Heat Pump costs, Prices and payback

Air source heat pumps prices

Prices of common air source heat pumps vary greatly, but here are some broad references involving a good and competitive brand:

18 SEER, HSPF=7,  two-stage, 3 ton, $4,400
18 SEER, HSPF=7,  two-stage, 4 ton, $5,000
17 SEER, HSPF=7,  two-stage, 5 ton, $6,000

13 SEER $, 2 ton $2,000
13 SEER $, 3 ton $2,500
13 SEER $, 4 ton $3,000
13 SEER $, 5 ton $3,200

15 SEER $, 2 ton $2,400
15 SEER $, 3 ton $2,800
15 SEER $, 4 ton $3,200
15 SEER $, 5 ton $3,600

Note: SEER=Cooling Rating; HSPF=Heating Rating; Two-stage = New heat pump feature Ton: Heat pump capacity

Ductless heat pumps prices

Another good and competitive brand is marketing their 12,000 BTU (1 ton) Ductless Mini-Split Wall-Mount Heat Pump 17 SEER at prices between $1,000 and $1,300 (varying with different sellers). That's much better than some years ago.

See: Mini-split ductless heat pumps

Ground source heat pumps prices

Ground source heat pumps prices depend drastically on the type of its loop and its configuration, on issues involving the ground where the loop is going to be installed, and on elements like installing the heat pump during new construction or in existing homes. Prices between $12.000 and $20.000 are common.

Heat pumps efficiency and savings

Heat pumps savings are directly proportional to their efficiency.

Ground source heat pumps are particularly efficient and are those that can provide higher savings, but also those that cost higher. Their competitiveness is closely dependent on climate issues and on your consumption or on elements like the type of fuel of the alternative equipment.

For a table with an estimation of savings provided by ground heat pumps for a three bed semi-detached home, see Energy Saving Trust.

As to air source heat pumps (standard and ductless) their savings are closely dependent on their SEER (cooling rating) and HSPF (heating rating). Pay attention to these ratings. A heat pump with a SEER of 18 can provide cooling savings of about 35% when compared with heat pumps with a SEER of 13. Replacing an old heat pump with a SEER=8 and a HSPF=4 with a new unit with a SEER=16 and HSPF=8 will cut your power bills in half.

For more elements, see: Heat Pump Performance and Rating

Other heat pump costs: installation

The installation costs of ground source heat pumps are high and dependent on the type of loop, soil, land availability and other related issues.

The cost of installing an air-source heat pump depends on the exact type of system and on the existing heating equipment. If the ductwork has to be modified, the installation costs can be high. Otherwise they will be low, or included in the seller’s price or contract. If you also need to upgrade your electrical service to deal with the increased electrical load (some older homes may require it) that can add more $1,000-$3,000 to the investment.

New Heat pumps features and their cost

New heat pumps have several important features like supplemental heating, two-speed compressors, dual fan speed motors, desuperheater (for water heating), spiral shaped scroll compressors….

Some of these features are relatively inexpensive and included in the most advanced heat pumps. Others, like two-speed compressors will add some hundred dollars to the final cost of the heat pump...

Whenever possible consider these new features. They usually deserve the cost and contribute to higher energy savings and to a shorter heat pump payback. See: New Heat Pumps Technology

Climate, consumption and the payback

The competitiveness of the heat pumps depends on climate issues (air source heat pumps lost most of their effectiveness and require supplemental heating during freezing periods) and on the homeowner's level of consumption and the type of house and heat pump.

Ground heat pumps require a high investment and only make sense for homes with large energy consumption.

Well insulated homes, with a good layout and a good sun orientation may not need air conditioning or heat pumps… In such cases, heat pumps become unnecessary…

Comparing heat pumps costs with other alternatives

Heat pumps are direct alternatives to other heating and cooling equipment (air conditioners but also furnaces, gas heaters, stoves….). They are also electric units competing directly with other electric HVAC equipment but also with gas, oil and solid fuel appliances.

In most cases they are cost-competitive and low-carbon alternatives to these other units due to their high-efficiency. But their degree of competitiveness is closely related to the prices of electricity and other fuels (not to mention the consumption and climate) and also to wider heating and cooling strategies.

See:
Heat Pumps vs. Furnaces
Heat Pumps vs. Air Conditioners

heat pump payback

High efficient heat pumps can provide significant savings and low paybacks (4-6 years…) compared with other electric equipment or even standard gas heating and cooling equipment.

They aren’t so advantageous (or advantageous at all) for homes with low levels of electricity consumption, namely new energy-efficient homes. In this case the heat pumps do not make sense or they paybacks are too long.