How Much Does A Heat Pump Cost?

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Heat Pump Cost Factors

Though HVAC systems are built to last for several years, especially when they are well-maintained, unfortunately, there comes a time when it’s time for a new heat pump. If you’re at that point, you’re likely wondering how much a heat pump costs. Keep reading, and we will go over the costs associated with heat pumps and installation.

There are a lot of factors at play that influences the cost of a heat pump. This is why it’s recommended that you contact an HVAC expert in your area to get a reputable quote for your unique situation. Commercial HVAC systems are generally bigger and more expensive than residential heat pumps.

Some of the most common factors that influence the price of a heat pump include:

Size of home or office

A larger home or office space will need higher heating and cooling capacity to move heat and cool the space efficiently. Heat pump capacity is measured in BTUh— British Thermal Units per hour, which can also be referred to as the heat pump’s size. The size of the home or office will also impact the cost of materials, especially if new copper refrigerant lines or ductwork must be installed. High ceilings can also affect the amount of heating and cooling capacity required. 

Other home-related issues that impact the cost of a new heat pump and installation include:

  • Quality and quantity of insulation, caulk, and weather stripping
  • Condition of existing ducts
  • Number, size, quality, and placement of windows
  • Color of the roof
  • Home or office’s orientation
  • Occupancy
  • The general condition of the home/office and quality of construction

Type of Heat Pump System

Another significant factor influencing the price of a job is the kind of heat pump system that is being installed. Here are the different styles:

  • Air-source heat pumps: Most common heat pump systems are air-source systems that extract heat from outdoor air to provide heating energy for the home or office space. 
  • Ground-source (geothermal) heat pumps: One of the most efficient heat pumps on the market. These systems use buried loop systems to extract useable heat from your home or office.
  • Residential small packaged system: This system combines the indoor and outdoor units of an air-source heat pump into one cabinet.

Like buying a car, heat pumps come in basic systems that you can also add to. Of course, if you choose a system with more bells and whistles, you will pay more.


There are also systems that qualify for rebates from the local utility company or the federal government for energy efficiency.


Carrier heat pumps offer many energy-saving and comfort-enhancing features to take into consideration when seeking estimated for a new HVAC system, including:

  • Communication systems that work together and improve comfort and energy efficiency.
  • Variable-capacity and modulating systems deliver precise heating and cooling loads that are based upon current conditions also change as the conditions change and as needed.
  • Humidity-reducing technology to help Memphis residents keep cool during the sticky summer months.
  • Sound-reducing features that make the system whisper-quiet from the outside in.

The Climate

Your local climate is another factor that impacts the cost of a heat pump. In warmer climates like Memphis, it’s been argued that typical air-source heat pumps are perfect for year-round comfort because heating demands are less intensive thanks to our mild winters. In the summer months, a heat pump system will have a longer overall runtime than how it would operate in a cooler climate. Installing a high-efficiency heat pump system in a warmer climate home can help save money on monthly utility bills. But, you must keep in mind that higher efficiency systems tend to have higher prices for the unit and installation. 

The Condition and Quality of Existing Ductwork


When you work with a reputable and experienced HVAC company for your heat pump installation, they will do a complete assessment of your current system and home. The inspection will include the existing ducts, which will influence the price you pay. Older ductwork may have leaks, clogs, and isn’t properly sized, which will increase the cost of installation. To ensure that your new heat pump delivers the efficiency and comfort that’s expected, as well as meets your overall satisfaction, your estimated installation costs will include the time and expense necessary to make the required ductwork repairs.

For all your residential and commercial HVAC needs, count on Choates. We are Memphis’ HVAC experts. Choate’s Air Conditioning and Heating is a community-oriented, family-owned-and-operated business. We look forward to hearing from you!

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