How Much Does a Heat Pump Cost in 2024?

If you seek an efficient, sustainable, and versatile climate control solution for your home, set aside $4,000 to $8,200 for a heat pump. The market now offers a slew of options produced under various brand names that differ in size and capacity, efficiency ratings, and price points. If you own an average house, the cost of a new heat pump is likely to be around $5,900. In some cases, homeowners manage to spend about $2,000. However, those interested in geothermal heat pumps should be ready to shell out $36,000.

The cost of a heat pump

Heat Pump Installation Cost Breakdown

Many homeowners are looking for ways to lower utility bills and improve indoor air quality. That’s why when they come across a heat pump system, they consider it the all-in-one solution and imagine how their energy expenses decrease. However, this magic won’t work if you go for the wrong system. Below, we’ll examine different types of heat pumps, their possible size, and SEER ratings to ensure you can get the best bet for your home. 

Willing to find out how much to install a heat pump in your home? MyHomeQuote is here for you. From connecting with qualified local contractors to getting personalized quotes, the service is at your disposal. Complete the request form to kick off. 

Cost of a Heat Pump by Type

Whether your home gets efficient and cost-effective heating and cooling throughout the year depends on the heat pump you choose, with prices ranging from $900 to $4,630 for a unit alone. Not only does it reduce energy consumption, but it also supports environmental sustainability. However, picking the best one depends on various factors, including your local climate, home size, insulation quality, and personal energy efficiency goals. Let’s see what advantages each type offers and which fits your house best. 

Air-source

Six out of ten homeowners might choose an air-source heat pump, spending $4,000 to $11,800, given their property is equipped with ductwork. The price is shaped by the system size, specifications, and brand, with top-tier ones like Lennox at the higher end of the spectrum. Air-source heat pumps capture heat from the outside air and transfer it indoors to heat air or water. You can use them for cooling spaces, too. Their advantages include a 20-year lifespan, minimal maintenance, and a 50% reduction in energy consumption. 

**56,000 BTU Ducted Central Split AC Heat Pump System from $4,128, according to Home Depot

Geothermal

Installing a geothermal heat pump (GHP), also known as a ground source heat pump (GSHP), requires an initial investment ranging from $15,200 to $36,000. Your system type, local labor rates, and site-specific needs, like drilling and excavation, can affect the price. Despite the steep initial costs, geothermal systems offer significant long-term savings and environmental benefits. They reduce heating costs by up to 70% and cooling expenses by up to 50% compared to traditional HVAC systems. Please note that these systems are eligible for a 30% federal tax credit on equipment and labor.

Solar

Solar heat pump prices installed land between $15,100 and $31,000. These innovative systems harness energy from thermal solar panels, partially offsetting the electrical demand. While they can be designed as standalone units, you can install solar panels apart, too. Depending on system capacity – 6 kW to 12 kW – solar panel installation can set you back $10,680 to $26,640. Advantages of solar heat pumps include compact design, simplicity in installation, and cost-effectiveness in operation. If you now use natural gas or propane to meet your home heating needs, your utility bills can lower by 70% once you switch to a solar heat pump.

**18 000 BTU Solar Heat Pump from $2,700, according to Ecosolaris  

Hybrid

Hybrid heat pumps, running from $3,200 to $14,000, merge a traditional furnace with a heat pump, making them particularly well-suited for states with freezing weather. These systems excel in homes with pre-installed ductwork, where homeowners use gas or oil furnaces to heat the space. They offer more efficiency in chilling temperatures than standard heat pumps with electric resistance heating yet are less costly than geothermal options, effectively balancing performance and price for cold climates.

**Central Ducted Hyper Heat System 55,000 BTU Heat Pump and Air Handler from $3,721 according to Home Depot

Ductless Mini-Split

Ductless mini-split heat pumps come with different capacities and can control a diverse number of zones, so their prices can land anywhere between $3,150 and $11,000. If you need to install a single-zone unit, you can shell out from $1,380 to $3,600, while those covering 5+ zones can cost you an arm and a leg. Mini-split systems, including an external compressor and one or more indoor units, resemble traditional air source heat pumps but offer distinct advantages: they can support up to eight zones with no ductwork. Equipping your home with such a unit can reduce heat loss by 30% and diminish airborne allergens while doing so. 

**18,000 BTU Ductless Mini Split AC Heat Pump from $1,088, according to Home Depot

The cost of a heat pump system by type

A New Heat Pump Cost by Size

Small-capacity heat pumps (1.5 to 2 tons) can cost $3,450 to $6,000, and your expenses will increase proportionally with the capacity. Even though homeowners are always on the lookout for ways to cut corners, it’s essential to pick the right size of the heat pump for effective home temperature control. Your choice must be based on two pillars: the overall size of your residence and the local climate conditions. However, it is worth making allowances for the building’s age and insulation quality. 

The rule of thumb is that one ton of cooling capacity can generally cover about 400 to 700 square feet. So, what size of heat pump for a 1,800 sq. ft. home is the best bet? You should go for a model with a 3 to 3.5-ton capacity.

The price of a heat pump by size

Heat Pump System Cost by SEER Rating

If you want to discover the efficiency of a selected heat pump in cooling mode, pay heed to its SEER rating, spanning from 14 to 24. The higher, the better, yet costlier, meaning installing a system with a 19 or higher SEER rating can set you back from $7,100 to $21,000, based on the type. Meanwhile, you can fork out from $3,540 to $7,100 for a standard heat pump with a lower SEER rating. The optimal SEER rating for your home depends on the local climate and how heavily the unit will be used. Experts suggest going for systems with a SEER rating of no less than 15 to ensure efficient performance and energy savings.

The average cost of a heat pump by SEER rating

The Average Cost of a Heat Pump by Brand

Heat pumps produced under the umbrella of established brands run between $6,800 and $12,000 to install, depending on the model. Standard units not labeled by big names can cost $3,300 to $8,000. When purchasing a unit, you pay for features, efficiency, performance, and the brand’s reputation. Affordable units might seem cost-effective, but such options are rarely backed up by warranties, meaning if something goes wrong, you’ll be the only one to cover expenses. 

Have no idea what heat pump brand to choose for your home? MyHomeQuote can match you with qualified HVAC contractors in your area and help you get all the answers. Complete a one-minute questionnaire to inform us about your needs.

The cost of heat pump replacement by brand

Labor Cost to Replace the Heat Pump

Based on the system’s size and model, experienced HVAC specialists charge from $1,250 to $3,600 for heat pump installation. Taking about their hourly rate, it can be anywhere from $76 to $155. Please note that it can take experts 15 to 27 hours to complete the project. Additional fees may apply for complex installation tasks like constructing a concrete foundation for the unit, creating openings in external walls, or laying new electrical wiring. 

Additional Factors Affecting the Heat Pump Installation Cost

When budgeting for heat pump installation, you should go beyond basic considerations like the system’s type and energy efficiency rating. You need to home in on installation costs, including extra services like:

• Permits. When installing a heat pump for the first time, you must obtain permits running at $100+. The price depends on local regulations and the project’s scope. The specific requirements and fees vary across different states and cities. 
• Old unit removal. When switching to a new heat pump, you have to remove the old unit, which costs from $190 to $400 per hour. Please note that not all contractors include these expenses in the initial estimate. Hence, it is worth checking in with your HVAC technician. 
• Duct installation. Depending on the size of your home and the pump’s coverage area, you can spend from $900 to $5,100 to have new ductwork installed, which is approximately $1 to $6 per square foot. Additionally, if your existing ducts have not been used recently, you may have to schedule cleaning services for about $380.

Heat Pump Replacement Cost

Given that an air handler and ductwork are up and running, replacing a heat pump ranges from $2,500 to $7,000. Additional expenses may arise if transitioning from an obsolete furnace system to an advanced heat pump. Installing a brand-new air handler costs between $1,970 and $3,490, while removing an old AC unit may cost $300 to $500. Your system’s type and regional labor rates trigger price differences.

Cost to Replace the Heat Pump and Air Handler

Replacing a heat pump + an air handler combo can set you back $5,100 and $12,130. You can add $2,400 to $6,600 to the final bill if new ductwork is required. Air handlers play a crucial role in the HVAC system by moving conditioned air throughout the premises. They are equipped with an indoor coil, a blower fan for air circulation, a control board for operation management, and an auxiliary electric strip heater for additional heating on demand. So, the air handler costs range from $1,500 to $3,400.

How to Pick the Right Size of a Heat Pump for Your Home?

Heat pumps are available in capacities from 1.5 tons (18,000 BTU) to 5.0 tons (60,000 BTU), with the ideal size depending mainly on the home’s square footage, insulation levels, and regional weather. 

When choosing the right cooling system, you need to do the math—take your home’s square footage and divide it by 550 to discover the right capacity in tons. For instance, if you own a 2,000-square-foot house, you need a unit with a 3.5- to 4-ton capacity. More modern or better-insulated homes, especially in cooler climates, may achieve greater coverage per ton, requiring fewer BTUs. 

When it comes to heating, the need is gauged in British Thermal Units (BTU). Generally, 30 to 60 BTUs per square foot are required, varying by climate. If you reside in one of the hottest US states, you need to go for a unit with higher BTUs—up to 30%. 

Heat Pump Cost to Run

Operating a heat pump incurs an hourly expense of $0.22 to $0.55, influenced by the model and regional electricity rates. Monthly operational costs span from $40 to $162, which translates to about $500 to $2,050 annually. These figures are contingent on multiple factors, including your home’s insulation quality and climate. Heat pumps generally consume 2 to 3 kW of power and are active for about 60% to 70% of the day when external temperatures drop to 20°F. However, in milder southern climates, the usage of these systems tends to be lower.