How Much Does It Cost To Install An Electric Heat Pump?


(Moderate Upgrade)
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Electric Heat Pump Costs

Indoor Cost Guides      Air-Conditioning & Heating (HVAC)      Electric Heat Pump Costs

An electric heat pump can provide both heating and cooling to interior air. An electric pump circulates heated or cooled fluid through fan-coil radiators where forced-air transfers hot or cold air to the interior, with or without air-ducts.

Also known as a split-system, the condenser unit (pump) is mounted outside, and the evaporating unit (fan-coil) is mounted inside the building. Refrigeration pipes pass between the condenser and evaporator.

You will find that the cost of an average electric heat pump installation varies by type of unit, its cooling and heating capacity, efficiency ratings, special site conditions, and the labor hourly rate.

In the following table the Labor Cost figure is what the able DIY person should expect to save by performing the corresponding tasks.

Electric heat pump: install interior unit into existing ductwork, and exterior unit onto a new concrete pad. Include all related materials, supplies, transport, equipment, finish trim, final adjustments, and clean-up; and include all fees.

Item Unit Cost Quantity Line Cost
Basic: install 2-ton cooling capacity with exterior pad, tubing, ducting modification, control wiring, thermostat, testing and balancing. $3,158 each 1 $3,158
Upgrade Moderate: additional to Basic, install and connect 3.5-ton cooling capacity. $610 each 1 $610
Upgrade Deluxe: additional to Moderate, install and connect 5-ton cooling capacity. $253 each 1 $253
Material Cost $4,021 each 1 $4,021
+ Labor Cost (Basic) $42 per hour 22 $924
+ Labor Cost (Moderate) $42 per hour 2 $84
+ Labor Cost (Deluxe) $42 per hour 2 $84
Total Cost $5,113 each 1 $5,113

Typical capacity unit conversions are:

1 Ton = 12,000 BTU/h = 3.5 kW = 4.6 BHP

Domestic heating and cooling capacity demand always depends upon regional climate zone conditions. In Phoenix (AZ) for example, 1 Ton of cooling capacity will cool about 500 square feet of living space (well insulated and sealed). In Minot (ND) it will cool about 650 square feet (or 30% more).

Heating capacity demand per square foot follows a similar but reversed regional pattern. In regions near the 49th parallel for example, each Ton of cooling capacity indicates the need for 3 to 4 Tons of heating capacity.

Other considerations and costs

  • Energy efficient heating and cooling will save money, and in some cases rebates may be available.
  • Heating and cooling system size depends upon regional climate zone conditions, building zone conditions, windows, insulation, and fan usage.
  • Heating system sizing per square foot of well-insulated and sealed building zones follows regional climate zones ranging from coldest (50 BTU/h/sq.ft. = 15 watts/sq.ft.) to moderate (25 BTU/h/sq.ft. = 7 watts/sq.ft.) to the few regions where no heating is necessary.
  • For units of greater than 12,000 BTU/h (or 3.5 kilowatts, or 1 ton) a 240V or multi-phase electrical circuit is generally required.
  • For a sunny room, add 10% more cooling capacity than required for room size.
  • Add 600 BTU/h cooling per person if usually occupied by more than two persons.
  • For the kitchen, add 4,000 more BTU/h cooling than required for room size.
  • During the initial inspection the contractor should inform the homeowner of any and all necessary modification or upgrade on electrical circuits or building structure.
  • Labor cost will rise with a “hidden” installation in a finished environment.
  • These prices are for service in the immediate area of the provider.
  • Taxes and permit fees are not included.

Check out our guide if you need a loan for your home improvement project.

DIY considerations

  • This product is usually supplied and installed by a specialist service and may not be suitable for DIY.
  • Sheet metal duct, refrigeration piping, system testing and pressure balancing all require special tools and skills.


  • Craftsman Estimator Costbook, complete series year 2015.
  • Latest prices found on Home Depot and other vendor Web sites.
  • Literature review of DIY Web sites.
How much does it cost to install an electric heat pump in your city?
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Cost by city

(Moderate Upgrade)
  • New York, NY$7,670
  • Bronx, NY$6,303
  • Brooklyn, NY$5,253
  • Philadelphia, PA$6,554
  • Washington, DC$5,687
  • Atlanta, GA$5,145
  • Miami, FL$4,680
  • Fort Lauderdale, FL$4,902
  • Minneapolis, MN$5,750
  • Chicago, IL$6,700
  • Houston, TX$6,911
  • San Antonio, TX$4,639
  • Austin, TX$5,253
  • Denver, CO$4,438
  • Phoenix, AZ$4,682
  • Las Vegas, NV$5,139
  • Los Angeles, CA$5,791
  • San Diego, CA$5,255
  • San Jose, CA$6,347
  • Seattle, WA$4,647

Local costs have been calculated by accounting for labor and material cost differences across different cities. To get accurate cost estimates, indicate yours: