In early 2022, the average cost of heat pump installation was $5,500, according to Forbes, with a range of $2,500 to up to $10,000.1 HomeAdvisor states a typical range of $4,166 to $7,445.2 Installing a heat pump is an investment, but technological improvements are allowing their use in a wider range of climates. And since heat pumps can heat and cool your home and draw heat from natural sources, they provide efficient comfort year-round.
Nonetheless, the cost is typically a priority for homeowners. The final price depends on many things; here are some factors that your heat pump installation company may use in determining what to charge:
Type of Heat Pump
Air-source heat pumps, which have fewer installation requirements, can range from $2,000 to $5,500 to install. More complex geothermal systems can cost up to $6,000 as can a hybrid system. Solar heat pumps range from $2,000 to $5,000. A ductless mini-split can cost you anywhere from $1,000 to $3,500.1 In some circumstances, geothermal systems can cost up to $25,000 and solar installations can range up to $30,000! (even an air-source system can cost up to $12,000 in some cases).3
Like other HVAC systems, heat pumps are rated in tons when it comes to capacity. The higher the tonnage, the more the system typically costs. A 2-ton heat pump ranges from $3,500 to $5,500 while a 3-ton system can run from $3,900 to $6,200. A 5-ton unit can cost from $4,500 to $8,800.2 Generally, a heat pump’s size should match the square footage of your home and maximum demand, so you pay less in energy costs over time. For example, a 4-ton heat pump is usually best suited for a 2,000-square-foot home.
Single-stage heat pumps operate on or off. The simplest type, they cost less upfront. If you have the budget, it can be economical over time to purchase a two-stage or variable-speed heat pump that is more efficient. Your heat pump installation company may suggest options, depending on your home, such as split systems (for homes without ductwork), or packaged outdoor units that save space.
Costs vary considerably by brand. A heat pump from Panasonic may cost as little as $1,300 while one from Bosch may run up to $8,200 for the equipment alone. Lennox heat pumps can cost up to $4,500 and a Carrier heat pump can cost you as much as $4,000.1 The installer can discuss options based on your home and what you can afford.
Climate and Location
Where you live has a big impact on what a heat pump company charges. In a warmer climate, you won’t need as big or as efficient a system. Therefore, it should cost less. But in colder climates, larger, high-efficiency heat pumps are more in demand. They also often require refrigerant lines and other components to be buried underground, which adds to equipment and labor costs.
Your Heat Pump Installation Company’s Labor Charges
Installing a heat pump is labor-intensive, especially if excavation is required. The installer will also need to provide ducting ($1,800 to $2,300 on average2) and other components. Labor adds a significant amount to the total price and may cost more than the unit itself. For example, the company may charge up to $8,000 to install an air source heat pump or a ductless mini-split system, but for a geothermal heat pump, the labor charge can be up to $20,000!1
Depending on your location, you may need to pay for a permit to install a heat pump. Fees vary considerably from one area to another. A building permit may be required too. You may also be charged for removing and discarding existing equipment and materials left over from the installation process.
You also must consider what the heat pump installation company charges for annual maintenance. Repairs can cost $1,000 or more, so you want to invest in maintenance to keep the system in good condition. Even replacing the filter or removing debris from around the unit can avoid repairs and increase its lifespan.
Contact IRBIS for Heat Pump Installation
IRBIS installs heat pumps in San Jose and throughout Silicon Valley. Homeowners can benefit from cost efficiency, especially in the region’s mild climate. Our technicians provide repairs and maintenance as well and are continuously trained and updated on the latest technologies. To schedule a consultation and inspection, book your appointment online, or call 669-266-5464 to set up heat pump installation in your home.