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How Much Does It Cost to Install a Heat Pump in Phoenix?

2020 Apr 22

When Phoenix homeowners come to us asking for a new heat pump, the first question they always ask is, “How much does it cost to install a heat pump?”

The cost to install a new heat pump in Arizona ranges from $1,900 to $10,000+, with an average of around $4,300-$6,700.

Now, we want to be clear here: When we say ‘heat pump’ we mean:

  • A complete air source heat pump system (not a geothermal heat pump), which includes the outside condensing unit and the indoor air handler.

The cost of your heat pump system will vary based on these 4 factors:

  • Size of the heat pump
  • The energy efficiency of the heat pump
  • Comfort features
  • The company/contractor you hire

Let’s explore these cost factors in more detail, so you can get a better idea of how much it will cost to install a new heat pump.

Want an estimate on a new heat pump instead? We’d be happy to help. You can learn more about the heat pump installation services we offer or…

Schedule a free estimate! 

Cost factor #1: Size

The larger your system, the more expensive it will be.

However, heat pumps aren’t sized by how large they are in cubic feet, they’re sized by their heating/cooling capacity, which is measured in tons.

Residential heat pumps usually range in size between 1.5 and 5 tons. 

As we mentioned above, heat pumps are sized by their heating/cooling capacity, and you’ll need to install the right size heat pump if you want to have your home properly cooled and heated. 

Fortunately, you shouldn’t have to figure out what size heat pump you need on your own. A service technician should determine the size you need as part of a free installation estimate. 

During this estimate, a technician should perform an assessment called a Manual J Heat Load Calculation to find the size that best fits your home’s cooling/heating needs. 

During this assessment, a tech will look at factors like:

  • The type and quality of insulation in your home
  • Type and number of windows
  • Number of people living in your home
  • Climate where you live 
  • The direction your home faces
  • And more

Important: Make sure the technician does not guess the size using only the size of your home, i.e. “Your home is X sq ft, so your heat pump system should be size Y.” 

Looking at square footage only is an inaccurate way to determine what size heat pump you need, which can lead to:

  • An undersized system that will struggle to heat and cool your home, which will increase your energy bills and ultimately wear out your system sooner. 
  • An oversized system that will short cycle (turn on and off frequently), wasting money like a car would waste gas if you turned it on and off every time you came to a stoplight.

Cost factor #2: Energy efficiency

The more efficient your heat pump, the more it will cost upfront. However, the higher the energy efficiency, the more you could potentially save in the long run on monthly energy bills.

So, how do you determine how efficient a heat pump is? 

Since heat pumps can both heat and cool, they have 2 energy efficiency ratings:

  • SEER (cooling efficiency): Ranges from 13 to 20+ 
  • HSPF (heating efficiency): Ranges from 7.7 to 10+

The higher the SEER and HSPF ratings are, the more efficient the system is. 

Example of how much you can save with a 15 SEER Heat Pump vs a 10 SEER Heat Pump.

Cost factor #3: Comfort features

The cost of your heat pump installation will also depend on the amount and type of comfort features you choose to install. 

For example, a few common comfort features include:

1. A smart thermostat ($200-$750)- A “smart” thermostat automatically adjusts the temperature of your home based on the schedule you’ve set. This can help lower energy bills and prolong the life of your heat pump.

2. Variable-speed blower motor ($300-$5,000)- A blower motor with variable-speed technology increases the speed of your AC’s blower incrementally to match the heating/cooling needs of your home. These advanced blowers help increase comfort and save money on energy bills.


3. An air purifier ($250-$450)- An air purification system can help increase the overall air quality of your home, reducing allergy symptoms, dust, pet hair, etc.

Cost factor #4: The company/contractor you hire 

It’s hard to predict how much the cost of labor will affect the total cost of your system installation because it differs from company to company. However, we can tell you that typically, the more experienced a contractor or company is, the more they will charge for a heat pump installation. 

That being said, finding a good HVAC company is usually worth the cost. A poor quality installation could cause the system to run inefficiently and even break down prematurely, which will end up costing you more in the long run. 

To find a quality heat pump installer, we would suggest asking the company/technician these questions outlined by the ACCA:

  • Do you offer continuing education to your employees?  (They should.)
  • Can you provide local references?  (They should. Ask away!)
  • Do you offer a service agreement plan? (They should.)
  • Are you properly licensed and insured? (They should be. You can ask a company or contractor for proof of license and insurance or verify this information on the BBB)
  • Do you follow the industry standards? (This includes the Manual J heat load calculation we mentioned before.)
  • Do you have good reviews? (They should; we’d suggest checking on Google, the BBB and Facebook.)

Need a heat pump estimate in Phoenix, AZ? We’re the team to call. 

Schedule a free heat pump installation estimate! 

We’ve been serving Arizona homeowners since 1955, so we know a thing or two about installing a heat pump. Whether you already know exactly what you want or you still need help deciding on the best heat pump for your home, we’re here to help.