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

Every time you turn on the heating and cooling system in your home, you make a decision about the environment. Some of the biggest environmental concerns, such as smog, acid rain and oil spills, are related to the use and production of energy. With this in mind, you can make a tremendous difference in the decision you make about purchases.

Choosing to purchase energy efficient appliances is a good way to reduce your contribution to environmental issues. Besides heating and cooling your home, water heating is the next largest contributor to energy consumption in the home. Whether you are in the market to replace your current water heating system or looking for the best option for a new house, carefully weigh your options based on the needs of your household and the environment.

The use of heat pump water heaters is revolutionizing how we heat water with efficient technology. A heat pump water heater is an electric system that heats water with a heat pump. This occurs by absorbing heat from the air and transferring it into the water tank.

Types of Heat Pump Water Heaters

Generally, energy usage is based on site and source. Site energy is the amount a water heater uses on a daily basis. Source is what energy generates and distributes. Most is lost through inefficient means, leaving approximately one-third that reaches your house. The advances in heat pump technology are improving efficiency. While the heat pump water heater uses air to heat water, it also dehumidifies the air. This gives you clean air and efficient usage.

There are two basic types of heat pump water heaters on the market today. An air source heat pump removes heat from the air. The geothermal heat pump uses underground soil.

Air Source Heat Pump

The air source heat pump removes heat from around your house by using a loop of pipes between the inside and outside. These pipes contain refrigerant that gets circulated outside, expanding and evaporating into a gas substance. The heat is absorbed and pumped inside the house. As this occurs, the heat is compressed, releasing the absorbed heat.

The heat transfers in the water unit. A standard water heater can work with an air source heat pump, so it might not be necessary to purchase a new unit. Air source heat pumps are efficient because they rely on existing heat, rather than generating more heat. This helps to save money in your budget and lower the amount of energy consumption in the house.

It is important to note that air source heat pumps do not work as well when temperatures drop below a certain level. Therefore, if you live in an area that experiences frequent below freezing temperature, an air source heat pump might not be the best choice.

Geothermal Heat Pump

Geothermal heat pumps are similar to air source heat pumps in usage. However, the energy source is taken from underground soil during the winter rather than from the air. This enables efficient usage of the geothermal heat pump can work year-round, regardless of outside temperatures.

A loop of pipes runs between the water heater inside your home and an outside source below ground. Water or antifreeze travels between the locations through the pipes. Heat picks up as the liquid substance travels and heats the water in your home.

You can save tremendously by using a geothermal heat pump in your home or business. However, it is more expensive to install a geothermal heat pump than an air source heat pump. Specialized labor is required for installation, which might exceed your budget.

Cost of Heat Pump Water Heaters

Many factors beyond the purchase price are essential to determine the cost of a heat pump water heater. Depending on the heat pump manufacturer, the average cost for a heat pump water heater can range from $1,000 to $1,800. You should also estimate the operating cost and life expectancy of the heater.

The purchase cost for a heat pump water heater typically includes installation and labor costs. You should request written estimates from at least three separate manufacturers before making a decision. The initial cost – regardless of manufacturer – is more than the traditional water heater systems.

However, you will realize more savings over time. On average, you could save up to 50 percent on water heating costs. This is generally dependent on the usage in your home, but can continue for the length of time you own the heat pump.

The operating costs for heat pump water heaters are also less. For example, a family of three that uses approximately 64 gallons of water per day could spend $185 per year. The life expectancy for most heat pump water heaters usually depend on the water hardness in your area and regular maintenance.

Determining if a Heat Pump Water Heater is Right for Your Home

You can determine whether a heat pump water heater is right for your home by considering several factors. These may include things such as location of the unit and the type of unit you currently have installed.

A heat pump water heater might work for your home if it is placed in the garage. You also want to determine if the garage is capable of isolating the cool air. If you currently have a standard electric water heater and are not downsizing from a larger unit, this could be a good option for energy efficiency in your home. Garage installation should provide adequate air flow to ensure the heat pump operates correctly.

Typically, a heat pump water heater works best in a garage where the average temperature is above 40 degrees. Therefore, you should also understand the weather and how temperatures fluctuate in your area.

Heat Pump Water Heater

You’ll often hear these systems referred to either as ductless or minisplit systems, or sometimes by both names.

What is a Ductless Minisplit System?

A ductless heat pump is a heating and cooling system designed to serve one to four zones rather than an entire home or business. The term “minisplit” refers to the fact that they are smaller than standard heat pump split systems that supply centralized heating and cooling.

How Does a Ductless Minisplit Heat Pump Work?

These systems work by moving heat from one location to another. In summer, they remove heat from inside the building and pump it outside. In cold weather, they capture heat outside – they can be effective until temperatures drop to about freezing – and move it indoors to heat the space.

A small condensing unit is installed outside, on the ground, the roof or in some cases attached to the side of the building. The indoor unit, sometimes called an air handler, is mounted high on a wall or on the ceiling. Refrigerant travels between the two units. The liquid captures heat inside the building when the unit is in cooling mode. It carries the heat outside, releasing it in the outdoor unit where it radiates out. This process cools the inside of the building.

For heating, the process is reversed with the use of specialized valves. The refrigerant captures heat outside, carries it indoors and releases it.

A single outside unit serves 1-4 indoor air handlers placed in different rooms or zones.

What are the Most Common Brands of Minisplit Heat Pumps?

The leading brands of ductless minisplit heat pumps are Air-Con, Friedrich, Fujitsu, Klimaire, Lennox, LG, Mitsubishi, Sanyo, Shinco and YMGI.

How Much Does a Ductless Heat Pump Cost?

Ductless minisplit heat pump systems range in size from about 6,000 BTU units that will serve up to 250 square feet to 36,000 BTU units that will serve approximately 1,500 square feet. These systems can be the most cost effective when you are installing in a small space or on a tight budget . Small, single zone ductless heat pumps cost less than $600. The largest multi-zone minisplit heat pump systems cost more than $4,000. Units with 9,000 to 18,000 capacity are most common and range in price from about $800 to $1,600.

Installation is extra and will vary based on the number of indoor air handlers as well as the complexity of the job. Expect complete costs for an installed system to range from $1,200 to $6,500.

Ductless Minisplit Heat Pumps