How much does heat pump installation cost?
Installing an air-source heat pump typically costs $4,500–$12,000 for a ducted system, before incentives. Cold-climate and variable-speed models sit at the top; federal tax credits and utility rebates can claw back $2,000–$8,000.
Ranges are typical planning guides — actual price varies by region, access, materials and your local pro. Always get a written quote.
| System | Typical cost | Notes |
|---|---|---|
| Standard ducted heat pump | $4,500–$8,000 | Replaces AC + supplements furnace |
| Cold-climate / variable speed | $8,000–$12,000 | Full heating replacement |
| Ductless mini split (single) | $2,000–$5,000 | No ducts needed |
| Geothermal | $18,000–$35,000+ | Ground loops; long payback |
What affects the price
Climate and model
In mild climates a standard unit does the job. In cold winters you need a cold-climate model rated to heat below 0°F — better hardware, higher price.
Backup heat
Many installs pair the heat pump with electric strips or keep the gas furnace as backup (dual fuel). The backup arrangement changes both cost and running bills.
Rebates and tax credits
The federal 25C tax credit covers 30% up to $2,000, and many states and utilities stack rebates on top — always price the job after incentives.
Pricing a job? Make a free quote or invoiceQuotesPad invoice & estimate maker — trade line items already loaded →FAQs
How much does heat pump installation cost?
Typically $4,500–$12,000 installed for a ducted air-source system, before rebates. Tax credits and utility incentives commonly bring the net cost down by $2,000–$8,000.
Is a heat pump cheaper to run than a gas furnace?
Usually yes where electricity is moderately priced or winters are mild — modern units deliver 3–4 units of heat per unit of electricity. In very cold regions with cheap gas, dual fuel often wins.
Do heat pumps work in cold climates?
Modern cold-climate models heat effectively at -5°F to -15°F. The old advice that heat pumps fail in winter no longer applies to current equipment.