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Heat pump installation: what drives the cost

A heat pump heats and cools with one system. The equipment is only part of the quote; the house it goes into decides the rest.

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The short version

What sets the price
System size, the state of the ducts and the electrical work needed.
What it replaces
A furnace and an air conditioner, with one system doing both jobs.
Ask first
How the installer worked out the size for your house.

A quote should spell out

  • The model numbers and the capacity of the equipment.
  • How the size was calculated for the house.
  • What work on ducts and wiring is included.
  • Who pulls the mechanical permit and books the inspection.

What pushes the price up

  • Ducts that leak or are too small for the new system.
  • A panel that needs an upgrade or a new circuit.
  • A house with no ducts at all.
  • Removing an old furnace, fuel tank or gas line.

The parts of the decision

  • EfficiencyThe Department of Energy says modern air-source heat pumps can reduce electricity use by 50% compared to furnaces and baseboard heaters.
  • SizingA system too large cycles on and off; one too small runs without catching up. The size should come from a calculation, not from the old unit's label.
  • Electrical workA heat pump may need a new circuit, and sometimes more panel capacity. See our electrician pages for what that involves.
  • PermitReplacing heating and cooling equipment is permitted work in many cities. Our city guides name the office for each area.

How the job usually goes

  1. A visit to measure the house and inspect the ducts and panel.
  2. A written quote with equipment, scope and price.
  3. The permit, then removal of old equipment and installation.
  4. Start-up, testing and the inspection.

This page gives no dollar figures on purpose. Rebates, tax credits and local labor rates move the number too much for a national average to help. Two or three written quotes for the same scope will.

Related guides

Sources

  • US Department of Energy
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