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The unit is likely sized right but, the electric heat is what is really killing your bill. Where do you live?
The heat pump will likely not be able to keep up with temps that low no matter what. If you house is not super tightly insulated that can be a factor as well. The bot***** *****ne basically is if you want to have normal heating bills again you will have to get a regular gas furnace put in or this will be a continual issue. Heat pumps are good basically for 55 degree outside temps and above nothing too much below that or that will be an issue.
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Yes the issue is the temp outside, a heat pump can only produce heat and very little the colder it gets outside, at about 37 degrees the heat pumps basically produce little heat and has to run all the time to try and produce heat as that is the balance point. With a 3400 square foot house the size is too large for what that can put out at those temps. Your heat pump is working as it should but I would get a gas furnace and dump the electric if you want to cut the bill to about 1/4 of that amount. Read this article to better understand what I am talking about. I have family that live where you do and they got rid of the heat pump and put a gas furnace in due to the same issues, it would be different if you were in Florida