How Much Does a Heat Pump Cost?

Heat Pump Installation Cost Factors

Many factors can affect the total price of your heat pump installation. Let’s take a look at some of these factors.

Size and Capacity

The average 3-ton-capacity system ranges from $5,000 to $8,200 for labor and standard materials.

The higher your pump’s capacity, the more you’ll pay. Don’t try to cut costs by installing one too small for your needs. You’ll quickly lose that initial savings with a system that runs constantly.

Cost ranges in the following table reflect a few variables including brand differences and regional pricing differences:

Purchasing Tips & Considerations for Size

• Size the unit in advance. Generally, it should be sized according to the maximum demand.

• Pay careful attention to the sound rating. Every unit features a specific sound rating measured in decibels. Find units that feature a lower rating.

• Consider the climate. Heat Pumps work better in temperate climates that do not experience extreme temperatures.

• Decide whether a split or packaged system is best. They usually fall into one of two categories: split systems and packaged systems.

Type

The type of heat pump system you choose could mean the difference between thousands of dollars. Geothermal and solar heat pumps are pricier than air-source systems, and split systems generally come with higher price tags than packaged units.

Efficiency Rating

You’ll pay anywhere from $7,000 to $10,000 for a 3-ton high-efficiency installation. Ratings at or above 19 SEER or at least 10 HSFP hit the high-efficiency mark. While you’ll pay more upfront for a high-efficiency system, you’ll also see the most savings in your energy bills.

SEER, or Seasonal Energy Efficiency Ratio, measures the amount of cooling capacity divided by the amount of energy used. HSPF, or Heating Seasonal Performance Factor, measures how much heating is achieved vs. the total energy used to get warm air into the home.

Labor

Some heat pump systems are significantly easier to install than others. Geothermal heat pumps require more labor-intensive installations, which in part account for the higher price tag. Solar heat pumps are also more complex to install because solar panels must fit onto the roof and connect to the system to generate solar energy. 

Permits

Permits and fees ramp up the cost slightly and vary by location. You might run into building permits, dumping fees, and other local ordinances.

Home Size

The biggest single factor in determining the price of your heat pump is the size of your house; home size determines how much tonnage you’ll need. The larger the home, the higher the price. Larger houses will require higher-capacity pumps to warm and cool them properly. 

Climate

Climate also plays a role in the price of your heat pump system. Different climates can make some systems less feasible, limiting your choices. For example, heat pumps work best at temperatures above 40 degrees Fahrenheit. The colder the climate, the less efficient your system. 

Likewise, rainy climates might not yield enough sunlight for solar panels to generate enough solar energy for a solar heat system. You don’t want to invest in a system that won’t perform in cost-saving ways long-term. 

Installing Ducts

If your home doesn’t already have a duct system installed, you’ll also need to factor ductwork installation into your budget. It’ll cost less if the installation is in an unfinished basement or attic or with new construction. The price of new ductwork is $1,800 to $2,300 on average or between $10 to $20 per linear foot, so add this to the price of your heat pump system while calculating your expenses.

Heat Pump Costs by Type

Most customers will spend between $1,000 to $2,800 for a mid-quality heat pump unit, not including labor. After labor, fees, and permits, costs can hit $20,000 or more, not including ducts.

*Costs include labor and unit only. They do not include ductwork.

Manufacturers generally offer a range of units, based on the size of your house, your location’s climate, and other factors. The HSPF rating (Heating Seasonal Performance Factor), Seasonal Energy Efficiency Rating (SEER) and sound rating all factor into the cost of the heat pump. The higher the score, the higher the price.

Air-Source 

Air-source heat pumps cost $4,500 to $8,000 for complete installation. High-end brands with 5-ton capacities might exceed $10,000. You’ll pay more for larger systems and premium brands. To warm the home, the pump’s exterior coil extracts warmth from the air and moves it into the home, releasing it through the air exchanger or through individual wall units.

Geothermal Heat Pumps

Installing geothermal heat pumps costs anywhere from $6,000 to $20,000 with some hitting $30,000 or more. These systems require either in-ground or water-source installations like a pond or small lake. They’re also known as ground-source pumps because they live underground, protected from the elements.

Geothermal heat pumps might hurt the wallet initially, but they cost less to maintain than any other type. They’ll also last 50 years or longer. Your heat pump will pay for itself twice as fast as an air-sourced system with what it saves in energy bills and maintenance.

Ductless Mini-Split

Ductless mini-splits cost anywhere from $1,300 to $8,000, depending on the size and how many zones you need. Mini-splits use multiple refrigerant lines running to each room or zone in the home. Using individual units in each zone, they either warm or cool the room as needed.

Solar Heat Pump

Solar heat pumps cost anywhere from $18,000 to $39,000. These systems come in a couple of setups. One simply uses solar power to run the compressor while the other warms an intermediate fluid, much like a solar water heater, to assist the pump.

• Installing solar panels costs$18,000 to $34,000 and makes up most of the price.

• Solar water heater installation costs far less at $2,000 to $13,000. But with this configuration, you’ll likely need specialized equipment to run it with a heat pump, which raises the price.

Dual Fuel Hybrid Pump Unit With Furnace

A dual fuel hybrid heat pump is a combination of a gas furnace and a heat pump, which leverages the best of both systems. Dual fuel hybrid systems cost $2,500 to $10,000. This system works well in colder climates that drop below 32 degrees Fahrenheit. It uses a gas furnace inside the house that kicks in when the heat pump reaches its balance point. The balance point comes when that move into the home no longer offsets heat loss. Well-insulated homes work better for this type of system.

Gas Heat Pump

You’ll usually only find these in commercial installations or extremely large homes with 5-ton units for spaces of 4,000 square feet or more. Rather than electricity, a gas-powered motor runs the compressor. These make great options for remote applications where electricity comes at a premium. Consider gas heat pump pros and cons before investing.

Supplemental Electric Heat Pump

Some newer types of heat pumps have a supplemental electric resistance booster heater built in to help in dual fuel hybrid pumps. Heat pump systems with electric resistance boosters tend to cost $500 to $1,000 more than a standard heat pump. These supplemental heat pumps use a standard electrical resistance, much like what you find in a baseboard system, to boost the incoming air when the temperatures drop below freezing. They work well for homes without ductwork and in northern climates down to around 10 degrees Fahrenheit.

Here are two possible scenarios for installing a supplemental electric heat pump that can affect the price:

• Adding one to an already existing furnace: $2,500 – $6,000

• Installing a new system with furnace and pump: $4,500 – $10,000

Heat Pump Replacement Cost

Replacing a heat pump costs the same as installing a new one, or somewhere between $3,000 and $6,000. This assumes you already have a working air handler and ducts. You’ll usually want to replace the outdoor unit when repairing it exceeds the $5,000 rule: multiply your HVAC unit’s age by how much it will cost to repair it. Replace the unit if the amount is over $5,000.

Average Cost to Replace Heat Pump and Air Handler

If you’re putting in a new air handler and heat pump at the same time, it’ll cost you $4,000 to $9,000 on average. Adding ductwork might push that price up past $15,000.

Heat Pump Prices by Top Brand

The heat pump brand you choose plays a role in the total price of your system. High-quality products from well-known manufacturers will have a higher price tag than low-quality products.

*Prices include complete mini-split systems.

Heat Pump Costs by Location

Your location might play a role in the cost of the installation. This is because warmer regions of the U.S. don’t require as large of a unit as colder regions, which will need a heat pump that can withstand colder winters. Some regions also have soil conditions or altitudes that make excavation for a geothermal heat pump more challenging.

Benefits of a Heat Pump

With increased costs for electricity and gas, now is a great time to take advantage of the energy savings you can find by switching to a heat pump. A few perks to heat pumps include:

• Tax credits

• Up to 50% energy savings

• More environmentally friendly

• Works for heating and cooling

• Easy to maintain

• Safer than gas furnaces

Heat Pump Tax Credits and Rebates

The only current federal tax credits available apply to geothermal and solar energy systems. Here’s how much you can save for one of these systems:

• 26% for systems installed before 0/01/2023

• 22% for systems installed from 01/01/2023 to 12/31/2024

FAQs

How do heat pumps work?

Heat pumps rely on evaporation and condensation processes. The unit transfers heat through the system via a compressed refrigerant. The compressor within the pump circulates the refrigerant through two coils. The first coil evaporates the refrigerant and absorbs warmth from the air. The refrigerant then passes to the second coil, at which point it condenses and the unit releases the absorbed heat.

What are central air conditioner plus heat pump prices?

Replacing an AC unit with a two-way heat pump costs roughly $1,500 to $6,000. You don’t need both, since an AC unit is a one-way heat pump, removing hot air from your home. A two-way just allows warmth to get pumped into the home as well as out of it.

What’s the best cold climate heat pump?

A hybrid heat pump or electric resistance heat supplemented system works best in a cold climate.

How much does it cost to replace an oil furnace with a heat pump?

Add $500 to $1,000 to replace an oil furnace with a heat pump. However, it’s probably a better idea to simply leave the oil furnace in place as a backup heat source or convert it to natural gas.

Do you really save money with a heat pump?

You might save up to 50% on your utility bill with a heat pump if you live in a mild to moderate climate. In colder climates, you might be better off with a gas furnace or a hybrid system, but it won’t save you nearly as much.

How many years does a heat pump last?

A heat pump lasts anywhere from 12 to 20 years, depending on how well you maintain it, the type of heat pump, the brand, and the quality you choose.

How much does it cost to run a heat pump?

Your cost to run a heat pump ranges from $500 to $2,000 per year. It depends heavily on your climate, how well insulated your house is, and if your system has a backup heat source. Solar heat pumps generate their own heat from solar energy and can save you money overall.

How much do HVAC heat pumps for mobile homes cost?

Heat pumps for mobile homes are the same as for a traditional home, so they cost the same, or $4,000 to $7,000 on average. But, they do better the more insulated and airtight a home is, so they generally aren’t a great option for mobile homes.

How much do heat pump repairs or maintenance cost?

Heat pump repairs cost$150 to $600 on average. You might pay $65 on the low end or $1,400 on the higher end.

How much does a heat pump compressor or coil replacement cost?

Compressors and coil replacements aren’t cheap and might make you think twice about simply replacing the entire unit.

• Replacing a heat pump coil costs$600 – $2,000

• Compressor replacement costs$800 – $2,800

Which is cheaper? AC vs. Heat pump

Air conditioners are cheaper than a two-way heat pump for similarly sized central units. Keep in mind that an AC is a heat pump, but it only works in one direction. Find out more about ACs vs. heat pumps. A central AC unit costs between $3,800 to $7,600 to install compared to $4,100 to $18,000 or more for a heat pump.

Which costs less to heat a home? Furnace vs. heat pump

Whether a furnace or heat pump costs less to warm your home depends largely on the type you have and what climate you live in. For example, in southern states with mild weather, these systems usually cost less; in colder northern climates you will find that a gas furnace does better with a heat pump. Backup heating and insulation also play a role. Talk to a heat pump installer near you about costs and climate before you commit to one or the other.