Making your home more sustainable and energy efficient can feel overwhelming. Gathering quotes, comparing contractors, and choosing the right equipment is a high-stakes decision, and you want to know you’re getting a fair deal.
When Consumer Reports polled our members last year, two-thirds told us CR should offer advice on how to select contractors and negotiate pricing. We’re listening. As part of our Community Reports project, we’re testing new approaches that draw on one of the most valuable resources we have: the real-world experiences of consumers like you.
One recent example focused on heat pumps.
Heat pumps provide both heating and cooling, replacing or supplementing traditional furnaces and air conditioners. They’re one of the most effective home energy upgrades available today, with the potential to save a typical family of four about $550 per year on their annual electric bills. But while the long-term savings are well documented, the upfront installation cost often feels like a black box.
Pricing a heat pump installation depends on a wide range of factors, which can include:
- The brand and model of the unit you install
- Whether additional electric work is required
- Whether you’re replacing an existing heat pump or switching from a different heating or cooling system
- The state you live in (which speaks to both your climate, and incentives available)
- The size and age of your home
Our friends at Rewiring America have crunched the numbers from select states that offered rebates and tracked installation costs at the same time. Analysis of that data revealed some pricing trends, but reinforced how additional, real-world consumer experiences were necessary to validate these initial findings.
In response, we sent CR members a survey to capture key data points from those who have recently gone through the heat pump purchase and installation process. Let’s take a moment here to pause, and say how grateful we are to the individuals that participated in this project! It wasn’t simple: The survey took about 10 minutes to complete, as it runs through a range of considerations that feed into overall costs.
One important aspect was capturing the actual model number of the heat pump installed (not the most accessible data point!). In order to do that, some folks had to go outside, venture to their heat pump unit, and poke around until they found the model number. If you had to break out the flashlight, get on your hands and knees, or crawl through the grass to find that model number, thank you! Of 1,795 people that submitted a survey, we collected an astounding 800 distinct model numbers from stalwart energy savers.
So, what did we learn?
Yes, we hear you saying, that’s a lot of explanation– what did we find? And how can it help you, as a future energy saver, better navigate this shrouded space?
Overall, we collected heat pump installation costs from 1,393 zip codes, 760 counties, and all 50 states. The median cost to install a heat pump landed at $12,200. Within individual states, consumers in Connecticut and Massachusetts reported the highest installation costs (median $18,000), while those in Wisconsin reported the lowest installation costs (median $4,500). We can compare this to some of the public datasets, as well as findings from prior CR surveys. In fact, the MA results fall directly in line with Rewiring America’s analysis of a public data set from the state’s Whole-Home Heat Pump Pilot program, which found the median project cost to be approximately $18,300. According to a 2023 CR member survey, the median nationwide price our members paid for the purchase and installation of a ducted heat pump was $8,348.
Our findings provide insight into the specifics that can increase costs. Larger, older homes had some of the most expensive installations. On average, we found installation was $3,500 more expensive in a home built pre-1970 than post-1970. And costs scaled with square footage. For every additional 100 square feet of a home, install costs rose by roughly $670. Homes with a central furnace at baseline had the highest installation costs, while homes with no heating, or electric to heating at baseline had the lowest installation costs. About 20% of respondents told us they had to upgrade their electric panel to install their heat pump. Those upgrades could cost you as well – up to a few thousand dollars in some cases.
While incentives and tax credits have been eliminated at the federal level, there are still a range of state-level energy efficiency programs consumers can qualify for. But finding such a program doesn’t seem to be the norm. Less than half of survey-takers said they received an incentive for their heat pump installation. Among those that did, the median amount was $2,000. Respondents in Vermont were most likely to have received an incentive, while those located in Alabama were least likely.
These findings provide consumers with a reference point that can be used when negotiating the installation of a new heating and cooling system. It’s evident that the details matter, and homeowners should consider the full range of factors cited when making their decision. Be wary of contractors that lowball the cost when, for instance, you’re switching from a gas furnace and have a large, older home. And likewise for those that give eye-popping installation costs in mild climates where you’re, for example, simply replacing an existing heat pump unit. Look for incentives from your state or local utility company that may be available to help offset some of the upfront costs, and remember that you will earn much of the installation investment back in energy bill savings over the lifetime of the unit.
Looking ahead
At Consumer Reports, we’re committed to making home upgrades more transparent, more understandable, and easier to navigate. This project is one example of how Community Reporters donating their data can generate insights that benefit everyone. And it’s only the beginning. Stay tuned for more opportunities to contribute to our work on energy affordability and home electrification.
In the meantime, if you’re considering a heat pump, we also recommend:
- Rewiring America’s Here’s How Much Heat Pumps Cost to Install
- Consumer Reports’ Heat Pump Buying Guide
Together, these resources can help you make a more informed—and more confident—decision.