In recent years, heat pump systems have grown in popularity among many homeowners. Heat pumps are versatile, energy-efficient home appliances that can both heat and cool a home.
There are numerous types of these systems, with at least one suitable for your home and needs. They can also help to reduce heating costs by up to 80%.
With all of these benefits, it’s natural to wonder, “How much do heat pumps cost?”
In this article, we’ll break down the answer to this question by looking at the cost differences between various heat pump types, as well as installation costs. We’ll also take a look at other factors that affect heat pump costs, so be sure to stick around!
Heat Pump Types and Installation Costs
There are various types of heat pumps available, all of which have one thing in common: they extract heat from their surroundings and transfer it inside as warm or cool air. That’s where the similarities end, though.
Each type has its advantages and disadvantages at different price points, which is why a heat pump type is one of the most significant factors affecting how much your heat pump costs.
Let’s take a closer look at some of the most common heat pump types and the related costs:
Air Source heat pump (Air to air system)
Air-source heat pumps work by transferring heat from an outside compressor to indoor handlers. They’re inexpensive to install and work well in temperate climates.
These pumps can cost between $4,500 and $8,000, but more high-end options can cost more than $10,000. These prices primarily depend on the unit’s capacity and its brand.
Geothermal heat pump
Geothermal heat pumps, also known as ground-source pumps, are installed underground and range in price from $13,000 to $36,000. The high cost of this system is due to the underground excavation required to install the pumps.
While geothermal heat pumps are one of the most expensive systems, they’re the most energy-efficient. A geothermal heat pump system can cut your energy bills by up to 80%. What’s more, it can function normally even in extreme cold.
Ductless mini-split heat pumps are installed similarly to air-source heat pumps, with an outside compressor and multiple air handlers serving different zones inside. They work well in small houses without a duct system.
These heat pumps typically cost between $1,000 and $5,000. They’re one of the most affordable systems because installation is relatively simple and costs between $500 and $1,500.
However, depending on how many zones the system will serve in the house, mini-split pumps can cost up to $14,500.
A dual-fuel hybrid system is a combination of heat pumps and gas furnaces. This hybrid system allows you to run the heat pumps when it’s warm and the furnace when it’s cold. It’s most ideal for areas where temperatures drop below 32°F.
Prices vary depending on whether you’re adding heat pumps to an existing furnace or installing an entirely new hybrid system:
- A new heat pump added to an existing furnace costs between $2,500 and $6,000
- A new dual-fuel hybrid system can cost anywhere from $4,500 to $10,000
Solar heat pump
Solar heat pumps are significantly more expensive than other types of heat pumps, ranging in price from $18,000 to $39,000. The high price is due to the cost of the solar panels.
While solar heat pumps are initially expensive, depending on the setup, they can be used to cover a portion of the electricity demand or capture energy to feed the pump’s evaporator.
This system is available in two setups. One setup uses solar panels to power the compressor. The other setup is similar to a solar water heater in that the solar panels heat an intermediate fluid that assists the pump.
Gas-fired heat pumps cost between $3,000 and $6,000 per unit, with installation costs ranging between $1,300 and $2,000. On average, the overall cost of a gas-fired system is between $4,500 and $8,000.
This heating system is powered by gas, which makes it less energy-efficient than other heat pump types. However, it’s an excellent choice for buildings where electricity is scarce or costly.
You’ll usually find 5-ton gas-fired units in commercial installations, large buildings, or extremely homes larger than 4,000 square feet.
Heat Pump Installation Cost Breakdown
Many of us may get thrown off by the relatively high price of heat pump system installation. However, it’s easier to understand where the money goes if we look closely at what constitutes installation costs.
- Labor costs: depending on the heat pump type, labor costs can vary. The more effort and time installation requires, the more costly the job will be
- Permit fees: you may need to obtain a couple of permits, which may increase the cost
- Equipment: any materials and supplies that the contractor uses are included in the installation costs
- Duct system: if your house doesn’t have an existing HVAC system, installing new ducts could cost you anywhere from $1,900 to $6,000, depending on the project’s complexity
Other Factors That Affect Heat Pump Cost
Along with basic heat pump type and installation costs, other factors may affect how much you’ll have to pay to install a heat pump system:
- Capacity: the size of your home determines how many tons the unit will need to heat the space efficiently. The larger the size of your home, the higher the price
- Location and Climate: warmer locations can make do with smaller air-source units, which are affordable. Colder locations, however, need larger units, which are more expensive
- Brand quality: Most brands offer both affordable and high-end heat pumps. The unit’s price will depend on its brand name, features, reliability, efficiency, and performance
- Seasonal Energy Efficiency Ratio (SEER): Heat pump SEER ratings range from 13 to 24. The higher the SEER rating, the more efficient the unit, and the higher the price
- Heating Seasonal Performance Factor (HSPF): Heat pump HSPF ratings fall between 8.2 and 13. The higher the number, as with SEER, the more efficient and expensive the unit is
Heat pumps are an excellent option for homeowners looking for a low-energy heating system. However, it’s well known that they can be costly to install.
As a result, one of the most frequently asked questions among homeowners is, “How much do heat pumps cost?”
Heat pumps can cost anywhere from $1,000 to $39,000. While these prices are higher than you may expect, heat pumps are two to three times more efficient than other HVAC systems.
What’s more, they help you save money in the long run due to their low maintenance costs and energy efficiency.
So, if you’re looking for a convenient, environmentally-friendly, and cost-effective heating system, a heat pump is the way to go.