Average Cost to Install a Heat Pump

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How Much Does it Cost to Install a Heat Pump?

Are you planning to install a heat pump as your home heating and cooling system? Typically, you are likely to pay between $4,097 and $7,300 for the pump and labor.

The cost to install a heat pump really depends on several things:

  1. Type of heat pump.
  2. Size of your house. The square footage of your home determines what size heat pump will be best for you.
  3. How much piping you'll need and how hard it will be to excavate your yard, in the case of a geothermal heat pump.
  4. Whether your home already has ductwork in good condition.
  5. Any options you add, like a water heater or a two-stage compressor.

Cost Breakdown

Materials -- There several types of heat pumps:

  • geothermal (ground-source) heat pump -- the most expensive to set up because it needs to be installed underground. ($10,000+)
  • air source whole-house model ($2,000 - $8,000) 
  • air source window unit ($750 - $2,000)
  • dual-fuel model -- combines a whole-house air source heat pump with a fossil-fuel furnace (heat pump alone: $2,500 - $5,500; heat pump and furnace together: $5,000 - $25,000)

Labor -- Labor includes the cost to install your heat pump. If you buy a geothermal heat pump, discuss with your HVAC contractor how much excavation will be needed and what his or her quote covers. If repairs or replacement of your existing ductwork is necessary, that will add to the expense.
Permit -- Check with your local authority to see whether you need a building and/or mechanical permit to install a heat pump. (A permit may be necessary even if your contractor is simply replacing your old heat pump.)
Estimate -- The initial estimate, which may include an onsite inspection, is often free.

Get the Most for Your Money

A heat pump is the most efficient form of electrical home heating and cooling, especially in moderate climates. It may also be used to dehumidify the indoor air. The geothermal type, while the most costly to install, can cut your energy consumption by as much as 60 percent.

Install a programmable thermostat purpose-built for use with a heat pump and make the system even more efficient.

Investigate rebates and incentives available for eco-friendly heat pump installation. In addition, find out whether you can finance the cost of your heat pump with an energy-efficient mortgage.  

Cost to Hire a HVAC contractor

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