It definitely depends on the age and efficiency of your current systems, but a high efficiency heat pump would definitely be able to save you a lot of money on your utility bills. And because it would replace both your AC and furnace, it may be cost effective to buy just one heat pump.

San Diego actually has an optimal climate for heat pumps because it doesn’t get too hot or too cold, which means your system wouldn’t have to work very hard or use very much energy. If you plan to stay in your home for many more years, that could also be a good reason to invest in a heat pump.

Ultimately, the best way to know what option will be most cost-effective in your situation is to have a local energy auditor come out and test your heating and cooling equipment. They’ll be able to tell you what size cooling unit will be appropriate for your home. While you’ll want to have a system that is big enough to cool your home, a system that is too large will cycle more than necessary, which will ultimately cause your system to waste energy.

If you do decide to install a heat pump, you should check out the federal Residential Energy Efficiency Tax Credit, which will cover up to 30 percent of the cost of your new system up to $1,500.

Updated July 16, 2010