How Much Does it Cost to Install a Heat Pump?

heat pump installation can make a significant difference to your energy bills as it helps reduce the cost of cooling & heating your property. This acts like a Furnace replacement as well as an AC replacement. Depending in the type of heat pump you choose and the size of your home, the cost of a heat pump installation can be in the range of $3,955 to $6,773.

If you are considering purchasing a geothermal pump, that would require underground installation that would increase the installation costs; these would be higher than what you would pay for installation of an air-source pump. While the purchase and installation of a heat pump represent a significant investment, it is a very energy-efficient system and can reduce the amount you spend on your utility bills in the long term.  Before we go into details about how much it costs to install a heat pump, you would have to take these aspects into account:

Installation Cost Considerations

The amount of excavation required will impact the installation cost. Ensure you consult and discuss this with a few well-established heat pump installers and get quotes from them. This is because there can be a significant variation in installation costs. For instance, if the project involves drilling through a driveway or a concrete slab, it will escalate the overall cost of the heating system replacement, in comparison to an installation in which no excavation is involved.

1. Expenses involved

These are the expenses that would have to be kept in view while installing either an air-source pump or a geothermal one:

    • Heat Pump – The amount you pay for the heating pump unit; there can be a wide variation in pricing depending on the brand, model,


     and type of pump. Installation – This includes preparation of the area where the pump is to be installed, all the standard equipment required, labor and planning cost. It may also be inclusive of the cleanup of the site once the project is complete. Materials and Supplies – This includes the cost of all the pipes, hardware, fittings etc., Since there is pipe fitting involved in the installation of ground source pumps, the supplies and material costs are generally much higher in these projects. Specialty Equipment Fees – In certain projects additional equipment such as brazing kits and pipe cutters are required in the work and that is included in these fees.
    Your home’s size

This is one of the most important aspects that determine the cost of your heat pump installation. A larger house would need a pump of a higher capacity to meet its heating & cooling requirements. The higher the capacity of the unit, the more you shell out for it. It’s important that you don’t try to cut costs by opting for a pump of a lesser capacity; that will only cause you to spend more in terms of energy usage.

Aside from this, it will stress the system and reduce its lifespan, and you would eventually have to replace it sooner than required.  The unit should be sized based on the maximum heating and cooling demand. You would have to take the square-footage of the space into account while determining the heat pump size.

2. Sound Rating

It’s also very important that you factor in the sound rating; look for one that has a lower rating as the ones that are noisy can actually cause the exterior walls closest to the installation, to vibrate when they are in use.

3. Climate

heat pump is always the most–effective in a temperate climate; if the climate in your area is extremely hot or cold, the system will end up using more energy than it should to maintain the indoor temperature at the desired levels. This is why something that is easy on your pocket might not always be an excellent option if you live in a region with a hot and humid or even a very frosty climate.

4. Split/Packaged System

You would have to decide whether you want a spilt system or a packaged one. The former has an exterior unit as well as an indoor one. On the other hand, a packaged model is an all-in-one system that is fitted outdoors; it doesn’t have an indoor element.

5. Ducting

This is another factor you would have to take into account. If your property doesn’t have ducting installations, you may want to consider opting for a ductless system. This requires only one small hole in the wall to connect the outdoor unit with the indoor unit. Certain short run models are ideal for smaller areas in a home, like rooms that have ductwork installed.

6. Number of Rooms

You would have to keep in view the number of rooms that require heating or cooling. A single zone system can be used to heat only one area of the house and will have only one interior unit and one exterior installation. In comparison, a multi-zone unit can have multiple indoor units connected to a single condenser unit which is located outdoors. All of these factors have bearing on the cost of the heat pump you decide to install on your property.

Understanding Heat Pump Pricing

Every heat pump manufacturing company generally offers high/mid and low-quality systems. The cost of the heat pump will be dependent on the SEER and HSPF ratings. A system with a higher energy and a higher HSPF score will cost more than one with lower ratings. Most homeowners opt for a mid-quality heat pump, and spend in the range of $700 and $2,800 for it (excluding labor expenses). Based on the model and brand as well as installation factors such as excavation and drilling, the cost can eventually reach $9,000.

Most heat pump manufacturers don’t display unit prices since there are a number of factors that impact the overall cost. However, the average cost of major heat pump brands for their 3-ton models could be in the range of  $5,000- $9000 for labor and all the standard supplies and material. If more pipe work is involved that cost would have to be factored in as well.

Today, you will also find a number of hybrid heat pumps that pull energy from gas boilers; absorption pumps operate on water that’s heated by geothermal energy /solar panels. However, these aren’t as commonly used as the heat pumps we just talked about and their unit and installation costs are