Thinking about switching to a heat pump and wondering what it will cost? Whether you’re looking at a standard system, a mini split, or a geothermal model, heat pump prices in 2025 vary depending on the type, capacity, and whether installation is included. Below we break down what you can expect to pay for a heat pump in the United States today.
What you need to know:
- There are two main types of heat pumps: hybrid and all-electric.
- A hybrid heat pump costs between $4,300 and $7,500 in 2025.
- An all-electric heat pump costs between $7,500 and $16,000 in 2025.
- You may qualify for subsidies if your heat pump has an energy label of A++ or higher.
Heat pump prices in 2025
| Type of Heat Pump | Average Price (before subsidy) |
|---|---|
| Hybrid heat pump | $4,300 – $7,500 |
| All-electric heat pump | $7,500 – $16,000 |
| Ground source heat pump (geothermal) | $10,700 – $26,800 |
| Mini split (ductless) heat pump | $3,000 – $10,000 |
How much is a heat pump installed?
Installation is typically included in the prices above, but costs can vary based on your existing HVAC system and the size of your home. Expect to pay:
- $6,000 – $12,000 for a new heat pump system installed
- $3,500 – $5,000 for labor only (if you already have the unit)
What about specific sizes?
| System Size | Heat Pump Only | Installed |
|---|---|---|
| 2-ton heat pump | $3,800 – $6,200 | $5,500 – $9,500 |
| 2.5-ton heat pump | $4,200 – $6,800 | $6,000 – $10,000 |
| 3-ton heat pump | $4,500 – $7,200 | $6,200 – $10,500 |
| 4-ton heat pump | $4,800 – $7,800 | $6,500 – $11,000 |
| 5-ton heat pump | $5,200 – $8,500 | $7,000 – $12,000 |
Heat pump water heater costs
A heat pump water heater (also called a hybrid water heater) generally costs between $1,500 and $3,000 for the unit and $2,500 to $4,500 installed.
How much more efficient is a heat pump?
Compared to traditional heating and cooling systems, heat pumps can be up to 300% more efficient. That means for every 1 unit of energy they use, they can generate 3 units of heat. In general:
- A heat pump is 2–3x more efficient than electric furnaces or baseboard heating.
- They are 20–50% more efficient than standard central air conditioners.
- Heat pump water heaters use up to 70% less energy than traditional electric models.
How much is a heat pump for a house?
Here’s a rough guide by home size:
- 1,000 sq ft: $5,000 – $9,000 installed
- 2,000 sq ft: $7,000 – $14,000 installed
- 3,000 sq ft: $10,000 – $18,000 installed
Other heat pump costs
- Compressor replacement: $1,200 – $2,800
- Fan motor: $300 – $700
- Defrost board: $200 – $600
Are there incentives for heat pumps?
Yes. In 2025, the Investment Subsidy for Sustainable Energy (ISDE) offers rebates of up to:
- $2,750 for a hybrid heat pump (4 kW)
- $3,400 for an all-electric model (8 kW)
- $4,775 for a ground source model (6 kW)
To qualify, your heat pump must have an energy rating of A++ or higher. Total rebates can reduce your final cost by 20–40% depending on the model.