Heat Pump Installation | Average Cost for an Installed Heat Pump?

How much does it cost to have a heat pump system installed? Most homeowners want an idea of their total costs when deciding which type of HVAC system to go with. The cost of installing a heat pump system is almost identical to the cost of installing a traditional split system, so don’t let that factor sway your decision.

The costs used here are based on an average 2,000 square foot home with a 2-stage heat pump and variable-speed air handler installed. Homeowners who want to save money can choose a single-stage heat pump and single-speed air handler, reducing costs by as much as $1,000 or more. If you choose a dual fuel heat pump to handle very cold weather, prices will be $500-$1,000 more.

Taking these things into consideration, your heat pump system equipment costs for a 2,000 square foot home should range from $3,500 to more than $7,500. Here’s what’s included in a typical heat pump installation price, along with what additional costs are likely to be.

Installing a Heat Pump System

When replacing a heat pump system, the old one will need to be removed. The air handler is disconnected from the duct work. Refrigerant lines are disconnected from the indoor and outdoor coils. The old system should be properly disposed of which may incur additional costs.

In a newly built home, you may want to pour a pad for the condensing unit. Prefabricated pads are also available. A hole will need to be made in the side of the house in order to run refrigerant and power lines to the outdoor unit. If you’re having a dual fuel unit installed, vent for the furnace will need to be run as well.

Then the condensing unit and the air handler will be installed, connected and wired. The indoor coil is installed inside the cabinet or on top of the air handler. A plenum will need to be made to properly fit the air handler or furnace to the duct work. Once everything is in place, the system will be charged with refrigerant.

The HVAC technicians will then turn on the system and completely test all of its operations. The entire process should take 6-12 hours depending on the size of the crew doing the work. Because of the training HVAC technicians receive and the skill they are required to have, they are paid quite well.

Factors Affecting Heat Pump Installation Costs

Heat pump contractors base their estimates on the amount of time and materials it will take them to install the heat pump system. In terms of time, an easy installation of an air handler in a first-floor utility room will cost less than a difficult installation in a crawl space or an attic. Condensing units installed on roofs cost more.

Materials include the plenum for the air handler or furnace and refrigerant line. Linesets come in different lengths and the longer the set needed, the more it will cost. Thermostats vary in price quite a bit, from under $75 to more than $500, so the one that you choose, or the model that is required, will affect installation costs. If you choose a dual fuel system, running the venting for the furnace will include both time and material costs.

Heat Pump Installation Costs

Now that you know what is involved, the cost of installation may make more sense. Where the work is easy and the need for materials is minimal, an entire system may be installed for less than $3,000. Where the installation is complex and the need for extra materials is high, the cost may exceed $6,000.

Therefore, your total costs for an installed heat pump system is likely to be $6,500 to $13,500.

Average Installation Cost for Heat Pump Systems

Saving money on a new heat pump can be done if you know how to go about it. Most consumers today are eager to spend less when possible, and these 5 tips for saving money on a heat pump will help you get a quality unit for the best price possible.

Shop for Deals

As with any other products, deals are available when you are on a tight budget and looking to save some money. For heat pumps, deals are common at the end of the heating season but before the air conditioning season gets going. That time frame will change depending on where you live, but late winter to early spring is a good time to buy a new heat pump. You may also find deals on discontinued models. Brands change models somewhat frequently, offering updates and tweaked technology. If you buy a discontinued model, simply make sure that it comes with a full warranty.

Resist Buying Performance Features

To get the lowest price, you may have to sacrifice some performance. For example, a 16 SEER, 4-ton heat pump with single-stage cooling might cost $500-$1,000 less than a 16 SEER, 4-ton 2-stage heat pump from the same brand. If you can live with single-stage heating and cooling, don’t purchase the upgrade no matter how much the sales person pushes. In most cases, unless you’re very conscious of indoor climate factors, you won’t notice much difference. If you’re buying a complete system, the same principle is true in regard to single-speed vs. variable-speed air handlers.

Don’t Buy High Efficiency if You Don’t Need It

If choosing green technology for your home is a top priority, you should buy the most efficient model you can afford. Otherwise, buy a heat pump that matches your climate. Where summers are very hot, a heat pump with a SEER rating of 17 or above will be the most cost-efficient in the long-run. Where summers are warm and occasionally hot, a unit in the 15-17 SEER range will be best. In climates with summers that are warm but not hot, a 13-15 SEER model might make the most economic sense.

Don’t be talked into buying a more efficient model unless you can be convinced that the extra money you pay for it will be returned to you through lower energy bills in a number of years you’re comfortable with. For example, if it will take 5 years and you may sell your house in 3, don’t do it.

Look for Utility Rebates and Credits

This will mean buying more efficient equipment than you otherwise would, since they apply to high efficiency models. However, the credits and rebates will reduce your expenditure and will also keep energy costs lower every month. Check with your energy company to find rebates and credits available to you.

Get Multiple Estimates and Negotiate your Best Deal

Definitely get at least 3 written estimates on systems you are considering. They will form the starting point for getting the best price. From there, feel free to make a counter offer on the deal you like the best. There’s nothing wrong with doing this, and a contractor will often be willing to work with your figures in order to secure the job. If not, they’ll give you their best offer and you can take it or leave it.

Some consumers find that putting these tips to work saves them 15% to 40% on a heat pump. Use the tips that make sense for your situation, and you are very likely to save money on the heat pump system you choose.

5 Ways to Save money on a New Heat Pump System