True Cost Guide Heating & Cooling Install a Heat Pump

How Much Does Heat Pump Installation Cost in 2025?

Q: 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.

Typical Range:

$4,247 - $7,929

Cost data is based on actual project costs as reported by 4,677 HomeAdvisor members. Embed this data

How We Get This Data

Homeowners use HomeAdvisor to find pros for home projects.

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When their projects are done, they fill out a short cost survey.

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We compile the data and report costs back to you.

Updated December 5, 2024

Reviewed by Robert Tschudi, Expert Home Building and Remodeling Contributor.

Written by HomeAdvisor.

Highlights

Heat pump installation costs an average of $6,081 but can range anywhere between $4,247 and $7,929.
The system size, type, efficiency rating, and brand affect the total cost.
Labor is one of the most significant installation costs, with HVAC contractors charging an average of $75 to $125 per hour.
Depending on your location, you may require a building permit to install a heat pump, which costs between $50 and $300.

The average cost to install a heat pump is $6,081, but it typically ranges between $4,247 and $7,929, depending on the size and type you need. Some mini-split systems cost as little as $1,500, while other systems, like geothermal and solar, can cost up to $40,000.

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National Average	$6,081
Typical Range	$4,247 - $7,929
Low End - High End	$1,500 - $12,000

Cost data is based on actual project costs as reported by 4,677 HomeAdvisor members.

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Heat Pump Installation Cost Factors

Many factors affect the total price of your heat pump installation, including the unit's size, capacity, type, and efficiency rating.

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. If you install a pump that’s 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:

Heat Pump Capacity in Tons	Total Cost Range
2	$3,500–$5,500
2.5	$3,700–$5,800
3	$3,900–$6,200
3.5	$3,900–$6,400
4	$4,000–$7,300
5	$4,500–$8,800

Some additional tips for size and purchasing include:

Size the unit in advance: Generally, it should be sized according to the maximum demand.
Pay careful attention to the sound rating: Every unit has a specific sound rating measured in decibels. Find units with a lower rating.
Consider the climate: Heat pumps work better in temperate climates without extreme temperature fluctuations.
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.

Efficiency Rating	Unit Price	Installed Price
13-14 SEER / 7-8 HSPF	$1,000–$2,100	$4,100–$5,400
15-16 SEER / 8-9 HSPF	$1,500–$2,600	$5,200–$6,300
17-18 SEER / 9-10 HSFP	$2,200–$3,200	$6,300–$7,400
19+ SEER / 10+ HSFP	$3,100–$4,000	$7,200–$9,500

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.

Brand

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

Brand (Complete System)	Unit Price Range
Amana	$1,800–$2,800
Panasonic	$1,300–$2,700
DuctlessAire	$1,000–$1,800
Trane	$2,600–$4,200
Lennox	$2,700–$4,500
Carrier	$2,300–$3,900
Mitsubishi*	$1,700–$11,200
American Standard	$2,000–$3,200
Bryant	$1,600–$2,700
York	$1,300–$2,300
Rheem/Ruud	$1,600–$3,200
Bosch*	$1,300–$8,200
Daikin*	$1,000–$10,000
Goodman	$1,500–$3,900
Coleman	$1,300–$3,200

*Prices include complete mini-split systems

Location

Your location can affect the cost of the installation. Warmer regions of the U.S. don’t require as large of a unit as colder regions, which need a heat pump that can withstand colder winters. Some areas also have soil conditions or altitudes that make excavation for a geothermal heat pump more challenging.

City	Average Cost Range
Miami, Florida	$2,000–$4,500
Portland, Maine	$3,900–$9,600
Los Angeles, California	$3,100–$7,700
Denver, Colorado	$3,900–$9,500
Houston, Texas	$3,800–$7,100
Minneapolis, Minnesota	$3,200–$5,400
New York, New York	$3,300–$7,300
Atlanta, Georgia	$3,100–$5,200
Chicago, Illinois	$3,000–$5,500
St. Louis, Missouri	$4,100–$8,000
Buffalo, New York	$3,500–$6,900

Other Heat Pump Installation Cost Factors

When installing a heat pump, it’s also important to consider how labor, permits, home size, ductwork, and local climate will impact the total cost.

Labor

Labor is a significant part of the cost of installing a heat pump, with most local heat pump installers charging between $75 and $125 per hour. The amount of labor required depends on the system you choose.

Some heat pump systems are significantly easier to install than others. Geothermal heat pumps require more labor-intensive installations, which partly 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 can increase the cost and vary by location. The cost of a building permit typically ranges from $50 to $300. You might also encounter 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

The climate also affects 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°F. 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 costs less if the installation is in an unfinished basement, attic, or new construction. The price of new ductwork is $1,800 to $2,300 on average, or between $10 and $20 per linear foot, so add this to the cost of your heat pump system while calculating your expenses.

Heat Pump Costs by Type

Most customers spend between $1,000 and $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.

Heat Pump Type	Unit Cost	Total Installation Costs (Without Ductwork)
Air Source	$2,000–$5,500	$4,500–$8,000
Geothermal	$3,000–$6,000	$6,000–$20,000
Mini-split	$1,000–$3,500	$1,300–$8,000
Solar	$1,900–$4,400	$18,000–$34,000
Hybrid	$500–$6,000	$2,500–$10,000
Supplemental Electric	$500–$1,000	$2,500–$40,000

Manufacturers generally offer a range of units based on your house's size, 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 house, releasing it through the air exchanger or 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 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 number of zones you need. They use multiple refrigerant lines running to each room or zone in the home. Individual units in each zone 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 two 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. However, this configuration requires 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 combines 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°F. It uses a gas furnace inside the house that kicks in when the heat pump reaches its balance point. Well-insulated homes work better for this type of system.

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 cost $500 to $1,000 more than a standard heat pump.

These supplemental heat pumps use a standard electrical resistance, similar to that found in a baseboard system, to boost the incoming air when temperatures drop below freezing. They work well for homes without ductwork and in northern climates down to around 10°F.

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

Gas Heat Pump

You’ll usually only find gas heat pumps 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 the pros and cons of gas heat pumps before investing.

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 fix it. Replace the unit if the amount is over $5,000.

If you install a new air handler and heat pump at the same time, the cost will be $4,000 to $9,000 on average. Adding ductwork might push that price up past $15,000.

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

Does Installing a Heat Pump Increase Home Value?

Installing a heat pump can increase your home value by up to 3%, depending on your location and current market conditions. Heat pumps offer enhanced home comfort and improved energy efficiency, which attract potential buyers.

With a new heating and cooling system installed, buyers won’t have to worry about paying to replace or repair the HVAC system in the near future. Many areas also offer ongoing rebates and incentives that benefit future buyers.

Budgeting for Installing a Heat Pump

Heat pump installation can add up depending on the type and size of the system you choose. To keep costs down, consider the following tips:

Compare quotes from multiple local heat pump installers to find the best deal in your area.
Ensure your chosen system is properly suited for your home to prevent future repairs and breakdowns.
Schedule installation during the off-season to find reduced labor rates.
Find the most cost-effective system for your heating and cooling needs.
Keep up with annual maintenance to reduce the risk of costly repairs or breakdowns.

How HomeAdvisor Gets Its Cost Data

No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. We surveyed thousands of real customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.

Still Have Questions About Heat Pump Installation?

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.

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.

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, your house insulation, 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 heat pump repairs or maintenance cost?

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

Which is cheaper, AC or a heat pump?

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

Which costs less to heat a home, a furnace or heat pump?

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