On average, you can expect to spend nearly $6,000 on heat pump installation (in 2023 dollars). However, the cost of installing a heat pump can range from $1,500 to $11,500 depending on the type and size of the system, its efficiency, and the square footage and location of your home.Âą There are also various other factors to consider. Continue reading to learn about these and related expenses that can impact the total project cost.
A heat pump can potentially lower your energy costs by up to 50%. But before you realize such a benefit, you’ll need to consider the initial costs, which can be affected by:
Heat Pump Size
A heat pump with a 3-ton capacity (suited for a 2,000-square-foot home) ranges from $3,900 to $6,200. However, a 2-ton heat pump may cost as little as $3,500 but is only powerful enough for a 1,000-square-foot house. By comparison, a 5-ton heat pump can cost as much as $8,800. The average single-family home in the United States is around 2,300 square feet (investing in a heat pump for this size is around $3,900 to $6,400).Âą
Heat Pump Type
Several types of heat pumps are available. An air source heat pump is a popular option. Depending on the season, it can deliver warm air inside your home or pull heat from within and release it outside. An air source system ranges from $4,500 to $8,000.Âą
A mini-split system does not have ductwork, so it can cost less to install. You may spend as little as $1,300 for installation, but depending on the number of mini-split air handlers and refrigerant lines you need, it can cost up to $8,000. However, geothermal heat pumps, which require underground piping, can cost $6,000 to $20,000, while hybrid systems (with a furnace) can cost up to $10,000, and solar-powered equipment can cost $18,000 to $39,000.Âą
Energy Efficiency
Efficiency is among the most important considerations during heat pump installation. It can impact your energy savings for many years. Heat pumps are compared by calculating their Seasonal Energy Efficiency Ratio (SEER). A 14 SEER heat pump ranges from $1,600 to $4,900, a 16 SEER system ranges from $2,400 to $6,200, and a 20 SEER unit ranges from $3,600 to $9,500.Âą
Single-stage heat pumps are simpler systems and thus less expensive. However, dual-stage and variable-speed models have higher SEER ratings; they can run at different speeds to cool or warm your home more efficiently (and lower your energy costs). Therefore, single-stage, lower SEER units will cost you more in the long run.
Your Location
Where you live can affect what you spend on heat pump installation. In southern U.S. states, heat pumps of at least 15 SEER are required. The minimum requirement for some northern states is 14 SEER. But if you live in a colder region, you may need a larger unit that can keep up in extreme weather.Â
However, unit size vs. climate isn’t the only consideration, as competition between local heat pump installation companies and the cost of living can affect prices. For example, you’ll probably spend less for a heat pump in Miami, FL, than in Chicago, IL, or Denver, CO.¹
Additional Cost Considerations
The cost of equipment and where you live aren’t the only factors that affect what you may spend. While each project is unique, the quoted price will be impacted by:
- Labor: Heat pump installers charge an average of $75 to $125 per hour. As for installation time, this varies depending on the type of system, the complexity of the project, and how much work is involved.Âą
- Equipment Brand: Brand name has a big influence on price. If you purchase a generic air-source heat pump, it may cost $4,500 to $8,000, but a higher-end brand model may cost $6,000 to $12,000.Âą
- Permits: Acquiring a permit can cost between $50 and $300. You may need additional permits to rent a dumpster or dig on your property. Other permit requirements depend on local ordinances.Âą
- Ductwork: A ductless mini-split heat pump saves on the cost of ductwork. Otherwise, installing air ducts costs $3,000 to $7,500 (for 300 linear feet). The air duct material also impacts the price; galvanized steel is on the higher end, while flexible polyester is on the lower end.Âą
How Can I Spend Less on Heat Pump Installation?
Installing a heat pump yourself won’t help you save in the long run. Any ventilation or wiring mistakes can be costly to fix. When it comes to installation, costs are often a reflection of quality, so ask the contractor what’s included in their quote.Â
Replacing a heat pump with the same type will cost less than updating an older system. Choosing a correctly sized heat pump is also important; it will result in long-term energy savings (make sure the technician performs a load calculation). Also, look into tax credits and local rebates. The Inflation Reduction Act of 2022 included incentives for heat pumps and other energy efficiency upgrades. Many local utilities and tax agencies offer rebates, so check with a power company, environmental agency, or state revenue department about ways to save.
Schedule Heat Pump Installation Today
Sky Heating & Air Conditioning provides heat pump installation and repair services in the Portland, OR, area. Our licensed and insured installers specialize in electric and geothermal heat pumps. To request a consultation and estimate on what you may spend, call (503) 694-4650 or schedule your visit online.
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