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Heat pumps are an energy-efficient way to heat and cool your home–but the upfront cost can vary significantly based on several factors. In this guide, we break down what determines heat pump pricing, how much you can expect to pay and how to take advantage of heat pump tax credit and rebates.
Factors that Impact Heat Pump Costs
Heating and Cooling Efficiency Ratings: HSPF & SEER
Every residential heat pump sold in the United States comes with an EnergyGuide label displaying its efficiency metrics. Generally, the higher the heating and cooling efficiency indicated on the label, the higher the cost of the unit.
Heating Efficiency (HSPF): The Heating Season Performance Factor (HSPF) shows how efficiently a heat pump heats a home. It compares the total heat it provides during the season to the amount of electricity it uses. A higher HSPF means the system uses less electricity to maintain the desired temperature. All new heating systems must meet a minimum HSPF rating of 8.2 that is expected to be raised this year.
Cooling Efficiency (SEER): The Seasonal Energy Efficiency Ratio (SEER) shows how much energy a cooling system uses throughout the year. The higher the SEER, the more efficient the system is.
Climate & Location
Colder regions need specially designed cold climate heat pumps with advanced features (and a higher cost).
Installation cost can vary by region based on:
- Local labor rates
- Availability of incentives
- Regional demand
Size of Your Home
Large homes typically require more powerful systems (or multiple indoor units), which increases equipment and installation costs.
| Size of Home | Estimated Cost (Equipment + Installation) |
| 1,500 to 2,500 square foot home: | $17,000 - $23,000 (median $19,500) |
| 2,500 to 5,500 square foot home: | $22,500 - $28,000 (median $25,000) |
| 5,500+ square foot home: | $26,000 - $30,000 (median $29,000) |
Source: Rewiring America
System Type: Ducted vs. Ductless
The type of system you choose can significantly impact your overall installation cost. A ducted system typically relies on a single indoor unit—such as air handler—that distributes air throughout the home via ducts. This centralized approach is common in many homes and generally requires fewer components.
On the other hand, ductless mini-split systems often need multiple indoor units—usually one per room or zone. These do not depend on ductwork and can be installed as a separate system. While this allows for precise temperature control in different areas, it also increases costs due to the additional units as well as a more complex installation process.
System Type: Ducted vs. Ductless
| System Type |
Pros | Cons |
| Ducted | Centralized, uses existing ducts, fewer indoor units needed | Requires ductwork, can be invasive in older homes that lack ductwork |
| Ductless (Mini-Split) | Zoned control, efficient for retrofits | Requires multiple indoor units |
How Much Does a Heat Pump Cost?
| Item | Estimated Cost Range | Notes |
| Total System Cost | $17,000-$30,000 | Includes heat pump unit, installation and materials |
| Incentives | Varies depending on incentives available in your region | Heat pump tax credit and rebates can significantly reduce total cost |
Get a Competitive Price with Switch Together
Switch Together recognizes that the cost of a new heat pump system is a significant investment. One of the best ways to ensure you get the most competitive price is to get different quotes from contractors. Switch Together takes care of this process for you by hosting a competitive selection process with pre-vetted contractors. These contractors compete to offer their best bid to our group. Heat pump tax credits and rebates also significantly reduce the overall cost, making energy-efficient upgrades more affordable and accessible for homeowners.
