Can a heat pump replace my central air conditioner?

A heat pump is an air conditioner that can run in reverse. In summer it moves heat out of the house exactly as a central air conditioner does; in winter it moves heat in. That makes it a direct replacement for a central air conditioner, with heating added.

What changes in the ratings?

The federal minimums for equipment made from 2023 are higher for heat pumps than for air conditioners:

Split system	Minimum SEER2	Minimum HSPF2
Air conditioner, North	13.4	—
Air conditioner, Southeast and Southwest, under 45,000 Btu/h	14.3	—
Heat pump, all regions	14.3	7.5

When EPA ended the ENERGY STAR label for central air conditioners on February 1, 2026, it noted that heat pumps cost somewhat more but called the increase marginal given the heating a heat pump adds. The ENERGY STAR label remains available for heat pumps.

How should it be sized?

This is the main decision. DOE’s Building America guidance lays out a range. At one end, a heat pump is sized to the design cooling load, like the air conditioner it replaces; in a cold climate it then needs backup heat for much of the winter, with a balance point around 40 °F (4 °C). At the other end, it is sized to the full heating load at the local design temperature and needs backup only below its balance point, but its cooling capacity is larger than the summer requires. Variable-capacity heat pumps narrow the gap because they can turn down in mild weather.

In a cold climate, the choice between keeping a furnace as backup and relying on auxiliary heat strips follows from how the heat pump is sized.

Can I keep my furnace?

Yes. A heat pump paired with an existing furnace, often called a dual-fuel system, uses the heat pump in milder weather and the furnace when it is colder or cheaper to run. DOE’s May 2026 guidance for the federal rebate program explicitly allows homes to “retain existing fossil-fuel HVAC systems when installing a heat pump, even if the heat pump will not become the primary source of heating and cooling.”

Do federal rebates apply?

The federal tax credit for heat pumps (25C) does not apply to property placed in service after December 31, 2025. The state-run HEEHR rebate caps a heat pump for space heating and cooling at $8,000, for households up to 150% of area median income.

Since DOE’s Program Notice 26-2 took effect on May 29, 2026, HEEHR rebates for HVAC cover upgrades from existing electric equipment to more efficient electric equipment, and the notice allows a home to keep its fossil-fuel system alongside the new heat pump. Replacing an electric central air conditioner with a heat pump is an electric-to-electric upgrade. How each state applies this depends on its program, so confirm eligibility with your state energy office before signing a contract.

What should I ask a contractor?

• Is the heat pump sized to the cooling load, the heating load or somewhere between, and why?
• What is its heating capacity at our design temperature, and where is the balance point?
• If we keep the furnace, at what outdoor temperature will the system switch to it?
• Will the existing indoor coil be replaced, and is the new combination certified?
• Which rebate programs apply, and has eligibility been confirmed with them?