I think I already know the answer to this question but I'm posting here to get other opinions and whether I missed anything in my analysis. I recently had an energy audit done to my house, which they said I needed to improve the insulation, use better light bulbs etc, etc. They also mentioned the use of a heat pump to save on my heating bill. The energy audit company is a non profit company that the utilities certify and sanction so they can decrease energy usage. After having the guy come in and present what he had to offer I'm trying to see why I'd want to do it. They recommended installing a heat pump for upstairs that will heat the second floor in the winter, and cool in the summer. This will reduce my gas usage (natural gas is used to heat my house) by about 20 maybe 30% Additionally I'll save about 20 dollars a month on my electric bill in the summer. Putting it all together, I'll save about 500 to 700 dollars a year (I think the upper end is a bit too optimistic). The cost of this is 8,000 (installed). Running the numbers, it will take over 10 years of usage before the unit pays for itself. If I finance it (the utilities are sponsoring a 7 year no interest loan) means I'll be paying 100 dollars a month to reduce my gas/electric bill by 50 dollars - that doesn't make sense to me. So long story short, since there's no financial incentive for me, are there other advantages to the heat pump that I'm not thinking of? I'm not looking to be convinced to get it, or justify my spending of the money but rather I want to cover my bases as I think this through.