Heat Pump Installation Costs

Heat pumps are an energy-efficient HVAC system that saves money on heating and cooling bills. The cost of a heat pump installation depends on a variety of factors.

The size of the home and the number of ducts are major factors. The type of ductwork also influences the price.

A standard heat pump costs less than a high-efficiency model with an advanced SEER rating. However, the latter may require more upfront investment, leading to lower operating costs in the long run.


Heat pump installation costs vary by equipment and type of home. For example, a geothermal unit requires land excavation and is more expensive than an air-source model. The system’s size also impacts installation costs, as it determines how much energy it can deliver.

A reputable HVAC contractor should calculate your house’s heating and cooling load to ensure you get the right system for your needs. They will take measurements of all rooms and inspect your attic and other areas to understand how much energy you need to heat or cool the space. The results will then help them suggest your heat pump’s proper tonnage and climate zone.

If you are replacing an existing HVAC system, your technician will likely want to remove the old furnace and ductwork before installing the new heat pump. This additional work adds $250 to $530 to the project. In addition, if you need a new thermostat that connects to the heat pump, you will pay an average of $100 for installation.

You may also be required to install new air ducts in your home if it doesn’t have any or you wish to upgrade the existing ductwork. A new duct system typically costs $250 to $12,000 for residential installation, depending on the size of your home and whether it needs to be reworked.

Most brands of heat pumps offer a wide range of prices, from cheaper, lower-quality models to high-end units. You should compare prices, reviews, and warranties before deciding on which brand to buy. When choosing a brand, ensure you work with an installer with experience with that particular model.

The average heat pump installation price is $4,500 to $8,000, with the highest-end brands costing up to $10,000. The upfront cost will be higher for models with a high HSPF and SEER rating. These higher ratings lead to long-term savings in energy costs. In many cases, the more efficient your heat pump is, the less it will cost to run.


Heat pumps are a cost-effective way to provide both heating and cooling for your home. However, the price of installing a new one can be expensive depending on several factors. The type of pump you choose, its size, whether you need ductwork installed, and permits are all important factors that can affect the final price of your installation project.

Depending on your location, you may be paying higher energy rates than in other parts of the country. The higher energy costs can drive up the total cost of your heat pump installation, especially if you are installing a geothermal or solar-powered pump. To save money on your energy bills, you should consider a high-efficiency heat pump with an Energy Star rating.

The air handler in your heat pump is a key component that controls the flow of refrigerant and provides conditioned air to your home. It houses a blower fan, control board, and auxiliary electric strip heaters to help the pump keep up with the demand for hot or cold air in your home.

A typical 3-ton capacity heat pump ranges from $5,000 to $8,200 for labor and standard materials. However, the costs can rise considerably if you decide to get a high-end system with a better SEER or HSPF rating. Also, be sure to properly size your heat pump so it can meet your home’s maximum demand. A system that is too small will increase your utility bills.

In addition to the heat pump, you might need to pay for other equipment, such as an outdoor compressor unit or a new duct system, if your home has no existing ducts. The air duct installation costs can be $250-$12,000, depending on the size of your home and if you choose to get your ductwork cleaned or replaced as well.

The brand of your heat pump can play a major role in the overall cost of your installation project. Recognizable brands typically have a higher price tag than less-known products.


Many heat pump installation projects require permits, and these can be costly. Permit regulations vary by municipality and city, and your HVAC contractor should be able to provide you with this information. At a minimum, you will need a building permit, and additional permits may be required if your project involves excavation or going near established pipelines.

You may also be required to have your system inspected by a third party to ensure that it meets the manufacturer’s specifications. This inspection can also be time-consuming, with the inspector visiting your home and checking that all installation work is done properly.

The size of your home also impacts heat pump installation costs. Smaller homes typically necessitate smaller, more affordable systems. Larger homes, on the other hand, may require larger and more expensive systems.

Your heating and cooling system needs to be correctly sized for optimal performance and efficiency. Your HVAC contractor should perform some type of load calculation to determine the proper size system for your home. This can include a Manual J calculation or other load calculation method that considers the climate in your area, your home’s construction materials, insulation level, number of levels, floor plan, and the amount of sunlight that your home receives.

The type of ductwork you have in your home also plays a role in the heat pump installation cost. If you have ductwork, you will need to have this professionally cleaned and insulated before installing your new system. You will also need to have the ductwork inspected by a third party to ensure the quality and integrity of your ducts.

Almost all heat pumps and air conditioning systems require a permit for installation, and failing to get one can lead to serious legal and financial consequences. For example, if you install a heat pump without a permit and fail to meet the standards set forth by your local code enforcement agency, you could be liable for the damages. This is why it is so important to hire a reputable HVAC company with the right qualifications and experience.

Removal of Existing Unit

In addition to the cost of equipment, there is often an additional charge to remove an existing heat pump unit. This is because the installation process of a heat pump requires relocating the existing outdoor compressor unit and installing an indoor coil, ductwork, and refrigerant line set. This adds to the overall installation time and increases the amount of labor required to complete the project.

The cost of a new heat pump is usually based on the type and capacity of the system you need. There are several factors that influence this, including the size of the home, energy efficiency levels, and other preferences like noise level. The best way to determine the total price is to get professional quotes from multiple HVAC professionals in your area. This will allow you to compare costs and choose the right heat pump for your home.

You may also want to consider the cost of any rebates or tax credits that are available for your heat pump. These can significantly reduce your initial investment, so it is important to investigate what is available in your area. Your licensed HVAC contractor will be able to provide you with information on any available local rebates and incentives.

Depending on your home and requirements, a new heat pump installation will require installing ductwork or adding wiring for electricity and a thermostat. Duct installation can add up to $1,000 or more, depending on the job size and the home’s size. A ductless mini-split heat pump is an alternative that can save you some of these costs.

When choosing a heat pump, it is essential to select a high-quality system from a reputable HVAC brand. Many manufacturers offer a variety of models with different efficiency levels and features, so it is important to shop around to find the best deal. Moreover, it is crucial to invest in regular maintenance, as this will lower the chance of costly repairs.