Heat pumps: the complete guide.
How they work, what they cost, which rebates apply, and how to size one for your climate. Written by contractors who install them.
What to know about heat pumps
A heat pump moves heat instead of generating it, making it 2-4x more efficient than a furnace or boiler. In heating mode it extracts heat from outdoor air (even at sub-zero temperatures with cold-climate models) and delivers it inside. In cooling mode it reverses, functioning as an air conditioner. Modern cold-climate heat pumps maintain full heating capacity below -15°F, making them viable as the sole heating source in every US climate zone when paired with adequate insulation and air sealing.
What does it cost?
Typical installed costs before rebates. Your actual cost depends on home size, accessibility, and local labor rates.
| Type | Low | High | Notes |
|---|---|---|---|
| Ductless mini-split (single zone) | $3,500 | $6,000 | Installed. Most common residential upgrade. |
| Multi-zone ductless (3-4 heads) | $10,000 | $18,000 | Whole-home coverage without ductwork. |
| Ducted central heat pump | $12,000 | $25,000 | Replaces existing furnace + AC. Requires ductwork. |
| Ground-source (geothermal) | $25,000 | $50,000 | Highest efficiency, highest upfront cost. 3-5x COP. |
Everything about heat pumps
6 in-depth guides covering costs, rebates, types, and installation.
Heat pump costs
What to expect for equipment, installation, and operating costs by system type and climate zone.
Heat pump rebates
Federal, state, and utility rebates for heat pump installations, including IRA tax credits and HEAR funding.
Heat pump sizing
How to calculate heating load and choose the right capacity. Manual J basics for homeowners.
Cold climate heat pumps
Which models work below 0°F, field performance data from northern states, and sizing for cold climates.
Mini-splits explained
Ductless mini-split systems: how they work, where to place them, single vs. multi-zone, and installation basics.
Heat pump vs. furnace
Side-by-side comparison of operating costs, efficiency, comfort, and environmental impact.
Common questions
Do heat pumps work in cold climates?
Yes. Modern cold-climate heat pumps (Mitsubishi Hyper-Heating, Fujitsu XLTH, LG Arctic) maintain full capacity at -15°F and continue operating to -22°F. Field data from Maine and Vermont shows they can serve as the sole heating source in Climate Zones 5-7 when the building envelope is properly insulated.
How much does a heat pump cost to install?
A single-zone ductless mini-split costs $3,500-$6,000 installed. A whole-home multi-zone system runs $10,000-$18,000. After federal and state rebates, net cost is typically 30-60% lower. Operating cost savings of $500-$1,500/year further reduce the payback period.
What rebates are available for heat pumps?
State programs vary widely. Efficiency Maine offers $1,000-$3,000 per unit depending on income. Mass Save provides $1,125-$2,650 per ton. NYSERDA's EmPower+ covers up to $24,000 for income-eligible households. Use our Rebate Matcher to see every program you qualify for.
Can a heat pump replace my furnace?
In most cases, yes. A properly sized cold-climate heat pump can be your only heating source if your home is well-insulated and air-sealed. The key is sizing: the system must cover at least 80% of your peak heating load. An energy assessment will determine if your envelope is ready.