Heat pumps steal warmth from outside air and dump it inside your house during winter. Summer flips the process around: they grab indoor heat and kick it outside like any air conditioner.
Cold air from your house flows into the indoor unit where refrigerant coils warm it up, then a fan pushes that heated air back through your ductwork. Outside, a compressor squeezes refrigerant until it gets hot. Inside, coils and a blower do the work. Your thermostat tells everything when to heat or cool.
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Price range: $4,500-$8,500 installed
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Price range: $15,000-$25,000 installed
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Price range: $3,000-$5,500 per zone installed
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Price range: $6,000-$12,000 installed
SEER and HSPF numbers tell the real story about your heating and cooling bills. SEER measures cooling efficiency - anything below 16 SEER wastes money on summer electric bills. HSPF measures heating efficiency, and you want 8.5 HSPF minimum. For cold climates, go 10+ HSPF or don't bother upgrading. High-efficiency models can cut your bills by 25% compared to basic units.
Basic compressors work like old light switches – full blast or nothing. Variable-speed compressors adjust output to match what your home actually needs. They run longer cycles at gentler speeds, which gives you steadier temperatures and better humidity control. Buy variable-speed if your budget allows. Your electric bills can drop $300-$500 annually.
Standard heat pumps lose capacity when outdoor temperatures drop. At 20°F, most units only produce 60-70% of their rated heating capacity. Cold climate heat pumps use enhanced vapor injection to maintain heating output down to -15°F. Working with manufacturers taught me that cold climate models cost $1,000-$2,000 more but prevent expensive backup heat from running. Test data shows they maintain 75% capacity at 5°F while standard units drop to 40%.
Air source heat pumps need backup heating when outdoor temps drop too low. Electric resistance strips are common but expensive to run - like giant toasters inside your ductwork. Gas furnace backup costs more upfront but cheaper to operate. I've seen installations where homeowners wanted heat pumps but needed gas backup because their electric service couldn't handle resistance strips. This affects operating costs and equipment selection.
Working in the HVAC industry showed me reliability data with fewer Carrier warranty claims than other brands in the $5,000-$8,000 range. Their Greenspeed models handle cold weather better than most competitors.
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Best fit: Homeowners in northern climates who want reliable year-round heating
My work with manufacturers showed me Trane heat pump compressors fail less than almost any other brand. Yes, you pay more upfront, but their units last forever.
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Best fit: People staying in their homes long-term who want something bulletproof
Mitsubishi heat pumps are known for efficiency, cold climate performance, and ductless expertise. They lead the market in inverter technology and zone control systems.
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Best fit: Homes without ductwork or people wanting room-by-room control
Contractors prefer Rheem because parts are readily available and the units are straightforward to work on.
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Best fit: Homeowners wanting reliable performance without premium prices
Goodman is basic but reliable. Skip the premium models, stick with their entry-level heat pumps.
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Best fit: People who need heating and cooling on a tight budget
If you're handy, you can likely install a ductless mini-split yourself. Many companies like MRCOOLDIY seel pre-charged kits online.
However, don't even think about installing an air-source heat pump or other whole-house system yourself. I've read too many stories about DIY refrigerant connections that leaked and destroyed compressors; people have lost thousands from this mistake. Even the electrical work needs heavy-duty wiring that starts fires when done incorrectly. Local codes in most areas demand permits and inspections too.
Help your installer by clearing the area and making sure they get easy access to both indoor and outdoor unit locations.
Here's what every proper installation needs:
Efficiency ratings hit your wallet hard every month. Heat pumps beat electric baseboard heating but cost more than gas furnaces in most places. Your insulation, ductwork, and thermostat habits matter just as much. I've talked to people whose drafty houses barely saved money from high-efficiency heat pumps until they sealed air gaps and added insulation.
Here's real cost breakdowns for moderate climate homes:
Your bills depend on local electric rates, how tight your house is, and how you use the system.
Professional service covers cleaning both coils, checking refrigerant levels, testing electrical connections, lubricating fan motors, inspecting safety controls, and measuring system performance.
Expect to pay $150-$250 for this work. Skip it and you'll face expensive repairs when your compressor dies in the middle of summer.
Signs: Cold air coming from vents, unit running but no heat, or nothing at all
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Call someone when: Basic fixes don't work, you hear refrigerant hissing, or electrical parts look damaged
Signs: Big temperature differences between rooms, some areas too hot or cold
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Call someone when: You still have problems after basic fixes – could be ductwork sizing or refrigerant flow issues
Signs: Grinding, squealing, hissing, or loud banging when the heat pump runs
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Call someone when: Grinding, squealing, or refrigerant leaks keep happening – compressor trouble or refrigerant problems need professional fixes
What heat pumps cost:
Contractors mess this up all the time. They guess or use outdated rules instead of doing math. Too-big heat pumps turn on and off constantly, waste electricity, and can't control humidity. Too-small units run all day but never reach your target temperature when the weather gets extreme.
Contractors must use Manual J calculations to determine the correct size, measured in tons of cooling capacity. Homes generally need 1 ton per 500-600 square feet, though drafty older homes demand more while well-insulated newer construction needs less.
Don't let anyone guess at sizing. I've heard of too many problems from contractors who eyeball estimates instead of doing proper calculations.
As you're getting quotes for a new heat pump, ask each HVAC company these questions:
Here are four ways to reduce your home's heating and cooling costs that really work:
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They typically last 15-20 years with regular maintenance. Quality units sometimes hit 25 years. Compressors usually last 12-15 years, while indoor units can go longer. Geothermal systems last 25+ years because underground components avoid weather exposure.
Equipment parts get covered 5-10 years, compressors 10-12 years. Installation work gets covered 1-2 years around here. Look into extended service plans if you want more coverage.
Existing ductwork often works with heat pumps, but electrical service needs upgrading in most homes. Thermostats require replacement with heat pump compatible models. I've watched retrofit jobs fail because standard thermostats run heat pumps incorrectly and waste electricity.
Oversized units turn on and off every few minutes, create uneven temperatures, and can't remove humidity. Undersized ones run constantly but never hit your target temperature when it gets really hot or cold outside.
Oversized heat pumps that short-cycle break down early, sometimes lasting only 8-12 years.
The feds cover 30% of geothermal costs through 2032 with tax credits. Local utilities often kick back $500-$2,000 for high-efficiency heat pumps. States have their own programs too. Areas with energy choice get the best deals.
Replace when your heat pump hits 12 years and needs repairs costing more than half of the replacement cost. Same if it keeps breaking down, bills keep rising, or you can't find parts. I've heard from homeowners whose older heat pumps needed $2,500+ repairs, replacement made more sense financially.
Your heat pump connects to other systems:
Looking for the right heat pump for your house? Smart HVAC USA connects you with local HVAC pros who'll figure out exactly what you need and give you recommendations that fit both your home and your wallet.
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