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CostHelper > Home and Garden  > Electrical, HVAC & Energy Efficiency > Heat Pump

Heat Pump Cost

How Much Does a Heat Pump Cost?

low costWindow or Wall Unit: $500-$2,000average costWhole-House System: $2,000-$24,000+, Installedhigh costGeothermal System: $10,000-$25,000+, Installed
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A heat pump heats a house in winter and cools it in summer by moving heat from one area to another. Air-source heat pumps capture and move heat between the indoors and outdoors, while geothermal (ground-source or water-source) heat pumps capture and move heat between the indoors and the relatively constant temperatures just below the earth's surface. Heat pumps are best suited for climates with moderate heating and cooling needs; for colder regions, a dual-fuel system pairs a heat pump with a back-up fossil-fuel furnace.

Typical costs:

  • Installing a small through-the-wall or window unit air-source heat pump to cool and heat a single room costs about $500-$2,000.
  • Expect to pay about $2,000-$8,000 for installation of a whole-house air-source heat pump system in an average home (three-ton capacity) with existing usable ductwork. The total costs can double or triple to $4,000-$24,000 or more if new ductwork must be installed or failing ductwork must be replaced.
  • For a whole house system with existing ductwork, a typical split system (one unit inside, one outside) air-source heat pump costs $2,000 -$5,000 for an average home (three-ton capacity). If adding ductwork is cost-prohibitive, professional installation of a ductless mini-split electric air-source heat pump system (an outdoor compressor and mounting one or more indoor units) for an average home (3 ton capacity) can cost $2,000-$7,000 or more but averages about $4,000-$5,000, depending on the number of indoor units or zones installed.
  • For less moderate climates, installing a dual-fuel air source heat pump that works with a natural gas or propane furnace under a single control system can cost $2,500-$5,500 to install just the heat pump, or $5,000-$25,000 or more for a complete system that includes both the electric heat pump and a fossil-fuel furnace.
  • Complete installation of a geothermal heat pump (ground-source or water-source) can cost $10,000-$25,000 or more, depending on the length and depth of the underground pipes, soil conditions and other excavation and installation factors. More expensive systems may include options such as a two-stage compressor or a hot water heater.
  • The technology is still evolving for residential use of absorption heat pumps[1] , which are air-source heat pumps driven by natural gas, propane or solar-heated or geothermal-heated water. Also called gas-fired heat pumps, most current absorption heat pumps are sized for industrial or commercial use, or for residences of 4,000 square feet or larger (and usually without an outside electricity source).
Related articles: Geothermal Heat Pump, Air Heat Pump, Dual Fuel Heat Pump, Furnace, Central Air Conditioner

What should be included:
  • Because heat pumps move heat rather than generate it, they are an energy-efficient alternative to furnaces and air-conditioners, according to the Department of Energy[2] . A properly working heat pump warms a house slowly and maintains an even temperature, sometimes without the blasts of hot air provided by other methods, such as a forced-air furnace.
Additional costs:
  • In an older home, adding an electric heat pump might require hiring an electrician to upgrade the electrical panel to 200 amps, which can cost an additional $1,300 -$3,000. Kansas City Power & Light provides a detailed overview[3] of the different types and uses of heat pumps.
  • Energy-efficient appliances often qualify for low-cost loans, tax credits or rebates. The database of State Incentives for Renewables & Energy Efficiency[4] tracks energy-efficiency incentives offered by utilities and by state, federal and local government agencies.
Shopping for a heat pump:
  • The Department of Energy lists factors to consider[5] when buying a heat pump.
  • The Cornhusker Public Power District provides a checklist[6] for hiring a heat pump contractor.
  • Referrals are available from the North American Technician Excellence certification program[7] and the Air Conditioning Contractors of America[8] -- and the local power company may have a list of contractors in the area.
  • Request and check references; ask about length and type of experience; and be sure they are properly bonded, insured and licensed[9] . Check for complaints with the Better Business Bureau[10] .
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What People Are Paying - Recent Comments
Dual Heat Pumps using electricity
Amount: $5,500.00
Posted by: Dr Gwen A Roberts-Foote in Kerrville, TX.Posted: July 22nd, 2015 01:07PM
Brand: RUUD Super 12Model: Super Efficient 12
Installer: Hardin AC/PlumbingType: Electric
My husband and I purchased our 2.53 acres in a restricted subdivision with 96 home-sites This was to be our "retirement" home. We have been extremely well-pleased with its function, utility cost, and quietness. We would suggest that anyone within this area consider this when installing/replacing AC/Heat.
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is price too high
Amount: $8,000.00
Posted by: sharon16 in elkton, MD.Posted: July 21st, 2015 02:07PM
price quoted was 8000 using existing duct work was is too much?
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Dual fuel Carrier Infinity 2 stage gas furnace, 2 stage compressor, infinity air purifier, whole house humidifier-3 ton
Amount: $9,600.00
Posted by: veryhappy in Alexandria, VA.Posted: June 7th, 2015 01:06PM
Brand: CarrierModel: Infinity (non inverter)
Installer: Mann-In heating and airType: Dual fuel Carrier Infinity 2 stage gas f
Installed about 2 years ago superb contractor-extremely professional. Made duct modifications. Above price was net after $1250 Cool Cash rebate. State and federal tax credit/incentive dropped the net cost down to circa $6500. (these credits/rebates no longer exist) *Extremely quiet* system inside the house and out. (would estimate 80 percent less noisy than standard system, essentially silent inside on low speed where it runs most of the time, very even temps, warm in winter with heat pump. Gas auxiliary heat backup in (with current setting) below 40 degrees. Contractor pulled permit. Used tin plated evaporator coils which are more corrosion resistant and cost more money. Would install the same system again at full price. Couldn't be happier
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Not that anyone wants to hear the truth but...
Amount: $33,000.00
Posted by: a user in Philadelphia, PA.Posted: April 7th, 2015 02:04PM
Brand: LennoxModel: XC16
Installer: BMI llcType:
A site such as this were folks are thinking a 5 ton heat pump condenser costing $1400 wholesale is a rip off if a contractor charges $5000 installed is a bit silly.
Anyone thinking a contactor is going to install a unit for $400 over the wholesale cost is living in a fantasy world.
Maybe some moonlighting, or retired guy with no sense might do the job.
The reason most units have very short lives is because they were installed wrong, are too small, or too large, or the ducts system is a mess of air leaks or exposed to an unconditioned area.
Just a heads up, always get a second opinion, after 35 years in this business I can tell you most contractors pay their employees based on performance pay. That means if they don't sell you a new system or some item, they don't make more then a very small base pay.
A well installed and properly sized cooling or heat pump system will last 30 years no problem. My cooling system in my personal home is 30 years old and works perfectly.
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New heat pump & CAC
Amount: $6,500.00
Posted by: Helen D in Selbyville, DE.Posted: January 5th, 2015 02:01PM
Brand: CarrierModel:
My winter elec bills are triple from my old heat pump & CAC
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as contractor.
Amount: $3,500.00
Posted by: sivad32 in Greeneville, TN.Posted: December 28th, 2014 10:12PM
Brand: GoodmanModel:
Installer: ContractorType:
Ive read some comments. Most contractor dont charge $15,000 that is a rip off. most changeouts run around $3500 to $5400 according to seer, size, name brand. Talking about online WE dont buy online cause as a comment mentioned. Manufactures DO NOT cover warrenty of your unit if bought online so contractors has to buy from distributers who charge more than online because they cover the warrenty.. a unit online maybe $1250. but our cost with legit distributer is around $1400 just for condensor. then indoor another $600 to $800 heater bank. $100 to $150 t-stat $50 to $80 new line sets $150 to $250.. ads up.. then we make markup, thats how a business makes money. we have to pay insurance ,inventory. rent. gas.. etc..most companies are around 25% to 30% markup. then there is trip charge. labor. and tax. No one is in business to install units for have to make a living.. yes you can save money upfront buying online,, but it warns you. voids warrenty.cost you more in longrun.
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Goodman HP & propane dual fuel furnace
Amount: $2,500.00
Posted by: Ranger Rick-Ohio in Cincinnati, OH.Posted: February 17th, 2014 11:02AM
Brand: GoodmanModel: GMV950905DX
Installer: Did it ourselvesType: Heat Pump/Propane
A/C companies are really ripping off people. We bought a high SEER unit for $1267.00 - 5 ton unit folks. Yea, we have been builders for 20+ years, so we knew kind of what we were doing. But this was our FIRST install. We hired a local HVAC company to charge the Freon in the line set, do the final hookups -cost was $500. My wife did all the electrical-what she does. So, when you pay $15,000 for a unit that wholesales for $1200 - you are getting ripped off in a major way. Negotiate, you might be able to get $$ down. Knowledge is everything.
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Amount: $1,500.00
Posted by: SEWON in ROANOKE, VA.Posted: June 2nd, 2013 04:06PM
Brand: RUUDModel:
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heating and air
Amount: $0.00
Posted by: but in greensboro, NC.Posted: May 11th, 2013 03:05PM
All system should be installed by a licensed and insured person. The city and county must make inspections. If the work if not proper, call the licensing board of the state you live in. Its hard for me to think with the internet and common sense, people do not know what to do. If a person is not licensed and get permits he is a crook. You don't need a lawyer, call the inspections departments and the hvac license board.
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HVAC installation
Amount: $3,700.00
Posted by: cal in spokane, WA.Posted: November 5th, 2012 07:11PM
Brand: GoodmanModel:
I had a Amana 16 seer heat pump and variable speed air handler installed in my home. The company did a great job on what I could see but the electrical inspector found some faults and the electrical was contracted so they did not make sure it was fixed.
It cost 9k and to be honest I was disappointed with the level of professionalism I received for what I had paid for.
So when I wanted to put heat in my shop I installed it myself and bought the unit online and saved a bout 3k all I sublet out was the refrigerant and they had to warranty the unit. Most always the units purchased online void the warranty
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Home Warranty Coverage
Amount: $5,500.00
Posted by: Willa in Branson West, MO.Posted: January 17th, 2012 12:01PM
Service man for home warranty co. Came out twice & concluded the system is working fine. However, it runs almost constantly & makes very little difference in temp in house. 1800 sq ft home with Dec bill of $419. Not even very cold (SW MO) in this area. Runs on auxiliary heat most of the time. Home is for sale but have to replace heat pump. Does the quoted price seem fair? Any ideas on dealing with warranty co.? System is 18 yrs old. New compressor last year replaced thru home warranty plan.
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heat pump systems
Amount: $0.00
Posted by: jay mc in malden, MA.Posted: November 26th, 2011 12:11PM
Brand: owners choiceModel:
Installer: I own a H.V.A.C businessType:
I keep hearing talk about heat pump system and would just like to add my opinion . For people living in the New England area I would not recommend them . When you live in a area that gets really cold and stays in the 0 to 30 degrees for the winter heat pump system don't work that efficient . I know there is electric back up heat in the system . This is fine when it is used now and then but it is not ment to run twenty four seven . It should not be your primary source of heat . They work better in parts of the country that have mild winters.
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Replacing existing heat pump with all new ductwork
Amount: $8,500.00
Posted by: Debbie Beasley in Landrum, SC.Posted: July 8th, 2011 12:07PM
Brand: LennoxModel: 14HPX-036
Installer: Barton BrothersType: heat pump
To install all new system to old space and additional newly built space, to remove old AC and old Gas Furnace
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Replaced 2 Zone AC/Gas Heat
Amount: $13,000.00
Posted by: Paul Frederick in Mechanicsville, VA.Posted: June 17th, 2011 08:06AM
Brand: LennoxModel: XP14
Installer: James River AirType: R410 Heat Pump
I live in the Richmond, VA area. Got the dual fuel Cadillac. I just replaced my 11 year old heating/cooling system with a Lennox XP14-030 coupled with a Lennox Signature variable speed 2 stage gas furnace. Please note that this was a two zone installation so I basically bought two of each. I took advantage of a spring sale with James River Air Conditioning Company and their partnership with Costco to reduce costs even more. They even fixed some airflow issues that were inherent with the house by replacing the return ventilation with 16 in compared to the 14 in that was there. Also threw in the 16x25 Honeywell air cleaner filter. Installation includes 2 new thermostats.
All work was completed in 1 day. I did this on my terms rather than wait for system failure. James River Air has stellar reputation and their technicians performed as I expected.
All told, I paid $13000. With the Costco cash back rewards for paying with the Costco AMEX card, I'll get another $1000 back to use on in store purchases. Also, will receive a $300 Energy Efficiency rebate check from state of VA. Also, will claim federal tax credits when I file my 2010 taxes.
I guess I'm actually only paying around $11000 for this system.
From what I can tell by what others have paid, I've done pretty darn well
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Water source heat pump
Amount: $0.00
Posted by: Donna Malia in Douglass, KS.Posted: May 22nd, 2011 02:05PM
Brand: Climate masterModel:
We are total electric with well water in Kansas. We have replaced heat pump 3 x in 25 years. Considering closed system heat pump. Wondering what should expect for pricing.
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Replaced existing heat pump-Was the cost too high?
Amount: $12,150.00
Posted by: Louise in Bethlehem, PA.Posted: May 11th, 2011 09:05PM
Brand: EverRestModel: 4 ton 16 Seer
Installer: Tru ComfortType: Variable speed
Our existing Trane Heat pump "died" suddenly. It was really hot out and our service people said they could replace it within the week. The supervisor came out that same evening and gave us a quote of 12,150.00 to replace it with an EverRest. We had a new propane boiler put in a year ago with this same company which supplies the axillary heat (in coils which are pumped with hot water that are attached to the air handler). No ductwork was replaced. Only the outside unit and the air handler needed to be replaced and hooked up to our existing ductwork, etc. We also have a humidifier and air filtration system(aprilaire) which were already existing. Two guys spent 8 hours in our house replacing the system. The company has always been very professional helpful and knowledgable when we had a problem. BUT, in researching prices, it seems as if we were overcharged for this job? Anyone know what is the actual cost for this unit? Thanks for any help we can get!
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Heat Pump - real cost to run
Amount: $0.00
Posted by: Joseph in Harrisburg, PA.Posted: February 5th, 2011 02:02PM
Brand: TraneModel: XL1000
I believe as with many things in life one must consider variables when forming an opinion on products.
Heat pumps are declared as efficient - less expensive to HEAT a home. But NOT in northern climates.
In my all electric home, using the OTHER appliances the same as usual thru the year...when the temperatures here in Harrisburg, Pa go down, those really cold 2/3 months increase my electric bill by $400.00 per month. (total bill IS $597.00 for dec2010/Jan 2011).
What IS NOT BEING SAID when the business folks (electric co.; heat pump MFGs and others believing themselves to know about heating) declare a heat pump as being better economically is that the colder it is outside in your geographic area the more expensive or higher your bill will be. The system can not achieve the COMFORT level you request of your system (by the setting you place on your thermostat) without the auxiliary heat unit turning on. This auxiliary heat is very expensive.
I have thought about this so many times. If I could afford it - I would have individual heating in my rooms.
Interesting too is that several have offered to REPLACE my unit with what they say are more efficient units BUT... the BREAK EVEN point would be more than 25 to 30 years. And they say I should NOT think about the thousands I had to take from the bank or borrow - as long as I pay less per month. I think more and more folks are smoking crack.
YOU sitting out there are probably drowning with the following thoughts: He has a problem with insulation - Nope. His system is not functioning correctly - nope. The setting is 70 degrees - I notice WE start to have illnesses with a setting lower than 70.
The real problem with heating is...WE are all being gouged with UNFAIR prices for electric, oil and natural gas. You remember what you learned in school about supply & demand - well did you ever think your fellow citizen would take you to the poor house so that THEY could sit in comfort while you are cold?
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Bids on system
Amount: $12,024.00
Posted by: Jack in Kansas in Kansas City, MO.Posted: January 27th, 2011 11:01AM
Brand: Trane, EverestModel:
Installer: AB MayType:
Was provided three bids by AB May. The first is for a Trane system combination gas and heatpump. It was for a 95% furnace and a 16 seer 3 ton heatpump. The unit was also a two stage for further efficiency. This included install, humidifier, ionizing air filter which is reusable, cleaning of the existing ductwork for mold etc, programmable thermostat, and a 10 year parts and labor warranty as long as they come out and check the system twice a year costing $150.00 each year. The system would qualify for a $750.00 discount from the electric company, $225.00 discount from the Gas Company, and $500.00 worth of tax incentives. The price was $12,024 after rebates.
The second bid was for an identical system except from their house brand Everest which is a re-badged Goodman system. Still would qualify for the rebates same BTU and Seer rating. This was priced at $8,206 after rebates.
They also provided a bid for the most basic Trane system. This included a 95% furnace still, but only a 13 Seer single stage heat pump. The system only qualified for the $225.00 Gas Company discount. This was priced at $6,125 after the rabate.
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compressor cycling
Amount: $4,500.00
Posted by: GUS.S in winder, GA.Posted: November 16th, 2010 07:11PM
Brand: payneModel: fb4anf030
Installer: builderType: heat pump
Compressor cycles quickly off & on for apx 3 to 5 minutes when aux heat turned on, then works normaly,apx 1 to 2 hours.Then cycles fast again.
Wanted an idea of problem before calling a repair man.
Thank you
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Re: MadatHawkAir
Amount: $7,472.00
Posted by: Hendry Heating & Cooling in CHICAGO, IL.Posted: September 28th, 2010 07:09PM
The indoor coil of your heat pump inherently and automatically dehumidifies the air that passes over it. This is seen as condensation that should be properly drained out of the indoor unit, usually with pvc pipe. Something may be wrong with your indoor coil, could be dirty or maybe the fan speeds need to be adjusted to make sure that the air has adequate time to condense moisture out onto the coil. If the system is oversized, it may turn off and on too frequently, and again not allow enough time for moisture to be brought out of the air. Whole-house dehumidifiers are window-unit sized boxes that attach to the return air ducting near the indoor unit. It would be pretty hard to miss. Chances are, that $800 you paid was not used honestly.
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Ripped off- $7,472 for 1,850 sq.ft.
Amount: $7,472.00
Posted by: MadatHawkAir in Hendersonville, NC.Posted: July 3rd, 2010 06:07PM
Brand: carrierModel: comfort
Installer: Hawk Indoor Air Inc.Type: heat pump
We have a small, single story home with 1850 sq.ft. The heat pump blew and we replaced with a Carrier Comfort series (25hcc536a003) 15seer. We also asked to install the dehumidifier to the system. This costs an extra $800. The house relative humidity is between 70 and 54 when set at 46. In order to get the house cool enough we hae to set the temp at around 68 or lower. Installer would not call back twice after installation and I called again, very mad, and he said he would call next week. What does the dehumidifier that we paid for look like? There is no other box or system except for the standard outside unit and inside unit. We think this guy has ripped us off big time. Have to use a window AC in the bedroom of this small, open house. No duct work or other work was required. We live in the mountains of NC where it does not get very hot/humid so this should not have been an issue. Ideas? We are very mad and about to hit the BBB and a lawyer.
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is my quote acceptable?
Amount: $9,300.00
Posted by: Billy in Austin, TX.Posted: April 29th, 2010 08:04AM
Brand: LennoxModel: XP14-024,CBX27UH,ECB29-10CB,PC012,7day p
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Amount: $15,000.00
Posted by: ze in Cumming, GA.Posted: February 25th, 2010 07:02PM
Brand: RheemModel:
Installer: Maintenance AirType: 2.5,3 ton
I have replaced all the parts on the 3 ton unit,inside and outside. The compressor is now out for the second time and will cost $1500. for labor,even though the part is covered. This is the third company that has worked on it.
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