Shop Products
Houzz Logo Print

Heat Pump Installation Cost

$4,400Typical Cost
Homeowners in the US usually spend between $3,500 and $5,100 on heat pump installation.
Looking for specific costs in your area?
Get Quotes
What others are spending on heat pump installation:
Typical Cost$4,400
Typical Range$3,500–$5,100
Low End$2,900
High End$6,600

Planning A Project?

Projects from Houzz come with a suite of planning tools. Use the Cost Calculator to estimate cost based on projects near you.
Learn More

Cost to Install a Heat Pump

How much does heat pump installation cost?

It costs an average of $4,400 to install or replace a heat pump. While typical costs often range from about $3,500 to $5,100, including both material and labor costs, high-end projects can cost $6,600 or more. The total cost of your project will depend on the quality of the heat pump system you choose, the complexity of the installation and labor costs in your area.

Table of Contents:
  • How much does heat pump installation cost?
  • What is a heat pump and how does it work?
  • How much do heat pumps cost before installation?
  • What are the different types of heat pumps?
  • How much does labor cost to install a heat pump?

If you’re looking for an environmentally friendly way to maintain a comfortable temperature in your home, a heat pump might be for you. Running on electricity, heat pumps transfer existing heat to warm and cool your home all year round. Because they don’t generate any extra heat, they’re very energy-efficient.

Although installing a new heat pump will cost you more than putting in a new furnace or central air conditioning unit, there are a number of long-term benefits to consider. Your energy bills may be lower, and you should be eligible for federal tax credits. In addition, heat pumps both cool and heat your home, so you’ll need to install only one HVAC system. When you take into account that you’re getting two systems, the price may not be so prohibitive. Finally, heat pumps run on electricity, so you won’t be relying on fossil fuels to keep your home feeling comfy.

Ready to get started? Find heat pump installation pros to help


Natural Balance Home Builders · More Info


What is a heat pump and how does it work?

If you’re in the market for a new HVAC system, you may have heard about heat pumps but still have no idea what they are. Heat pumps work by pulling in outside warm air to heat a home, and pumping out warm air to cool a home. Just like an air conditioner, they use refrigerant to transfer heat and usually consist of an outdoor and indoor unit. But unlike an A/C, they can also reverse the process to provide heating.

While still not as common as furnaces, boilers or A/Cs, heat pumps have been gaining popularity as they’ve improved in efficiency. They’re best-suited to homes in regions with mild climates that don’t need a lot of extra heating in the winter, but they can work anywhere. If you live in a region with a particularly cold climate, you may just need to install an additional heating element along with your heat pump. Learn more about a heat pump’s different cooling and heating mechanisms below.

Cooling System

To cool your home, refrigerant carries gas and hot air outside, and is then pumped through a coil and condenses into a liquid. This causes the warm air to evaporate outside. The liquid refrigerant is pumped back into your home, pulling out more heat.

Heating System

To heat your home, the process works in reverse; the outside unit pulls in warm air (which is possible even when it’s cold outside), which is then pumped into your home. This works because refrigerant is even colder than the cold air outside, and heat travels from warmer to colder objects. So the refrigerant is still able to pull in warm air during the winter.

How much do heat pumps cost before installation?

Heat pumps themselves typically cost between $2,850 and $4,300, but can be more or less depending on the product. A number of factors can affect heat pump prices, including size, brand name and energy-efficiency rating.

Heat Pump Size

Heat pumps generally range in size from about one to five tons. The size of the pump you’ll need depends on the size of your home as well as how extreme temperatures can be in your region. A high-efficiency system will be just the right size for your home, so that it provides heating and cooling gradually and evenly. Your HVAC contractor should be able to advise you on which size heat pump to purchase. It’s wise to set up an appointment ahead of time, so that he or she can complete Manual J and Manual S calculations for your home, which take into account a number of factors, like square footage, ceiling height, number of doors and windows and more.

In general, a midsize home (around 2,000 square feet) will need a heat pump that’s about three to four tons. Keep in mind that there are about 12,000 BTU in one ton. The size you need will also depend on the specifics of your home and climate.

Energy-Efficiency and Sound Ratings

The more energy-efficient a heat pump is, the more expensive it’s going to be. But the higher unit prices could be worth it for the lower energy bills you’ll have down the line. While you shop among heat pump brands, look out for the SEER, which stands for Seasonal Energy Efficiency Rating, as well as the HSPF rating, or Heating Seasonal Performance Factor rating. The higher these two ratings, the more efficient the heat pump will be. The minimum SEER you’d want is about 14, while HSPF ratings start at 8 and go up. You should also pay attention to the decibel sound rating and look for a low number to find a system that won’t be too loud. Heat pumps are generally around 40 to 60 decibels.

What are the different types of heat pumps?

Heat pumps come in two types: geothermal and air-source. Geothermal heat pumps are usually more expensive to install but may pay off in terms of energy savings. The type of system that’s right for you will depend on a number of factors. You can read more about the different systems below.

Air-Source Heat Pumps

The most common type, air-source or air-to-air systems simply transfer heat from outside air, and have an outdoor unit that sits above ground. They’re cheaper to install, as they don’t require excavation. They’re also better-suited to cold places. On the other hand, they’re not as efficient as geothermal systems and may require more maintenance over time.

Geothermal Heat Pumps

Geothermal systems transfer heat underground through a system of buried pipes. To heat and cool a home, they make use of the stable temperature deep in the ground. Geothermal heat pumps can also be connected to a body of water. While they’re more expensive to install than an air-source system, the constant temperatures they have access to means they’re even more efficient. In other words, they can bring you even greater savings on your energy bills!


Cantoni · More Info


How much does labor cost to install a heat pump?

Labor costs for heat pump replacement or installation typically costs about $65 per hour, so plan to pay an installation cost on top of the price of the heat pump itself. If you’re installing a geothermal system, which requires excavation, the price can be higher than other types of systems. If you already have existing ductwork from another HVAC system, this can usually be used with your new heat pump. But if you need a new duct system put in, this too can increase the labor cost. If this is the case, you may want to opt for a ductless mini split heat pump, which is actually cheaper to install.

Whatever your situation, it’s always a good idea to discuss rates with your contractor ahead of time, so you know just what you’re taking on. While labor costs can be significant, this isn’t a job most homeowners can take on themselves. A professional will have the necessary permits to handle refrigerant and safely work on your HVAC system, and the experience to ensure your project goes smoothly.

Note: Costs are estimated at the U.S. national level. Variations depend on factors such as the quality of materials, type of products installed and labor costs. The typical range is assumed to be between the 20th and 80th percentiles. The high-end and low-end costs are the maximum and minimum, respectively. Costs assume that the homeowner manages the project and hires subcontractors as needed. They include a subcontractor markup of 10% for materials and labor. Costs can be higher if a general contractor is managing the project. All numbers are rounded.

Source: 2019 Houzz Remodel Costs Database