Oh, also i forgot to add that this is my first house with a Heat Pump, and as we discovered last year (our first winter in this house), the "emergency heat" never kicks in automatically to maintain temp during the winter so we have to run it with thermostat set for "emergency heat" pretty much 24X7 from Dec.-March, which is probably why our electric bill is so high, summer isn't much better as the unit seems to constantly run and if the temps outside in the summer hit 89-90+ the inside never gets cooler than 77 even with the unit running continuously .

Sounds like your heat pump is shot. Yes, it the compressor doesn't provide for heating it is a surprise that it cools at all...it is the same compressor used for both heating and cooling, it is just switched from pumping heat in to pumping heat out.

Given you have NG, I'd surely look into installing a gas furnace for heating. Still, the cost of a new high efficiency heat pump may be about the same as a new gas furnace plus a new air conditioner.

How much does that cost? Assuming your existing duct system works, you just need to replace the cabinet that holds the HP with a new furnace and an auxiliary A/C. That being the case I'd guess $5,000 to $6,000... but I have not priced one in years, so this price is based more on what I see in other discussion on this forum, and what I know about heat pump prices.

Before I started getting any new system quotes I would get an energy audit done. Your local utility might have someone or pay for a portion of it..some pay a large portion. I would make sure the house is shot from the inside and out with a thermal imaging camera while you are there to see it first hand. Have the registers both supply and return flow tested and compared with what the unit is supposed to be at and get a blower door test to see how much leakage you have.

I would go on a caulking and foaming rampage any wire or pipe penetration into the subfloor I would caulk or foam and any in the attic same thing. Recessed lights are a big leakage point even IC rated can leak up to 50cfm each.

I would get this done and then get the new unit and make sure they seal the ductwork at every seam and connection before putting insulation over it.

I went back through your post..I would get quotes for a new system, both gas and all electric. I would post the results in here along with at least the state you live in and electric and gas rates. The people in here that really know hvac will need the model numbers of the units you received quotes on, outside unit, inside unit and coil.

Some utilities will give you a credit or pay you to upgrade if you keep a heat pump. I have seen some go up to 1,000.00 for an air to air system depending on SEER. Quite a few will throw 300-500 at you just for upgrading.

"the "emergency heat" never kicks in automatically to maintain temp during the winter so we have to run it with thermostat set for "emergency heat" pretty much 24X7 from Dec.-March, which is probably why our electric bill is so high..."

A properly-wired and functional digital thermostat will bring the auxillary (electric strip) heat on when it senses that the heat pump cannot keep up. A properly-wired mechanical t-stat will bring on the aux heat after the house temp drops by 2 degrees.

You definitely have an issue with the t-stat not bringing the aux heat on automatically. Aux heat strips are the same as emergency heat strips, except with aux heat both the heat pump and strips run simultaneously.

Your electric bills are high because you are using electric resistance heat and not the heat pump. Heat pumps produce cheap heat. Electric resistance is very expensive.

Have you ever had the heat pump checked for proper refrigerant charge (using superheat and subcooling measurements in cooling mode)? Have you ever had your ducts checked for leaks?

Good luck.

Thanks everyone for your input. I am going to call around for people to come out and give me estimates on both replacing with Nat. Gas as well as estimates for upgrading to a new Heat Pump. I'll post here and get input from you guys once I have gathered the estimates. I'll also have them check the other items mentioned (Duct work, insulation, etc.) This forum seems to have a lot of knowledgeable people!
Sam
Marlton, NJ

Sam, if you decide to go the heat pump route, you may want to check out an article I wrote on this. Sizing is absolutely critical.
You're very close to me, so the article should be quite applicable. If you want any specific guidance, you can contact me via the contact info on my site.

Here is a link that might be useful: Properly sizing a heat pump

Good attachment, Ted.

I've been to New Hope many times.

I think PECO has a special electric rate for a heat pump as primary haeting. Makes cheap heat even cheaper.