Heating, cooling, and saving big bucks with heat pumps
Consider the heat pump, a remarkable technology that extracts heat from cold air and pours cool air into hot. To those without degrees in engineering or physics, the machine’s inner workings seem like alchemy (but it’s really more like a two-way air conditioner). Can it also turn lead into gold? Not exactly, but it can slash your heating and cooling costs.
T.J. Simon, broker and co-owner of Wolf & Simon real estate in Park Rapids, took advantage of incentives offered by a local utility, Itasca-Mantrap Electric Cooperative, and purchased a heat pump for one of his cabin properties.
“They’re about 200 to 250 percent efficient,” Simon estimated. “And can keep the cabin comfortably warm even when it’s as low as -30F outside. After that, the propane heat kicks in.” It should be noted that most heat pumps will operate at peak efficiency in temperatures as low as -13F, according to the Center for Energy and Environment. Newer models, like Simon’s, are rated for even lower temperatures.
Before installing the unit, Simon used about 800 gallons of propane to heat his cabin through the winter—about $1,600 based on the price per gallon in January. Now, he averages about 400 gallons a year. Since purchasing that first full-size unit, he bought several smaller wall-mounted mini-split heat pumps for another cabin, and his real estate office.
“In rural Minnesota where so many people rely on propane for heating, heat pumps make a lot of sense economically,” Simon observed, adding that after rebates from the electric co-op, homeowners can expect to pay about $5,000 for a fully installed heat pump, depending on the unit’s size and configuration. If well maintained, heat pumps can last between 15–25 years.
Stewarding lands and lakes for now and always
Of course, one of the main draws to life in Park Rapids is proximity to clean, clear lakes, miles of pristine shoreline, and deep, verdant woodlands. Recreational tourism is a big economic engine. Visitors ply the lakes in boats, on water skis, and go fishing in the summer. They hunt the big woods in the fall, and head back to the lakes for ice fishing and snowmobiling in the winter. It’s a year-round business that makes a good livelihood for the town’s restaurants, pubs, and shops. And with broadband Internet untethering so many workers from urban offices, lake real estate is a growing destination for newcomers. But with development comes a host of environmental pressures.
“The lakes are central to our way of life in Northern Minnesota. They’re why we live here. But as more homes and developments go up, it gets harder to keep them clean and healthy,” Simon noted. “We have to plan carefully and take preventative measures.” To protect the lakes and landscape, Hubbard County mandates that new homes must adhere to minimum setbacks from the lake, and wetland barriers maintained. Defoliation is discouraged so properties retain as many trees and native flora as possible. Lawns can’t hug the shoreline, and nitrogen-rich fertilizers are forbidden because of their impact on the aquatic ecosystem. Even sandy beaches are discouraged because when they run off into the water those patches of lake become inhospitable to a range of fish. Septic tanks are strictly regulated to prevent seepage and contamination. Although all the rules might seem draconian, Simon recognizes that the consequences of breaking them are enormous.
“If we use up resources based only on what we want and need today, there won’t be much left for the people who come after us,” said Simon. “The biggest thing is keeping our lakes available, keeping them pristine. It’s important to make sure we’re using the water, lake properties, and woodlands in the correct way because they’re all interconnected. What you do in the woods or the farm fields eventually impacts the lakes. And vice-versa, too.”
Realtors® advocating for sustainability
As an industry, Simon believes that Realtors® have an opportunity to advance sustainability efforts across the state. By staying current with energy-efficient practices and technologies—both in new construction and in existing homes—they can help clients shrink their environmental impact, and save a significant chunk of money, too.
“When a client tells you about an inefficient old heater that’s costing a fortune to run and maintain, you can educate them about the advantages of heat pumps—and the rebates and incentives that are available,” Simon suggested. Additionally, through the Inflation Reduction Act, the federal government offers tax breaks of up to $2,000 for qualifying homeowners who install heat pumps.
“There’s a whole range of technologies to consider, from solar on the rooftop to super-insulating foam in the walls. As Realtors® we’re in a great position to be educators, helping people save money on the total cost of ownership while lowering the environmental cost to the planet,” said Simon.
To read this article in the March/April 2024 digital issue of The Minnesota Realtor® magazine, click here.