Installing a heat pump can make a huge difference in your electricity bill by decreasing the cost of heating and cooling your home. A heat pump will replace both the furnace and air conditioner/central air unit.The average cost to install a heat pump ranges from $3,958 and $6,713 depending on the size of your home and type of heat pump. Since a geothermal heat pump requires underground installation, its installation costs will be more expensive than the costs for the air-source type. Though the cost of the heat pump and labor fees may be a significant investment, it can drastically reduce your energy consumption. Consider the following factors before installing a heat pump:The difficulty associated with the excavation of the ground will affect the installation costs. Make sure to consult a few installation professionals and get a number of bids, as this installation can vary significantly in price. For example, drilling through a concrete slab or driveway to install the heat pump will be more expensive than no excavation.

Here are the cost factors to take into consideration before installing an air-source or geothermal heat pump:The biggest single factor in determining the price of your heat pump is the size of your house. Larger houses will require higher-capacity pumps to heat and cool them properly.  carrier ac parts for rvThe higher your heat pump’s capacity is, the more you will pay for it. how to fix a wall ac unitDo not try to cut costs by installing a pump that is too small for your needs. home ac unit not getting coldWhat you might gain in savings will be lost quickly in efficiency and higher energy costs. These are some tips to help you choose a heat pump that is ideal for your home:Every heat pump manufacturer usually offers low-, mid-, and high-quality units.

The HSPF rating (Heating Seasonal Performance Factor), energy-efficiency rating (SEER), and sound rating all factor into the cost of the heat pump. For example, a pump with a higher energy-efficiency and HSPF score is typically priced higher.Most customers will spend between $700 and $2,800 for a mid-quality heat pump, not including labor costs. Depending on the brand, model and installation factors like drilling or excavation, this can take the cost up to $9,000.Below is an overview of the price ranges for popular heat pump brands:Many heat pump manufacturers do not publish their unit prices, due to the fact that there are a number of considerations that may affect the overall cost. However, here is an average estimate for other major heat pump brands based on their 3-ton models, which ranges from $5,000 to $8,200 for labor and standard materials. Keep in mind that there are other circumstances, such as more involved pipe work, that can cause these estimates to increase:There are two main types of heat pumps: geothermal heat pumps and air-source heat pumps.

A geothermal heat pump draws the heat from the ground, while the air-source type pulls the heat from the air outside.There are also other types of heat pumps, such as hybrid pumps, which draw their energy from a gas boiler, and absorption pumps, which operate on water heated by solar panels or geothermal energy. However, these are used less commonly and often have higher unit and installation costs.Heat pumps rely on evaporation and condensation processes to heat and cool the home. The unit transfers heat through the system via a refrigerant substance. The compressor within the pump circulates the refrigerant through two heat exchange coils. The first coil evaporates the refrigerant and absorbs heat from the air. The refrigerant then passes to the second coil, at which point it condenses and the unit releases the absorbed heat.Unlike a heater or air conditioner, which can only push cold or hot air out of the system, a heat pump is able to carry out both functions using two distinct processes:The external heat pump unit absorbs energy from the outdoor air through the heat exchangers.

In this instance, the refrigerant transfers heat to the system and is pushed through the pipes. Upon reaching the interior unit, the heat exchanger transfers the energy to the cooler air. The cool air is then warmed up as it circulates past the exchanger.The interior unit absorbs heat energy from the air via the heat exchanger, then uses the refrigerant to transfer the heat to cool down the room. The refrigerant passes back through the pipes into the exterior unit, where the energy is pushed out of the house and into the outside air by the exchanger.There is a wide range of cost- and energy-saving advantages associated with heat pumps. Here are just a few of the benefits that homeowners can expect to receive after installing a geothermal or air-source heat pump:Installing an energy-efficient heating and cooling system run by a heat pump may qualify you for several federal tax credits now being offered. There is also a tax credit for using a renewable system like geothermal heat. Taking advantage of these credits will dramatically decrease heat pump installation costs.

In addition to renewable energy credits, heat pump owners may also qualify for a non-business energy property credit and/or residential energy property expenditures. The residential energy credit allows homeowners to claim 10 percent of the cost of eligible properties, which does not include installation fees. The residential energy expenditures include labor costs, professional preparation, and the installation of electric heat pumps.After installing a geothermal heat pump, homeowners may be also able to claim up to 30 percent of the price of their heat pump units.To verify which credits, rebates, or write-offs you may qualify for, speak with a trained tax professional before purchasing your heat pump. This can also have a direct impact on your decision-making process, as geothermal units may cost more upfront but allow you to claim larger tax expenditures and credits.Many homes today are both heated and cooled with a heat pump, an appliance that came into wide use in the late 1970s when natural gas shortages caused the price of that fuel to spike.

The early heat pumps were highly inefficient.Today, heat pumps are much more efficient and do a much better job of both heating and cooling a home. Because they perform both functions, many consumers favor them over gas or oil heat.But like any type of appliance, a heat pump will wear out and need replacing. A homeowner needs to know where they are in the lifecycle and what it's going to cost for a replacement.A heat pump looks a lot like an air conditioner. In fact, an air conditioner is a type of heat pump but only moves temperatures in one direction -- down. The HVAC units we commonly refer to as heat pumps move temperatures in both direction, providing both heating and cooling functions.When a heat pump is in the heating mode, it uses the same refrigeration cycle an air conditioner does, but in the opposite direction. In summer you've probably walked past a window air conditioner and felt the warm air blowing out of the unit. With a heat pump, that warm air is released into the climate-controlled space instead of the great outdoors.

The air conditioning function works much the same as any other air conditioner.The efficiency of a heat pump is measured by the Seasonal Energy Efficiency Ratio (SEER) rating. The SEER rating of a unit is the cooling output during a typical cooling-season divided by the total electric energy input during the same period. The higher the unit's SEER rating the more energy efficient it is.For example, by upgrading from SEER 9 to SEER 13, the unit's power consumption is reduced by 30%. By some estimates, that could translate into a savings of $200 to $300 a year.According to the U.S. Department of Energy, the average lifespan of a heat pump is between 10 to 15 years. It's possible to get more life out of a unit but once you pass 15 years you are definitely on borrowed time.The good news is the new unit is almost certain to be more efficient than the one you are replacing. According to DOE, a new heat pump that has earned the ENERGY STAR label will probably save up to 20% on heating and cooling bills if the unit being replaced is more than 10 years old.

Besides age, performance will also tell you when it's time to replace your heat pump. If your equipment requires frequent repairs and you find that your heating and cooling bills are higher than normal, it may be time to consider a replacement, especially if the unit is 10 years old or older.Efficiency is another tip-off. If you find some rooms are less comfortable than others, it may mean the unit is struggling to do its job. Heat pumps also tend to become rather noisy in their later years, alerting you to the fact that their days are numbered.The cost of replacing your heat pump can vary, according to the size of the unit, its efficiency and the cost of installation. And the cost of installation can be a major part of the expense.Not long ago we replaced the original heat pump in our home with a 3.5-ton 15.5 SEER Lennox system, requiring a four-member crew to work two and a half days to install it. Because of all the complex wiring involved, one of the crew members was a licensed electrician.

If the quote for a new heat pump system seems high, that may help explain it. And of course, the quotes will be higher in areas with high labor costs.If you think your heat pump is due for replacement, start by having it serviced by a reputable company. Specifically ask the service provider for an assessment of the remaining life in the unit.If a new unit is recommended, ask two or more companies for quotes. Make sure you are comparing apples to apples, checking the tonnage, SEER rating and brand. Be sure to check out the brands on ConsumerAffairs, reading reviews from other consumers.Perhaps even more important, make sure you have the best service provider in your area. Heat pumps require proper installation and regular maintenance. You want someone who will install it properly and then offer a service contract that providers for regular inspections and repairs.A ConsumerAffairs colleague in the Washington, D.C., area recently noticed his relatively new heat pump was making a strange sound.