The Cost of a Heat Pump (2024 Guide)

Heat pumps are a popular choice for many Americans for their efficiency and ability to provide both heating and cooling. However, determining the cost of a heat pump can be challenging due to various factors that influence pricing.

Whether you’re upgrading your current system or building a new home, this heat pump pricing guide will help you make an informed decision so you can find the best heat pump for your budget.

How Much Does a Heat Pump Cost?

The cost of a heat pump largely depends on the unit’s size. Larger units designed to heat and cool bigger spaces will naturally be more expensive. Below, you’ll find average costs for buying and installing a heat pump/air handler combo with a minimum 14.3 SEER2 rating.

• 2-ton heat pump cost: $7,000-$11,000 depending on the brand
• 3-ton heat pump cost: $9,000-$13,000 depending on brand
• 4-ton heat pump cost: $10,000-$14,000 depending on brand 

If you’re also replacing and installing new ductwork, it can run anywhere between $2,000-$3,000 per ton depending on factors such as the region you live in and the location of the ductwork. Difficult-to-access ductwork leads to higher costs.

Additional Factors Influencing the Cost of an Air Source Heat Pump

When considering an air source heat pump for your home, additional factors beyond just size will influence the final heat pump installation cost you pay. These include:

Efficiency Ratings

Heat pumps come with different efficiency ratings, typically measured by their Seasonal Energy Efficiency Ratio (SEER2) and the Heating Seasonal Performance Factor (HSPF2). Higher-rated units, which are more energy efficient, tend to have higher upfront costs, which may or may not pay off in terms of substantial energy savings. Going up in SEER2 rating can add $1,500-$3,000 in pricing per step up, depending on the brand.

Brand and Quality

The brand and quality of the heat pump also play a crucial role in determining the cost. Premium brands that are known for reliability, advanced features, and longer warranties will generally be more expensive. Investing in a high-quality unit can provide better performance and longevity, potentially reducing maintenance, repair, and replacement costs in the long run.

Features

Modern air source heat pumps often come with additional features such as smart thermostats, variable-speed compressors, and advanced indoor air quality systems. These features enhance the comfort and convenience of the system but can also add to the overall cost.

Labor Costs

The cost of labor can vary depending on your location and the contractor you choose.

Saving Money on Heat Pump Installation Costs

Investing in an energy-efficient air source heat pump is no small purchase. To make this investment more affordable, federal tax credits may be available for HVAC systems, including heat pumps, to help offset the initial installation costs of qualifying heat pump systems.

Through the Home Energy Rebates Program, part of the Inflation Reduction Act, homeowners may qualify to receive a heat pump tax credit of up to 30% of the installation costs, with a maximum credit amount of $2,000. This credit applies to both the cost of the unit and the installation expenses. To qualify, the heat pump must meet specific energy efficiency criteria set by the U.S. Department of Energy (DOE).

To qualify for federal funding, states must submit program applications to the DOE by Jan. 31, 2025. As of June 2024, 19 states have applied for funding. New York is the only state to have its application approved thus far.

To ensure you always receive a fair deal on a new heat pump, HVAC.com can provide a free quote and connect you with a top-notch installer in your area. Our innovative solution for HVAC replacement saves homeowners 20% on average.