Heat Pump Prices

Most customers will spend between $100 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 low, mid and high-quality units. 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 Heat Pump Costs

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 in the air exchanger or at individual wall units.

Geothermal 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 pond installations. They’re also known as ground-source pumps because they live underground, protected from the elements.

They might hurt the wallet initially, but they cost less to maintain than any other type. They’ll also last 50 years or longer. It’ll 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 $2,000 to $14,500 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 Pumps

Solar heat pumps cost anywhere from $18,000 to $39,000. These systems come in a couple 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 $16,000 to $30,000 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

Dual fuel hybrid systems cost $2,500 to $10,000. They work well in colder climates that drop below 32 degrees. Essentially, it uses a gas furnace inside the house that kicks in when the heat pump reaches its balance point. The balance point comes when heat moved into the home no longer offsets heat loss. Well insulated homes work better for this type of system.

Some newer types of heat pumps have an electric resistance booster heater built in to help in the same way, which work better for homes without ductwork. It also works as an AC in the summer.

These two possible scenarios 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 System Costs

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. A gas-powered motor, rather than electricity, 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.

Heat Pump Estimates by Size

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

The higher your pump’s capacity is, 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

These are some tips to help you choose one that is ideal for your home:

• 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. They 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.

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.

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 Installation Cost Considerations

The biggest single factor in determining the price of your heat pump is the size of your house. Larger houses will require higher-capacity pumps to warm and cool them properly. Here are the cost factors to take into consideration before installing an air-source or geothermal heat pump:

• Home size determines how much tonnage you’ll need. The larger the home, the higher the price.
• Brand quality determines the unit price but won’t affect labor.
• Permits and fees ramp up the cost slightly and vary by location. You might run into building permits, dumping fees and other local ordinances.
• Materials and supplies usually get covered in the project price. Always ask if it is and if you can see it as a line item on the bid and invoice.
• Duct setup. If your home does not already have a duct system in place, you may want to opt for a ductless setup, also called a mini-split, or have ducts installed.

Supplemental Electric Heat Pump Cost

Heat pump systems with electric resistance boosters tend to cost $500 to $1,000 more than a standard version. These types 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 northern climates down to around 10 degrees Fahrenheit.

High Efficiency Heat Pump Costs

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.

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.

Cost to Install Heat Pump and Ducts

Installing a heat pump and ductwork costs anywhere from $12,000 to $25,000. It’ll cost less if you’re having it done in an unfinished basement or attic or with new construction. Installing only ducts costs $3,000 to $5,000 on average.

Heat Pump Prices by Top Brand

*Prices include complete mini-split systems.

Heat Pump Costs by Location

Benefits of a Heat Pump

Here are just a few of the benefits that homeowners can expect to receive after installing a heat pump:

• Cost efficient to run. Even if you shell out top dollar for geothermal, the operating costs help pay for itself in the long-term.
• Environmentally friendly. Since they’re more energy efficient than gas, they tend to produce less of a carbon footprint.
• Improve home values. You might get up to 70% ROI when you sell. But that’s going to vary quite a bit depending on other real estate factors.
• Safer alternative than gas. No combustion air means no carbon monoxide issues.
• Ductless types reduce airborne allergens. No ducts means no dust and dirt build up. Some even come with specialized allergen filters.

Heat Pump Tax Credits and Rebates

The only current federal tax credits available apply to geothermal and solar energy systems. The Bipartisan Budget Act of 2018 extended renewable energy tax credits by the following amounts:

• 30% for systems installed by 12/31/2019
• 26% for systems installed after 12/31/2019
• 22% for systems installed after 12/31/2020
• Expires 12/31/2021

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 for oil furnace removal when putting in 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’d probably be better off with 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 and the brand 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 pretty heavily on what climate zone you’re in, how well insulated your house is and if your system has a backup heat source.

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.

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.

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. Backup heating and insulation also play a role. Talk to a professional about costs and climate before you commit to one or the other.

• In southern states with mild weather, these systems usually costs less.
• In colder northern climates you might find one house has better luck with a furnace while another does better with a heat pump.