Time to replace your old heating and cooling units?

The money adds up when you decide to make your home more energy efficient with an electric heat pump. Check out these numbers ...

1) The average 1,500-square-foot home needs a 2.5 ton heat pump. The cost for a 14-SEER, 2.5 ton unit and installation is about $7,500 (depending on the manufacturer.)

2) Ripley Power & Light will finance your unit at a low 6.5 percent interest rate over 10 years. Your monthly cost on your utility bill would be about $85. The yearly cost is about $1,022.

3) Subtract from that $425, which is an approximate figure that you will save over the course of a year if your heat pump meets TVA installation standards and if you compare this to gas heating at this past winter’s gas rates. You also will save money on energy costs if you are switching from other inefficient heating and cooling systems.

4) Then subtract the $200 Ripley Power & Light will give you (applied to your loan) if you are switching from gas to electric heat. (We will rebate you $100 if you upgrade an electric system.)

5) Subtract $500 from that if you had us do an In-Home Evaluation and if a new heat pump was one of the recommended items for you to make your home more energy efficient.

6) Subtract another $250 in a state of Tennessee rebate if your heat pump meets Energy Star requirements.

7) Finally, your 14-SEER heat pump most likely will be eligible for a $1,500 one-time, federal tax credit if you have it installed by December 31, 2010. It is best to plan this credit with your accountant.