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The cost of heat pump replacement ranges from $2,500 to $10,000, but the average homeowner spends $5,500, according to Forbes (as of ). If you're adding ductwork or a geothermal or solar-powered system, the cost can balloon to as much as $30,000!¹ Heat pump replacement costs vary so much for many reasons. We'll look at a few to help you budget and plan for the project.
From the type of heat pump to its size, brand, and level of efficiency, numerous factors impact what you pay for a new system. These include:
There are several types of heat pumps available. The most common types (and their total costs of installation) are:
: When considering just the price of equipment ($2,000 to $5,000), air-source heat pumps are among the most affordable; you'll save if you have existing ductwork. The system draws heat from outside, even if it's relatively cool, and transfers it to your home.
: A geothermal system draws heat from soil or a water source. Much of the high cost is due to the fact that part of the system is buried underground.
: A solar heat pump is highly efficient. However, you will incur the cost of installing solar panels on your property.
: A hybrid heat pump combines a heat pump with a furnace. The second heater kicks in when the temperature outside drops too low for the system to work effectively.
: If you don't have ductwork, a ductless mini-split system allows for zoned heating and cooling in summer and winter.
An entry-level heat pump costs less to install than a mid-range or high-end system. The determining factor impacting the cost of each is whether the system is single-stage, two-stage, or variable-capacity. That's not counting labor or the cost of a replacement furnace. If you have a hybrid system, an HVAC technician will determine whether the equipment matches (if not, both will need to be replaced at the same time).
The size, or capacity, of a heat pump is measured in British Thermal Units (BTUs) or tons. A 24,000 BTU/2-ton heat pump is suited for a 1,000-square-foot home and can cost between $2,500 to $5,000. Meanwhile, a 60,000 BTU/5-ton heat pump ranges in cost from $6,000 to $10,000.¹
To determine the right sized unit for your home, a contractor will consider its square footage and layout, the ceiling height, and the number and location of windows. Other factors to consider include insulation quality, air filtration, location of heat-generating appliances, and the number of occupants in your home. These are input into a Manual J load calculation, which helps a contractor find the best-sized heat pump for your house and local climate.
The top brands of heat pumps include Amana, American Standard, Carrier, Goodman, Lennox, and Rheem/Ruud. Bosch heat pumps tend to be more on the expensive side. However, a Coleman heat pump is generally more affordable.
When measuring heat pump efficiency, look at a unit's Heating Seasonal Performance Factor (HSPF) and Seasonal Energy Efficiency Ratio (SEER). High-efficiency systems rate at 10+ HSPF and 19+ SEER. While more costly to install upfront, these units can reduce energy costs over time. However, standard heat pumps are less efficient but can cut upfront costs by as much as half.
The cost of heat pump replacement varies by city and region. It's generally more expensive to install one in a colder climate as you'll need a hybrid system or a larger, more efficient unit. For example, installing a heat pump in Denver costs more than installing one in Miami.
Climate is a significant cost factor with heat pumps. You'll need a smaller, less powerful unit in the South and a more powerful one in a moderate climate. In colder climates, there are more efficient heating methods that can cost less to install or replace.
The labor for heat pump replacement varies significantly. A ductless mini-split may cost $1,500 to install, while a solar-powered system can cost up to $25,000 just for labor.¹ Your HVAC contractor will also have to pull a permit. Building and other permits come with different fees and requirements, depending on your state and city.
Any necessary home modifications to accommodate a new heat pump will cost extra. A couple of examples include:
: An HVAC system's electrical components, including the electrical conduit, outside electrical disconnect, breaker, and thermostat, cost extra. You may also need to have an electrician update your breaker panel and home wiring.
: Depending on the size of your home, duct installation can cost $1,000 to $5,000. Therefore, a ductless system can save you thousands of dollars.¹
Heat pump replacement is an investment that can benefit you over the long run. But you can save on heat pump installation by considering:
Federal, state, and local tax credits and potential utility rebates.
Alternate types of heat pumps, such as an air-source or ductless system.
Multiple quotes and a reputable contractor with the lowest bid.
Off-season installation; a company may charge less in the fall or spring.
Contact Monarch Home Services
We install and replace heaters in the San Joaquin Valley, whether you prefer a furnace, heat pump, or ductless mini-split system. When it's time for heat pump replacement, we can evaluate your home, determine the best type and sized unit, and ensure a flawless installation by licensed and insured professionals. Our maintenance agreements have your system covered throughout its life. To schedule heat pump replacement in Bakersfield, Visalia, or Fresno or receive a free quote, call (661) 215- today.
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The primary cost factors when installing a heat pump depend on the type of pump you choose and the size of your home. Here's how that breaks down.
The type of heat pump you choose will likely be the biggest cost factor, as this impacts the installation process. Here are the five main types to choose from, along with price ranges, pros and cons.
Air-source
$2,000 ' $7,000
$1,000 ' $4,000
$3,000 ' $11,000
Geothermal
$2,800 ' $9,000
$2,200 ' $11,000
$5,000 ' $20,000
Solar
$2,200 ' $9,500
$1,300 ' $11,000
$3,500 ' $19,500
Hybrid
$2,000 ' $8,200
$1,000 ' $5,500
$3,000 ' $13,700
Ductless mini-split
$1,000 ' $4,000
$500 ' $5,000
$1,500 ' $8,000
Note: Labor costs in the table above assume your home already has the necessary ductwork, if applicable. If you don't, this extra work will add to this cost.
The overall size of your home, along with the local climate, determines the size of the heat pump you need to adequately regulate the temperature throughout the year. The size of a heat pump is illustrated in tons, with models available in 2 to 5 tons. The costs increase as you start looking into larger-capacity heat pumps. Small units range from $3,800 to $6,600, while larger-capacity units cost up to $9,000 or more, depending on the efficiency rating.
HOUSE SIZE (IN SQUARE FEET) SIZE (IN TONS) SIZE (IN BTUs)500
1
12,000
1,000
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2
24,000
1,500
3
36,000
2,000
4
48,000
2,500
5
60,000
3,000
6
72,000
Many reputable manufacturers specialize in heat pumps. Here are some of the big players in the industry, along with the average price range to purchase a unit. These ranges take into account both standard and high-efficiency heat pumps. The price range also fluctuates according to the type of heat pump the company specializes in.
BRAND HEAT PUMP UNIT COSTAmana
$1,800 ' $2,800
American Standard
$1,900 ' $3,200
Bosch
$1,200 ' $8,200
Carrier
$2,300 ' $4,000
Coleman
$1,300 ' $3,500
Goodman
$1,500 ' $4,100
Lennox
$2,500 ' $4,700
Panasonic
$1,300 ' $3,000
Rheem/Ruud
$1,600 ' $3,400
Like most home renovation projects, your location can determine the price range. This is especially true of heat pumps, as certain types just don't do well in cold weather. Air-source pumps are one of the cheapest options but aren't the best fit for those living in colder regions.
With this in mind, it'll be pricier to install a heat pump in the colder parts of the country when compared to areas with moderate or warm climates. Colder regions also demand larger heat pumps, further impacting the price.
CITY HEAT PUMP UNIT COSTAtlanta
$1,000 ' $3,500
Chicago
$4,000 ' $5,500
Denver
$2,600 ' $9,800
Houston
$1,500 ' $6,500
Los Angeles
$1,000 ' $6,500
Miami
$1,000 ' $3,700
New York
$3,200 ' $6,900
St. Louis
$3,800 ' $8,200
Note: This table looks at unit costs. Keep in mind that labor rates (not factored in) can also vary depending on your city's cost of living
Installing a heat pump is work best left to a qualified HVAC professional, unless you have a boatload of experience in various home systems. HVAC pros charge anywhere from $75 to $150 per hour and will likely account for 30 to 40% percent of your total budget.
Labor costs also truly depend on the type of heat pump you purchased. For a standard installation of a ductless mini-split heat pump, you could pay as little as $500 for labor, as this job is straightforward and quick.
However, other types of heat pumps often require more contractors to handle specific tasks. For instance, geothermal units must be buried at least 4 feet into the ground, often requiring an excavation expert. Solar-powered pumps will require the professional installation of panels.
Finally, most heat pump types deliver cooled and warmed air through ducts. If you lack the proper ductwork, that'll also drastically increase labor costs. With all of this in mind, the cost range for labor here is vast. Some jobs cost as little as $500, while others extend all the way to $20,000.
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