How much does a heat pump cost?
How much does a heat pump cost?
$10,000 – $25,000+ average installed cost (air-source heat pump)
Average heat pump cost
A new heat pump costs $10,000 to $25,000 installed for the most common air-source heat pumps. However, costs can reach $50,000 or more for more complex installations or premium geothermal systems. The total cost of heat pump installation depends on the home size, location, heat pump type, and installation complexity.
| Home size (square feet) | Capacity (tons)* | Average cost installed |
|---|---|---|
| 1,000 | 1.5 – 2 | $6,000 – $8,500+ |
| 1,500 | 2.5 | $8,000 – $10,500+ |
| 2,000 | 3 | $10,000 – $20,000+ |
| 2,500 | 3.5 – 4 | $12,000 – $22,000+ |
| 3,000 | 4 – 5 | $18,000 – $25,000+ |
| 3,500 | 5+ | $20,000 – $28,000+ |
| 4,000+ | 5+ | $22,000 – $32,000+ |
*Each ton equals approximately 12,000 BTUs of heating and cooling capacity.
Heat pump installation prices by type
Heat pump installation prices vary based on the system type and installation requirements. Air-source heat pumps are the most common for residential homes. Geothermal systems are more costly to install but tend to be more energy efficient. The table below shows the average cost of the three main types of heat pumps.
| Heat pump type | Average cost installed* |
|---|---|
| Air-source heat pump | $10,000 – $25,000+* |
| Geothermal heat pump | $20,000 – $50,000+ |
| Ductless heat pump | $2,000 – $17,000+ |
*Including air handler installation
Air-source heat pump
An air-source heat pump costs $10,000 to $25,000+ installed for an average-sized house, making it a popular choice for many homes. These systems extract heat from outdoor air and work efficiently in most climates. They connect to existing ductwork and can replace both your furnace and air conditioner. Air-source heat pumps perform well in temperatures above 25°F, though newer cold-climate models function effectively down to -13°F.
Geothermal heat pump
A geothermal heat pump costs $20,000 to $50,000+ installed on average, but some larger or more complex systems reach $75,000+. Geothermal systems cost more than other heat pumps because of the extensive excavation and ground loop installation. These systems use stable underground temperatures for exceptional efficiency, potentially reducing heating and cooling costs by 25% to 75%. While expensive up front, geothermal systems last longer and qualify for substantial federal tax credits.
Ductless heat pump
A ductless heat pump costs anywhere from $2,000 to $17,000+ depending on the number of zones installed. These systems work well for room additions, homes without existing ductwork, or areas where traditional ducted systems aren't practical. The more zones you have, the more flexible the system is to tailor to your comfort level; however, each zone adds to the cost and installation complexity.
Heat pump installation cost factors
Beyond the type and size, multiple variables influence the cost of a heat pump:
Brand & model: Premium brands like Bosch, Carrier, and Lennox cost 20% to 40% more than value brands, but high-end brands often offer better warranties, efficiency, and reliability. Models with advanced features also cost more.
Compressor speed: Single-speed compressors are cheapest but least efficient. Two-speed units offer better efficiency and comfort at a mid-range price point. Variable-speed heat pump units cost the most but provide superior comfort, efficiency, and quiet operation.
Ductwork: Good existing ductwork reduces installation costs significantly. If you want ducted heat but don't already have ductwork, the average cost to install new ductwork is $40 to $65 per linear foot.
Permits: Permit fees for heat pump installation range from $50 to $300+, depending on your location and the project scope. Some installations may require multiple permits for electrical work, HVAC modifications, or excavation.
Warranties: Extended warranties and service plans add $200 to $800 to your upfront costs but provide peace of mind. Manufacturer warranties vary from 5 to 10+ years, while most labor warranties from contractors range from 1 to 5 years.
Schedule consultations during off-peak seasons (spring or fall) for better availability and potentially lower prices.
Location & climate
Geographic location affects both equipment costs and installation complexity. Homes in colder regions require a larger, pricier heat pump. Northern climates may need cold-climate heat pumps with higher efficiency ratings and backup heating systems. Local labor rates, permitting costs, and building codes also vary by region.
Home size & condition
Larger homes require higher-capacity systems, which are more expensive. Poor insulation, high ceilings, or numerous windows increase the required capacity, while well-insulated homes need smaller systems and have lower installation costs. Older homes may require electrical upgrades or ductwork modifications, adding to the overall project cost.
Installation complexity
In most cases, heat pump replacement costs less since most of the infrastructure remains in place. New construction or first-time heat pump installations require additional electrical work, ductwork, and possibly concrete pads. However, if you're replacing a standard air conditioner with a heat pump, there's a lot of new utility infrastructure that needs to be set up, which can further increase the cost.
Heat pumps in cold climates often need backup heating systems. Dual-fuel systems that combine a heat pump with a gas furnace cost more but provide reliable heating in extremely cold weather conditions.
Labor
The labor cost to install a heat pump varies widely depending on the installation size and complexity. Contractors charge $80 to $200+ per hour for heat pump installation, depending on their location and experience. Standard installations take 3 to 8 hours, while complex systems may require 2+ days.
Energy efficiency / SEER & HSFP ratings
A higher efficiency rating increases the system's upfront cost but reduces your long-term operating expenses. Cooling efficiency is measured by SEER2 (Seasonal Energy Efficiency Ratio 2); heating efficiency is measured by HSPF2 (Heating Seasonal Performance Factor). Higher numbers indicate better performance and lower energy costs.
The table below shows average heat pump prices based on efficiency rating.
| Efficiency rating | Heat pump price (unit only) |
Average installed cost |
|---|---|---|
| 14-15 SEER2 / 7.5 HSPF2 | $3,000 – $5,000 | $6,000 – $12,000+ |
| 16-17 SEER2 / 8-9 HSPF2 | $4,000 – $6,500 | $8,000 – $15,000+ |
| 18-19 SEER2 / 9-10 HSPF2 | $5,500 – $8,500 | $11,000 – $18,000+ |
| 20+ SEER2 / 10+ HSPF2 | $7,000 – $12,000 | $15,000 – $25,000+ |
The current minimum standards require 14.3 SEER2 and 7.5 HSPF2 for most heat pumps.
Other additional costs
Several additional expenses may apply depending on your specific installation requirements.
Site preparation may require tree removal, landscaping, or ground leveling, adding $500 to $2,000.
An electrical panel upgrade costs $1,800 to $2,500 if your current panel can't handle the heat pump's power requirements.
Air handler replacement costs $1,500 to $3,400+ if your existing unit isn't compatible.
A smart thermostat costs $200 to $500 installed for improved efficiency and convenience.
Ductwork insulation costs $3 to $13 per square foot installed, depending on the type.
Refrigerant line sets for longer runs cost $15 to $25 per foot.
Concrete pads for outdoor units add $300 to $500.
Removal and disposal of old equipment costs $200 to $500.
Tax credits & incentives
Federal and local incentives can provide substantial savings opportunities for heat pump installations:
The Energy Efficient Home Improvement Credit allows homeowners to claim a tax credit worth 30% of their installation costs, up to $2,000.
Local utility companies often offer additional rebates ranging from $500 to $2,000 for energy-efficient heat pumps.
Some states and municipalities provide additional incentives.
To maximize savings, consider combining your heat pump installation with other energy efficient home improvements.
Benefits of having a heat pump
Heat pumps offer significant advantages over traditional heating and cooling systems, making them an attractive investment for many homeowners. The table below shows the many heat pump benefits.
| Benefit | Description |
|---|---|
| Dual functionality | Provides both heating and cooling in a single system |
| High efficiency | 2 to 3 times more efficient than traditional heating systems; moves heat instead of having to generate it |
| Lower energy costs | Can reduce electricity use by up to 75% compared to traditional systems |
| Environmental benefits | Produces zero direct emissions and reduces carbon footprint |
| Year-round comfort | Works effectively in most climates, including cold regions |
| Improved air quality | May include advanced filtration and humidity control features |
| Long-term value | Qualifies for federal tax credits and utility rebates, increasing home value |
| Quiet operation | Runs quieter than traditional HVAC systems |
| Space saving | Eliminates the need for both furnace and air conditioning equipment |
Heat pump FAQs
What is a heat pump, and how does it work?
A heat pump transfers heat rather than generating it, using refrigerant to move thermal energy between indoor and outdoor spaces. In heating mode, it extracts heat from outdoors and moves it inside. For cooling, it reverses this process, removing heat from your home and releasing it outdoors. This heat transfer process makes heat pumps much more efficient than traditional heating systems.
What are the disadvantages of a heat pump?
Heat pumps have higher upfront costs than traditional systems and may struggle in extremely cold climates without backup heating. They require electricity to operate, so power outages affect heating and cooling. Some models can be noisy, and finding qualified installers may be challenging in some areas. Regular maintenance is essential for optimal performance.
Are heat pumps worth it?
Heat pumps offer excellent value in moderate climates where they can replace both heating and cooling systems. Homes using propane, heating oil, or old electrical gear usually save the most energy. The combination of energy savings, environmental benefits, and available incentives makes heat pumps worthwhile for most homeowners.
How do I know if I have a heat pump?
There are several ways to confirm if you have a heat pump:
Look for a single outdoor unit that runs year-round for both heating and cooling.
Heat pumps have a reversing valve and defrost cycle that traditional air conditioners lack.
Check your thermostat settings; heat pumps often have options such as "Em Heat" or "Aux Heat," which traditional air conditioners or furnaces don't have.
Your equipment labels should specify "heat pump" rather than "air conditioner" or may have "HP" in the model number.
How long do heat pumps last?
Most heat pumps last 10 to 15 years, depending on usage, climate, and maintenance. Regular professional maintenance can extend lifespan to 15 to 20 years. Geothermal heat pumps last longer, with indoor units lasting 20 to 25 years and ground loops lasting 40 to 60 years.
What size heat pump do I need?
Heat pump sizing depends on your home's square footage, insulation quality, ceiling height, window efficiency, and local climate. Heat pumps range from 1.5 tons (18,000 BTU) to 5.0+ tons (60,000+ BTU). The following map shows a general guideline based on where you live. However, professional load calculations consider all factors to determine the optimal size for comfort and efficiency.
Getting estimates from heat pump installers
When searching for heat pump installation contractors near you, be sure to:
Request at least three detailed written estimates from different contractors.
Verify the licenses, certifications, and insurance for each company.
Look for contractors certified by major manufacturers or industry organizations.
Review their customer ratings on HomeGuide and Google.
Ask for references from recent heat pump installations in your area.
Compare equipment specifications, not just total prices, between quotes.
Ensure estimates include all necessary permits, electrical work, and materials.
Consider financing options and payment schedules offered by different installers.
Questions to ask an HVAC pro
Asking the right questions helps you evaluate contractors and understand what's included in your installation:
How many heat pump installations have you completed in the past two years?
What brands do you recommend and why, and which do you service locally?
Will you perform a Manual J load calculation to properly size my system?
What permits are required, and who obtains them for this installation?
How long will the installation take, and what does the process involve?
What warranties do you provide on equipment and labor?
Can you explain the maintenance requirements and recommended service schedule?
What rebates or tax credits am I eligible for, and will you help with applications?
Do you offer financing options, and what are the terms available?
Can you provide references from recent customers with similar installations?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.