Heat Pump Cost Guide 2024: Installation and Replacement
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In moderate climates, heat pumps can be more energy-efficient than furnaces. They typically range in price from $4,206 to $7,688, with a national average of about $5,947.
Highlights
- The typical range for heat pump costs is $4,206 to $7,688 with a national average of $5,947.
- Cost factors for installing a heat pump include the unit size, type, and efficiency; labor and permits; and geographic location.
- There are many benefits to installing a heat pump, such as increased energy efficiency, better use of space, environmental benefits, improved air quality, versatility, and increased safety.
- Installing a heat pump is a complex project that could be dangerous for DIYers. It’s highly recommended that homeowners leave this job to a professional.
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Heat pumps are less expensive to operate than furnaces in regions where winter temps don’t get bitterly cold. According to Angi, the price to have one installed typically ranges from around $4,206 to $7,688, with a national average cost of a heat pump is $5,947. However, a homeowner’s individual cost (and energy savings) will vary.
Installing a heat pump is often considered an eco-friendly way to heat and cool a home because it saves electricity or gas costs. Homeowners will want to learn more about this energy-saving way to keep their home comfortable and find out how to locate a heat pump installer if they decide a heat pump is the right choice.
What is a heat pump?
A furnace uses gas or electricity to power a heating element and then blows forced air over the hot element and into the home to warm it. But what is a heat pump? A heat pump pulls heat from surrounding natural sources (air, soil, or water) and uses it to produce heat to warm up a home. In addition, a heat pump also acts as an AC to keep a home cool by drawing heat out of warm indoor air during the summer. So, instead of needing two units—a furnace and an air conditioner—a heat pump does the work of both.
Some heat pumps are dual fuel units, meaning that they can run on electricity or gas at different times. “[Homeowners] could … work with their contractor to make the decision based on their local utility rates and what their local climate looks like, when it makes sense to run that system in electric mode, and when it makes sense to run it using gas,” says Heidi Gehring, director of residential HVAC product management at Carrier, a manufacturer of HVAC systems. “For instance, when it gets super super cold it makes sense to run it in gas, but if you’re at 30 degrees, it might make sense to heat your home with the heat pump.”
Factors in Calculating Heat Pump Cost
While a heat pump system costs $5,947 on average, the final heat pump cost varies widely. A heat pump cost calculator factors in the size of the unit, the type of heat pump purchased, and its level of efficiency.
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Heat Pump Size
Like an HVAC system, for a heat pump to efficiently warm and cool a home, it must be sized to the home’s living space. According to Gehring, the right heat pump capacity “can be based on the size of the home, the location, the direction the home is facing, how many windows [it has], what trees are in the area—even the layout of the home can play into it. It’s really important to make sure that [homeowners] don’t just guess or look at the size they had previously, but bring in a professional to do that full analysis to give them a quote for what is the right system for their home.”
In discussions about heat pumps, “tonnage” refers to the amount of heat the heat pump can move into and out of the home in a given time. In addition to living space, a professional installer will factor in the climate in the region when determining size. A 2-ton heat pump runs $3,500 to $5,500 and can heat 1,000 square feet. A midsize 3.5-ton unit for a 2,500-square-foot home averages $3,900 to $6,400, and a large 5-ton unit that heats up to 3,500 square feet can cost $4,500 to $8,800, not counting heat pump installation costs.
Heat Pump Type and Efficiency
The type of unit, meaning whether it’s designed to pull heat from the air, water, or soil (or whether it’s designed to run on solar energy) also factors in. A geothermal ground-source heat pump can run as little as $6,000 (installation included), while a solar heat pump can run as much as $39,000, primarily due to the expense of the solar panels.
A Seasonal Energy Efficiency Rating (SEER) is how heat pump efficiency is measured. The higher the SEER rating a heat pump has, the more efficient (and typically more expensive) it is. Heat pumps are very efficient in warmer regions where the unit’s refrigerant lines can draw from abundant ambient heat. This means heat pumps are most efficient in southern states in the U.S. and also in Hawaii. While they become gradually less efficient as regions become cooler, they can be supplemented with an electric or gas furnace.
Labor and Permits
The labor expense is a substantial part of the cost to install a heat pump—each worker is charged at a rate of between $75 to $125 per hour. If a permit is needed, homeowners can expect to pay around $50 to $300.
Geographic Location
The climate is also a factor in determining the price of a home heat pump—in warmer locations, such as Miami, Florida, having a heat pump installed costs an average of $2,200 to $3,700 because the temperatures are mild and a smaller air-to-air unit is all that’s usually needed. In contrast, having a heat pump installed in a home in Denver, Colorado, could cost as much as $10,000 because refrigerant lines may need to be buried, and a larger unit may be called for. It’s also worth noting that SEER requirements vary by state, with residents of southern states typically requiring units with a SEER rating of at least 15 and those in northern states benefiting from units with a rating of 14 or higher.
| City | Heat Pump Cost (Materials and Labor) |
| Chicago, Illinois | $4,500 to $5,500 |
| Denver, Colorado | $2,800 to $10,000 |
| Houston, Texas | $3,800 to $7,100 |
| Miami, Florida | $2,200 to $3,700 |
| Minneapolis, Minnesota | $3,200 to $5,400 |
| New York City, New York | $3,300 to $7,300 |
| St. Louis, Missouri | $4,200 to $8,000 |
Additional Costs and Considerations
The materials and quality in a heat pump vary from average to high-end, and homeowners can expect to pay more for a unit from a nationally known manufacturer. Some additional costs may apply; for example, it may be necessary to purchase a special heat pump thermostat for $140 to $350. Whether or not ducts need to be installed is another cost consideration.
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Tax Credits
Homeowners whose geothermal heat pump installation falls between 2021 and 2033 are eligible to receive a 30 percent federal tax credit. The same credit percentage is available for air source units installed between 2023 and 2032. State and local heat pump tax credits may also be available, and a heat pump installer is likely to know if any are available locally.
Heat Pump Brand
In addition to the size of the unit and efficiency level, the brand name can make a difference in heat pump prices. While a typical air-source heat pump starts at around $1,000, some well-known, high-end brands will run as high as $11,200. Before going with a lower-end brand, it’s worth checking out the warranty the various units offer. A well-known brand may be more likely to back up the quality of its product to preserve its good reputation.
| Heat Pump Brand | Average Cost (Unit Only) |
| Amana | $1,800 to $2,800 |
| American Standard | $2,000 to $3,200 |
| Bosch | $1,300 to $8,200 |
| Bryant | $1,600 to $2,700 |
| Carrier | $2,300 to $3,900 |
| Coleman | $1,300 to $3,200 |
| Daikin | $1,000 to $10,000 |
| DuctlessAire | $1,000 to $1,800 |
| Goodman | $1,500 to $3,900 |
| Lennox | $2,700 to $4,500 |
| Mitsubishi | $1,700 to $11,200 |
| Panasonic | $1,300 to $2,700 |
| Rheem | $1,600 to $3,200 |
| Ruud | $1,600 to $3,200 |
| Trane | $2,600 to $4,200 |
| York | $1,300 to $2,300 |
Duct System
A heat pump can replace a home’s existing HVAC system and—in some cases—make use of the existing ductwork. If this isn’t feasible due to the ducting configuration or the ducts not being in good shape, homeowners can opt for a mini-split system that doesn’t require ducting. During heat pump replacement, having new ducts installed could add $3,000 to $7,500, depending on the project’s complexity.
Maintenance and Repairs
It’s a good idea to have a heat pump inspected and serviced annually, and this service will cost $50 to $180 per visit. If the heat pump needs to be repaired, costs are about $150 to $600 on average. Failing to maintain a heat pump or other type of HVAC system is one of the biggest home heating mistakes that can spike energy bills.
Heat Pump vs. Furnace
For those who are torn between a heat pump vs. a furnace, it’s worth noting that heat pumps typically have a higher initial cost. A new heat pump will run an average of $5,947, and the cost to install a new furnace typically runs from $2,800 to $6,800. Still, homeowners stand to save a substantial amount on utility bills with a heat pump. Homeowners will want to keep in mind that a furnace only heats the air, while a heat pump not only heats but also cools the air, so it removes the need to buy a separate AC unit.
Heat Pump Cost by Type of System
All heat pumps have one thing in common: They all draw heat from their surroundings and use it to create either warm or cool air. But that’s where the similarities end. The best heat pumps can be installed in the ground, underwater, or sit out in the open. Some require electricity from a home’s wiring to power an air handler, while others depend on energy from solar power. The best one for an individual household will depend on a homeowner’s needs and budget.
| Heat Pump Type | Average Cost (Materials and Labor) |
| Air source | $4,500 to $8,000 |
| Geothermal | $6,000 to $20,000 |
| Hybrid | $2,500 to $10,000 |
| Mini-split | $1,300 to $8,000 |
| Solar | $18,000 to $39,000 |
Air Source
Slightly less expensive than geothermal, an air-source heat pump costs $4,500 to $8,000. This type of heat pump costs less because it’s cheaper to install. With an air-to-air unit, there’s no need to excavate to bury refrigerant lines.
Geothermal
Designed with refrigerant lines buried in the ground or located beneath the water in a pond, geothermal heat pump costs (including heat pump installation costs) range from $6,000 to $20,000 on average.
Hybrid
A heat pump can be used to supplement a separate electric furnace, which allows the homeowner to run the heat pump when the temperatures are suitable, yet still have the comfort of a furnace when it gets colder. Hybrid heat pumps can run $2,500 to $10,000.
Mini-Split
A mini-split heat pump is just as efficient as a central system, and it often includes multiple air handlers that serve different zones of the home. The difference is that the air does not run through ducting. Expect to pay between $1,300 to $8,000 to install a mini-split system, depending on how many zones are necessary.
Solar
This type of heat pump requires the installation of solar panels that power the unit’s compressor. Some solar heat pumps do double duty and heat fluid in the lines to supplement the unit’s efficiency. Solar heat pumps are pricier than other types and range in cost from $18,000 to $39,000. Much of that cost is due to the price of the solar panels.
Benefits of Choosing a Heat Pump
As the price of electricity keeps going up, some homeowners decide to put in a heat pump to save on energy costs. Still, there are other benefits, including potential tax credits and conserving essential floor space in