Heat Pump Installation

Why a Heat Pump May Be the Right Upgrade

Heat pumps are the most efficient way to heat and cool a home — using 2–4 units of heat energy for every unit of electricity consumed. They eliminate the need for separate heating and cooling systems, and modern cold-climate models work reliably down to -15°F.

Whether a heat pump costs less to run than a gas furnace depends on local energy prices. Our heat pump vs gas furnace cost by state shows what each delivered heat for in every state in 2024, and our heating cost calculator turns those prices into a yearly estimate for your home. What the HSPF2 and SEER2 ratings on a quote mean is covered in our efficiency ratings guide.

Some state and utility rebate programs can offset part of the installation cost. See our Heat Pump Rebates 2026 guide for current state, utility, and federal incentives.

What a Complete Heat Pump Installation Covers

Ask each contractor whether the quote includes:

• Home assessment and heat/cool load calculation
• Outdoor compressor installation and refrigerant line connection
• Indoor air handler installation (or coil if using existing furnace)
• Electrical disconnect and thermostat upgrade
• The permit and inspection, and who will pull the permit
• System commissioning, refrigerant charge verification, and homeowner walk-through

For how a load calculation sets the size, and what to ask about it, see what size heat pump, AC or furnace do I need.

What a Heat Pump Replaces (and What It Can Do)

A ducted air-source heat pump replaces both your central AC unit and your primary heating system. In summer, it cools your home. In winter, it reverses its cycle to pull heat from outside air and deliver it inside, efficiently even in cold climates.

• Cold-climate models keep heating down to about −13°F, which covers most Midwest and Northeast winters
• Typically 2–4× more efficient than electric resistance heat at temperatures above 20°F
• Dual-fuel hybrid setups keep your gas furnace as a backup below the heat pump's efficient range
• Ductless mini-split heat pumps work for additions, garages, and zone-control upgrades
• Variable-speed heat pumps also dehumidify better than single-stage AC systems

If the house has no ducts, or only part of it needs heating and cooling, our ductless mini-split guide covers when ductless fits, single- versus multi-zone systems, and what a complete installation includes.

Choosing a Heat Pump for a Cold Climate

Heat pumps differ most in how they perform in cold weather. When comparing quotes, ask your contractor to confirm:

• Whether the model meets ENERGY STAR's cold-climate criteria, which test heating performance at 5°F
• Heating capacity at 5°F and 17°F, the temperatures that matter for Midwest and Northeast winters
• HSPF2 efficiency: the U.S. Department of Energy minimum for split systems is 7.5; ENERGY STAR requires 7.8, and 8.1 for its ducted cold-climate level
• Sound level (dB): variable-speed units run noticeably quieter than single-stage ones
• Refrigerant: R-454B and R-32 have replaced R-410A in most new equipment

Is the HEAR Heat Pump Rebate Open in Your State? (October 2026)

The federal HEAR (Home Electrification and Appliance Rebates) program pays up to $8,000 toward a heat pump for income-qualified households, per the U.S. Department of Energy. Each state runs its own rollout, and since DOE Program Notice 26-2 (effective May 29, 2026) it no longer pays for replacing a gas, oil, or propane furnace with a heat pump. The rows below are only the states whose status we could confirm on an official program page, as checked on October 23, 2026. Status changes without much notice, so check your state's own page before counting on it.

Where HEAR is closed or not open to your project, a local utility program may still apply. Those are separate from the federal HEAR rebate. Our San José, Sacramento, Kirkland and Boston pages list the local utility programs documented for those areas. For HEAR in any other state, the ENERGY STAR rebate finder links out to each state's official program page; use that, not this table, for the current word on timing and amounts.

Heat Pump Installation Cost

It depends on system size, efficiency ratings, electrical and duct work, local labor rates and the permit, so the reliable figure is a written quote for your home. Ground-source (geothermal) systems cost considerably more than air-source ones. For sourced national price ranges and what drives them, see our HVAC installation cost guide. Note: the federal Section 25D credit for new residential geothermal installs ended December 31, 2025 — confirm current incentive eligibility at energy.gov/save or with a tax advisor. Submit a free quote request for an estimate specific to your home.