How Much Does a Heat Pump Cost in 2024?

Most homeowners spend between $4,000 and $8,000 for a new heat pump installation. 

Generally, it costs between $4,000 and $8,000 to install a new heat pump, which includes the price of the unit itself as well as labor and other necessary equipment. The total price of installing a new heat pump can vary depending on the job’s size, type, and complexity. However, the national average cost for a heat pump is around $6,500 in total.

Of course, the price can be higher or lower depending on the installed system. For example, a single-stage system may cost as little as $1,900, while a large and efficient heat pump can can cost around $14,300 with materials and labor included. Keep in mind that the more energy-efficient the unit, the higher its upfront cost, but the lower your utility bills in the long run.

On this page:

Average Heat Pump Installation Costs

National Average Cost$6,500
Typical Price Range$4,000 – $8,000
Extreme Low-End Cost$1,900
Extreme High-End Cost$14,300

A heat pump is a great way to keep your home comfortable while also saving money on energy bills. If you’re considering a new installation, the national average cost is around $6,500 for the total project. However, the final price will depend on a wide variety of factors.

Factors such as the size of your home, how many stories you have, if you’re replacing an existing unit or starting from scratch, regional climate, energy efficiency rating, and brand all affect how much you’ll pay. Generally, you can expect to pay from $4,000 to $8,000 for the total project. This includes the cost of materials, labor, and any necessary permits.

If you go all out and invest in a geothermal unit, or if you have a large house, your total project cost can reach up to $14,300 or more. On the other hand, a small heat pump installation could cost as little as $1,900. It’s essential to take quality into account when making your selection. Choosing a model with higher energy ratings may cost you more initially, but it could pay off in the long run due to its better efficiency.

Heat Pump Cost Estimator by Home Size

Heat pumps
Photo Credit: brebcaphotos / Canva Pro / License

Your home’s size determines the tonnage and BTUs needed in your heat pump. For example, a single-story house of 1,500 square feet or less may require 2 tons of heat pump capacity and approximately 24,000 BTUs. On the other hand, a home of 3,000 square feet will likely need up to 5 tons of heat pump capacity and close to 60,000 BTUs.

Because of this, it is typically more expensive to install a heat pump in a bigger home than in a smaller one. Generally speaking, installing a heat pump in a 1,500-square-foot residence will cost between $3,500 and $6,000, while installation in a 3,000-square-foot home usually costs between $4,500 and $9,000 in total.

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 NeededAverage Cost (Installed)
900 – 1,500 sq. ft.2 Tons24,000$3,200 – $5,500
1,200 – 1,600 sq. ft.2.5 Tons30,000$3,500 – $6,000
1,600 – 2,000 sq. ft.3 Tons36,000$3,700 – $6,300
1,800 – 2,300 sq. ft.3.5 Tons42,000$3,800 – $6,500
2,000 – 2,4004 Tons48,000$4,000 – $7,500
2,400 – 3,3005 Tons60,000$4,500 – $9,000

Other Factors That Affect Cost

A heat pump is a type of HVAC system that transfers heat from one place to another and can be used for both heating and cooling. It is more cost-effective than conventional heating and cooling, which can save money on energy costs, but it requires a considerable investment.

Typically, the cost of a new heat pump installation ranges from $4,000 to $8,000 in total, but the price can be higher or lower depending on several factors, such as:

Type of Heat Pump

Heat pumps come in several types that range in cost, so choosing the right one for your home is essential. All types of heat pumps may be more expensive upfront than traditional furnaces and air conditioners due to the complexity of the system and the specialized installation and maintenance required.

However, with proper setup and care, a heat pump can effectively reduce energy costs and maintain a comfortable temperature in your home. In the following table, you will find an overview of the different types of heat pumps and their estimated cost.


Air-source heat pumps are an efficient HVAC system that uses the outside air to generate heat for the home during winter. In the summer months, an air-source heat pump can be used in reverse to cool a space.

An air-source heat pump installation, including labor and components, will typically cost between $4,500 and $10,000 in total. This type of system is one of the most energy-efficient heating options available. Additionally, air-source systems are very quiet, producing only a low hum during operation.

Dual Fuel/Hybrid

Dual fuel systems, also known as hybrid heat pumps, combine two different types of heating to provide maximum efficiency and comfort in any climate. These systems typically include an electric heat pump as the primary heating source and a traditional furnace as backup.

In mild weather, the heat pump can easily and efficiently keep a home comfortable. In colder climates, the auxiliary furnace kicks in to provide additional heat when temperatures drop too low for the heat pump to be effective. On average, the price of a dual fuel system falls between $3,000 and $7,000 in total.

Geothermal Unit

Geothermal heat pump systems use the earth’s internal temperature to provide efficient and cost-effective heating and cooling. Geothermal heat pumps typically consist of a loop of tubing placed underground, which is filled with water, or a mixture of water and antifreeze, that circulates through the tubing to transfer heat from the ground.

If you are considering this type of system for your home, you can expect to pay between $7,000 and $25,000 for a complete installation. This includes the costs of drilling, excavation, and installation of the loop system, as well as the cost of any necessary pumps or other mechanical components.

Ductless Mini-Split

A ductless heat pump system consists of two components: an outdoor unit and an indoor air-handling unit. It is ideal for homes that do not have existing ductwork, such as older homes, additions, or home renovations.

The outdoor compressor unit is typically placed outside the home and works to draw air in from the outdoors, compress it, and move it through a refrigerant line to the indoor air-handling unit. The indoor unit then distributes the cooled or heated air throughout the home.

A mini-split heat pump system costs around $1,500 to $10,000 to install. This cost is highly dependent on the size of the unit and the number of indoor air-handling units needed.


Solar-powered heat pumps are an environmentally friendly way to reduce energy bills. The solar energy is collected using solar panels placed on the rooftop. These panels convert solar energy into electricity, which is used to power the heat pumps. The pumps then transfer the heat collected from the sun to your home. 

On average, a homeowner can expect to pay anywhere from $18,000 to $35,000 for a complete solar heat pump system. Taken separately, solar panels cost about $20,000 to install, so your solar heat pump costs could be significantly lower if your home already has a solar panel system installed. 

Energy Efficiency Rating

Heat pumps are rated using the Seasonal Energy Efficiency Ratio (SEER) and Heating Seasonal Performance Factor (HSPF) to measure their energy efficiency. The higher the SEER and HSPF ratings, the more efficient and, consequently, the costlier the heat pump will be.

Typically, SEER measures the cooling efficiency of air conditioners and other cooling systems, and HSPF assesses the heating efficiency of heat pumps. The ratings are usually determined by the equipment’s manufacturer and tend to be specific for each model. A high SEER rating usually means lower energy bills, as the device uses less energy to run.

The table below shows the range of SEER and HSPF ratings available for heat pumps and the associated cost. 

SEER RatingHSPF RatingAverage Cost
3 – 14 SEER 7 – 8 HSPF$3,700 – $5,000
15 – 16 SEER 8 – 9 HSPF$5,000 – $7,000
17 – 18 SEER 9 – 10 HSPF$6,500 – $8,500
19+ SEER 10+ HSPF$8,000 – $11,000

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 expense of a heat pump can differ significantly depending on the size and features. Generally, the price can range from around $2,000 to more than $5,300 just for the unit. The table below shows an estimated cost range for some of the more popular heat pump brands.

BrandEnergy Efficiency RateAverage Cost (Unit Only)
Lennox16 – 23 SEER$2,100 – $5,300
Carrier14 – 20 SEER$2,000 – $4,600
Trane14 SEER$1,900 – $4,300
Rheem14 SEER$1,400 – $3,500
Maytag14 – 19 SEER$1,300 – $4,000

Single vs. Multi-zone Air-Source Heat Pumps Cost

Air-source heat pumps can be single-zone or multi-zone systems.

Single-zone systems are best for one large area, while multi-zone systems offer individual temperature control for multiple zones or rooms. Centralized or ductless systems can be zoned, with one compressor controlling up to four air handlers.

Multi-zone air-source heat pumps provide increased energy efficiency and comfort by allowing you to set different temperatures in each area of your home. Multi-zone air-source heat pumps come with remote controls, allowing you to adjust temperatures and settings from anywhere in the house. Additionally, sensors detect temperature changes and automatically maintain your desired settings.

ZonesAverage Cost of Air-Source Heat Pump (Installed)
Single$1,900 – $4,700
2 Zones$3,500 – $7,000
3 Zones$5,500 – $8,500
4 Zones$6,700 – $14,000
5 Zones$8,500 – $18,500
Air Handler$1,500 – $2,500

A single-zone air-source heat pump system may cost from $1,900 to $4,700, while a multi-zone system can be more expensive, costing up to $14,000 or more. This is primarily due to the complexity of connecting multiple air handlers, which typically range from $1,500 to $2,500 each.

Split vs. Packaged Heat Pumps

You can choose between a split or packaged heat pump system for your home.

Split heat pumps cost more upfront than packaged systems, usually costing between $3,500 and $10,000 for installation.

Packaged heat pumps are more affordable, with an average installation cost of $4,000 to $7,000 in total.

A split system uses an outside condenser, an indoor air handler, and a refrigerant network to move heat outdoors to indoors. A packaged system, on the other hand, contains all of the components in one unit that is usually placed outdoors.

Heat Pump TypeAverage Heat Pump Unit Cost Average Heat Pump Installed Cost
Split$500 – $3,500$3,500 – 10,000
Packaged$3,000 – $4,000$4,000 – $7,000

Split systems offer more installation flexibility, high efficiency, and control of temperature in different rooms. Packaged systems are easier to install, require less maintenance, and have fewer features.

Labor Costs

The installation cost for a heat pump can differ significantly depending on the size and type of system selected. Generally, labor costs run between $1,000 and $2,700 per project. This fee typically covers the unit’s installation, any necessary wiring or piping, and other components, such as a thermostat.

Average Labor Cost Per Project$1,000 – $2,700
Average Labor Cost Per Hour$70 – $130/h

The cost of labor for a heat pump installation can be affected by several factors, including the complexity of the unit, the amount of available space for installation, and other considerations.

For instance, when installing an air-source heat pump, you must ensure enough room for the unit outdoors. Extra fees may be required for any wiring or piping necessary to get the system up and running.

Geothermal heat pumps require more complex processes due to their reliance on groundwater or similar sources, which can raise the installation cost by adding excavation work. The following table outlines the average cost of labor for different types of heat pump installation.

Heat Pump TypeUnit CostInstallation Cost
Air-source$2,000 – $5,500$1,500 – 2,500
Geothermal$3,000 – $6,000$3,000 – $15,000
Ductless mini-split$1,000 – $3,500$500 – $4,500
Dual fuel$500 – $6,000$2,000 – $4,500
Solar$2,000 – $4,500$14,000 – $25,000

Permit Fees

Permit fees for installing a heat pump vary greatly depending on the local municipality. It is essential to check local building codes in advance to find out the exact cost and any additional requirements. Generally, you can expect a permit fee of around $100 to $250 for installing a heat pump.

Getting a permit to ensure the safety of your home and your heat pump is essential. The installation must be done in a professional and compliant manner, so you should always hire a qualified HVAC contractor certified in installing heat pumps. 

If you need additional services when installing your heat pump, such as HVAC ductwork or insulation, these can add to the cost of your project. Depending on the complexity of the work and the size of your home, these services can range from a few hundred to several thousand dollars in labor and materials.

New Ductwork Cost

When installing a new heat pump system, ensure you have the proper ductwork in place. Ductwork helps regulate airflow throughout the system and ensures that the heated or cooled air is delivered efficiently to each room.

For a heat pump system, it is important to have properly sized ducts larger than the return air grille. 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.

Home Insulation Cost

The cost of insulating your home should be considered when buying a heat pump system, as this will affect energy efficiency and heating bills. Insulation helps keep the temperature of your home more stable and prevents heat loss in winter or cold air loss in summer.

Home insulation cost varies greatly depending on the type of insulation you select and the size of your home. Typically, insulating a home can cost between $2,130 and $6,700 in total.

Thermostat Cost

The cost of a thermostat is an important consideration when installing a heat pump system. Thermostats range in price from basic models to more advanced models with multiple features. A basic thermostat can cost between $120 and $330, while more advanced models can range up to several hundred dollars.

Energy Audit Cost

A comprehensive energy audit can be conducted to determine the best heat pump system for your home.

This energy audit will include 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.

Maintenance Cost

Heat pump systems are generally considered low maintenance, but some maintenance tasks should still be carried out to ensure optimal performance and efficiency. These include:

  • Regularly changing the air filter
  • Having the system inspected and serviced annually
  • Making sure that all cooling coils are clean

Generally, the cost of HVAC maintenance will vary depending on the type and size of your system. However, the average price for heat pump maintenance ranges from $150 to $180 per year. In addition, your energy bills may also be lower if you take steps to maintain your heat pump system properly.

It is highly recommended to regularly inspect your heat pump system for any signs of damage or other issues that could affect its performance. Basic HVAC repair costs range between $180 and $580, with more complex problems requiring higher fees. A professional HVAC inspection costs about $250 to $450.

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 total cost of a replacement will depend on several factors, such as:

  • The new type of unit you choose
  • The old HVAC system and its components
  • Air handlers, ductwork, and other add-ons

Here is a breakdown of the average cost of replacing a heat pump:

Task Average Cost
Permits$100 – $250
Remove Heat Pump – Old Unit$1,000 – $2,000
Remove Old AC Unit$50 – $150 (as necessary)
Removing Underground Oil Tanks$800 – $4,500 (as necessary)
New Heat Pump Unit$2,000 – $4,000
New Heat Pump Installation Cost (Labor Cost)$1,000 – $2,700
Install New Air Handler$1,400 – $4,100
Electric Heat Strips$100 – $400
Thermostat$120 – $330
New Ductwork$2,000 – $5,000 (as necessary)

Replacing or installing a new HVAC system can cost thousands of dollars. However, the upfront cost can be offset by significant energy savings in the long run. Be sure to explore all the options available and consult an experienced HVAC specialist who can recommend the best system for your home. 

Mobile Homes

A heat pump can be an outstanding solution for mobile homeowners. Heat pumps offer efficient heating and cooling, helping you stay comfortable throughout the year for less. They also improve indoor air quality, creating a healthier environment for your family.

The cost of a heat pump for mobile homes depends on the size and type you need. Single-stage and multi-stage systems are available with single and multi-speed compressors. The size of the heat pump and the amount of energy it consumes also affect the cost. Generally, you can expect to pay anywhere between $3,500 and $6,500 for a new heat pump system.

Heat Pump Installation Cost by Location

The cost of heat pumps varies drastically by location. Typically, the installation cost can range anywhere from $4,000 to $8,000 nationwide, depending on the system size and complexity of the installation.

In colder climates, such as the Northeast, installation costs may be higher due to the need for larger units and extra insulation to guarantee proper operation. On the other hand, installation costs in more temperate climates, such as the South, will be lower due to the smaller size of the units. Check this map from to get a better idea of the climate in your area.

For example, a heat pump installation cost in New York City is estimated to be around $5,000 to $8,000. In comparison, the same installation in Miami is estimated to cost about $2,500 to $4,500 in total.

See below some average heat pump installation costs by location:

LocationAverage Heat Pump Installation Cost
Atlanta, Georgia$3,500 – $5,500
Chicago, Illinois$4,500 – $6,500
Denver, Colorado$3,500 – $8,000
Houston, Texas$3,800 – $7,000
Miami, Florida$2,500 – $4,500
Minneapolis, Minnesota$4,000 – $6,000
New York, New York$5,000 – $8,000
Portland, Maine$3,000 – $6,000
St. Louis, Missouri$4,300 – $8,000

Heat Pump vs. Furnace Cost

When deciding between a heat pump and a furnace, there are several factors to consider. Heat pumps tend to be more energy efficient than furnaces, as they transfer heat rather than create it, meaning they use less energy. Also, heat pumps can provide both heating and cooling, while furnaces are limited to just one function.

However, furnaces are more efficient in delivering heat when it comes to extreme temperatures. In cold climates, an HVAC system with both a heat pump and furnace may be best for optimal energy efficiency. Generally speaking, a heat pump system costs between $4,000 and $8,000, while a furnace system costs from $2,000 to $4,500 in total.

FAQ About Heat Pump Installation

Can I install a heat pump myself?

Hiring a professional HVAC technician is recommended to install any heating and cooling system. Professional installation ensures that the system is properly installed and functioning optimally.

How long does a heat pump last?

A heat pump generally lasts from 10 to 15 years, depending on the unit type and level of maintenance.

How much does a heat pump cost to run?

Typically, 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.

What is the downside to a heat pump?

The biggest downside to a heat pump is that it is not as efficient at providing heating in colder climates. When temperatures drop low enough, the system has to work harder, leading to higher energy bills.

Is a heat pump worth the cost?

Yes, a heat pump can be worth the cost depending on your climate, budget, and energy efficiency needs. Heat pumps are more energy-efficient and can save you money in the long run compared to traditional heating systems. Additionally, heat pumps provide both cooling and heating, making them a versatile solution.

Are new heat pumps tax deductible?

Yes, in some cases, heat pumps may be eligible for tax deductions. Talk to your accountant or local government to learn more about available tax credits for energy-efficient heating and cooling systems.

Heat Pump Costs and How to Find an HVAC Pro

Heat pumps are an excellent option for homeowners who want to save energy and money. With the proper maintenance, heat pumps can last up to 15 years and provide efficient cooling and heating for your home. Installation costs can vary depending on the size of the unit and location, with an average installation cost ranging from $4,000 to $8,000 in total.

It is essential to consult with a professional HVAC technician to determine the best option for your home. Their expertise can help you choose a system that meets your budget and energy efficiency needs. That’s where we can help. HVAC Gnome connects you to the best HVAC professionals near you.

Note: HVAC Gnome may get a referral fee for matching you with contractors in your area.

Main Photo Credit: FanFan61618 / Flickr / CC BY-SA 2.0

Luminita Toma

Luminita Toma is a nature-loving writer who simply adores anything pretty, from colorful flower gardens to chic interior design. After plenty of research on landscaping and home improvement, she’s got a keen eye for what makes a home beautiful. When she’s not sharing what she’s learned, there’s nothing she enjoys more than chilling with her friends, hitting the theatre, or traveling.