Air Source Heat Pumps

It’s the best of both worlds. An air source heat pump (ASHP) works as a more efficient central air conditioner during the warmer months and provides supplemental heating in the spring and fall. ASHPs are easy to install in new construction and are the ideal choice when it is time to update or replace older, inefficient heating systems or aging central air conditioners.
ASHPs use less electricity than conventional air conditioners and furnaces. You can switch between cooling and heating directly from the thermostat, putting you in complete control.
When you need to cool your home, ASHPs outperform standard central air conditioners by extracting the existing heat from inside your home and pumping it outside. An ASHP can also be controlled during periods of high demand on the EnergyWise® Cycled Air Conditioning Program.
The cooling process is reversed when you use an ASHP to provide supplemental heat. By extracting the existing warmth from the outdoor air and pumping it into your home, you’ll be able to run your furnace less. During the spring and fall, you may not need to run your furnace at all. In addition, an ASHP qualifies as an acceptable electric heat source for the EnergyWise® Dual Fuel Heating Program.
There are numerous ASHP resources available to homeowners here, including:
- FAQs
- Case Studies
- Buying Guides
- Product Finders
- News Articles
EnergyWise® Rebates Efficiency Loans
For a limited time: Enhanced REbates or free 100-gallon marathon water heater
From now though August 31, 2026, receive your choice of an enhanced rebate or a free 100-gallon Marathon water heater when you install a new, qualifying ducted Air Source Heat Pump:

Download the promotional handout
Fill out ductless/mini-split rebate application
Offer valid on new, qualifying ducted and ductless ASHP installations only. Ducted units must be enrolled on EnergyWise® Dual Fuel and Cycled Air Conditioning for the first time to qualify. Replacement units qualify for standard rebates only. Promotion valid May 1–August 31, 2026. EnergyWise® programs must be checked out by December 31, 2026. Limit one promotional offer per account. Promotional rebate cannot be combined with standard rebates. Additional qualifying devices receive standard rebates. Ductless rebate requests require a completed form, invoice and AHRI certificate. Ducted units must be installed by a Quality Install contractor. Free Marathon water heater offer requires Stored Water Program enrollment and checkout by December 31, 2026, otherwise, the member will be invoiced. ASHP and water heater must be installed in the same building and wired to the same load control device.
2026 Air Source Heat Pump REBATES
≥ 14.3 SEER2 & ≥ 7.5 HSPF2 – $500
CEE Tier 1 Listed – $800
Please visit https://www.ahridirectory.org/ to learn if your ASHP meets the minimum requirements.
NOTE: Ducted units must be enrolled on the EnergyWise® Dual Fuel and Cycled Air Conditioning programs for the first time to qualify. EnergyWise® programs must be checked out by Stearns Electric on or before December 31, 2026. To qualify for a rebate, ASHP must be installed by a Quality Install Contractor.
Rebate Information
COST COMPARISON
This EnergyWise® Cost Comparison Chart shows the benefit of cooling and heating a 2,000 square foot home with an air source heat pump rated at 250% efficient and operating on a Stearns Electric EnergyWise® rate.
WHY UPGRADE TO AN AIR SOURCE HEAT PUMP?
Half the energy use
Half price electricity
Year-round operation
Air source heat pumps must be enrolled on the EnergyWise® Cycled Air Conditioning and Dual Fuel Programs to qualify for the reduced EnergyWise® rate for electricity.
By enrolling in these programs, members receive nearly half price electricity for their heating and cooling. This savings can make a significant impact in your finances.