Understanding the Cost of Installing or Replacing Heat Pumps
Posted on January 28, 2017
Installing a heat pump can decrease your electricity bill significantly by making the heating and cooling in your home more efficient. Because of its ability to heat and cool your home, it can replace both your furnace and your central air conditioning unit.
On average, it costs between $3,957 and $6,737 to install a heat pump. The difference in the range is due to variables such as the type of heat pump and the size of your home. Geothermal heat pumps tend to cost a higher amount because their installation is more involving compared to the other types of heat pumps.
Installation Cost Considerations
Before installing a heat pump, it is important you do the math by factoring in all the components involved. You will have to look at the heat pump itself and how much it costs based on its brand, type, and capacity. Then, consider the installation which involves the standard equipment to be used, the installation area preparation, the planning, and labor costs.
The material and supplies required will also add into the installation cost even if they are provided by the person doing the installation. Things such as fittings, pipes, and other pieces of hardware will be used up in the installation process. In the case where additional equipment is required, you may incur specialty equipment fees for things such as brazing kits and pipe cutters.
Heat Pump Prices
Every manufacturer of heat pumps usually has a low, mid, and high quality range of units. The two key factors that determine how much a heat pump goes for are the heating seasonal performance factor and the seasonal energy efficiency rating. Pumps that have a higher score in one or both factors tend to cost more.
On average, expect to spend anything between $700 and $2,800 for a mid-quality heat pump. When you add installation costs to this, it can add up to almost $9,000.
Heat Pump Rebates and Tax credit
The overall cost of an energy efficient heat pump may be brought down by federal tax credits. In an attempt to encourage people to switch over to more energy efficient systems, the federal government is issuing tax credits on these units.
Before installing a particular unit, it is therefore important to make inquiries whether the said unit qualifies for a tax credit or rebate. Homeowners can claim up to 10% of the cost on eligible units and for the case of geothermal heat pumps, they can claim up to 30%.
As you can see, heat pump installation though a costly affair has some financial benefits that you can take advantage of so that to lessen the cost. Remember every single cent you put into your heat pump will be recovered through the benefits you will enjoy when the heat pump is up and running.