Have electric heat? Here’s how much you could save with heat pumps

# Heat Pumps Could Save You Thousands on Energy Bills If your home uses electric heating or an electric water heater, switching to a heat pump could cut your annual energy costs by about $1,500—that's roughly $23,000 over the pump's lifetime. Heat pumps work by moving heat rather than generating it from scratch (like your toaster does), making them three times more efficient than old electric heaters that are still common in 25 million American homes. The upfront cost is high, but the long-term savings combined with lower carbon emissions make it worth considering if you're replacing an aging heating system.