A central heat pump costs $8,000–$15,000 for most homes, with the total price varying based on equipment type, capacity, and efficiency. Heat pumps provide an energy-efficient alternative to furnaces, boilers, and electric resistance heaters. Many systems also offer reversible operation, which allows you to heat your home in winter and cool it in summer with a single unit.
This guide explains heat pump costs and outlines ways to reduce your total investment, along with insights from Ross Trethewey, This Old House’s home technology expert, so you can decide when to replace your system.
Key Takeaways
- Central heat pumps cost $8,000–$15,000 installed for a whole home, while mini-split units cost $1,500–$5,000 for single zones.
- Air-source heat pumps are less expensive than geothermal models, with geothermal systems costing $12,000–$25,000 for small to medium homes and $30,000 or more for large homes.
- Heat pumps typically use 40%–60% less electricity usage than traditional electric heaters, which can help you save on energy bills.
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Ad DisclaimerWhat Is the Average Cost of a Heat Pump?
You can find mini-split single-zone heat pumps, meant to regulate the climate in a single area of your home, for around $1,500–$5,000, while a central heat pump for an entire home can range from $8,000–$15,000. Premium efficiency models from leading manufacturers such as Carrier and Trane can exceed $20,000, especially if you require a central unit for a large home.
You can classify most heat pumps into two models: air-source heat pumps (ASHP) and geothermal or ground-source heat pumps (GSHP). Both types offer more efficiency than traditional resistance heaters, but geothermal heat pumps are the most efficient overall. However, ASHPs typically cost less than GSHPs, making them a popular option among homeowners.
You can compare average price ranges for different types of heat pump systems using the following table.
| Heat Pump Type | Usage | Equipment Cost | Installed Cost* |
|---|---|---|---|
| Mini-split heat pump (air-source) | A single room or area in your home | $1,000–$3,500 | $1,500–$5,000 |
| Central heat pump (air-source) | Your whole home | $2,000–$5,500 | $8,000–$15,000 |
| Premium central heat pump (air-source) | Your whole home | $6,000–$12,000 | $12,000–$20,000 |
| Geothermal heat pump | A small or medium home | $4,000–$8,000 | $12,000–$25,000 |
| Geothermal heat pump | A large home | $8,000–$15,000 | $30,000 or more |
Note: We estimated the above costs based on industry data and market research. Pricing can vary depending on your local climate and home design. For a detailed and accurate quote, we recommend contacting a professional installer in your area.
What Factors Affect Heat Pump Costs?
The cost of installing a heat pump depends on multiple factors, such as the unit’s heating capacity and efficiency rating. We talk more about these factors below.
Heat Pump Capacity
Your home’s size directly determines the tonnage you need for your heat pump. Larger homes require more heating and cooling to keep a comfortable temperature, which typically translates to needing a larger heat pump, which costs more. A professional HVAC technician can advise on the right sized heat pump for your home.
Pro Tip
- A heat pump is considered an HVAC component because it works to keep your home temperate-controlled. In general, the cost of HVAC equipment increases along its capacity. This means that if you were to compare heat pumps of the same type and quality, a 5-ton unit would cost more than a 3-ton unit.
Heat Pump Efficiency
The heating efficiency of a heat pump is measured by the heating seasonal performance factor (HSPF), which is similar to the miles per gallon (MPG) rating of a vehicle. A higher HSPF indicates greater efficiency, which means the heat pump uses less electricity to produce the same amount of heat. For example, an 8 HSPF heat pump delivers 8,000 British thermal units (BTU) of heat per kilowatt-hour (kWh) of electricity consumed, while a 10 HSPF unit delivers 10,000 BTU per kWh.
For reversible heat pumps, which can heat or cool a space, the cooling efficiency is measured by the seasonal energy efficiency ratio (SEER), which is also used for air conditioning systems. The SEER works similarly to the HSPF, but applies to cooling modes. For example, a 15 SEER heat pump will deliver 15,000 BTU of cooling per kWh, while a 20 SEER unit delivers 20,000 BTU per kWh.
Typically, an ENERGY STAR-certified heat pump with high HSPF and SEER ratings is more expensive than a unit that only meets basic efficiency standards. It’s important to note that the HSPF and SEER indicate heat pump performance under ideal conditions. Actual performance can vary in real-world applications, but these metrics can help you estimate efficiency when comparing different heat pump models.
Type of Heat Pump
As previously mentioned, you can classify most heat pumps into air-source (ASHP) or ground-source (GSHP), which indicates the heat-exchange medium used to heat and cool your home. An ASHP exchanges heat with outdoor air, just like an air conditioning system. A GSHP exchanges heat with the ground, usually at a depth of several feet.
Since underground temperatures are more stable than outdoor air temperatures throughout the year, GSHPs offer more efficiency than ASHPs. However, a GSHP requires a water piping loop to exchange heat with the ground, which increases installation costs.
You can also further classify heat pumps into three types based on the unit’s compressor design: single-speed, two-speed, or variable-speed. Single-speed compressors are more affordable due to having a simple design, but are also the least efficient, while variable-speed compressors are the most efficient and expensive. Two-speed compressors offer a balance of price and efficiency.
Warranty Terms and Maintenance Plans
A warranty can offset the cost of repairs or replacements if your heat pump malfunctions after purchase, whereas a maintenance plan can keep your equipment running over time. Heat pump warranty coverage varies depending on the brand and model. Leading manufacturers usually provide a 10-year compressor warranty and a 5-year parts warranty. In some cases, you may have the option to purchase an extended warranty.
Many heat pump installers also offer paid maintenance plans, which may include features such as periodic inspections and remote monitoring. Extended warranties and monitoring plans increase your budget, but also help safeguard your investment.
Local Codes and Permitting Requirements
Since a heat pump is part of an HVAC system, local municipalities have codes and permitting requirements in place for installation. Code requirements and permitting procedures for HVAC equipment vary by location. If your city has a stringent building code, design requirements can increase the cost of a heat pump installation. Additionally, permitting fees for heating and cooling equipment can vary significantly depending on your location.
Additional System Upgrades
Heat pumps rely on other system components to provide heating and cooling for your home. Depending on the condition of your HVAC system, you may need additional work to ensure your new heat pump operates efficiently. For example, older systems may require ductwork repairs or electrical wiring to integrate with a modern heat pump.
How Much Do Different Heat Pump Brands Cost?
Heat pump manufacturers usually don’t publish pricing information on their websites. To get an accurate quote, we recommend contacting a licensed HVAC installer in your area. To help you get an idea of pricing, we researched typical costs of central heat pumps from U.S. brands.
| Brand | Average Equipment Cost |
|---|---|
| Amana | $3,600–$11,000 |
| American Standard | $3,500–$10,900 |
| Carrier | $3,000–$15,000 |
| Goodman | $2,000–$8,000 |
| Lennox | $3,100–$15,000 |
| Rheem | $3,100–$6,100 |
| Ruud | $3,000–$6,100 |
| Trane | $3,500–$15,600 |
| York | $4,000–$10,000 |
Keep in mind that heat pump manufacturers typically offer multiple product tiers. For example, Carrier and Trane are often ranked among the top brands, but their heat pump selection includes both premium and affordable product lines.
How To Save Money on a Heat Pump
Our team recommends comparing heat pump quotes from multiple installers to find the best deal. If you accept the first quote you get, you could miss out on higher-quality equipment or better pricing. Keep in mind that equipment costs represent only a fraction of the total price you pay, which means a high price doesn’t always guarantee a high-quality heat pump. Also note that heat pump efficiency is not equivalent to product quality—high-efficiency models are available from both leading brands and value brands.
Depending on your state and city, you may find incentives offered by the local government or electric utility company. You can search for heat pump incentives in your area at the Database of State Incentives for Renewables and Efficiency (DSIRE).
When Should You Replace Your Heat Pump?
Replacing your heat pump is worth considering if you have an older unit that no longer provides effective heating or suffers from frequent breakdowns. A heat pump upgrade is also worthwhile if your current unit has a much lower efficiency than the latest models available in the market. Here is a list of scenarios when you might consider getting a heat pump replacement:
- End of service life: Your heat pump has reached the end of its lifespan, which is usually around 15 years, according to local installers.
- Inefficient operation: You have an older heat pump with a low HSPF and SEER, and want a newer model that consumes less electricity.
- Frequent and costly repairs: Your heat pump has suffered major damage or frequent breakdowns, and replacing the unit is more cost-effective than ongoing repairs.
- Home expansion: You plan to expand your home, and your current heat pump cannot provide enough heating or cooling.
- Upgrading your HVAC system: If you have a traditional HVAC system with a separate air conditioner and furnace, a heat pump can accomplish the functions of both devices. In this case, you can save on energy bills while upgrading to a fully electric HVAC system.
Pro Tip
- If you live in an area that experiences frequent snowfall, install your heat pump near the gable end of your home rather than underneath a roof slope, says Trethewey. This helps to make sure snow won’t fall on top of the heat pump.
Benefits of a Heat Pump
A heat pump offers both economic and environmental benefits, while qualifying for tax incentives and local rebates. Here is a list of the main benefits of upgrading to a heat pump:
A typical heat pump uses 40%–60% less electricity than a traditional electric resistance heater of the same capacity, lowering your energy costs.
High-efficiency heat pumps can match the operating cost as a gas furnace, without the carbon emissions produced by fuel combustion.
Many heat pumps are reversible, operating as both space heaters and air conditioners throughout the year. The most efficient models can match a high-efficiency air conditioner when operating in cooling mode.
The latest heat pumps use variable-speed compressors and smart controls to achieve greater control of your indoor temperature, improving comfort.
Is a Heat Pump Worth the Cost?
Upgrading to a heat pump is worth considering if you’re looking for economic and environmental benefits, coupled with a federal tax credit of up to $2,000. A typical heat pump achieves median savings of $300–$650 per year according to the National Renewable Energy Laboratory (NREL), but this figure can increase to more than $1,000 per year when upgrading inefficient HVAC systems.
For example, if you have a different type of heater, like an old furnace, you can upgrade to a heat pump for less than $10,000. In this case, you could achieve a payback period of around eight years.
FAQs About Heat Pump Costs
What is the downside to a heat pump?
Heat pumps offer energy savings while lowering your home’s emissions. However, heat pumps can have a high upfront cost of upwards of $15,000. Additionally, modern units with variable-speed compressors and smart controls have more complex maintenance needs than traditional HVAC systems. Air-source heat pumps also suffer from low performance when temperatures drop below 0 F, and may require a gas furnace or resistance heater as backup.
Is it cheaper to use an air conditioning unit or a heat pump?
Assuming both units have the same cooling load, the system with the highest SEER rating should have the lowest electricity consumption and operating cost.
How much is a heat pump for a 2,000-square-foot house?
The heating and cooling requirements of a 2,000-square-foot home vary depending on factors such as the local climate and insulation levels. However, a home of this size will usually require a heat pump with a capacity of around 3–5 tons, which can cost $8,000–$16,000 depending on its brand and features. If you select a top-tier high-efficiency heat pump, your total project cost may exceed $20,000.
Do heat pumps have ongoing maintenance costs?
The typical maintenance tasks for a heat pump include the following:
- Filter inspection, cleaning, and replacement as needed
- Refrigerant level inspections and recharging
- Electrical and electronic component inspections
- Condenser unit inspections and cleaning
- Annual tune-ups
The compressor is the most expensive component of a heat pump. To protect your investment, we recommend looking for a unit with a 5–10 year compressor warranty.