Typical costs range from $4,200 to $7,600.
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The typical price range for a heat pump installation is $4,200 to $7,600, with an average of $5,900.* A heat pump is a sleek, efficient, and cost-effective way to heat and cool your home. Instead of generating new heat like traditional heating systems, a heat pump works by transferring heat from the air or ground outside into your home.
Heat pumps lower your energy bills and reduce your carbon footprint. We’ll go over various cost factors and installation options below.
*Article cost data sourced from Angi, Fixr, and Home Advisor.
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Central AC Installation Cost
A central AC unit on average ranges from $3,800 to $7,700.
GET QUOTEHeat Pump Installation
A heat pump on average ranges from $3,700 to $11,000.
GET QUOTESplit AC Installation
Split AC units on average range from $3,700 to $11,000.
GET QUOTEThe cost of a heat pump depends on several factors, including the pump size, type, and efficiency rating.
Heat pumps are much more efficient than traditional heating models like baseboard heaters or gas furnaces. A heat pump’s efficiency rating is determined by its
Seasonal Energy Efficiency Ratio (SEER).
Higher SEER ratings mean more efficient systems. A pump with lower efficiency will cost less to install than a high-efficiency model, but will save you less money long-term.
A heat pump’s service capacity is determined according to how many British thermal units (BTUs) it needs to operate. An 18,000-BTU system weighs about 1.5 tons while a 60,000-BTU system is about 5 tons.
The system needs about 15 to 30 BTUs for each square foot it heats or cools. The larger your home, the more BTUs needed. A typical home of 2,000 square feet requires 30,000 to 60,000 BTUs. Many other factors affect your system’s performance, so only use these numbers as a guideline.
Your area’s climate, your home’s age, and many other factors also determine how large your heat pump unit needs to be. For reference, a small system of 1 to 2 tons can cost $3,500 to $5,500 while a 5-ton outdoor unit might cost $8,800 just for the unit, plus more for installation.
Residential heat pumps come in three main types: air-source, ductless, and geothermal.
Air-source heat pumps are the
most common type
and usually the most cost-effective. They use refrigerant-filled coils to absorb heat from the outdoor air and transfer it into your home. Prices for air-source heat pumps range from $4,500 to $8,000, depending on brand, size, and efficiency. The installation costs also vary, depending on the setup’s complexity.
Ductless heat pumps are a type of air-source pump specifically engineered for homes without a duct system. They’re often used in room additions, hyper-energy-efficient homes, or houses built with a non-ducted system. Ductless heat pumps cost $2,000 to $8,000 on average, but can run as high as $14,500 for larger models.
Geothermal heat pumps use a ground loop to draw heat from the earth or a body of water. These systems are more expensive than air-source heat pumps, costing between $6,000 and $20,000. Installation costs may also be higher due to the need for ground loop construction. However, geothermal heat pumps are typically more efficient than air-source pumps and may be eligible for energy tax credits.
In addition to these three primary types, you can find hybrid heat pumps that combine an air-source system with an electric furnace. There are also solar-powered systems, which tap into the sun’s energy through solar panels. These systems are usually more expensive than traditional air-sources at around $6,000 to $12,000.
Heat pumps are designed to move heat from one place to another, so the colder the region, the harder it is for the heat pump to work. Consequently, heat pumps are often more efficient in warmer regions.
A heat pump’s efficiency is measured by its
SEER rating
. The higher the
SEER rating
, the more efficient the unit will be in extracting energy from the air, and the
lower your
energy bills
will be. A heat pump with a
SEER rating
of 16 or higher is considered to be
energy efficient
. Heat pumps with higher
SEER ratings
cost more up-front, but can save you money long-term.
Pump efficiency is also determined by the unit’s
Heating Seasonal Performance Factor
(HSPF) rating. The Environmental Protection Agency (EPA) calculates HSPF by dividing the total electrical energy consumed by a heat pump (expressed in
BTUs
) by the total heating required during the heating season (expressed in watt-hours). The EPA awards an Energy Star label to heat pumps with an HSPF of 8.2 or higher. A good
HSPF rating
falls between 8 and 10.
Labor costs to install a heat pump vary by the type of heat pump and the job’s complexity. For example, a
ductless mini-split system is often more expensive to install
than a traditional central air conditioning system because of the additional components and installation complexity. Additionally, a heat pump that has special features such as variable-speed fan motors or advanced thermostat capabilities may require more labor. On average, labor costs $75 to $125 per hour.
Heat pumps come in various materials and quality levels, which affect the total project cost. Average heat pumps cost $4,200 to $7,600, while high-end systems can cost up to $10,000 or more. Higher-end systems are typically made from better materials and offer advanced performance, efficiency, and durability.
Brand can have a big impact on heat pump cost. Some of the top brands include Trane, Carrier, American Standard, Rheem, Bryant, and Goodman.
BrandAverage Unit CostGoodman$1,500–$3,900Bryant$1,600–$2,700Rheem$1,600–$3,200American Standard$2,000–$3,200Carrier$2,300–$3,900Trane$2,600–$4,200If you have existing ductwork that fits your new heat system, you can dramatically reduce your overall project costs. Heat pump installers can almost always use existing ductwork unless it’s damaged or poorly designed.
Ductwork may need repair or cleaning,
which could add to the project cost slightly. Adding new ductwork will increase the installation cost by an average of $2,000 to $3,000.
Larger homes typically require larger heat pumps to properly heat and cool them. For example, a two-bedroom home may require one unit, while a four-bedroom home will likely need two. The number of
square feet
in the home also matters. A 2,000-
square-foot home
may need two or three units, whereas a 5,000-
square-foot home
may require four or more.
In addition to your
home size
, consider how many people will use the system. More people usually means more demand for heating and cooling, so the system must be able to handle a heavier load.
In extreme climates, heat pumps may require additional components such as auxiliary heating systems or insulated refrigerant lines to ensure proper performance.
Geothermal heat pumps often provide more efficient service than air-source pumps in these environments. However, geothermal pumps can cost $6,000 to $20,000 more than other pump types. Installing a heat pump in a cold climate such as New York is often pricier because you may need additional components, larger systems, specialized labor, or repair of existing ductwork.
Installing a heat pump typically requires a construction permit. Different local governments require different permits, depending on the project’s scope and local regulations. Common permits required for a heat pump installation include electrical and plumbing permits, building permits, and zoning permits.
Depending on the municipality you’re located in, permit costs can run as high as $300. Rural areas with a low cost of living may charge less than urban areas where costs are generally high.
Obtaining a permit helps ensure your compliance with local regulations, thus avoiding fines or other penalties.
If you are an avid do-it-yourselfer (DIYer), installing your own heat pump can seem like a good way to save money. However, DIY heat pump installation isn’t for everyone and can be quite risky if you lack the correct experience and tools.
Professional
heat pump installation
means hiring a qualified technician or
HVAC contractor
who is experienced in installing, repairing, and maintaining heat pumps. A professional installation usually includes connecting the
new heat pump
to your electrical system, verifying proper
refrigerant
levels, and ensuring all components are functioning properly and safely.
Hiring a professional gives you access to a wide range of experienced contractors who will troubleshoot any problems that may arise during installation. It also guarantees safety and accuracy. Professional installers will advise you about the best heat pump type and size for your home and offer
energy efficiency
and cost-saving tips.
However, with these benefits come some possible disadvantages. Hiring a professional means paying for labor, operating according to their calendar, and proceeding at their pace. Professional installation usually takes longer than a DIY project, but is typically more accurate. You can also take advantage of a contractor’s guarantee and warranty.
The estimated cost of professional heat pump installation varies greatly depending on the size and type of heat pump, the job’s complexity, and other factors such as local labor rates. Professional installation of a basic heat pump can range from $6,500 to $7,500.
Before attempting to install a heat pump yourself, consider the unit’s size, its maneuverability, any wiring requirements, and the safety of those involved. Heat pumps are usually very heavy—weighing well over 1 ton—so having extra sets of hands is always helpful.
Before starting the installation, ensure you have the necessary tools and supplies. This includes electrical supplies, mounting brackets, wire connectors, and
ductwork
. You’ll also need to prep the area for installation and ensure the necessary wiring is present and up to code.
The cost to install a heat pump by yourself depends on the unit type and its size. The price can increase if the installation is complex and you end up enlisting professional help for portions of it. If you’re comfortable with the installation process and have all the necessary tools and supplies, a DIY
heat pump installation
can be an effective way to reduce costs while still getting a quality system.
Remember, you’re only saving the $75 to $125 per hour labor charge. You’ll still have to pay for the unit, permits, supplies, and other heat pump costs. If you’re at all unsure about your ability to install a heat pump correctly and safely, it’s best to hire a professional.
Installing a heat pump is an investment, but there are some ways to keep costs low.
: This
tax credit
is a federal incentive that encourages
homeowners
to invest in an energy-efficient HVAC system
. You must complete
Form 5695
with your taxes to apply.
: These pumps are relatively easy to install and don’t require major renovations. You’ll also avoid installing
ductwork
, saving time and money.
: Contractors will sometimes lower installation prices during spring and fall, when they’re less busy. Discounts on equipment and material are also typically offered during slower periods.
: Picking the correct size heat pump will eliminate the need for extra home modifications and materials.
: Different manufacturers’ products have different levels of quality and efficiency, as well as warranty lengths and customer service support. Research brands thoroughly to ensure you’re purchasing the best product for your needs.
Heat pumps are a great way to keep your home comfortable while saving money on energy bills. However, they do require a significant initial investment and should be carefully considered before making a purchase.
We recommend investing in a high-efficiency heat pump for the best long-term savings and value. Depending on your home’s size and your local climate, you may want to opt for a larger unit than necessary to ensure year-round comfort. We also recommend a professional heat pump installation to ensure it’s done correctly and efficiently.
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You should replace your heat pump when it becomes less effective at keeping you warm in winter and cool in summer. This is typically around the 15-year mark. Have a professional inspect your heater before replacing it.
Heat pump installation cost ranges from $4,000 to $7,500, with an average of $5,500. A more cost-effective installation could be as low as $2,500, or up to $10,000 on the high end.
Despite their initial cost, heat pumps are a great, low-maintenance investment that can provide energy savings throughout the year. Heat pumps also don’t have risks for a gas leak, which can expose you to carbon monoxide.
With an energy-efficient HVAC system, you need 30 BTUs for each square foot of living space. A 2,000-square-foot home requires 60,000 BTUs of heat. This is just a general rule. It’s always best to consult a professional before investing in a heat pump.
When choosing a heat pump, consider your home’s size and layout. How much power does the pump need to heat and cool your living space? If your heat pump is too small, your home will struggle to maintain a comfortable temperature. You should also consider the compressor type, noise, efficiency ratings, and performance in your area’s climate.
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MoreTypical price range: $3,500 – $7,500
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Heat pumps can cost an average of $10,000-$20,000 but can range anywhere from $1,500-$36,000, including installation, depending on the type and size of the heat pump. Many homes have two separate units to heat and cool the living space, but heat pumps are an alternative that does both in one. They’re much more efficient than regular electric heaters and air conditioners, saving homeowners hundreds of dollars a year. According to the U.S. Department of Energy (DOE), heat pumps can produce 1.5 to 3 times more energy than they use to run.
Each type of heat pump has different costs for the unit and installation. We’ve researched each type available and their average prices to help you determine which is right for your home.
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Typical Price Range: $3,500 – $7,500
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Heat Pump Replacement
Heat pumps cost between $3,500 to $7,500 on average.
GET QUOTEHeat Pump Repair
Common heat pump repairs cost between $80 and $4,500 depending on repair type.
GET QUOTEHeat Pump Installation
Heat pump installation ranges from $500 to $30,000 and is based on pump type.
GET QUOTEAir-Source
$2,000–$5,500
$1,300–$2,000
Geothermal
$3,000–$6,000
$10,000–$30,000
Ductless Mini-Split
$1,000–$3,500
$500–$1,500
Gas-Fired Heat Pump
$3,000–$6,000
$1,300–$2,000
Here are a few factors to consider when reviewing the pricing of heat pump units:
Heat pump capacity is usually measured in tons. Typical units are between 2 and 5 tons. Finding the right size for your home is important: Purchasing one that’s too small may require it to run constantly, raising your energy bill and wearing out the system. However, higher-ton units cost more up-front.
Hiring an HVAC contractor to assist with your heat pump installation is necessary in most cases. Labor costs can vary depending on the heat pump type. For example, geothermal units require more work to install because they need to be buried under at least 4 feet of ground. But ductless mini-split heat pumps can cost as little as $500 for a quick and easy installation.
This is an efficiency rating metric that each manufacturer discloses to help homeowners choose the most efficient and sustainable HVAC systems. The SEER number shows how efficiently a heat pump cools a home. Typical SEER ratings fall between 14 and 24, with the higher number being the most efficient.
Similar to SEER, this rating measures a heat pump’s efficiency, but specifically for how it heats a home. Typical HSPF ratings are between 8.2 and 13, with the higher number being the most efficient.
Get Estimates from Heat Pump Experts in Your State
In addition to a heat pump’s type, size, and energy efficiency rating, you should consider some additional factors before making a decision. We’ve compiled these considerations below to help you budget for the project’s total cost.
Duct System
The cost of heat pump installation can significantly increase if your home doesn’t currently have ductwork. Air duct installation costs $250–$12,000, depending on your home’s size. You may also have to pay for air duct cleaning if your ductwork hasn’t received maintenance in a long time. However, if your home is smaller, you can avoid extra fees for ductwork by installing a ductless mini-split.
Location and Climate
Your local climate determines the heat pump’s needed power output and size. You can use a smaller, less powerful unit in warmer climates, such as the southern United States. Moderate climates still benefit from a heat pump, but you’ll require a larger, more powerful unit for spring. If you live in a cold climate, we recommend seeking out other heating methods for your home, such as an electric furnace.
Permits
Most local municipalities require a permit for heat pump installation. You’ll need a building permit at minimum, but additional permits may be required if you have to excavate land or go near established pipelines for installation. Permit requirements and fees vary by state and city, but you’ll most likely pay somewhere around $100 for the building permit.
We recommend checking with your local government or asking your HVAC contractor about the required permits before beginning any work.
Heat Pump Removal
If you already own a heat pump and are installing a new one, you’ll have to pay to remove the old unit. This can cost $200–$400 per hour. These additional fees should be included in your original estimate, so we advise you to ask the HVAC technician what portion of the quote goes toward removal. This will help you more accurately compare the quotes you receive for heat pump installation.
Now that you know how heat pumps work, you can review the various types available. Each has different benefits and drawbacks and comes at a different price point. We go over these in detail below, but a professional can best help you assess which type is right for your home. Enter your ZIP code below to connect with local HVAC contractors and schedule a consultation.
Air-source heat pumps cost an average of $3,500–$7,500 for both the unit and professional installation. These heat pumps trap air from outside in refrigerants and compress it, sending hot air through the centralized ducts in your home and warming each room. Even in cold climates, the heat pump can extract energy from the air outside your home and turn it into useful heat for the interior. Air-source heat pumps can last up to 20 years without much maintenance and can save homeowners substantial money on energy bills.
Air-source heat pumps are generally affordable compared to other systems, so long as ductwork is already installed in your house. Switching from typical resistance heating to an air-source heat pump can generate long-term savings.
Geothermal heat pumps cost an average of $13,000–$36,000 for both the unit and installation. Though extremely efficient in the long term, they have high startup costs because of the extensive work required for installation.
Geothermal heat pumps heat and cool buildings by collecting and storing the ground’s constant temperature in an underground loop of pipes called a heat exchanger. These temperatures are sent to the indoor unit, which treats the air and sends it out through the ducts of the house. Ground-source heat pumps are ideal for those looking to save money on their yearly energy bills since the system works with minimal energy consumption.
Because the unit uses heat from the ground, the pipes must be laid in dug-out trenches at least 4 feet down. The labor for this installation can be costly and varies depending on how deep the pipes must be installed.
Ductless mini-splits are one of the cheapest options, since installation is fairly simple and the cost of labor is lower than other heat pumps. They cost an average of $1,500–$5,000.
The ductwork in HVAC systems can account for 30% of energy loss during operation, especially if the ducts are in unconditioned areas such as the attic. Ductless mini-split heat pumps help mitigate that energy loss by using a small indoor unit in each zone connected to the outdoor unit. They’re ideal for homes with lower square footage and fewer conditioning zones and can be an efficient option for homes that don’t already have ductwork installed.
We recommend ductless mini-splits to anyone looking for a quick, cheap heat pump in their smaller home.
The total average for a standard gas-fired heat pump and installation is around $4,500–$8,000. Heating and cooling systems powered by gas can be less efficient than other heat pump types since they require access to natural gas, leading to expensive yearly energy costs. However, gas-fired heat pumps can be a great choice for commercial businesses and larger buildings, since the 5-ton systems can support large rooms and buildings with multiple different temperature zones. In fact, they’re becoming more common in residential homes that are larger than 4,000 square feet.
Most AC brands offer a range of units at different prices, from cheaper, lower-quality options to expensive, high-quality systems. A typical air-source heat pump costs $3,500–$7,500 to install, but a more well-known, high-end brand may charge closer to $7,000–$11,000. Make sure to check the brand’s warranties before trying to save money with a cheaper option. Shop around and read reviews rather than solely choosing based on price.
Average Heat Pump Cost by Brand
Below is a breakdown of some popular heat pump brands’ average costs.
BrandSEER RatingAverage CostFrigidaire
Up to 21
$500–$1,082
Goodman
Up to 24.5
$1,500–$8,000
Carrier
Up to 26
$3,000–$15,000
Ruud
Up to 20.5
$3,000–$6,100
Rheem
Up to 20.5
$3,100–$6,100
Lennox
Up to 28
$3,100–$10,000
Trane
Up to 22
$3,500–$15,600
Amana
Up to 25
$3,600–$11,000
American Standard
Up to 22
$3,500–$10,900
York
Up to 21
$4,000–$10,000
Get Estimates from Heat Pump Experts in Your Area
Typical Price Range: $3,500 – $7,500
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Though the cost of a heat pump is more than furnaces, heat pumps provide many benefits. We’ve listed the most significant perks below.
Tax Credits
You can reduce the cost of your heat pump installation with tax credits. Energy Star supplies a 30% (or $2,000 maximum) tax credit for air-source heat pumps. We suggest researching all of Energy Star’s tax credits to learn other ways to save.
Energy Efficiency
Heat pumps are also more efficient than other heating and cooling systems. This results in more savings on your energy bills long-term.
Space Saving
Because a heat pump handles all aspects of a traditional HVAC system, you can save space by installing one. Many homeowners are able to avoid having a furnace take up space in their basement, opening the possibility of a finished basement.
Return on Investment
The Department of Energy reports that homeowners can save $1,000 per year by switching to an air-source heat pump. At the very least, you’ll receive a 10% return on investment (ROI) each year. This means that heat pumps can eventually pay for themselves, depending on your typical energy consumption.
Safety
Heat pumps are considered a safer HVAC system because they don’t rely on combustion. Oil and gas furnaces pose a greater risk due to lack of maintenance, and heat pumps reduce your overall carbon emissions compared to other heating options. Additionally, they require less maintenance than combustion heating systems, meaning there’s less room for error when working on them and fewer ongoing air conditioner repair costs.
A heat pump system is an efficient way to heat and cool your home using heat from outside sources. It’s installed outside your home like a central air conditioning (AC) unit. Each type of heat pump uses a different source, such as gas, water, outside air, or cool temperatures absorbed from the ground. They all use a reversing valve to produce cool and warm air, keeping your home at a comfortable temperature in every season.
Heat pumps use less external energy than typical forced-air or electric resistance systems. We recommend heat pumps for homeowners whose home’s average temperature doesn’t typically drop below freezing. However, homeowners can combine their heat pump with a furnace in colder regions for more energy-efficient heating. This is called a dual-fuel system.
Contacting a professional to complete repairs is typically necessary if your heat pump experiences an issue. If you have a home warranty, you can check your contract to see if HVAC breakdowns and duct systems are covered. Then, you’ll only need to pay your service fee to have a technician out for the repair.
You can also reach out to local HVAC contractors, such as Michael & Son for a quick consultation to determine the best solution. The company is available in Virginia, Maryland, North Carolina, and Washington, D.C.
Here are the most common heat pump repairs and their average costs:
Electrical work
$100–$600
Clear blockage
$80–$150
Leaks
$90–$610
Defroster repairs
$100–$650
Thermostat
$100–$250
Ductwork
$750–$3,300
Compressor and condenser
$1,500–$4,500
Though both heat pumps and furnaces heat your home, they’re different types of heating systems. There are many different types of furnaces, including electric, natural gas, propane, and oil. Furnaces use one of these power sources to ignite burners inside the furnace cabinet. That burner then heats up a heat exchanger, warming the air distributed through your home. Any home can use a furnace, but your home’s layout, size, and local climate determine which type of furnace is best.
Furnace installation costs an average of $1,700–$9,700, making it less than heat pump installation costs. We recommend reading our guide to the best furnace brands if a furnace matches what you’re looking for.
Heat pumps are all-in-one HVAC units, not only heating your home but also acting as an air conditioner, dehumidifier, and air filter. This makes heat pump installation more expensive than a traditional furnace, starting at $3,500. However, you’re paying for the total cost of HVAC installation rather than only one part of the system. If you install a furnace, you’ll also need to pay to install an AC. We recommend comparing heat pumps and AC units before deciding which type of system fulfills your needs. Read our complete guide to HVAC for more information.
Heat pumps are expensive up-front, but their performance and long-term energy savings make them a worthwhile investment. As long as you practice proper heating and cooling maintenance, a heat pump can keep your home comfortable for up to 15 years.
We recommend hiring a professional HVAC contractor for installation, as it’s a complicated and potentially dangerous process to attempt yourself. Use our tool below to connect with reputable HVAC technicians in your area.
Heat pumps can save homeowners money on energy costs since they use a sustainable process of extracting usable heat from ambient air or other outside sources for both heating and cooling. When compared with conventional HVAC systems, the long-term savings are considerable. In fact, according to the Northeast Energy Efficiency Partnership, savings average around $600 compared with electric resistance heating systems.
If you live in an area with especially cold winters where temperatures consistently fall considerably below freezing (32 degrees Fahrenheit), you may look for alternatives to heat pumps, such as gas furnace units or electric resistance heaters. However, geothermal heat pumps may still be a good solution since the temperatures in the ground remain at useful levels during extreme cold.
Not only are geothermal heat pumps the most eco-friendly option on the market, they also offer the most economical and efficient option when it comes to utility bills. However, the up-front cost of these can be extremely high due to the complicated and time-consuming installation. Air-source heat pumps are the most common and can still save you hundreds of dollars each year in efficiency and reduced energy usage compared with traditional HVAC systems.
Based on our research, ductless mini-split heat pumps are the cheapest option for both unit cost and installation. Since they don’t require ductwork, they’re easy to install with a quick setup. However, since the airflow is not centralized, you may be required to set up multiple units in different zones of your home to be sure each room remains at a comfortable temperature.
These would be an ideal purchase for those with smaller homes. If you have a larger house with multiple rooms, you may need to consider central air units that utilize the existing ductwork.
Yes, installing a heat pump is worth it because you’ll get more energy savings throughout the year, have low maintenance costs, and can reduce your total investment with tax credits. Additionally, heat pumps are safer, with no risks of a gas leak.
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