Buying a central heat pump for your entire home can cost $8,000–$15,000, but pricing can vary widely depending on the equipment type, capacity, and efficiency. Heat pumps offer a modern and energy-efficient alternative to conventional home furnaces, boilers, and resistance heaters. Many models also offer reversible operation, functioning as space heaters during winter and air conditioners during summer—eliminating the need to have two separate units to heat and cool your home. 

In this article, the This Old House team will break down heat pump costs, how to save money on this type of heating system, and when to consider getting a replacement.

---

What Is the Average Cost of a Heat Pump?

You can find mini-split single-zone heat pumps, meant to regulate the climate in a single area of your home, for around $1,500–$5,000, while a central heat pump for an entire home can range from $8,000–$15,000. Premium efficiency models from leading manufacturers such as Carrier and Trane can exceed $20,000, especially if you require a central unit for a large home.

You can classify most heat pumps into two models: air-source heat pumps (ASHP) and geothermal or ground-source heat pumps (GSHP). Both types offer more efficiency than traditional resistance heaters, but geothermal heat pumps are the most efficient overall. However, ASHPs typically cost less than GSHPs, making them a popular option among homeowners. 

You can compare average price ranges for different types of heat pump systems using the following table.

Heat Pump Type	Usage	Equipment Cost	Installed Cost*
Mini-split heat pump (air-source)	A single room or area in your home	$1,000–$3,500	$1,500–$5,000
Central heat pump (air-source)	Your whole home	$2,000–$5,500	$8,000–$15,000
Premium central heat pump (air-source)	Your whole home	$6,000–$12,000	$12,000–$20,000
Geothermal heat pump	A small or medium home	$4,000–$8,000	$12,000–$25,000
Geothermal heat pump	A large home	$8,000–$15,000	$30,000 or more

*We estimated cost ranges based on industry data and market research. The actual cost of a heat pump installation can vary widely depending on factors such as your local climate and home design. For a detailed and accurate quote, we recommend contacting a professional installer near you.

---

What Factors Affect Heat Pump Costs?

The cost of installing a heat pump depends on multiple factors, such as the unit’s heating capacity and efficiency rating. We talk more about these factors below. 

Heat Pump Capacity

A heat pump is considered an HVAC component since it works to keep your home temperate-controlled. In general, the cost of HVAC equipment increases along with its nameplate capacity. Assuming you compare heat pumps of the same type and quality, a 5-ton unit is likely more expensive than a 3-ton unit. Larger homes also require more heating and cooling to keep a comfortable temperature, which translates into a larger heat pump.

Heat Pump Efficiency

The heating efficiency of a heat pump is measured by the heating seasonal performance factor (HSPF), which is similar to the miles per gallon (MPG) rating of a vehicle. A higher HSPF indicates greater efficiency, which means the heat pump uses less electricity to produce the same amount of heat. For example, an 8 HSPF heat pump delivers 8,000 British thermal units (BTU) of heat per kilowatt-hour (kWh) of electricity consumed, while a 10 HSPF unit delivers 10,000 BTU per kWh.

For reversible heat pumps, which can heat or cool a space, the cooling efficiency is measured by the seasonal energy efficiency ratio (SEER), which is also used for air conditioning systems. The SEER works similarly to the HSPF, but applies to cooling modes. For example, a 15 SEER heat pump will deliver 15,000 BTU of cooling per kWh, while a 20 SEER unit delivers 20,000 BTU per kWh.

Typically, an ENERGY STAR-certified heat pump with high HSPF and SEER ratings is more expensive than a unit that only meets basic efficiency standards. It’s important to note that the HSPF and SEER indicate heat pump performance under ideal conditions. Actual performance can vary in real-world applications, but these metrics can help you estimate efficiency when comparing different heat pump models.

Type of Heat Pump

As previously mentioned, you can classify most heat pumps into air-source (ASHP) or ground-source (GSHP), which indicates the heat-exchange medium used to heat and cool your home. An ASHP exchanges heat with outdoor air, just like an air conditioning system. A GSHP exchanges heat with the ground, usually at a depth of several feet.

Since underground temperatures are more stable than outdoor air temperatures throughout the year, GSHPs offer more efficiency than ASHPs. However, a GSHP requires a water piping loop to exchange heat with the ground, which increases installation costs.

You can also further classify heat pumps into three types based on the unit’s compressor design: single-speed, two-speed, or variable-speed. Single-speed compressors are more affordable due to having a simple design, but are also the least efficient, while variable-speed compressors are the most efficient and expensive. Two-speed compressors offer a balance of price and efficiency.

Warranty Terms and Maintenance Plans

A warranty can offset the cost of repairs or replacements if your heat pump malfunctions after purchase, whereas a maintenance plan can keep your equipment running over time. Heat pump warranty coverage varies depending on the brand and model. Leading manufacturers usually provide a 10-year compressor warranty and a 5-year parts warranty. In some cases, you may have the option to purchase an extended warranty.

Many heat pump installers also offer paid maintenance plans, which may include features such as periodic inspections and remote monitoring. Extended warranties and monitoring plans increase your budget, but also help safeguard your investment.

Local Codes and Permitting Requirements

Since a heat pump is part of an HVAC system, local municipalities have codes and permitting requirements in place for installation. Code requirements and permitting procedures for HVAC equipment vary by location. If your city has a stringent building code, design requirements can increase the cost of a heat pump installation. Additionally, permitting fees for heating and cooling equipment can vary significantly depending on your location.

Additional System Upgrades

Heat pumps rely on other system components to provide heating and cooling for your home. Depending on the condition of your HVAC system, you may need additional work to ensure your new heat pump operates efficiently. For example, older systems may require ductwork repairs or electrical wiring to integrate with a modern heat pump.

---

Heat Pump Costs by Brand

Heat pump manufacturers usually don’t publish pricing information on their websites. To get an accurate quote, we recommend contacting a licensed HVAC installer in your area. To help you get an idea of pricing, we researched typical costs of central heat pumps from U.S. brands. 

Brand	Average Cost (Without Installation)
Amana	$3,600–$11,000
American Standard	$3,500–$10,900
Carrier	$3,000–$15,000
Goodman	$2,000–$8,000
Lennox	$3,100–$15,000
Rheem	$3,100–$6,100
Ruud	$3,000–$6,100
Trane	$3,500–$15,600
York	$4,000–$10,000

Keep in mind that heat pump manufacturers typically offer multiple product tiers. For example, Carrier and Trane are often ranked among the top brands, but their heat pump selection includes both premium and affordable product lines.

---

How Can You Save Money on a Heat Pump?

Our team recommends comparing heat pump quotes from multiple installers to find the best deal. If you accept the first quote you get, you could miss out on higher-quality equipment or better pricing. Keep in mind that equipment costs represent only a fraction of the total price you pay, which means a high price doesn’t always guarantee a high-quality heat pump. Also note that heat pump efficiency is not equivalent to product quality—high-efficiency models are available from both leading brands and value brands.

Since heat pumps operate at high efficiency and with zero onsite emissions, they often qualify for tax incentives and equipment rebates. The 2022 Inflation Reduction Act introduced a federal tax credit for air-source heat pumps that meet ENERGY STAR criteria. This is a nationwide incentive that offers a tax credit worth 30% of project costs, up to a maximum of $2,000.

Depending on your state and city, you may find additional incentives offered by the local government or electric utility company. You can search for heat pump incentives in your area at the Database of State Incentives for Renewables and Efficiency (DSIRE).

---

When Should You Replace Your Heat Pump?

Replacing your heat pump is worth considering if you have an older unit that no longer provides effective heating, or suffers from frequent breakdowns. A heat pump upgrade is also worthwhile if your current unit has a much lower efficiency than the latest models available in the market. Here is a list of scenarios when you might consider getting a heat pump replacement:

• End of service life: Your heat pump has reached the end of its lifespan, which is usually around 15 years, according to local installers.
• Inefficient operation: You have an older heat pump with a low HSPF and SEER, and want a newer model that consumes less electricity.
• Frequent and costly repairs: Your heat pump has suffered major damage or frequent breakdowns, and replacing the unit is more cost-effective than ongoing repairs.
• Home expansion: You plan to expand your home, and your current heat pump cannot provide enough heating or cooling.
• Upgrading your HVAC system: If you have a traditional HVAC system with a separate air conditioner and furnace, a heat pump can accomplish the functions of both devices. In this case, you can save on energy bills while upgrading to a fully electric HVAC system.

---

What Are the Benefits of a Heat Pump?

A heat pump offers both economic and environmental benefits, while qualifying for tax incentives and local rebates. Here is a list of the main benefits of upgrading to a heat pump:

• Energy savings: A typical heat pump uses 40%–60% less electricity than a traditional electric resistance heater of the same capacity, lowering your energy costs.
• Reduced emissions: High-efficiency heat pumps can match the operating cost as a gas furnace, without the carbon emissions produced by fuel combustion.
• Tax incentives: Heat pumps often qualify for tax incentives and local rebates due to the high efficiency and combustion-free operation. 
• Dual function: Many heat pumps are reversible, operating as both space heaters and air conditioners throughout the year. The most efficient models can match a high-efficiency air conditioner when operating in cooling mode.
• Improved comfort: The latest heat pumps use variable-speed compressors and smart controls to achieve greater control of your indoor temperature, improving comfort.

---

Is a Heat Pump Worth the Cost?

Upgrading to a heat pump is worth considering if you’re looking for economic and environmental benefits, coupled with a federal tax credit of up to $2,000. A typical heat pump achieves median savings of $300–$650 per year according to the National Renewable Energy Laboratory (NREL), but this figure can increase to more than $1,000 per year when upgrading inefficient HVAC systems. 

For example, if you have an old air conditioner and furnace, you can upgrade to a heat pump for less than $10,000, which drops to $8,000 after the federal tax credit. In this case, you could achieve a payback period of around eight years.

---

FAQs About Heat Pump Costs

What is the downside to a heat pump?

Heat pumps offer energy savings while lowering your home’s emissions. However, heat pumps can have a high upfront cost of upwards of $15,000. Additionally, modern units with variable-speed compressors and smart controls have more complex maintenance needs than traditional HVAC systems. Air-source heat pumps also suffer from low performance when temperatures drop below 0 F, and may require a gas furnace or resistance heater as backup.

Is it cheaper to use an air conditioning unit or a heat pump?

Assuming both units have the same cooling load, the system with the highest SEER rating should have the lowest electricity consumption and operating cost.

How much is a heat pump for a 2,000-square-foot house?

The heating and cooling requirements of a 2,000-square-foot home vary depending on factors such as the local climate and insulation levels. However, a home of this size will usually require a heat pump with a capacity of around 3–5 tons, which can cost $8,000–$16,000 depending on its brand and features. If you select a top-tier high-efficiency heat pump, your total project cost may exceed $20,000.

Do heat pumps have ongoing maintenance costs?

The typical maintenance tasks for a heat pump include the following:

• Filter inspection, cleaning, and replacement as needed
• Refrigerant level inspections and recharging
• Electrical and electronic component inspections
• Condenser unit inspections and cleaning
• Annual tune-ups

The compressor is the most expensive component of a heat pump. To protect your investment, we recommend looking for a unit with a 5–10 year compressor warranty.

To share feedback or ask a question about this article, send a note to our team at reviews@thisoldhousereviews.com.