How Much Does It Cost to Install a Hybrid Heat Pump?

Average range: $6,000 - $12,000
Average Cost
(3-ton heat pump with a 120,000 BTU gas furnace with minor adjustments in installation)

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Reviewed by Paula Reguero. Written by

If you live in a northern climate and are looking for a way to make your heating system more efficient, while also adding the option for cooling in the warmer months, consider a hybrid or dual-fuel heat pump. Hybrid heat pumps combine highly efficient heat pumps, which move heat into or out of your home, with a high-efficiency gas furnace. While not the best choice for every climate, dual-fuel heat pumps provide greater flexibility in heating, cooling, and lower energy bills in some northern areas.

There are many sizes, brands, and configurations for hybrid heat pumps, which impacts the project cost. The national average range is between $6,000 and $12,000, with most people paying around $8,500 for a 3-ton heat pump with a 120,000 BTU gas furnace for a 2,000 sq.ft. well-insulated home.

Hybrid Heat Pump Cost

Hybrid Heat Pump Installation Cost
National average cost$8,500
Average range$6,000-$12,000

Hybrid Heat Pump Cost by Project Range

2-ton heat pump with a 75,000 BTU gas furnace installed with no modifications
Average Cost
3-ton heat pump with a 120,000 BTU gas furnace with minor adjustments in installation
5-ton heat pump with a 200,000 BTU gas furnace with new ducts

How Does a Hybrid Heat Pump Work?

Hybrid heat pumps consist of two components - a heat pump, which cycles refrigerant between an outdoor compressor and an indoor air handler, and a standard forced hot air gas furnace. Heat pumps are more efficient at heating your home when the temperature outside is at least 30 to 40 degrees F. They are also very cost-effective, producing up to 300 times the energy that they use.

Because they only produce heat up to around 108 degrees as opposed to a furnace’s 150 degrees, they tend to be most comfortable when heating homes in moderately cold climates. When the outside temperature is colder, the furnace can be used to provide more comfortable heating.

The heat pump is installed with the compressor outdoors on a pad and an air handler indoors. The air handler also accommodates a standard gas furnace, and the two systems share the same ducts. You can manually switch between the two as needed if you notice that it is warming up outside and you want to save energy, or it is cooling down and your heat pump is struggling to heat your home.

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When to Use a Hybrid Heat Pump

Heat pumps can be very effective in most moderate to moderately cold climates. High-efficiency heat pumps can even be used when the temperature drops to 5 degrees F., although at that point, they may struggle to warm the house. That is why homes located in northern climates that regularly see temperatures below freezing or below zero do better with a dual-fuel heat pump rather than a standard heat pump.

While a standard gas furnace works fine in these climates, having a heat pump running 70% to 90% of the time can lower your energy costs. Heat pumps also provide the option to cool your home in the summer, which can be ideal for climates that only need air conditioning a few months out of the year, making central air conditioning too expensive.

Dual-fuel Heat Pump Size

Like any HVAC equipment, it is important to have your hybrid heat pump sized correctly to your home. Because it has two components - the heat pump and furnace - you want each of these sized to your home’s needs.

Hybrid heat pumps are only recommended for climate zones 6 & 7, as seen on this map by the U.S. Department of Energy. Each zone has a recommended number of BTUs needed for heat pumps and furnaces to effectively do their jobs.

Hybrid Heat Pump Cost

Hybrid Heat Pump Cost

ZoneBTUs for Heat Pump per square footBTUs for Furnace per square foot
620 - 24 per sq.ft.50 - 60 per sq.ft.
722 - 30 per sq.ft.50 - 60 per sq.ft.

After finding your climate zone, multiply the square footage you are heating by the number of BTUs in each column. This gives you the correct size for the heat pump and furnace for your home.

For example, a 2,000 sq.ft. home in zone 6 needs a 3 to 4-ton (40,000 - 48,000 BTU) heat pump, depending on insulation and a 100,000 to 120,000 BTU furnace. A zone 7 home will need the same size furnace, but a 3.5 to 5-ton (44,000 - 60,000 BTU) heat pump.

Heat pumps are sold by the ton, with one ton equaling about 12,000 BTUs. Furnaces are usually sold by the BTU, and you can use the same method to determine the size of the hybrid heat pump you need.

Below is a list of home sizes and heat pump and furnace size recommendations for homes in zone 6.

Hybrid Heat Pump Size

Hybrid Heat Pump Size

Home Size in Square FeetHeat Pump SizeFurnace Size
1,0001.5 - 2 tons50,000 - 60,000 BTUs
1,5002.5 - 3 tons75,000 - 90,000 BTUs
1,7502.5 - 3 tons87,500 - 105,000 BTUs
2,0003 - 3.5 tons100,000 - 120,000 BTUs
2,5004 - 5 tons125,000 - 150,000 BTUs

Dual Heat Pump Cost by Brand

The dual-fuel heat pump brand you purchase can influence its cost. Some brands have premium features or materials that raise their costs, while others may be less efficient and cheaper to purchase and install.

Below is a list of some top brands of hybrid heat pump manufacturers and their average costs.

Hybrid Heat Pump Prices

Hybrid Heat Pump Prices

BrandHeat Pump Cost (Unit Only)
Goodman$3,000 - $5,000
Heil$4,000 - $7,000
Rheem$4,500 - $8,000
Lennox$5,000 - $8,000
Carrier$5,000 - $9,000

Dual-fuel Heat Pump Installation Cost

Dual-fuel heat pumps have a range of associated costs for installation from $2,000 to $4,000. This is because you are essentially installing three pieces of equipment - the compressor, air handler, and furnace. This can take up to 6 hours to complete and may require modifications to existing equipment, such as ducts or gas lines. The average cost to install is around $3,000 out of the $8,500 total in most cases. But if you need new ducts or to locate your heat pump in an out-of-the-way area, expect to pay more.

Technician Installing Dual-Fuel Heat Pump

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Dual-fuel Heat Pump Efficiency

Dual-fuel heat pumps are very efficient, even though they are installed in very cold climates. The recommended efficiency rating for cold climates is at least 90% for furnaces, with most being 95% or higher, and heat pumps return 300 times the heat for the energy they consume. So, any hybrid heat pump you purchase will be highly efficient.

Factors Affecting the Cost of Installing a Hybrid Heat Pump System

Many factors affect the cost of your hybrid heat pump installation. The pump size, location, system complexity, and condition of your current ducts and gas line all impact the total project cost. High-efficiency furnaces also need an exhaust and a drain. If you do not already have these installed, your costs will be higher.

Dual-fuel Heat Pump vs Ductless Heat Pump

Ductless heat pumps are much more efficient at heating and cooling smaller spaces. They are also known as mini-splits, and they have an air handler installed in the room they are heating and cooling and a compressor outside. They are a good choice for small homes and additions where you do not have ducts. However, they do not work well for entire houses because they cannot heat very small rooms like bathrooms and need supplemental heat.

If you do not have ducts, this can be a less expensive solution, but you will need to install electric baseboard heaters to use in the rooms the ductless units cannot reach, as well as to supplement on very cold days. Because of this, your energy bills to heat your home will be higher than if you use a hybrid system, which uses less expensive natural gas when the heat pump is not on.

Dual-fuel Heat Pump Thermostat

Your dual-fuel heat pump can be operated manually with your current thermostat by switching from one to the other at the source. However, if you would like the system to work independently, you need to use a dual-fuel thermostat, which is wired to both systems and allows you to program it to make the switch between systems as needed. Programmable thermostats cost between $145 and $230 installed.

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Enhancements and Improvement Costs

Home Insulation

Before upgrading your HVAC system, it is always a good idea to improve the insulation in your home. This allows you to purchase a smaller system that runs more inexpensively. The cost to insulate your home is between $3,500 and $4,500.

Energy-efficient Windows

Replacing your windows is a good way to improve your efficiency, particularly if your windows are older. Replacement windows cost between $650 and $1,500 each.

Energy Audit

An energy audit determines where your home may be losing energy so that you can make upgrades for a better impact. Energy audits cost around $250.

Additional Considerations and Costs

  • Furnaces typically last about 10 to 15 years, but with a hybrid system, you may extend their lifespan because they will not work as hard. This can also mean lower maintenance and fewer repairs.
  • There are often higher costs involved in moving from a single system to dual fuel, such as wiring, gas lines, and other upgrades.
  • If you live in a moderate climate and already have a heat pump, it makes more sense to replace it than invest in a dual-fuel system. Dual-fuel works best in very cold climates where solo heat pumps cannot keep up.
  • Always check with an HVAC specialist to find out if a hybrid heat pump may be the right fit for your home.


  • How much is a dual-fuel heat pump?

The average cost of a dual-fuel heat pump installed is around $8,500 for a 2,000 sq.ft. home.

  • Is a dual-fuel heat pump worth it?

If you live in a very cold climate and already have ducts installed, then yes, they can pay for themselves in roughly 3 years.

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

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