Step 2: How Much Will a Heat Pump Cost?
At this point in your journey from conventional HVAC to an energy-efficient heat pump, you have explored the advantages of upgrading, weighed the pros and cons, and consulted with us at HVAC Options about installing the best unit for your [company-county] home.
Heat pumps appeal to your comfort needs, environmental interests, and energy goals. Do they resonate with your pocketbook?
It is time to consider the cost of installing an air-source heat pump.
What Does a Heat Pump Cost?
Consumer Reports surveyed its members and found the median price for heat pump installation from 2018-2023 was $8,348 compared to $6,221 for a gas furnace. The magazine notes that cold-climate heat pumps can cost $10,000 or more. Forbes pegs the cost of air-source heat pumps at $7,000 or more.
Cost estimates vary depending on locale, labor, and other factors. Many factors can affect heat pump installation costs in City #1, ST#1, and other locations. For a more accurate quote, schedule a free, no-obligation consultation with [company name].
What Affects Heat Pump Prices?
Heat pump costs vary depending on the brand, features, size, and efficiency rating.
A heat pump big enough to heat and cool a 3,000-square-foot space will cost more than the same brand, with the same features, capable of handling only 1,000 square feet.
Higher-efficiency models also cost more. The Seasonal Energy Efficiency Ratio 2 (SEER2) measures air-source heat pump efficiency for cooling, and the heating seasonal performance factor 2 (HSPF2) measures heating efficiency. A system with higher SEER2 and HSPF2 ratings typically will cost more than units with lower efficiency.
Heat pumps with multi-stage compressors and variable-speed motors generally sport higher price tags than their single-stage counterparts.
Although you spend more on the heat pump at installation, it recoups costs faster through lower energy bills.
Installation factors can affect your heat pump price. Does your City #1, ST#1, home need ductwork repairs? How about an upgraded electrical panel to better handle your growing electrical needs? Upgrading your HVAC system always presents a good opportunity to bundle home improvement projects.
Long-Term Heat Pump Savings
Heat pumps typically cost more than conventional HVAC, but their efficiency ratings set them apart. That is where they shine.
According to the U.S. Department of Energy, a new heat pump can reduce electricity use by up to 75 percent compared to electric resistance heating.
A gas furnace, with an annual fuel utilization efficiency (AFUE) rating of 98, converts 98 percent of its fuel consumption into heating. Heat pumps can be 300 to 400 percent efficient, producing three or four times more heat energy than they consume in electricity.
Although the initial investment in a heat pump is higher than in conventional HVAC, the energy savings can offset the upfront costs.
A Lawrence Berkeley National Laboratory (NREL) research team determined that for the 49 million U.S. households using electricity, fuel oil, or propane for heat and that also have air conditioning, 92 to 100 percent would see their energy bill reduced by switching to a heat pump. The median savings is estimated from $300 to $650 annually, depending on heat pump efficiency.
Financial incentives can also take some of the sting out of the higher upfront cost.
Tax Incentives and Rebates
The federal government is making heat pumps more affordable with a 30 percent tax credit through 2032. The credit is capped at $2,000 for qualifying heat pumps.
This tax credit significantly reduces the overall financial burden and makes the long-term heat pump benefits even more enticing.
In addition, many utility companies and states offer rebates to encourage homeowners to switch to energy-efficient heating and cooling systems. Options State is no exception. Our team at HVAC Options can help you find programs that lower the total cost of your new heat pump.
Need an installment payment plan? We can help! Ask us about financing options.
Choose Heat Pump HVAC Today!
Although the upfront cost can vary, the long-term savings on utility bills and the potential for receiving tax credits and rebates make the heat pump a wise investment. Plus, it contributes to a greener future.
The third step in your air-source heat pump journey is installation. Click on the journey menu for some final insight. Interested in moving ahead with installation? Call us at 777-777-7777 or request service online.
Step 1: Is a Heat Pump the Best Option for Your Home?
Step 2: How Much Will a Heat Pump Cost?
Step 3: Heat Pump Installation in Options State