Installing a new heat pump for an average-sized house (around 2,400 square feet) typically costs from $4,000 to $8,000. This price range includes the cost of a 48,000 BTU (4-ton heating/cooling capacity) unit and labor expenses.
Note that heat pump installation costs will differ based on factors like your home size, type of the pump, and its efficiency. The cost ranges from about $1,500 for a mini-split system to as high as $25,000 for an efficient geothermal setup.
Also important to consider are hidden costs, such as permit fees, which can add an extra $100 to $250 or more. Additionally, location and geographical considerations could further inflate your final bill.
- Heat Pump Installation Cost by Location
- Heat Pump Cost Estimator by BTU
- Cost by Energy Efficiency Rating
- Energy Audit Cost
- Cost by Heat Pump Type
- Cost by Brand of Heat Pump System
- Single vs. Multi-Zone Air-Source Heat Pumps Cost
- Labor Costs
- Heat Pump Installation Permit Fees
- New Ductwork Cost
- Heat Pump Replacement Cost
- FAQ About Heat Pump Installation
Heat Pump Installation Cost by Location
Your location plays a big part in the final cost of your heat pump. Prices can change due to local rates for labor and materials, regional permit requirements, and the cost of living in your area.
For example, living in a big city like New York could mean you pay more for installation than if you were in a rural area.
At the same time, living in colder places, like the Northeast, could increase your costs as bigger units and extra insulation are needed to work well. But if you live somewhere warmer, like the South, expenses might be less due to smaller units.
The prices below reflect the average installation for a standard 2.5 to 3-ton air-source heat pump (13-16 SEER) system, including standard equipment and labor:
| Northeast U.S. | Average Cost (2.5- to 3-Ton Unit) |
| New York, NY | $5,000 to $8,000 |
| Portland, ME | $3,000 to $6,000 |
| Southeast U.S. | |
| Dothan, AL | $3,700 to $6,000 |
| Atlanta, GA | $3,500 to $5,500 |
| Miami, FL | $2,500 to $4,500 |
| Midwest U.S. | |
| St. Louis, MO | $4,300 to $8,000 |
| Chicago, IL | $4,500 to $6,500 |
| Minneapolis, MN | $4,000 to $6,000 |
| Northwest U.S. | |
| Seattle, WA | $4,500 to $7,500 |
| Corvallis, OR | $4,000 to $7,000 |
| Southwest U.S. | |
| San Diego, CA | $4,500 to $10,000 |
| Roswell, NM | $2,400 to $9,500 |
| Denver, CO | $3,500 to $8,000 |
| Houston, TX | $3,800 to $7,000 |
The best way to get an accurate price quote is by contacting local HVAC companies through Home Gnome.
Heat Pump Cost Estimator by BTU
The size of your home can directly affect the cost of a heat pump. You’ll require larger, more powerful (and pricier) units for bigger homes.
Here’s where BTUs come in – British Thermal Units measure both heating and cooling capacity. Essentially, higher BTU ratings mean stronger heating and cooling power but also higher costs.
So, when selecting a heat pump, you need to balance your home’s size and heating needs against your budget.
Here is a rough estimation of the cost to install a heat pump in your home based on size:
| Home Size (Square Footage) | Heat Pump Size (Capacity in Tons) | BTUs Needed Average | Cost (Installed) |
| 900 – 1,500 sq. ft. | 2 Tons | 24,000 | $3,200 to $5,500 |
| 1,200 – 1,600 sq. ft. | 2.5 Tons | 30,000 | $3,500 to $6,000 |
| 1,600 – 2,000 sq. ft | 3 Tons | 36,000 | $3,700 to $6,300 |
| 1,800 – 2,300 sq. ft. | 3.5 Tons | 42,000 | $3,800 to $6,500 |
| 2,000 – 2,400 sq. ft. | 4 Tons | 48,000 | $4,000 to $8,000 |
| 2,400 – 3,300 sq. ft. | 5 Tons | 60,000 | $4,500 to $9,000 |
Cost by Energy Efficiency Rating
Heat pump costs also depend on energy efficiency, which is measured in SEER (Seasonal Energy Efficiency Ratio) and HSPF (Heating Seasonal Performance Factor).
The higher the numbers, the greater the efficiency – and often a bigger price tag. Still, efficient units can save you in power bills in the long run because they use less electricity.
The table below shows the range of SEER and HSPF ratings available for heat pumps and the associated cost.
| SEER Rating | HSPF Rating | Average Cost |
| 3 – 14 SEER | 7 – 8 HSPF | $3,700 to $5,000 |
| 15 – 16 SEER | 8 – 9 HSPF | $5,000 to $7,000 |
| 17 – 18 SEER | 9 – 10 HSPF | $6,500 to $8,500 |
| 19+ SEER | 10+ HSPF | $8,000 to $11,000 |
Energy Audit Cost
An energy audit conducted on your home includes an analysis of your existing heating and cooling systems, insulation, and ductwork, as well as your energy usage habits.
With this data, you can decide on the most efficient and cost-effective heat pump system to install. The average cost for a basic energy audit is around $200 to $600.
Choosing the right type of heat pump can make a huge difference in your overall energy costs. Read on to learn more about the types of heat pumps available.
Cost by Heat Pump Type
Heat pumps come in several types, each with its own price range and suited for different needs. When choosing, you should consider the following:
- Your climate zone
- Available space (indoor and outdoor)
- Existing home infrastructure
- Local energy costs
- Long-term efficiency goals
The decision should balance initial investment against long-term energy savings. Here’s a quick overview of the different types of heat pumps and their estimated cost.
| Type | Installation Cost | Key Features |
|---|---|---|
| Air-Source | $4,500 to $10,000 | Most common and affordable, ideal for homes with existing ductwork. Works by transferring heat between indoor and outdoor air. |
| Dual Fuel/Hybrid | $3,000 to $7,000 | Combines electric heat pump with a backup furnace for optimal performance in varied climates. |
| Geothermal Unit | $7,000 to $25,000 | Most efficient but expensive to install, uses ground temperature for heat transfer. Best for extreme climates. |
| Ductless Mini-Split | $1,500 to $10,000 | Perfect for homes without ducts, offering flexible zoning options but higher upfront costs for multiple units |
| Solar | $18,000 – $35,000 | Solar-powered system. The cost may be lower if you already have solar panels installed. |
Cost by Brand of Heat Pump System
When selecting a heat pump, one of the most important factors to consider is its brand. Different companies offer various models and features, which have their own prices. Generally speaking, some of the more popular heat pump brands are Carrier, Trane, and Lennox.
The table below shows estimated costs for popular air-source heat pump brands, reflecting single-stage to variable-capacity models, typically ranging from 1.5 to 5 tons (18,000 to 60,000 BTU):
| Brand | Energy Efficiency Rate | Average Cost (Unit Only) |
| Lennox | 16 – 23 SEER | $2,100 to $5,300 |
| Carrier | 14 – 20 SEER | $2,000 to $4,600 |
| Trane | 14 SEER | $1,900 to $4,300 |
| Rheem | 14 SEER | $1,400 to $3,500 |
| Maytag | 14 – 19 SEER | $1,300 to $4,000 |
Single vs. Multi-Zone Air-Source Heat Pumps Cost
Air-source heat pumps come as single-zone or multi-zone systems.
Single-zone systems heat or cool one big area and cost less because they’re easier to install.
Multi-zone heat pump systems let you regulate temperatures in different rooms. These systems connect one outside unit to up to four indoor units, and these systems are more expensive to install because of the complex connections.
The table below shows estimated costs for ductless mini-split heat pumps with SEER2 ratings of 14.3 to 16, typically ranging from 24,000 to 60,000 BTU capacity:
| Zones | Average Cost of Air-Source Heat Pump (Installed) |
|---|---|
| Single Zone | $1,900 to $4,700 |
| 2 Zones | $3,500 to $7,000 |
| 3 Zones | $5,500 to $8,500 |
| 4 Zones | $6,700 to $14,000 |
| 5 Zones | $8,500 to $18,500 |
| Air Handler | $1,500 to $2,500 |
Labor Costs
Labor costs to install your heat pump installation expenses depend on factors like unit complexity, available space, and system type. Labor typically ranges from $1,000 to $2,700, with hourly rates between $70 and $130.
Different heat pump types have unique installation challenges. For instance, an air-source heat pump needs outdoor space and might require extra wiring, while geothermal systems need extensive excavation, increasing costs.
The following table outlines the average cost of labor for different types of heat pump installation.
| Heat Pump Type | Unit Cost | Installation Cost |
| Air-source | $2,000 to $5,500 | $1,500 to 2,500 |
| Geothermal | $3,000 to $6,000 | $3,000 to $15,000 |
| Ductless mini-split | $1,000 to $3,500 | $500 to $4,500 |
| Dual fuel | $500 to $6,000 | $2,000 to $4,500 |
| Solar | $2,000 to $4,500 | $14,000 to $25,000 |
Heat Pump Installation Permit Fees
The basic mechanical permit for installing a heat pump costs about $100 to $300. Your HVAC contractor usually handles the permit process.
Permits are needed because heat pumps involve complex electrical work and must meet local building codes. Permits help ensure your heat pump installation is safe and meets energy efficiency standards. Skipping permits can lead to fines or having to redo the work.
New Ductwork Cost
When installing a new heat pump system, ensure you have the proper ductwork in place. On average, the cost of new ductwork can range from $2,000 to over $5,000, depending on the size of your home and the length of ductwork needed.
Ductwork helps regulate airflow throughout the system and ensures that the heated or cooled air is delivered efficiently to each room.
Heat Pump Replacement Cost
The average cost to replace a heat pump (as opposed to installing one for the first time) ranges between $4,350 and $11,000.
The final price depends on the heat pump model you choose and your current home setup. For instance, you might need to update your air handlers and ducts since old ones sometimes don’t match newer heat pumps.
Here is a breakdown of the average cost of replacing a heat pump:
| Task | Average Cost |
| Permits | $100 to $250 |
| Remove the Old Heat Pump Unit (as necessary) | $1,000 to $2,000 |
| Remove the old AC Unit (as necessary) | $50 to $150 |
| Remove Underground Oil Tanks (as necessary) | $800 to $4,500 |
| New Heat Pump Unit | $2,000 to $4,000 |
| New Heat Pump Installation Cost (Labor Cost) | $1,000 to $2,700 |
| Install New Air Handler | $1,400 to $4,100 |
| Electric Heat Strips | $100 to $400 |
| Thermostat | $120 to $330 |
| New Ductwork (as necessary) | $2,000 to $5,000 |
FAQ About Heat Pump Installation
Heat pump systems are more energy-efficient than traditional furnaces and can save you money over time. Generally, a heat pump can cost from $0.25 to $0.50 per hour of operation, depending on the type of heat pump and its efficiency rating.
Homeowners can expect an annual utility bill ranging from $450 to $1,500 when they invest in a standard heat pump system.
Read More: Pros and Cons of Using a Heat Pump in Your Home
The cost of a heat pump for mobile homes is around $2,500 and $6,500, depending on the size and type you need. Single-stage and multi-stage systems are available with single and multi-speed compressors.
A heat pump system costs between $4,000 and $7,600, while a furnace system costs from $2,383 to $6,110 in total. Remember, heat pumps move heat around and work as both heaters and air conditioners, which saves energy.
Furnaces only heat homes, but do it better in very cold weather. For places with harsh winters, using both systems together (also called a hybrid system) works great.
Find an HVAC Technician Near You
Heat pumps are a great option for homeowners who want to save energy and money. But remember, it is essential to consult with a professional HVAC technician to determine the best option for your home. They’ll help you find a heat pump that works with your budget and saves energy.
Home Gnome delivers the best home service experience at the click of a button. Book reliable, skilled handymen and handywomen in seconds and leave the rest to us.
Read More:
- How Much Does an HVAC Inspection Cost?
- How Much Does HVAC Maintenance Cost?
- How Much Does HVAC Repair Cost?
Main Image Credit: FanFan61618 / Flickr / CC BY-SA 2.0
Related Posts:
