up front, the cost difference will be paid back over time through lower energy bills. Consider regular maintenance of your heating and cooling system to prevent future problems and unwanted costs. ASHPs are one of six high-impact improvements to your home that work together to deliver significant energy and cost savings. Learn more about additional improvements with the ENERGY STAR Home Upgrade.
How to Find Certified Equipment
Be sure to look for the ENERGY STAR when shopping for an air-source heat pump. Use the ENERGY STAR Product Finder to help you identify high efficiency equipment that meets the latest ENERGY STAR certification criteria and then work with a professional installer to find the model that is right for you. ENERGY STAR offers tips on how to hire a contractor.
Air-source heat pumps originally qualified for the ENERGY STAR label in April, .
Current Requirements effective date: January 1,
Air-Source Heat Pumps and Central Air Conditioners Key Product Criteria: ENERGY STAR
Learn How a Product Earns the Label
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