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We recommend the best products through an independent review process, and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info.

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How Much Does a Heat Pump Installation Cost? (2023)

Average National Cost
? All cost data throughout this article are collected using the RS Means construction materials database.
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$5,800 - $7,500

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Updated On

May 9, 2023

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A heat pump is an efficient all-in-one heating and cooling system that uses natural energy sources to bring your home to the perfect temperature. Although these systems will almost certainly lower your monthly energy costs, heat pumps can be expensive to install. Still, the overall cost isn’t as out of reach as you might think.

To give you the most accurate heat pump installation cost information possible, we’ve sifted through customer reviews, talked to top HVAC companies, and used a database of building materials. Read on to learn how much installing a new heat pump in your home will cost.

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In general, you can expect to pay between $4,000 and $7,000 including installation, old furnace removal, and labor.
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In general, you can expect to pay between $3,000 and $35,000, but most homeowners spend between $5,800 and $7,500.
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How Much Does It Cost to Install a Heat Pump?

On average, installing a heat pump can range between $3,000 and $35,000, but most homeowners spend between $5,800 and $7,500 on heat pump replacement. This drastic price range is based on the cost of four different types of heat pumps, some of which are more expensive than others. Geothermal heat pumps are the most expensive, while air-source heat pumps are the least expensive.

Low CostAverage CostHigh Cost
$3,000$5,800 – $7,500$35,000

How Do Costs Differ By Heat Pump Type?

The type of heat pump you choose will greatly impact the overall cost. Opt for an air-source, dual-fuel, or ductless heat pump if you want an affordable heat pump. However, if you want the most energy-efficient heat pump possible, geothermal or solar heat pumps should be at the top of your list, as these use the power of the sun and earth to heat and cool your home.

Type of Heat PumpAverage Low CostAverage High Cost

Air-Source Heat Pump

photo of a heat pump
Credit: Canva

Air-source heat pumps are the most common type of system — not to mention a more affordable option. This heat pump transfers heat between your home’s indoor air and outside. Air-source heat pumps are up to 50% more efficient than furnaces, which saves you money on energy bills. In addition to their energy-saving features, high-efficiency air-source heat pumps are better dehumidifiers than traditional cooling systems.

These heat pumps cost between $6,500 and $13,300 to install but can be more expensive if you don’t already have a duct system installed in your home. Air-source heat pumps aren’t the best heating systems if you live in sub-freezing climates, but they are excellent for moderate and mild weather.

Dual-Fuel Heat Pumps

Dual-fuel heat pumps — also known as hybrid pumps — are the best for cold climates because they rely on a gas or oil furnace when the temperature gets too cold. These hybrid heat pumps may not save you as much money each month but can be affordable at $3,000 to $16,500 for the heat pump and installation.

Ductless Mini-Split Heat Pumps

photo of a ductles mini-split
Credit: Canva

If you don’t have ducts installed in your home, you can save money with a ductless mini-split heat pump. Ductless heat pumps are a type of air-source heat pump that have an outdoor unit and air handlers. Outdoor units have a compressor with refrigerant lines, and the indoor air handlers blow air into the rooms — or zones — they are installed in.

Ductless mini-split systems cost between $2,500 and $11,000, but this price range depends on the number of zones you have installed in your home. The more zones you have in your home, the more a ductless mini-split heat pump costs.

These heat pumps aren’t as efficient as ducted systems, but they are a more affordable option. Modern ductless heat pumps can support five to eight zones in a single home, and you can expect to pay between $800 and $1,500 per zone added to your entire system.

  • One zone: $1,500 to $4,000
  • Two zones: $2,500 to $6,000
  • Three zones: $3,000 to $8,500
  • Four zones: $4,500 to $9,800
  • Five zones: $6,000 to $1,000

Geothermal Heat Pumps

photo of a geothermal heat pump
Credit: Canva

Geothermal heat pumps pull heat from the soil or a water source and use it to cool or warm your home. These water or ground-source heat pumps are the most expensive type of heat pump because they need to be dug into the ground and require a lot of space. However, these systems are also the most efficient and require the least maintenance. On average, geothermal heat pumps cost $9,000 to $35,000 for the pump and installation.

There are several types of geothermal heat pumps — and the type you install depends on the space you have on your property and the type of resources you have access to. The four types of geothermal heat pumps are:

  • Closed loop heat pump: Closed loop heat pump systems circulate refrigerant or water through a series of pipes. Many closed-loop systems rely on radiant heat as the primary way to deliver heat to your home.
  • Horizontal heat pump: Horizontal heat pumps are installed in trenches underground. These need a lot of space — often several hundred square feet at minimum. If you don’t have a large property or backyard, this HVAC system may not be your best option.
  • Open loop heat pump: Open loop heat pumps use the water from a well, pond, or lake as the primary heating source. If you have access to any of these water sources, you’ll save money on installation because it’s often less expensive to place pipes underwater than it is to dig underground.
  • Vertical heat pump: Instead of being installed in a wide trench, vertical heat pumps are installed deep into the ground, often hundreds of feet below. Because of how deep this area needs to be, vertical heat pumps are often the most expensive to install.
Type of Geothermal Heat PumpLow CostHigh Cost
Closed Loop$15,000$38,000
Open Loop$10,000$28,000

Solar Heat Pump

Solar heat pumps use the sun’s energy to heat and cool your home. These systems are incredibly efficient — not to mention environmentally friendly. To install a solar heat pump, you can expect to pay between $17,000 and $32,000. The solar panels make up most of the up-front cost — so if you already have solar panels installed, you just need to pay a few thousand dollars for the heat pump.

Today’s Homeowner Tips

Solar heat pumps aren’t the best option for everyone. If you live in an area with a lot of shade or don’t have access to daily, abundant sunlight, then you should consider other heat pump options. Solar panels can be an excellent renewable energy option if you live in a sunny state.

How Does Home Square Footage Affect Heat Pump Pricing Installs?

The size of your home is one of the most important factors determining a heat pump’s cost. The more square footage you have, the more you will pay for a heat pump, as it must be able to maintain the indoor temperature for a larger space.

For example, a 1.5-ton heat pump for an 800-square-foot home might cost just $3,500, but you may pay more than $10,000 for a 5-ton heat pump for your 2,500-square-foot home.

Home SizeHeat Pump SizeBritish Thermal Units (BTU)Average Installation Cost
800 square feet1.5-ton18,000$3,500
1,000 square feet2-ton24,000$5,500
1,300 square feet2.5-ton30,000$6,000
1,500 square feet3-ton36,000$6,500
1,800 square feet3.5-ton42,000$7,000
2,000 square feet4-ton48,000$8,500
2,500 square feet5-ton60,000$10,000

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Which Factors Impact Heat Pump Installation Cost Estimates?

The heat pump itself is only one part of the overall project. You must also consider installation, labor, efficiency, and more. The total cost of heat pump installation depends on several factors, but the ones you should consider the most are:

  • Efficiency rating
  • Heat pump brand
  • Installation costs
  • Additional costs

Efficiency Rating

When an HVAC technician comes to your home, they will advise you on the right efficiency rating for your home. Standard heat pumps are more affordable at $3,000 to $9,500 but may not lead to as much energy savings in the long run. If you have the budget for a high-efficiency heat pump, you’ll pay more upfront — between $8,000 and $13,000 — but save money each month in energy costs.

  • Coefficient of Performance (CoP): The Coefficient of Performance measures how efficient a heat pump is compared to electric resistance heat. You can expect an air-source heat pump to have a CoP of 2.5 to 4.0, but geothermal heat pumps will likely have a CoP of 3.1 or more.
  • Heating Seasonal Performance Factor (HSPF): The HSPF rating measures how much your heat pump uses during its heating season. The most efficient heat pumps have an HSPF rating of 10 or more, and standard heat pumps have an average rating of 8.5 to 9.5.
  • Seasonal Energy Efficiency Ratio (SEER): SEER ratings measure the overall cooling efficiency of your heat pump. Standard furnaces have SEER ratings of at least 13 to 14, but the most efficient heat pumps have SEER ratings of 19 or more.
Heat Pump Efficiency RatingLow CostHigh Cost
13 to 14 SEER$3,000$6,200
15 to 16 SEER$4,500$8,000
17 to 18 SEER$6,000$9,500
19+ SEER$8,000$13,000
  • 13 to 15 SEER/8.5 HSPF: Best for the central United States and lower Midwest states that don’t experience extreme temperatures and climates.
  • 15 to 17 SEER/8.5 to 9.5 HSPF: Ideal for the upper Midwest and states with some moderate temperature fluctuations.
  • 18+ SEER/10+ HSPF: Best for Northern and Southern regions that have either hot or freezing temperature extremes.

Heat Pump Brand

A good way to save money on your new heat pump is to check the price of multiple brands. Some brands cost up to $1,000 or more than others for similar units, so we recommend you get at least two separate quotes from HVAC providers.

Some brands are known for expensive high-efficiency models, such as Lennox and Carrier, but others, like Amana and Trane, have more affordable options. Review the table below for average costs for the most popular HVAC brands.

Heat Pump BrandLow Unit CostHigh Unit Cost
American Standard$1,800$4,000
Cost data include the unit, labor, and demolition, if applicable. All cost data in this article were gathered from RS Means construction materials and labor database and bids from top contractors.

Installation Costs

Labor is a highly variable cost and depends on the project, type and size of the heat pump, location, and even the HVAC contractor you use. You’ll pay between $70 and $150 per labor hour for heat pump replacement or installation.

The size and complexity of your heat pump can also impact the cost. For instance, you may only pay $2,000 in labor costs to install a small 1.5-ton heat pump but could pay $10,000 or more to install a complex 5-ton heat pump.

Heat Pump SizeLow CostHigh Cost
Cost data include the unit, labor, and demolition, if applicable. All cost data in this article were gathered from RS Means construction materials and labor database and bids from top contractors.

Additional Costs

Although the heat pump and its installation make up most of the cost, other smaller costs can quickly add up. The most common additional HVAC installation costs to look out for include the following:

  • Demolition: If you need to remove an existing furnace, central air conditioner, or split system, you will pay $440 to $530 for this removal.
  • Ductwork: If you don’t have ductwork installed in your home or need to replace existing ductwork, you can expect to pay between $2,500 to $6,600.
  • Permits: Many states require permits to install or replace HVAC systems. These permits typically cost $250 to $400.
  • Residential hook-up: If you need to connect your heat pump to public utilities, it can cost between $1,115 and $1,455.
  • Solar panels: Solar heat pumps require solar panels to operate. If you don’t already have solar installed, you will need to pay between $3,500 and $30,000 or more, depending on your system size, energy goals, and location.
  • Thermostat: If you replace an outdated heating or cooling system, you may need a new thermostat. Updated thermostats cost between $100 and $350 on average.

Professional vs. DIY Heat Pump Installation

We don’t recommend you do your own heat pump installation, as it requires knowledge of electrical wires, ventilation systems, and — if you plan to install a geothermal heating system — underground pipe installation. Instead, leave this home improvement project to the professionals.

Doing Heat Pump Installation Yourself

We won’t deny that heat pump installation is expensive, but professional installation is worth it to ensure that your heat pump is installed safely and correctly. There are even more benefits to having a professional install your heat pump, including:

  • Access to annual HVAC maintenance that can increase the lifespan of your heat pump
  • A workmanship warranty that covers any problems with installation
  • Guidance on efficiency, heat pump size, and type of heat pump for your home
  • Local rebates and tax credits that save you money on installation

Hiring a Professional for Heat Pump Installation

Finding a good contractor in your area is difficult, so we make it simple to contact quality HVAC service providers. If you have decided to move forward with a new heat pump, follow the steps below to be connected to one of the best HVAC companies in your area:

  1. Find local experts near you: Use the button below to contact the best HVAC contractors in your area.
  2. Get a quote from a few options: Always get at least two quotes from different HVAC providers. Each contractor works with different brands, so you may find that one quote is more affordable than the other.
  3. Consult them about their recommendations: Ask the HVAC technician about efficiency, heat pump size, and brand options to get the heat pump that best meets your needs. Also, ask about local rebates and tax credits.
  4. Choose your heat pump: Choose the quote that best fits your needs and budget.
  5. Get your new heat pump installed: Set up a time to get your heat pump installed, and your HVAC contractor will do the rest.

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Our Final Thoughts About Heat Pump Installs

Heat pump installation and replacement costs between $3,000 and $35,000, but most homeowners spend between $5,800 and $7,500. If you want an energy-efficient HVAC system that saves you money every month, you should consider a high-efficiency heat pump installation.

However, heat pumps aren’t for everyone. They can be expensive to install and work best in mild to moderate climates. If you have a limited budget or live in extremely hot or cold climates, you may want to consider a different type of heating system or a central air conditioner.

FAQs About Heat Pump Installation

How much does it cost to install a heat pump system?

On average, installing a new heat pump system costs between $3,000 and $35,000. Geothermal and solar heat pumps are the most expensive to install due to the need for extensive excavation and solar panels, respectively. If you opt for an air-source heat pump system, you can expect to spend between $5,800 and $7,500 for the unit and installation.

How much is a heat pump for a 2,000-square-foot house?

A 2,000-square-foot house needs a 3- to 4-ton heat pump, which will cost between $6,500 and $8,500 to install.

Is a heat pump better than an electric heater?

Even though both heat pumps and electric heaters are efficient and run on electricity, heat pumps are more efficient than electric furnaces because they don’t have to generate their own heat. Instead, heat pumps use outdoor air, ground, or water to heat your home.

Should I get a new heat pump or a furnace?

If you live in a region with mild to moderate weather, a heat pump is worth it for your home. If you live in an area with extreme heat and freezing temperatures, you may be better off with a high-efficiency furnace and air conditioning system. This is because heat pumps need electricity to run and can be expensive if you live in certain climates.

Editorial Contributors
Alora Bopray

Alora Bopray

Staff Writer

Alora Bopray is a digital content producer for the home warranty, HVAC, and plumbing categories at Today's Homeowner. She earned her bachelor's degree in psychology from the University of St. Scholastica and her master's degree from the University of Denver. Before becoming a writer for Today's Homeowner, Alora wrote as a freelance writer for dozens of home improvement clients and informed homeowners about the solar industry as a writer for EcoWatch. When she's not writing, Alora can be found planning her next DIY home improvement project or plotting her next novel.

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Roxanne Downer


Roxanne Downer is a commerce editor at Today’s Homeowner, where she tackles everything from foundation repair to solar panel installation. She brings more than 15 years of writing and editing experience to bear in her meticulous approach to ensuring accurate, up-to-date, and engaging content. She’s previously edited for outlets including MSN, Architectural Digest, and Better Homes & Gardens. An alumna of the University of Pennsylvania, Roxanne is now an Oklahoma homeowner, DIY enthusiast, and the proud parent of a playful pug.

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