Here’s one example: In California, it costs between $900 and $1,900 more to replace a broken central AC with a heat pump instead of a conventional AC. That’s out of a median total heat-pump installation cost of $15,900, per data from the TECH Clean California program from July 2021 to April 2024.
But spending on a heat pump can mean avoiding the expense of getting a new furnace. Southern California’s air-quality agency recently found that installing a heat pump in a single-family home in the region typically costs $1,000 less than installing a gas furnace and AC.
Across the U.S., heat pump installations typically fall between $6,600 and $29,000, according to Rewiring America. That wide range is because project prices for heat pumps, like other HVAC equipment, can depend on a dizzying number of factors, including the size of your home, its energy demand, your local climate, the equipment efficiency rating, the state of your home’s electrical system, and how familiar your local labor market is with the product.
3. What financial incentives are available for heat pumps?
For now, there’s the Energy Efficient Home Improvement Credit, which can take up to $2,000 off your federal tax bill for a qualifying heat pump. But if Republicans’ “Big, Beautiful Bill” passes in its current form, that tax credit will disappear at the end of this year. (All the more reason to get one this summer.)
Income-qualified households can check with their state energy office about the availability of Home Energy Rebates, an $8.8 billion initiative created under the landmark 2022 Inflation Reduction Act. Details vary by state, but the law established an $8,000 incentive for a heat pump, as well as rebates for enabling updates: $2,500 for electrical wiring and $4,000 for an electrical panel upgrade. While some state programs have rolled out after being finalized under the Biden administration, others still awaiting approvals are now stuck in limbo.
Separate state and local incentives may also be available. Ask your utility, Google, and reputable heat-pump contractors in your area. Rewiring America also has a handy calculator that provides information on electrification incentives for residents in 29 states, with more soon to come, a spokesperson said.
4. How do I find the right contractor to install a heat pump?
Get at least three quotes; the EnergySage marketplace can connect you to vetted local installers so you can compare offers. Some contractors specialize in home electrification — and might offer cutting-edge strategies to navigate a heat pump transition. Utility and local incentive programs may also have lists of participating installers.
5. What else should I keep in mind before deciding whether to get an AC or a heat pump?
Ideally, you don’t want to find yourself in the sticky and sometimes downright dangerous situation of needing to get your AC replaced in an emergency. But if your AC has suddenly expired, you can give yourself more time to weigh your options by getting a “micro” heat pump as a stopgap measure.
Changing your HVAC system is a big deal — and you don’t have to figure it out on your own. Got a question or story to share about choosing a heat pump over an AC, tackling another electrification project, or fully electrifying your home? I’d love to hear it! Reach out to me at [email protected]; my aim is to make the energy transition easier for you. Stay cool out there!
