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Heat pumps

How much does a heat pump system cost?

Warming home with a heat pump system is a great way to benefit the environments and your expenses.

Heat pump technology indeed is considered green because it takes the heat from the outside (the ground, the air or the water) - avoiding the burning of fossil fuels – and then pumps it inside your house.

heat pump heating system

One of the benefits of heat pumps is that they can be used both for heating (as the name says) and cooling the environment. If you want to know more about what are heat pumps, read our articles about how heat pumps work and what makes heat pumps sustainable.

However, before deciding whether to install a heat pump heating system, you should have an overview of the costs that come with it, and also how you can provide for them, considering also the different government grants that might help you financially. In this article:

  • Average cost of heat pump installation and heat pumps maintenance costs
  • US government funding for heat pumps installation

The average cost of heat pump installation

The cost of heat pumps can vary for different reasons. The national average heat pump cost stands at about $5,696.

overview of heat pumps prices

Heat pumps installation costs are made up of different factors. They include:

  1. The size of the heat pumps
  2. The type of heat pump
  3. The heat pumps efficiency
  4. The necessary equipment, the materials employed, and the labor required
  5. The size of your home
  6. The location and climate

Heat pump size

The price of your heat pump installation will change accordingly to the size (or, more correctly, the capacity) of the system. Here is a heat pump size chart.

heat pump size chart

As you can see, a small heat pump means smaller investment costs. However, remember that the bigger the heat pump you install, the surer it will be able to cover your heating needs.

 As heat pumps should substitute traditional heating systems to decrease your energy expenses, increased energy efficiency ultimately leads to lower costs. The most purchased heat pumps are those with a capacity of 3 tons.

Then… What size heat pump do I need?

The capacity of your heat pump should always be proportioned to the square footage of your home area and it is something you can’t measure precisely on your own. Make sure not to make mistakes and always consult a professional.

Different heat pump types

As we state in our 2023 Heat Pump guide, there are different types of heat pumps on the market. The type depends on where the pump takes the heat from the water, the air, the ground…

For example, if you buy a ground-source heat pump, it will cost less than a solar heat pump because the latter requires the installation of solar panels and the expenses related to them.

However, remember that solar heat pumps are a smart investment for your home: installing solar panels does not benefit only your heat pump system, but also your entire home. There are several things you can do with them, to know more read this article.

types of heat pumps cost

As you can see from this graph, a heat pump price can vary widely according to its type. This is why you should always consult a professional heat pump installer to make sure to have an overview of the prices of the kind of heat pump system you want and what might work best for you.

The efficiency of the heat pump system

How efficient your heat pump is will affect the cost to install heat pump systems. If your heat pump is less efficient, it will cost less. A high-efficiency heat pump, instead, will involve higher installation and purchase costs.

However remember that lower efficiency means a worse performance in heating or cooling your environments: always better to go for more expensive systems but more satisfying outcomes in the usage.

To measure the efficiency of your heat pump, there are 2 factors you can look at:

  1. The Heating Seasonal Performance Factor, which measures how good your heat pump is at heating during the heating season
  2. The Seasonal Energy Efficiency Ratio, which measures the cooling performances of your heat pumps in the cooling season

Equipment, materials, and labor

The installation of heat pumps requires specific equipment, different kinds of materials, and trained installers. Keep that in mind and make sure everything is included in your estimation.

Home size

The size (or capacity) of your heat pump should be adequate for your house. The bigger your living areas are, the bigger your heat pump will need to be able to heat (or cool) your environments.

size of home compared to costs of installation of heat pump systems

If your heat pump is not big enough, you might need to turn on your old heating system (or just freeze to death), therefore increasing the cost of your energy bill and nullifying the convenience of the heat pumps.

The location and climate

Where you live and the weather will also affect the efficiency (and subsequently the cost) of your heat pump.

First of all, your location will affect also the permits you need to install a heat pump. Indeed, different regions have different requirements and some might require you to pay an amount of money for the mechanical or building permit to install a heat pump. Always get informed with your local government whether you need any permit or fee to pay.

Secondly, consider the climate of your area. If you live in a very cold place, your heat pump will need to be more efficient than heat pumps in mild climates, then it will be much more expensive.

Also, the geographical characteristics of the area will affect the price: if, for example, the ground around your home hosts a high percentage of plants that burn fossil fuels, then it won’t be any green to use a heat pump (and you don’t want to do any bad to the environment, do you?).

Maintenance costs

Some expenses that you won’t make during the installation but in the longer term regard the maintenance of your heat pump system. If your heat pump breaks down, an installer will ask between $150 and $600 to repair it, depending on the seriousness of the damage.

 Of course, if your heat pump quote includes also a guarantee, then these services will be provided for free or for a reduced price (depending on your contract) by your installers.

A general yearly check will cost between $50 and $150. Sometimes, a regular tune-up will save you greater expenses for maintenance all at once in the future. Therefore, it might be convenient to have a heat pump maintenance plan included in your contract.

maintenance plan for heat pumps

Little maintenance work can also be done directly by homeowners.

Moreover, heat pump life expectancy is usually quite long – 20 years- so there won’t be the need for substitution anytime right after the installation.

These are all good reasons why you want to have a professional come on-site and consider your house situation and your budget needs.

For a free estimation, contact us. We will match you to the best heat pump installers in your area who will be able to guide and assist you to avoid possible heat pump problems.

US government funding for heat pumps installation

As the world is increasingly favoring eco-friendly heating alternatives to our traditional heating systems, also governments are trying to incentivize the switch to eco-friendly technologies, like heat pumps.

Grants and funding, or tax reductions for citizens who decide to install a heat pump are being enlarged all over the world and, recently, the Biden-Harris administration has also taken action to provide citizens who want to employ sustainable heating with financial help.

government funding for heat pumps

In August 2022 President Joe Biden signed into law the Inflation Reduction Law and, as a consequence, the High-efficiency Electric Home Rebate Program was created to increase the efficiency of electric homes. In simpler words: thanks to this specific government heat pump grant, American homeowners can cover the costs of a heat pump purchase and installation with a tax credit that can go up to $2000.

In 2023, moreover, if your income is low or moderate, you will be eligible for a rebate of up to $8000. If you consider the abovementioned costs, this cover almost the entire expense of a mid-efficiency heat pump installation.

Depending on the state you live in, municipalities have already offered different incentives for heat pumps. Check out your state-specific funding on your state’s official website.

Do I qualify for a heat pump tax credit or rebate?

Yes, if you pay your taxes. The new incentives apply for the heat pumps installed after the 1st of January 2023. The amount of money that you will be given back depends on your income:

  • Your household income is 80% of the median household income in your state: you can get 100% back
  • Your household income is 80% to 150% of the median household income in your state: you can get 50% back
  • Your household income is  more than 150% of the median household income in your state: you are not eligible

The tax credit includes also an amount of up to $1200 per year on expenditures related to efficiency upgrades. This means that part of your maintenance costs might be sustained by the State.

In the end… Are heat pumps worth it? Absolutely yes!

Even if installing a heat pump might seem a considerable expense, remember that with this sustainable type of heating come also a wide variety of advantages, not only to your finances but also to the environment.

If you want more information about heat pump systems and discover your opportunities, get in touch with us. We will match you to the best installers in your area for the best heat pump deals. Our partners provide free quotes with no obligation.

Last update: 28 May 2024

Written by Anna

MyGreenHome editors Team is a professional team of copywriters and writes with dozens of years of experience covering consumers, financial and business products and services

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