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Savings Energy. Saving Money. Powered by Purpose.

May 28, 2026

Heating and cooling your home are often the largest energy expenses in a household. That’s why many Stearns Electric members are looking for smarter, more efficient ways to stay comfortable while lowering monthly costs.

For Brian and Lindsey Sand of Clearwater, installing an air source heat pump was an easy decision.

“We chose to purchase an air source heat pump for the long-term energy savings and financial benefit it offered,” Lindsey said. “We enrolled it on Stearns Electric’s Dual Fuel and Cycled Air Conditioning programs for even more savings.”

While switching to an air source heat pump was the right fit for the Sand family, choosing the correct equipment for your home can feel overwhelming.

“It is important to understand Stearns Electric’s compatible equipment prior to getting too far down the road in your purchasing process,” Lindsey said. “We are grateful to the Energy Services team at the Cooperative for helping us select the proper equipment and supporting us along the way.”

WHAT IS AN AIR SOURCE HEAT PUMP
An air source heat pump (ASHP) is a high-efficiency system that both heats and cools your home.

• In the summer, it works like a central air conditioner by moving heat outside your home. 
• In the spring and fall, it provides efficient electric heat. 
• During Minnesota winters, it works alongside a secondary heating system such as a furnace, boiler or electric resistance to heat your home.

Because heating and cooling account for a large share of household energy use, upgrading to an ASHP can lead to meaningful savings over time.

Air source heat pumps are a smart option for:

• New construction homes 
• Replacing an aging central air conditioner 
• Replacing older, less efficient heating systems 
• Members looking to improve comfort and lower energy costs 

DUCTED VS. DUCTLESS

There are two common types of ASHP systems.

• Ducted: Best for homes with existing ductwork. These homes typically already use a furnace and central air system with vents throughout the home.
• Ductless: Best for homes without ductwork. These homes often use boilers or electric baseboard heat and may rely on window air conditioners for cooling.

ENERGY SAVINGS AND REBATES
When the Sand family installed their ASHP in 2025, they received an $800 rebate from Stearns Electric. But the savings can go beyond the rebate itself.

“The air source heat pump installed in the Sand family’s home is highly efficient compared to their previous heating system,” said John Pantzke, Manager of Energy Services. “By enrolling the equipment in Stearns Electric’s EnergyWise® programs, the savings can be even greater.”

He estimates the family could save an additional $360 per year, totaling approximately $7,215 in lifetime savings.

Stearns Electric members who install an ASHP and enroll the equipment in our EnergyWise® Dual Fuel and Cycled Air Conditioning programs receive rebates year-round. However, from now through August 30, members can receive enhanced rebates up to $1,250 or receive a free 100-gallon Marathon water heater. Visit stearnselectric.org for complete details.

EnergyWise® programs like Dual Fuel and Cycled Air Conditioning help reduce peak demand during the times of day when electricity is most expensive. Lower peak demand means lower wholesale energy costs, which helps keep rates competitive for all members.

Without programs like EnergyWise®, utilities like Stearns Electric would need to invest in additional generation and transmission infrastructure to meet growing demand.

“Our new air source heat pump makes a little more noise than our previous system, but other than that there are no inconveniences,” Lindsey said. “We wish we would have installed the equipment a long time ago!”

If you are considering replacing your heating or cooling system, contact Stearns Electric’s Energy Services team before purchasing equipment. We can help you understand qualifying systems, available rebates, which options might work best with our EnergyWise® programs and provide you with a list of qualified contractors and installers.

Additional information on ASHPs, EnergyWise® programs and other energy-saving opportunities is available at stearnselectric.org.