Heat Pump Cost

How much does it cost to install a heat pump system?

A heat pump can help both heat and cool your home, which makes it more desirable to many homeowners over choosing oil or gas heat systems. New heat pumps can save your energy bill up to 20%, which makes them a potentially money-saving option in the long term. The cost of installing a heat pump varies depending on the size and age of the home, as well as desired efficiency for the heat pump. The average installed heat pump for a 2000 square foot home costs $2000-$8000.

Cost breakdown

  • Materials: there are two main types of heat pumps 1: air-to-air and geothermal. Geothermal pumps are the most common and average around $3000; you'll also need to buy high-density polyethylene 2 pipes to put in the ground, but most specialists include these in the overall price. Air-to-air pumps run around $1000.
  • Labor: the majority of costs for this project come from the required labor. Air-to-air pumps are the least expensive because they don't require ductwork and can be installed on your own in many cases; budget around $1000-$2000 in labor costs. Plan to spend around $4000 in labor costs for a geothermal unit, as it will take a team of specialist at least three full days to install the pipes and the entire system.

Enhancement and improvement costs

  • Your heat pump and HVAC system will be efficient if your home is well insulated. Replacing wall insulation costs between $0.73-$0.95 per square foot, but can lower your heating bill in the long run.
  • Extra heat features can increase your overall costs. Plan to spend an extra $1.75 per square foot to add radiant in-floor heating 3 or $1700-$3000 for a pellet stove for added warmth and ambiance.

Additional considerations and costs

  • If you are changing the heating system at your home, especially if you are digging into the ground for a geothermal heat pump, you will likely need a permit. Your contractor should be familiar with your local regulations.
  • Water source heat pumps are a good option for commercial businesses, such as schools, hospitals, and office buildings. They offer more power than is needed for a standard home, so look at other heat source options for home use.
  • Although geothermal heat pumps are the most expensive to install, they tend to have the lowest maintenance costs because the majority of the system is underground.
  • Installing an energy-efficient heat pump, especially geothermal, may make you eligible for a tax credit of up to $2000. Specific requirements change every year, so check with your contractor or tax specialist.

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Remodeling Terms Cheat Sheet

Definitions in laymen's terms, cost considerations, pictures and things you need to know.
See full cheat sheet.
1 Heat pumps: A device used to heat or cool the air in a home by moving hot and cold air to where it is needed. The unit pulls hot air from inside the home in the summer and directs it outdoors, leaving the inside air cool, and pulls heat from outdoors in the winter and directs it into the home, thereby warming it
2 Polyethylene: A resilient, pliable, synthetic resin made by polymerizing ethylene and primarily used for containers, packaging, corrosion-resistant piping, and insulation
3 In-floor heating: A heating system using tubes or electric wires installed underneath the flooring

Cost to install a heat pump system varies greatly by region (and even by zipcode). To get free estimates from local contractors, please indicate yours.

Labor cost by city and zipcode

Compared to national average
Arlington, TX
+6%
Arvada, CO
-3%
Belleville, NJ
+27%
Boca Raton, FL
0%
Bronx, NY
+32%
Brooklyn, NY
+16%
Buffalo, NY
-1%
Chicago, IL
+40%
Chula Vista, CA
+8%
Cleveland, OH
+7%
Colorado Springs, CO
-3%
Columbus, OH
+5%
Dallas, TX
+10%
Denver, CO
+1%
Detroit, MI
+16%
Durham, NC
-1%
Fort Lauderdale, FL
+2%
Fort Worth, TX
+6%
Houston, TX
+24%
Indianapolis, IN
+6%
Jacksonville, FL
-1%
Joplin, MO
-26%
Las Vegas, NV
+7%
Lebanon, PA
-16%
Los Angeles, CA
+11%
Miami, FL
+1%
Milton, FL
+97%
Nashville, TN
+21%
New York, NY
+77%
Nokesville, VA
+21%
Norfolk, VA
-6%
Oklahoma City, OK
-12%
Old Fort, NC
-31%
Orlando, FL
+2%
Pasadena, MD
+5%
Petaluma, CA
+10%
Philadelphia, PA
+40%
Portland, OR
+11%
Raleigh, NC
-3%
Richardson, TX
+11%
Richmond, VA
+4%
Sacramento, CA
+8%
Saint Louis, MO
+16%
Saint Paul, MN
+20%
San Antonio, TX
-4%
San Diego, CA
+11%
San Jose, CA
+33%
Santa Clara, CA
+33%
Scranton, PA
-9%
Tacoma, WA
-1%

Labor cost in your zipcode

Methodology and sources