The Complete Guide to Heat Pump Installation Costs in the US

There is a good reason why 25 state governors are pushing to have 20 million heat pumps installed by 2023. If they reach this goal, the number of installed heat pumps will be four times higher than the figure for 2020.

Heat pumps are the preferred, cleaner alternative to gas furnaces. And they offer an additional air conditioning function, which is perfect for summer. Other advantages of heat pumps include lower operating costs due to higher energy efficiency and reduced carbon emissions.

If you want to invest in a heat pump for your house, you must consider all the influencing factors. On average, installing a heat pump costs about $6,800, but the following guide will help you understand the extra costs so you can make an informed decision for your home and pocket.

How Do Heat Pumps Work?

Before looking at the costs, knowing how heat pumps work is essential. A heat pump transfers heat from one place to another. It is a heating and cooling system that gets heat from the outside and transfers it inside. It could be an air-source heat pump or a ground-source heat pump. In the summer, this process reverses to provide cool air inside. 

Factors That Influence Heat Pump Installation

Consider the following factors to establish an estimated cost for your preferred heat pump:

• Type and Size of Heat Pump: The type of heat pump you choose will affect the installation costs. Ground-source heat pumps are more expensive because they are installed underground. The heat pump’s size must match the heating and cooling requirements of your house so you don’t pay more for your energy bills. A well-sized heat pump will work more efficiently and cut down on monthly costs. 
• Existing Ductwork: If you already have ductwork in your house, contractors can use it to install an air-source heat pump. But, if you choose a ductless mini-split heat pump, they may need to install extra indoor units, which increases costs. 
• Weather and Location: If you live in a cold state, you may need to invest in a more powerful heat pump system. The depth at which the heat pump is installed will likely vary in a colder location, so that you may pay more.
• Energy Efficiency: High-efficiency heat pumps cost more upfront but will save more money over the long term. This is because they use less energy to function. 
• Labor Costs, Permits, and Regulations: You should only hire reputable contractors for a heat pump installation. You can ask for a labor estimate or all-inclusive quote before they start working. Labor costs will vary depending on your location and the job complexity.

In addition to installation costs, you may need to get a permit to install the heat pump. Also, you may have to pay for an inspection, which can add to the overall cost. Always check local regulations and mechanical permit requirements before buying a heat pump. 

Average Heat Pump Installation Costs in 2023

Installing a heat pump ranges from $2,500 to $10,000, with the average amount hovering around $6,800. Estimated costs include: 

• Air-Source Heat Pump

You will likely pay between $2,500 and $7,500 for an air-source heat pump installation in 2023.

• Ground-Source Heat Pump

Ground-source heat pump installations cost significantly more, so expect to pay between $7,000 and $25,000 or more. 

Remember, these are only estimates. The actual cost for your project will differ. The best way to get an accurate cost is to ask for quotes from reputable contractors. 

Additional Costs

In addition to the installation cost of your heat pump, there are other expenses to be aware of. Like any heating or cooling system, your heat pump will require regular maintenance to extend its lifespan. You should include these costs in your initial budget. You should also consider buying an extended warranty to help protect your heat pump investment. 

Heat pumps are incredibly energy-efficient, but it’s important to note that your energy bills may fluctuate as the seasons change and the process reverses. Moreover, if your electrical system or home infrastructure needs an upgrade to accommodate a heat pump, it will also add to initial costs. However, if your state offers partial heat pump financing or government incentives, it may help offset some of the costs. 

Benefits of Installing a Heat Pump

Installing a heat pump in your home is an environmentally friendly and cost-effective way to regulate indoor temperature. So, while heat pump installation costs may vary or seem expensive, heat pumps offer unmatched long-term benefits in terms of energy savings.