Heat pump installation costs in 2026 range from $4,000 to $10,000 for most residential applications, with the average around $7,000 for a complete system.
Types of Heat Pumps and Their Costs
Air-source heat pumps are the most common and affordable option, typically costing $4,000–$8,000 installed. They work efficiently in moderate climates but may struggle in extreme cold below 25°F, requiring a backup heating source.
Ground-source (geothermal) heat pumps cost $10,000–$30,000 installed, but offer superior efficiency and lower operating costs — energy savings of 30–60% compared to traditional HVAC systems, plus federal tax credits up to $2,000.
Ductless mini-split heat pumps cost $3,000–$10,000 depending on the number of indoor units needed — ideal for homes without existing ductwork.
Heat Pump Repair Costs
Heat pump repairs typically cost $200–$1,200, with the average repair around $500. Common repairs include refrigerant recharge ($200–$600), reversing valve replacement ($400–$900), and compressor replacement ($1,200–$2,800). Annual maintenance for heat pumps costs $100–$200 and should be performed twice per year.
Energy Savings and Incentives
Modern high-efficiency heat pumps achieve SEER2 ratings of 18–22 for cooling and HSPF2 ratings of 9–13 for heating — energy savings of 30–50% compared to traditional electric resistance heating. In 2026, qualifying heat pumps are eligible for federal tax credits of up to $2,000, the highest credit available for any HVAC system.