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Written byBen Luthi
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Ben LuthiInsurance Writer
Ben Luthi is a Utah-based insurance writer for Compare.com. With more than a decade of experience covering various insurance and personal finance topics, Ben is passionate about helping people make smart decisions with their money. His work has appeared on a variety of well-known personal finance websites, including the Wall Street Journal, Fortune, Credit Karma, Yahoo! Finance, Experian, NerdWallet, Insurify, and many more.
Ben has been writing for Compare.com since 2025.
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Edited byMatthew Gross
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Matthew Gross is an editor at Compare.com. With a background in editing and SEO, he’s passionate about creating content that helps readers get the information they need to make more informed decisions. Prior to Compare.com, Matthew brought his user-centered approach to his work with global brands like Apple and Adobe.
Matthew graduated from Illinois State University, where he earned his bachelor’s degree in Journalism.
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In This Article
Heat pumps offer an energy-efficient solution for year-round heating and cooling. But it’s important to understand the costs when considering an HVAC system upgrade. Heat pumps typically cost between $1,500 and $15,000 before installation. With installation, costs can range from $6,000 to $30,000.[1]
Several factors affect heat pump replacement costs, including your home’s size, the system’s energy efficiency rating, and local labor costs.[2] Here’s what you need to know about pricing and how to get the best deal on your new heat pump.
Average Costs to Replace a Heat Pump
You’ll typically pay between $6,000 and $30,000 for a complete heat pump replacement, including equipment and professional installation. The price of the unit itself typically ranges from $1,500 to $15,000.
The wide range of prices accounts for differences in capacity, efficiency, and installation complexity. A smaller, less-efficient heat pump will cost less than a larger or more energy-efficient model.
If your home doesn’t have existing ductwork, you might consider a single-zone mini-split heat pump. These units typically cost less but heat only a single room. A single-zone heat pump might make sense if you’re heating a small space, but it wouldn’t work for a multistory home.
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Factors That Affect Heat Pump Replacement Costs
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The price range for heat pump installation can vary significantly because multiple variables are at play. Here’s what you need to know about how much you’ll pay.
Heat pump capacity
The size, or capacity, of your heat pump directly affects the cost. Larger homes typically require higher-capacity systems, which cost more to purchase and install. Choosing the right size is essential for energy efficiency and comfort.
Heat pump efficiency
Higher-efficiency models cost more up front, but they can reduce your monthly energy bills. Look for SEER (Seasonal Energy Efficiency Ratio) and HSPF (Heating Seasonal Performance Factor) ratings to compare efficiency. More efficient units cost more but can save you money in the long term.
Size of your home
Larger homes require more heating and cooling power, which may mean a larger or multi-zone system. That can increase both equipment and labor costs. More square footage may also require additional ductwork upgrades.
Local climate and weather patterns
If you live in a region with extreme heat or cold, you may need a more robust or dual-fuel system, which can be more expensive. Homes in milder climates may get by with smaller or less powerful units.
Condition of your air handler and ductwork
If your existing air handler or ductwork is outdated or damaged, replacing or repairing it can add thousands of dollars to your total cost. On the other hand, reusing existing components can help keep costs down.
Local labor rates
Installation costs vary based on your location. Labor tends to be more expensive in urban areas or regions with higher costs of living. Getting multiple quotes can help you find the best value.
Warranties and maintenance plans
Some heat pump systems come with extended warranties or optional maintenance plans. While these can add to your up front cost, they may save money over time by covering repairs and ensuring optimal system performance.
How to Choose the Right Heat Pump
Choosing the right heat pump depends on your home’s size, layout, and climate. Here are a few tips to guide your decision:
Pick the right size for your home. A properly sized heat pump will heat and cool efficiently without overworking the system.
Consider your climate. If you live in a colder area, look for a cold-climate or dual-fuel heat pump for better year-round performance.[3]
Check for Energy Star certification. These models meet high efficiency standards and can lower your utility bills.[4]
Think about long-term value. While high-efficiency models may cost more up front, they offer greater savings over time.[5]
How to Get the Best Deal on a New Heat Pump
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Smart shopping can help you get the most value from your heat pump replacement. Here are some steps you can take to maximize your savings:
Get multiple quotes. Compare at least three estimates from licensed contractors to evaluate pricing and services.
Look for rebates and tax incentives. You may qualify for federal, state, or utility company rebates that reduce your out-of-pocket costs.[6] You could also get a discount on your home insurance.
Shop during the offseason. You may score better deals on installation during spring or fall, when HVAC service demand is lower.
Ask about warranties and maintenance plans. A good warranty or service plan can protect your investment and save you money in the long term.
Heat Pump Replacement Cost FAQs
If you’re budgeting for a new heat pump system, we’re here to help. Below are answers to some of the most common questions about heat pump replacement costs.
How much is a heat pump for a 2,000-square-foot house?
A heat pump for a 2,000-square-foot home typically costs between $4,000 and $17,500. The cost depends on the unit’s efficiency, the brand, and whether it’s a ducted or ductless system.
How much does it cost to install a heat pump?
Installing a heat pump can cost between $4,500 and $15,000. The final cost depends on local labor rates, home layout, and whether you need new ductwork or electrical upgrades.
What’s the downside to a heat pump?
Heat pumps can be less efficient in extremely cold climates and may require a backup heat source. They also have higher up-front costs than traditional HVAC systems.
What’s the heat pump tax credit for 2025?
The Inflation Reduction Act lets eligible homeowners claim a federal tax credit of up to 30% of the heat pump cost — capped at $2,000 — for qualifying energy-efficient systems.[7]
How long do heat pumps last?
Most heat pumps last 10 to 15 years with proper maintenance. But some high-quality models can last up to 20 years or more, depending on usage and climate conditions.
Related Articles
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Sources
- Rewiring America. "Heat Pumps: An Overview."
- Rewiring America. "How much does a heat pump water heater cost?."
- U.S. Department of Energy. "Heat Pump Systems."
- Energy Star. "Energy Efficient Products."
- U.S. Department of Energy. "Pump Up Your Savings with Heat Pumps."
- Energy Star. "Air Source Heat Pumps Tax Credit."
- Internal Revenue Service. "Home Energy Tax Credits."
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Ben LuthiInsurance Writer
Ben Luthi is a Utah-based insurance writer for Compare.com. With more than a decade of experience covering various insurance and personal finance topics, Ben is passionate about helping people make smart decisions with their money. His work has appeared on a variety of well-known personal finance websites, including the Wall Street Journal, Fortune, Credit Karma, Yahoo! Finance, Experian, NerdWallet, Insurify, and many more.
Ben has been writing for Compare.com since 2025.
Matthew Gross is an editor at Compare.com. With a background in editing and SEO, he’s passionate about creating content that helps readers get the information they need to make more informed decisions. Prior to Compare.com, Matthew brought his user-centered approach to his work with global brands like Apple and Adobe.
Matthew graduated from Illinois State University, where he earned his bachelor’s degree in Journalism.