Written by
Tamatha Hazen
April 10, 2024
Edited by
Kristen Cramer
Fact-checked by
Tara Farmer
An air-source heat pump costs $4,000 to $12,000 on average with installation, depending on the home size and unit capacity. Air-source heat pumps use an efficient heat transfer process that provides year-round comfort while being up to 50% more efficient than traditional heating and cooling systems.
Air-source heat pump cost Home size (square feet) Unit capacity Average installed cost 600 – 1,100 1.5 ton $4,000 – $6,000 900 – 1,400 2 ton $5,000 – $7,000 1,200 – 1,600 2.5 ton $5,500 – $8,000 1,500 – 2,100 3 ton $5,700 – $8,500 1,800 – 2,300 3.5 ton $6,000 – $9,000 2,100 – 2,700 4 ton $6,500 – $11,000 2,500 – 3,500 5 ton $7,000 – $12,000Get free estimates from heat pump installers near you.
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An air-source heat pump is a type of heating and cooling system that transfers heat between indoor and outdoor air. Unlike traditional furnaces or air conditioners, which generate heat or remove heat, heat pumps simply move heat from one place to another, making them highly efficient.
Air-source heat pumps have two main parts: an outdoor unit with a compressor and condenser coil, and an indoor unit with an evaporator coil. The refrigerant circulates between these units, absorbing and releasing heat as it changes states between liquid and gas.
In heating mode, the refrigerant absorbs heat from the outdoor air and releases it indoors, warming the indoor environment.
In cooling mode, the process is reversed, with the refrigerant absorbing heat from the indoor air and releasing it outside, effectively cooling the indoor space.
An air-source heat pump costs $1,500 to $7,000+ for the unit alone, or $4,000 to $12,000 installed. Unit prices depend on the size, brand, and model. Installation costs depend on the regional labor rates, the complexity of the installation, local permit fees, and any additional features like smart thermostats or zoning equipment.
Air-source heat pump cost breakdown Factor Average cost Unit price $1,500 – $7,000 Installation labor cost $2,000 – $3,500 Permits and inspections $100 – $300 Electrical work $200 – $500 Refrigerant $75 – $150 Thermostat $25 – $250 Miscellaneous fittings & supplies $100 – $300 Total installed cost $4,000 – $12,000While the initial installation is more expensive than the cost of a traditional heat pump, the long-term energy savings and environmental benefits make air-source heat pumps a smart investment.
Several reputable brands manufacture air-source heat pumps, each offering various features and options to meet different needs and budgets. The following table compares the most well-known brands.
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Air-source heat pump cost by brand Brand Average unit cost* Description Amana $1,800 – $3,200 Reliable, energy-efficient heat pumps at a good value American Standard $1,800 – $4,000 High-quality, energy-efficient heat pumps with advanced features Bosch $1,500 – $7,000+ Innovative, high-efficiency heat pumps engineered for reliable performance Carrier $2,300 – $4,900 Premier brand producing efficient, technologically advanced heat pumps Coleman $1,300 – $4,700 Wide range of dependable, quiet, energy-saving heat pump models Goodman $1,500 – $3,900 Affordable, energy-efficient heat pumps known for quality and durability Lennox $2,500 – $5,500 High-performance, energy-efficient heat pumps with advanced features Rheem / Ruud $1,600 – $3,800 Top-quality, environmentally friendly heat pumps for residential and commercial use Trane $1,800 – $4,000 Highly efficient and reliable heat pumps, praised for their energy efficiency and advanced features York $1,500 – $3,100 Reliable, energy-efficient heat pumps engineered for long-lasting performance*Not including installation
Several factors influence the cost of installing an air-source heat pump:
Size and capacity: The size and capacity of the heat pump you need will depend on the square footage of your home, climate, and insulation levels. Larger homes or those in extreme climates will require a higher capacity heat pump, which will cost more.
Location & climate: In urban locations with a higher cost of living, you’ll likely spend more on materials and installation labor. In colder climates, you may need a more powerful and efficient system, which can be more expensive.
SEER (Seasonal Energy Efficiency Ratio) rating: Higher SEER models cost more upfront, but the energy savings from a more efficient system can make the higher initial investment worthwhile over time.
Permits: Permits required for an air-source heat pump installation can add $100 to $300 or more to the overall project cost, depending on the local regulations.
Ductwork:
New vs. existing ductwork: If your home already has a duct system in place, the installation of a central ducted air-source heat pump will be more straightforward and less expensive than if you need to install new ductwork.
Duct modifications: If your existing ductwork is not properly sized or sealed, you may need to make modifications to ensure the heat pump system operates efficiently. This can include duct sealing, duct resizing, or even the installation of new ductwork, all of which can add to the overall cost.
Electrical upgrades: Depending on the age and capacity of your home's electrical system, you may need to upgrade your electrical panel or other components to accommodate the power requirements of the heat pump. These upgrades can add significantly to the overall installation cost.
Removal of old equipment: The cost of removing and disposing of your old HVAC equipment will add to the overall installation cost. This can range from a few hundred dollars to several thousand, depending on the size and complexity of the old system.
Some ways to save money when installing an air-source heat pump include:
Take advantage of rebates and incentives: Governments and utility companies often offer rebates and incentives to offset the upfront installation costs of air-source heat pumps. Many heat pumps are eligible for the Energy Efficient Home Improvement tax credit.
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Choose the right size system: Properly sizing the heat pump for the home is crucial to maximize efficiency and cost-effectiveness. Oversized systems will cost more upfront and may not operate as efficiently, leading to higher energy bills.
Hire a qualified installer: Proper installation is crucial for maximizing the efficiency and cost-effectiveness of an air-source heat pump. A professional HVAC contractor can size and install the unit properly.
Install off-season: Contractors may offer lower installation prices during decreased demand times during spring and fall. Discounts on equipment may also be offered during slower seasons.
Select a less expensive brand: The brand of an air-source heat pump can significantly affect its price, with well-known and premium brands typically costing more than lesser-known or budget-friendly models.
Consider ductless mini-split systems: Ductless mini-split air-source heat pumps can be more cost-effective than central ducted systems if the home does not already have ductwork installed.
Prioritize energy efficiency: Look for Energy Star air-source heat pumps with high SEER (cooling efficiency) and HSPF (heating efficiency) ratings, as these will provide the greatest long-term energy savings.
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Air-source heat pumps offer significant benefits in terms of energy efficiency, cost savings, and environmental impact, but also have some drawbacks related to upfront costs, lifespan, and performance in extreme weather. The following table details the pros and cons of air-source heat pumps.
Air-source heat pump pros and cons Pros ConsThe most common air-source heat pump is a central ducted system costing $4,000 to $12,000. However, there are other types of heat pumps ranging from $2,500 to $35,000. Factors such as price, efficiency, suitability for climate conditions, and available resources play a role in determining the best choice for your home.
Air-source heat pump cost by type Type Average installed cost Description Central ducted air-source heat pump $4,000 – $12,000 The most common type of heat pump, which transfers heat between your house and the outside air Ductless mini-split heat pump cost $3,000 – $13,000 A type of air-source heat pump that doesn't require ductwork for installation in homes without existing air distribution systems Geothermal heat pump cost $15,000 – $35,000 Uses the relatively constant temperature of the ground or a nearby water source to provide highly efficient heating and cooling Cold climate heat pump $3,000 – $7,000 Advanced air-source heat pumps designed to operate efficiently even in very cold outdoor temperatures, down to around -15°F Dual fuel or hybrid heat pump $2,500 – $6,000 Combines an air-source heat pump with a gas furnace, allowing the system to switch between the two heat sources to maximize efficiency and reduce operating costs Solar heat pump $15,000 – $30,000 Uses solar energy to power a heat pump, providing highly efficient heating and cooling powered by renewable energy Ductless mini-split air-source heat pumpAir-source heat pumps can be a cost-effective heating and cooling solution. While the upfront installation costs can be higher than traditional heating systems, the energy savings over time can make air-source heat pumps a cost-effective option, especially in warmer climates.
An air-source heat pump costs $40 to $160 per month to run. This makes it one of the cheapest ways to heat a home in areas without access to natural gas.
Follow these suggestions to gather estimates from air-source heat pump installers and make an informed decision about the best option for your home:
Get quotes from at least 3 different installers to compare pricing and equipment recommendations.
Confirm the installers are licensed, insured, and have been in business for several years.
Ask the installer if they perform a load test for proper sizing and system configuration.
Avoid installers who try to oversize the system or steer you away from a properly sized heat pump.
Look for heat pumps with high SEER (cooling efficiency) and HSPF (heating efficiency) ratings, and ask the installer to explain how the efficiency of the proposed models will impact your energy costs.
Get details on the installation process, including any necessary ductwork modifications.
Ask about the warranty coverage on both the equipment and labor.
Avoid the lowest bid, as the quality of work may suffer. Instead, focus on finding a fair, competitive price from a qualified installer.
Ask these questions to ensure you select an experienced, qualified contractor who will properly size and install the most suitable heat pump system for your home:
What is the total cost of a new heat pump system, including installation?
Do you offer any rebate programs or financing options that can help offset the upfront cost?
Are your installers licensed, insured, and experienced specifically in heat pump installations?
What type of warranty do you offer on the equipment and labor?
Can you also remove and dispose of my old furnace or HVAC system?
How long will the installation process take, and who will perform the different tasks?
What kind of maintenance and servicing will the heat pump require? Do you offer any maintenance packages?
Can you provide an assessment of my home's energy efficiency needs and recommend the right heat pump size and configuration?
Do you have any special certifications or qualifications from the heat pump manufacturer?
How we get this data
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.
Air source heat pump service costs can vary, and like any heating system, heat pumps require regular service checks to operate at their best and prolong their lifespan.
You may want to invest in a service plan. A regular service plan can provide peace of mind and save you money in the long run by identifying and addressing issues before they become more expensive to repair.
Having your air source heat pump professionally serviced regularly is crucial to keeping it at its best performance and maintaining your warranty coverage, which is five years if you're registered with Daikin. During this service, a qualified technician will inspect your system to ensure that your heat pump functions correctly and efficiently. The technician will also identify and address any potential issues that may cause the system to malfunction in the future.
In addition to professional servicing, you should undertake several simple maintenance tasks to ensure everything is working properly. This includes cleaning the filters, sweeping away debris from the fans, and ensuring that the area around the outside unit is clear of obstructions, such as plants and bins.
Are you interested in learning more about Air Source Heat Pump Manufacturer? Contact us today to secure an expert consultation!