How Much Will A Heat Pump System Cost?

Posted: March 05, 2023

Heat pumps are a popular and efficient way to heat and cool homes and buildings. Unlike traditional heating and cooling systems that rely on burning fossil fuels or electricity to generate heat or cool air, heat pumps work by transferring heat from one place to another. Their cost-effectiveness and sustainability make them a great option for homeowners looking to reduce their energy bills and carbon footprint. However, one of the most common questions people have when considering a heat pump system is how much it will cost. 

The price to install a new heat pump typically ranges from $4,000 to $8,000. There are a number of factors that can affect the cost of a heat pump system, such as the size and type of the unit, installation fees, and ongoing operating and maintenance costs. 

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Whether you're planning to install a heat pump system in your home or business, this article will help you determine the appropriate system for your budget and energy needs.

Table of Contents:

What does heat pump installation cost cover?

When you ask a heating and cooling contractor how much heat pumps cost, they will give you a quote that includes both the equipment and installation costs. Homeowners typically purchase both the equipment and the expert labor to install the system from their HVAC contractor. The majority of HVAC professionals do not sell to the general public because they cannot provide a warranty on the equipment if they do not also install the system.

The price of heat pumps is difficult to estimate. Other factors, which we discuss in more detail later, have an impact on the real price of the equipment. Even if two households purchase the same heat pump, their installation quotes may differ. It is due to the fact that each home's unique characteristics have an effect on heat pump installation.

Heat pump installation cost breakdown

Here’s the heat pump installation cost breakdown:

Average costs of installing heat pumps in 2023

An excellent approach to maintain comfort in your house and reduce energy costs is with a heat pump. If you're thinking about a new installation, the approximate total cost in the United States is $6,500. Yet, a number of other factors will affect the final cost.

Your expenses may change depending on the size, number, and brand of your home as well as the geographical climate, energy efficiency rating, and whether you're replacing an existing home or building a new one from scratch. Budgeting between $4,000 and $8,000 is often recommended for the complete procedure. This includes the cost of the materials, the cost of the work, and any licensing that might be necessary.

The overall cost of your renovation might be as much as $14,300 or more if you go all out and get a geothermal unit or if you have a big house. But, a modest installation might only run you $1,900. Higher energy ratings may initially cost more, but because of their greater efficiency, models with higher energy ratings may end up saving you money over time.

Heat pump cost estimator by residential or commercial building size

The quantity and number of BTUs your heat pump requires depend on the size of your residence. For instance, a single building with a minimum square footage of 1,500 may need a heat pump with a capacity of 2 tonnes and a BTU output of about 24,000. But, a residence that is 3,000 square feet in size will probably require a heat pump with a capacity of up to 5 tonnes and close to 60,000 BTUs.

The cost of installing a heat pump in a larger place is often more than in a smaller one as a result. A heat pump installation typically costs between $3,500 and $6,000 for a 1,500 square foot home and between $4,500 and $9,000 for a 3,000 square foot home.

Depending on the size of your property, the following is a reasonable estimate of how much it will cost to install a heat pump:

Heat Pump Cost Estimator by Residential - PartsHnC

Other factors that affect cost of heat pump

The following factors also affect the heat pump installation cost:

Heat pump cost by type:

It's crucial to choose the correct heat pump for your residence because they come in a variety of types and prices. Due to the complexity of the system and the specialist installation and upkeep required, all types of heat pumps may be initially more expensive than conventional furnaces and air conditioners.

Yet if set up and maintained correctly, a heat pump can significantly save energy expenses while keeping your house at a pleasant temperature. Here are the respective costs of each type of heat pump:

Air source heat pump:

The air source heat pump gets air from outside refrigerants. The heat pump compresses the outside air and sends it through the centralized ducts in your complete building rooms and it warms each room. It will run efficiently for up to 20 years and you need not do extra maintenance within 20 years. Air source heat pumps are best for long-term cost savings. $3,000 to $5,000 is the average cost for each indoor air handler unit. Installation costs with ductwork may range from $10,000 to $18,000. 

Ductless Mini-split/ Ductless heat pump:

Ductwork affects your HVAC system energy efficiency. Complicated ductwork needs extra effort & cost to install and maintain. Ductwork is more difficult to set up and maintain in unconditioned locations. If you want to save your money on ductwork installation, then choose a simple duct connection. It reduces labor costs, installation costs, and maintenance costs. The ductless heat pump price comes between $1,000 to $8000.

Solar heat pumps:

A solar heat pump is the integration of thermal solar collectors and a heat pump. Traditional heat pumps are more expensive than solar heat pumps. You can buy a solar heat pump for between $18,000 to $40,000.

Geothermal heat pumps:

Geothermal heat pumps collect and store the constant temperature of the earth with the help of an underground loop of pipes. Pipes are known as heat exchangers. It is a less energy-consuming heat pump type. Geothermal heat pumps are highly efficient in a long life, but installation is highly expensive. You need to pay $12,000 to $38,000 for the unit and its installation. 

Gas-fired heat pumps:

Gas-fired heat pumps are less efficient than other types of heat pumps. The cost of natural gas is different at different times and it is increasing yearly. But Gas fired heat pump is the best option for commercial buildings or businesses. The average cost for buying and installing a gas-fired heat pump is $6,000 to $10,000. 

Seasonal Energy Efficiency Ratio (SEER):

SEER and Heating Seasonal Performance Factor ratings are used to assess the energy efficiency of heat pumps. The efficiency of a heat pump increases with its SEER and HSPF ratings, which also means that it will cost more money.

In general, SEER rates the cooling effectiveness of air conditioners and other cooling systems, while HSPF rates the heating effectiveness of heat pumps. The ratings are typically set by the company that makes the equipment and are often unique to each model. Because of the device's reduced energy consumption, a high SEER rating typically translates to cheaper energy expenditures.

The price range and available SEER and HSPF ratings for heat pumps are shown in the table below.

SEER_Graph - PartsHnC

Brand of heat pump system

One of the most crucial aspects to take into account when choosing a heat pump is its brand. Models and features offered by various businesses can range in price. Generally speaking, Carrier, Trane, and Lennox are some of the more well-known heat pump manufacturers. In general, the cost of the unit alone might range from about $2,000 to more than $5,300.

Brand Average Cost (Unit Only)
Amana $1,800 to $2,800
Trane $2,600 to $4,200
Lennox $2,700 to $4,500
Carrier $2,300 to $3,900
Bryant $1,600 to $2,700
York $1,300 to $2,300
Rheem/Ruud $1,600 to $3,200
Daikin offers $1,000 to $10,000
Goodman $1,500 to $3,900

If you buy a heat pump from a direct manufacturer or major dealer, then it comes in less cost compared to local dealers or distributors. PartsHnC is the major trusted and authorized seller of all HVAC parts & accessories. 

Single vs. Multi-zone air-source heat pumps cost

Systems with one or more zones can use air-source heat pumps. Single-zone systems work best in a single, big space, but multi-zone systems provide individual temperature control for a number of different spaces or rooms. One compressor can manage up to four air handlers in a zoned system, whether it is centralized or ductless.

Multi-zone air-source heat pumps boost comfort and energy efficiency by enabling you to customize the temperature in each zone of your house. You may regulate the settings and temperatures from any location in the house using the remote controls that are provided. Furthermore, sensors keep track of temperature variations and automatically maintain your preferred settings.

An air-source heat pump system for a single zone can cost between $1,900 and $4,700, however a system for multiple zones can cost up to $14,000 or more. The difficulty of integrating several air handlers, which normally cost between $1,500 and $2,500 each, is mostly to blame for this.

Split vs. Packaged heat pumps average cost

You can choose a split or packaged heat pump system for your house. Split heat pumps are more expensive up front than packaged systems, frequently costing between $3,500 and $10,000 to install. A total installation cost of $4,000 to $7,000 is more affordable for packaged systems.

Average labor costs to install heat pumps

The price to install a heat pump might vary significantly depending on the size and type of the system that is selected. The labor charges for each project typically range from $1,000 to $2,700. Labor costs cover the installation, necessary wiring or plumbing, additional components like a thermostat. The complexity of the device, the quantity of installation space available, and other factors can all have an impact on the labor cost for a heat pump installation.

Permit costs 

Depending on the local municipality, heat pump installation permits can cost a lot of money.  To determine the precise cost and any additional requirements, it is crucial to examine local building codes in advance. The cost of a permit to install a heat pump ranges from $100 to $250.

It's crucial to obtain a permit to guarantee the security of your house and heat pump. You should always work with a trained HVAC contractor that is certified to install heat pumps because the installation needs to be done in a professional and legal manner.

Additional heat pump costs to consider

In addition to the primary cost components, there are a few more charges you should take into account when calculating your overall costs.

New ductwork cost: It's crucial to have correctly sized ducts for a heat pump system that are larger than the return air grille. The average cost of new ductwork can range from $2,000 to over $5,000 depending on how big your house is and how much ducting is needed.

Cost of a thermostat: While installing a heat pump system, the thermostat's price must be taken into account. Price-wise, thermostats range from entry-level versions with few features to more expensive models with many extras. Basic thermostats will run you anywhere from $120 to $330, while more sophisticated versions can cost upwards of $300.

Energy audit price: Choose the ideal heat pump system for your house by conducting a thorough energy audit. Current heating and cooling systems, insulation, ductwork, and your energy usage patterns will all be examined as part of this audit. Also, you can choose to install the heat pump system that is both cost- and energy-efficient based on the information provided. A fundamental energy audit usually costs between $200 and $600.

Maintenance and repairs: A regular, yearly tune-up costs between $50 and $180, while hiring a local heat pump repair expert to fix your heat pump would cost you on average between $150 and $600.

Heat pump replacement cost: Compared to first-time installation, the typical cost to replace a heat pump is between $4,350 and $11,000. A heat pump replacement overall price will rely on a number of variables, including:

  • The new unit type you select
  • The components of the ancient HVAC system
  • Ductwork, air handlers, and additional components

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A new HVAC system cost thousands of dollars to install or replace. Make sure to look into all your alternatives and speak with a qualified HVAC expert who can suggest the ideal system for your residence.

Heat pump installation cost by location

The price of heat pumps varies greatly depending on where you live. Depending on the size of the system and the installation's complexity, installation costs typically range from $4,000 to $8,000 nationwide.

Cost to install a heat pump yourself

Depending on the size of the installation, most homeowners may not be able to install a heat pump system themselves.

Although replacing or repairing your heat pump as part of an existing system may be less expensive, doing the ductwork, underground excavation, and electrical work yourself can be expensive and challenging!

Let's assume that the cost of installing an air-source heat pump is $2,000 for the heat pump itself and $1,500 for labor. The cost of labor frequently includes all materials, regional permits, duct installation, and additional components. All those additional expenditures must be taken into account if you decide to do it yourself.

In other words, you might not actually save any money by skipping the professional. In addition to being a time-consuming process on your own, installing a heat pump involves complex wiring and ventilation setups, which make mistakes costly and annoying.

DIY heat pump installation cost vs. hiring a pro 

Similarly, attempting a do-it-yourself installation of a heat pump could drive up your overall cost due to numerous additional cost elements, costing you money rather than saving it. This is why it's best to leave it in the hands of experts who have plenty of experience installing heat pumps, getting the proper municipal permissions, and more.

In conclusion, the cost of a heat pump system can vary depending on the above factors. Generally, the upfront cost of a heat pump system may be higher. But over time, the system can provide significant energy savings, which can offset the initial investment. 

Frequently asked questions:

Is a heat pump worth comparing to a furnace and air conditioner?

Yes, if you want to control the temperature in both winter and summer, then do not buy a furnace and air conditioner. Because you can control heat and cool your room temperature with a heat pump. 

Which is an efficient furnace or heat pump?

A heat pump is more efficient than a furnace.

Which type of heat pump is a more efficient gas heat pump or air source heat pump?

The air source heat pump is more efficient than the gas heat pump.

Is a solar heat pump more expensive than other traditional heat pump types?

No, Solar heat pumps are less expensive than traditional heat pump types.

Can I replace the heat pump damaged parts?

Yes, you can. Do not replace parts with no prior experience. Take the guidance of HVAC technicians. 

How to know which is the most efficient heat pump?

Check the Seasonal Energy Efficiency Ratio (SEER) rating. A high SEER-rated heat pump is more efficient. 

For More FAQs
Carrier heat pump troubleshooting

Carrier global corporation: Carrier is a multinational HVAC manufacturing company. Willis Carrier is the founder of a modern air conditioner and carrier company. Carrier is known for its innovation and modern technology. Respect, integrity, inclusion, innovation, and excellence are the core values of a Carrier global corporation.  It is operating in 180 countries. Carrier products are suitable...

How good are Trane heat pumps?

Trane Heat Pumps are the most familiar and highly rated because of their efficiency, among other things. 

How often should Bard heat pump filters be cleaned?

If your heat pump is surrounded by a more dusty area, then you must clean your filter once a month. Either once in 4 to 12 weeks. It also depends upon your heat pump use.