Typical installed prices
| System | Typical US range |
|---|---|
| Ducted heat pump, standard efficiency | $5,000–$10,000 |
| Ducted heat pump, variable-speed | $8,000–$14,000+ |
| Cold-climate variable-speed system | $9,000–$18,000+ |
| Single-zone ductless mini-split | $3,000–$6,000 |
| Multi-zone ductless, 2–3 heads | $7,000–$14,000 |
| Dual-fuel (heat pump + gas furnace) | $9,000–$18,000+ |
Common extras
- Electrical panel or circuit upgrades: about $300–$2,000, sometimes more for a full panel replacement.
- New line set: $500–$1,500.
- Duct repair or modification: $500–$5,000+.
- Backup electric heat strips in the air handler.
Running costs
Running cost depends on local electricity and gas prices, the climate and the equipment's HSPF2 rating. In mild and mixed climates a heat pump often costs less to run than electric resistance heat or propane; against cheap natural gas the picture is closer. Ask an installer for a comparison using your own utility rates.
Incentives in 2026
The federal Energy Efficient Home Improvement Credit (25C), which offered up to $2,000 for qualifying heat pumps, is not available for property placed in service after December 31, 2025, according to the IRS. State and utility rebates, including state-run Home Energy Rebate programs where launched, may still apply. Details are in financing & rebates.
Frequently asked questions
Is a heat pump cheaper than AC plus a furnace?
Upfront, a ducted heat pump often costs similar to or less than replacing both an AC and a furnace. Running costs depend on your local energy prices.
Do heat pumps work in cold climates?
Yes. Cold-climate models are designed to heat efficiently well below freezing. Many homes keep a backup heat source for the coldest days.
