How Much Does a Heat Pump Cost to Install?

When it comes to home heating and cooling, efficiency and cost are key considerations for homeowners. One popular solution that balances both is the installation of a heat pump. However, understanding the financial investment required can be a bit overwhelming. In this article, we’ll break down the various factors that influence the cost of installing a heat pump, provide updated pricing information, and help you make an informed decision that fits your budget and heating needs. Whether you’re considering an upgrade to your existing system or a complete installation, knowing the cost implications is essential for planning and budgeting your home improvement project.

What Is a Heat Pump? 

Heat pumps are an efficient and versatile solution for both heating and cooling your home. By transferring heat rather than generating it, heat pumps can significantly reduce your energy costs and environmental footprint. Despite their name, heat pumps do a lot more than heating. They also provide air conditioning and humidity control. During the heating season, a heat pump works by moving heat from the cool outdoors into your home; then during the cooling season, it transfers heat from your house to the warm outdoors. Heat pumps move heat rather than generate it, so they can heat and cool for significantly less cost than other systems, such as furnaces and central air conditioners. They prove to be an efficient alternative to central AC and other heating systems by providing conditioned air at approximately one quarter of the cost.

Heat pumps are most popular in southern regions where winters are mild and the summers are hot. Areas of the country subjected to prolonged winters and subfreezing temperatures are not ideal for this type of system.

Find Local Contractors

How Much Do Heat Pumps Cost?

There are three main types of heat pumps to choose from depending on your home’s needs. These are air source heat pumps, mini-split ductless heat pumps, and also the more expensive geothermal heat pump. Each heat pump is suited for a particular home’s heating and cooling needs discussed below. It is a good frame of reference that many heat pumps will need help from an alternate heat source if your area’s winter temperatures regularly drop below 32 degrees Fahrenheit. If you need help deciding which type of heat pump to install talk to one of our local heat pump installation contractors today.

Air Source Heat Pump Cost

Air-source heat pump systems are the most common option a homeowner will choose to install in their home if they currently have ductwork in place. An air source heat pump on average will cost between $3,000 and $5,500 for each indoor air handler unit you plan to install in each room (or zone). Total installation of a ducted central air source heat pump system can cost between $4,500 and $8,000. 

An air source heat pump has an indoor air handler unit and also an outdoor heat pumping unit. They use the same vents and ducts that a furnace or central air conditioner would use. They are great for reducing your home’s heating costs compared to similar heating units such as a gas or electric furnace. Many homeowners choose to use a heat pump in combination with a central AC unit or furnace since they are much cheaper to operate, utilizing your furnace only during times of above-average cold temperatures.

HVAC Replacement Cost Calculator

Take Me There

Ductless Mini Split Heat Pump Cost

Ductless mini split heat pumps are set up similar to a regular air source heat pump with an outside compressor unit and inside air handler that helps maintain your home’s temperature. The cost to install a ductless heat pump can range from a low cost of $2,500 to a high cost of $9,000 for the average size single story home. They are perfect for homes that have no ductwork installed. Ductless heat pumps can offer full home air conditioning with multiple zone units installed in different rooms throughout the house. If you were to install a multi-zone ductless heat pump system with 4 different air handler units (AHU), you could expect to pay around $12,000 to install four units.

Geothermal Heat Pumps Cost

A ground and water source heat pump, also known as geothermal heat pump installation, is another option for heat pump replacement. Geothermal heat pumps are better suited for bigger homes that need a heating and cooling unit that can perform at maximum capacity for a large home. Geothermal heat pumps are the most expensive heat pump installation and can cost up to $35,000 to install. A 2,500 square foot home installing a geothermal heat pump will cost on average about $25,000 to $35,000 often due to excavation service costs associated with getting the land ready for installation. This is twice as much as the typical heating, cooling, and hot water system.

However, geothermal heating and cooling systems can reduce utility bills by 40% to 60%. They are best installed when constructing a new home so that you can plan accordingly for the underground installation. We recommend speaking with a local contractor to see if you need this type of heat pump for your home or if you could install a cheaper option that would work just as well.

What Size Heat Pump Do I Need for My Home?

To determine the size of heat pump you should install in your home, you will want to know the square footage of the areas that need to be heated or cooled. You will also need to use the climate map below to determine what climate zone you live in. If you lived in the southern part of the U.S. in Zone 1, you will need a heat pump that can handle 30 to 35 BTU’s per square foot. For a 2,000 square foot home you will want to install a 4 ton heat pump, with each ton being able to output 12,000 BTUs an hour will cost around $4,000 to $8,500 to install.

Heat Pump Prices by Brand

If you are looking for a more affordable heat pump brand you may be interested in installing an Aire-Flo brand heat pump. A 3 ton Aire-Flo 4HP14LI8 Heat Pump with an 18,000 BTU capability would cost as low as $1,800 plus labor and installation. If you were looking to install a high quality brand 3 ton Carrier Performance Heat Pump with a 15 SEER rating, then you can expect to pay around $3,000 for the unit alone and $8,500 in total installation costs.

Compare top heat pump brands in the market to make sure you get the best features and budget options for your home.

Do Heat Pumps Save You Money?

Installing a heat pump will save you money, especially on future energy bills. Since heat pumps do not use electricity to create heat they operate at a much higher energy efficiency. Each heat pump type saves you money at different rates anywhere from 20% to 80% in savings on energy bills which we will discuss below:

Air Source Heat Pump Energy Savings

If you live in an area with mild climates, air source heat pump can be extremely helpful in lowering energy bills. You can expect to save up to 40% on your energy bills if you are used to utilizing a central air conditioner or furnace cooling and heating system.

Mini Split Ductless Heat Pump Energy Savings

A ductless heat pump can will  save you anywhere from 25% to 40% on your regular energy bills if you do not require utilizing an alternative heating source when temperature drops below a certain point.

Geothermal Ground Source Heat Pump Energy Savings

A geothermal heat pump, though the most expensive to install, is the most energy efficient heat pump installation option. A ground source heat pump can save you up to 80% on your future energy bills and can operate fully in even the coldest temperatures.