How Much Does a Heat Pump Cost in 2025?
A heat pump costs an average of $6,084
On average, heat pump installation costs $6,084, with an average range of $4,247 to $7,933.
The system size, type, efficiency rating, and brand affect the total cost.
Labor is one of the most significant installation costs, with HVAC contractors charging an average of $75 to $125 per hour.
Depending on your location, you may require a building permit to install a heat pump, which costs between $50 and $300.
Hiring a professional to install your heat pump ensures year‑round comfort, lower utility bills, and a smaller carbon footprint.
This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.
Installing a heat pump has an average cost of $6,084, with most projects averaging between $4,247 and $7,933. Your final price hinges on the unit’s size, efficiency rating, and your location, so plan a realistic budget before work begins. Hiring a licensed HVAC professional helps the system perform at its peak and protects your long-term energy savings.
Heat Pump Installation Cost Factors
Many factors influence the total cost of your heat pump installation, including the unit's size, capacity, type, and efficiency rating.
Size and Capacity
Most homeowners choose a 3-ton-capacity heat pump, which costs between $3,900 and $6,200 (including labor). The higher your pump’s capacity, the higher your cost will be. If you install a pump that’s too small for your needs, you’ll quickly lose that initial savings with a system that runs constantly.
Cost ranges in the following table reflect a few variables, including brand differences and regional pricing differences:
| Capacity in Tons | Average Cost Range |
|---|---|
| 2 | $3,500–$5,500 |
| 2.5 | $3,700–$5,800 |
| 3 | $3,900–$6,200 |
| 3.5 | $3,900–$6,400 |
| 4 | $4,000–$7,300 |
| 5 | $4,500–$8,800 |
Some additional tips for size and purchasing include:
Size the unit in advance: Your heat pump should be sized according to the maximum demand.
Pay attention to the sound rating: Every unit has a specific sound rating measured in decibels. Find units with a lower rating.
Consider the climate: Heat pumps work better in temperate climates without extreme temperature fluctuations.
Ask your heat pump installation pro to help you decide on a unit that best suits your home’s needs and your budget.
Type
The type of heat pump system you choose could mean the difference between thousands of dollars. Geothermal and solar heat pumps are more expensive than air-source systems, and split systems have higher price tags than packaged units.
Efficiency Rating
Seasonal Energy Efficiency Ratio (SEER) measures the amount of cooling capacity divided by the amount of energy used. Heating Seasonal Performance Factor (HSPF) measures how much heating is achieved vs. the total energy used to get warm air into the home.
| SEER Rating | Average Cost Range |
|---|---|
| 14 | $1,600–$4,900 |
| 15 | $1,800–$5,900 |
| 16 | $2,400–$6,200 |
| 18 | $2,900–$6,700 |
| 20 | $3,600–$9,500 |
Ratings at or above 19 SEER or at least 10 HSFP hit the high-efficiency mark. While you’ll pay more upfront for a high-efficiency system, you’ll also see the most savings in your energy bills.
Location
Your location can affect the cost of the installation. Warmer regions of the U.S. don’t require as large a unit as colder regions, which need a heat pump that can withstand colder winters. Some areas also have soil conditions or altitudes that make excavation for a geothermal heat pump more challenging.
| City | Average Cost Range |
|---|---|
| Miami, FL | $2,200–$3,700 |
| Portland, ME | $2,300–$5,500 |
| Denver, CO | $2,800–$10,000 |
| Houston, TX | $3,800–$7,100 |
| Minneapolis, MN | $3,200–$5,400 |
| New York, NY | $3,300–$7,300 |
| Atlanta, GA | $3,000–$5,000 |
| Chicago, IL | $4,500–$5,500 |
| St. Louis, MO | $4,200–$8,000 |
Labor
Labor is a significant part of the cost of installing a heat pump, with most local heat pump installers charging between $75 and $125 per hour. The amount of labor required depends on the system you choose.
Labor time swings widely by system type. Geothermal units demand extensive trenching or drilling, so installation hours (and costs) climb quickly. Solar heat pumps add panel placement and wiring to the workload, whereas basic air-source models are easier to install and cost less to set up.
Permits
Permits and fees can increase the cost and vary depending on your local regulations. The cost of a building permit ranges from $50 to $300. You might also encounter dumping fees and other local ordinances.
Home Size
The biggest single factor in determining the price of your heat pump is the size of your house. Home size determines the amount of tonnage you’ll need. The larger the home, the higher the price. Larger houses will require higher-capacity pumps to warm and cool them properly.
Climate
The climate also affects the price of your heat pump system. Different climates can make some systems less feasible, limiting your choices. For example, heat pumps operate most efficiently at temperatures above 40°F. The colder the climate, the less efficient your system will be.
Likewise, rainy climates might not yield enough sunlight for solar panels to generate enough solar energy for a solar heat system. You don’t want to invest in a system that won’t perform in cost-saving ways long-term.
Installing Ducts
If your home doesn’t already have a duct system installed, you’ll also need to factor ductwork installation into your budget. It costs less if the installation is in an unfinished basement, attic, or new construction. The average price of new ductwork ranges from $450 to $2,200, or between $2 and $13 per linear foot. Be sure to factor this into the cost of your heat pump system when calculating your expenses.
Heat Pump Costs by Type
Most customers spend between $1,000 and $2,800 for a mid-range heat pump unit, excluding labor costs. After labor, fees, and permits, costs can exceed $20,000, not including ductwork.
| Heat Pump Type | Total Installation Cost (Without Ductwork) |
|---|---|
| Air source | $4,500–$8,000 |
| Geothermal | $6,000–$20,000 |
| Mini-split | $1,300–$8,000 |
| Solar | $18,000–$39,000 |
| Hybrid | $2,500–$10,000 |
Manufacturers offer a range of units based on your house's size, climate, and other factors. The HSPF rating, SEER rating, and sound rating all factor into the cost of the heat pump. The higher the score, the higher the price.
Air-Source
Air-source heat pumps cost $4,500 to $8,000 for complete installation. High-end brands with 5-ton capacities can exceed $10,000. You’ll pay more for larger systems and premium brands. To warm the home, the pump’s exterior coil extracts warmth from the air and moves it into the house, releasing it through the air exchanger or individual wall units.
Geothermal Heat Pumps
Installing a geothermal heat pump costs anywhere from $6,000 to $20,000, with some models exceeding $30,000. These systems require in-ground or water-source installations, such as a pond or small lake. They’re also known as ground-source pumps because they live underground, protected from the elements.
Geothermal heat pumps may initially be more expensive, but they are less costly to maintain than other types. They’ll also last 50 years or longer. Your heat pump will pay for itself twice as quickly as an air-sourced system, given what it saves in energy bills and maintenance.
Ductless Mini-Split
Ductless mini-splits cost anywhere from $1,300 to $8,000, depending on the size and the number of zones required. They use multiple refrigerant lines, each running to a specific room or zone in the home. Individual units in each zone either warm or cool the room as needed.
Solar Heat Pump
Solar heat pumps cost anywhere from $18,000 to $39,000. These systems come in two setups. One simply uses solar power to run the compressor, while the other warms an intermediate fluid, much like a solar water heater, to assist the pump.
Installing solar panels costs $18,000 to $34,000 and makes up most of the price.
Solar water heater installation costs significantly less, ranging from $1,800 to $5,700. However, this configuration requires specialized equipment to run it with a heat pump, which raises the price.
Dual-Fuel Hybrid Pump Unit With Furnace
A dual-fuel hybrid heat pump combines a gas furnace and a heat pump, which leverages the best of both systems. Dual-fuel hybrid systems cost $2,500 to $10,000. This system works well in colder climates that drop below 32°F. It uses a gas furnace inside the house that kicks in when the heat pump reaches its balance point. Well-insulated homes work better for this type of system.
Replacement vs. Repair
On average, replacing a heat pump falls within $4,247 and $7,933, or $6,084, though costs can run up to $12,000 depending on your system and location. This assumes you already have a working air handler and ducts. You’ll want to replace the outdoor unit when the repair cost exceeds the $5,000 rule: multiply your HVAC unit’s age by the cost of the repair. Replace the unit if the amount is over $5,000.
Benefits of a Heat Pump
Rising electricity and gas prices make a heat pump an appealing way to cut monthly bills and shrink your carbon footprint at the same time.
Tax credits
Up to 50% energy savings
More environmentally friendly
Works for heating and cooling
Easy to maintain
Safer than gas furnaces
Heat Pump Tax Credits and Rebates
The current federal tax credits for heat pumps are available for geothermal and solar energy systems. Here’s how much you can save for one of these systems:
26% for systems installed before January 1st, 2023.
22% for systems installed between January 1st, 2023 and December 31st, 2024.
Does Installing a Heat Pump Increase Home Value?
Installing a heat pump can increase your home value by up to 3%, depending on your location and current market conditions. Heat pumps offer enhanced home comfort and improved energy efficiency, which attracts potential buyers.
With a new heating and cooling system installed, buyers won’t have to worry about paying to replace or repair the HVAC system in the near future. Many areas also offer ongoing rebates and incentives that benefit future buyers.
Budgeting for Installing a Heat Pump
Heat pump installation can add up depending on the type and size of the system you choose. To keep costs down, consider the following tips:
Compare quotes from multiple local heat pump installers to find the best deal in your area.
Ensure your chosen system is properly suited for your home to prevent future repairs and breakdowns.
Schedule installation during the off-season to find reduced labor rates.
Find the most cost-effective system for your heating and cooling needs.
Keep up with annual maintenance to reduce the risk of costly repairs or breakdowns.
How HomeAdvisor Gets Its Cost Data
No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. After a project is complete, we survey real customers about the costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.
Frequently Asked Questions
Heat pumps rely on evaporation and condensation processes. The unit transfers heat through the system via a compressed refrigerant. The compressor within the pump circulates the refrigerant through two coils. The first coil evaporates the refrigerant and absorbs warmth from the air. The refrigerant then passes to the second coil, where it condenses, and the unit releases the absorbed heat.
A well-installed and well-maintained heat pump lasts an average of 12 to 20 years. Routine filter changes, annual tune‑ups, and prompt repairs help the equipment reach the upper end of that range, while skipped maintenance or poor installation can shorten its life and raise long‑term costs. Ask your heat pump installation pro for maintenance recommendations so you can get the maximum benefit from your unit.
Heat pumps are most effective in regions where winter lows remain above approximately 40°F. Efficiency starts to drop below that point and falls off sharply near 25°F. If you live in a colder area, look for a model with a high Heating Seasonal Performance Factor (HSPF) and plan on supplemental heat during deep freezes to keep energy use in check.
The biggest drawbacks are the upfront cost and poor cold-weather performance. Installation can require electrical upgrades or duct changes, and once temperatures fall well below freezing, the unit may need help from a furnace or electric resistance coils. Factor in those add‑ons, along with routine maintenance, when you weigh the long‑term savings against the initial investment.
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