Heat Pumps and Electric Cars
What do heat pumps and electric cars have in common, and why is that important when it comes to sizing a solar energy system?
Transportation:
As modern humans, we transport ourselves thousands of miles per year by filling up at the pump while draining our bank accounts. Driving 12,000 miles per year at 30 MPG requires a staggering 400 gallons of gas, costing $1,800 (at $4.50/gal). An efficient electric car like a Tesla Model 3 can transport you 12,000 miles at $0.33/kWh with 4,000 kWh, costing $950 (at non-peak rates in SCE territory of $0.24/kWh). For those of us who get only 20 MPG, we use 600 gallons per year, and that costs us $2,700.
Modern Comforts:
Air conditioning, heating, hot water, dryers, and cooktops are all modern comforts that commonly use natural gas. With the recent volatility of natural gas, it puts a greater focus on the price per therm of gas. You can no longer rely solely on turning down your thermostat to save some money in the winter.
So, if you spend $2,000 per year on natural gas, you can replace gas appliances such as HVAC and furnace or water heater with a more efficient heat pump-based system and move those dollars into your electricity bill, usually at a savings.
The Calculation - a good investment (more like fantastic):
Convert your fossil fuel costs of thousands per year into less expensive electricity, and then convert the cost of electricity into an investment in a solar system, which is fun to think of as your own private utility.
When sizing a solar system, consider converting your existing fossil fuel-based consumption to electricity. Then invest in a solar energy system for your home with a fixed, definable cost that can replace those variable costs of fossil fuels over twenty years or more. Solar is so popular because the return on investment (ROI) of a solar system is commonly estimated to be around 20% when looking at savings on electricity. But when you combine the ROI with the savings of heat pumps and electric cars compared to their fossil fuel rivals, the result is spectacular!
Incentives, Rebates and Tex Credits:
The government is helping consumers transition to more sustainable energy through tax credits, regulations and more. Additionally, California Utilities have special rates for homes with heat pumps or electric cars. Our blog has more information on these incentives.
Learn More:
Have some fun with chatGPT. I asked it “Compare the cost of a modern gas 50 gallon water heater to an equivalent hybrid electric heat pump heater using $0.30/kWh and $1.00/therm as utility costs.” Here is what it had to say after some detailed calculations: “Based on these calculations, the hybrid electric heat pump water heater is significantly more cost-effective to operate compared to the gas water heater. The annual operating cost of the gas water heater is $2,591, while the annual operating cost of the hybrid electric heat pump water heater is $832.20, which is roughly a third of the cost of the gas water heater.”
One of the newest entries to the space is a heat pump based hybrid water heaters. Below is a video discussing a hybrid heat pump water heater to an electric, and check this out: https://university.hotwater.com/products/residential/heat-pump/
Sources: This costs used in these calculations are based on some common pricing in Southern California at the time this post. See our other blog posts for lots of references.
