A West Jordan customer in a 2018-built home contacted us about converting from their relatively young gas furnace + AC combination to a heat pump system. The existing equipment was functional but the customer wanted to take advantage of federal 25C tax credits and IRA rebates while equipment values were still strong (could sell or donate working equipment) and before any major repair needs arose with the existing system.
Customer Situation
- Home: 2018-built West Jordan two-story, approximately 2,600 sq ft
- Existing equipment: 96% AFUE furnace, 16 SEER AC (both 6 years old, functional)
- Income qualification: Above IRA Home Electrification thresholds (federal credit only)
- Customer priorities: Heat pump efficiency, tax credit/rebate maximization, modern technology
Equipment Selection
Selected: Trane XV20i 4-ton variable-speed cold-climate heat pump with Trane S9V2-VS modulating gas furnace as backup (dual-fuel)
Project pricing: $19,500 installed
Installation
Standard heat pump installation with dual-fuel configuration. Existing equipment removed and sold to a salvage operation by customer for partial offset. All commissioning measurements within specifications across cooling, heat pump heating, and gas backup modes.
Final Cost and Rebate Filing
Customer’s cost: $19,500
Rebates filed:
– Federal 25C tax credit: $2,000 (heat pump) + $600 (furnace) = $2,600
– Rocky Mountain Power Wattsmart heat pump rebate: $400
– Dominion Energy Therm-Wise furnace rebate: $200
Total incentives: $3,200
Effective net cost: $16,300
Plus salvage of old equipment: customer received $400 from salvage operation
Final net cost: $15,900
Customer Outcome
First-year operation:
– Cooling season electric bills $25/month lower than prior 16 SEER AC
– Heating season combined gas + electric bills $40/month lower than gas-only furnace
– Annual savings: approximately $780/year
– Payback on net incremental cost vs. continued operation of existing equipment: approximately 9-10 years
What This Case Study Demonstrates
- Heat pump conversion economics work even with functional existing equipment when tax credits and rebates are factored
- Dual-fuel approach preserves gas heating reliability while gaining heat pump efficiency
- Maximizing total incentives — $3,200 across federal and utility programs
- Salvage value of functional removed equipment offsets some replacement cost
Considering Heat Pump?
If you’re evaluating heat pump options in West Jordan, call (385) 250-0687 for honest payback analysis with all applicable incentives modeled.
- Phone: (385) 250-0687
- Address: 4454 Manhattan Ct, West Valley City, UT 84120