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Heat Pump Installation Cost in the Philadelphia Area

By Jess Maren · Sources verified by the editorial team on Oct 30, 2026

What a heat pump installation costs (national benchmarks)

We couldn't find any credible, published survey of installed heat pump prices for Philadelphia, the Pennsylvania suburbs or South Jersey. The figures below are national ranges from HomeGuide and Angi, not local quotes. On air-source systems, the most common type (Angi says about 66% of its customers choose one), the two sources are far apart, so get several written quotes. We'll add local prices only once we've collected real written quotes, and we'll label them.

Type HomeGuide, installed (national) Angi (national) Source
Ducted air-source heat pump $10,000–$25,000+ (includes air handler) $4,500–$8,000 HomeGuide; Angi
Ductless mini-split heat pump $2,000–$17,000+, depending on number of zones $1,300–$8,000 in Angi's heat pump article; average $6,500 in its ductless article HomeGuide; Angi ductless
Dual-fuel / hybrid (heat pump plus furnace or boiler) No range given; HomeGuide says dual-fuel systems "cost more" $2,500–$10,000 HomeGuide; Angi
Cold-climate air-source No separate range "$2,000–$5,000 more" for a system "designed to handle freezing temperatures efficiently" Angi
Geothermal (ground-source) $20,000–$50,000+; complex projects $75,000+ Average $15,322; most pay $4,541–$26,698 (Angi's heat pump article says $6,000–$20,000) HomeGuide geothermal; Angi geothermal

Sources: HomeGuide "How much does a heat pump cost?" (updated Oct 30, 2025) and "Geothermal heat pump cost" (updated Nov 14, 2025); Angi heat pump cost (updated Oct 28, 2026), ductless heat pump cost (updated Oct 30, 2026) and geothermal cost (updated Oct 5, 2026). All confirmed on the pages as of Oct 30, 2026. National figures, not Philadelphia prices.

Where the sources conflict:

  • Ducted air-source. HomeGuide's $10,000–$25,000+ headline is two to three times Angi's $4,500–$8,000 (our arithmetic). Angi's "Air Source" row doesn't say ducted; we compare it with HomeGuide's range because Angi lists mini-splits separately (our reading). HomeGuide's own heat pump efficiency table, which doesn't name a type, is lower than its headline: $6,000–$12,000+ installed for a 14–15 SEER2 system, rising to $15,000–$25,000+ at 20+ SEER2. An older HomeGuide page (Sept 2024) lists "$4,000 – $12,000" for an air-source heat pump. Angi's $6,087 average is "based on 4,719 verified projects reported by Angi Pros," with most homeowners paying $4,236–$7,942. Apart from HomeGuide's note that its air-source range includes air handler installation, neither source itemizes what its ranges include, so compare quotes line by line.
  • Geothermal. Angi's two articles disagree with each other ($6,000–$20,000 vs. a $15,322 average). Both are mostly below HomeGuide's $20,000–$50,000+.
  • Ductless. Angi's ductless summary says "$3,000 to $8,000 per zone," but its own zone table puts a whole 2-zone system at $3,000–$8,000. Angi notes that the article "was created using automation technology." We use the zone table below.

Heat pump cost by home size (national):

Home size HomeGuide, installed (national) Angi (national) Source
1,000 sq ft $6,000–$8,500+ (1.5–2 tons) $3,500–$5,500 (2 tons) HomeGuide; Angi
1,500 sq ft $8,000–$10,500+ (2.5 tons) $3,700–$5,800 (2.5 tons) HomeGuide; Angi
2,000 sq ft $10,000–$20,000+ (3 tons) $3,900–$6,200 (3 tons) HomeGuide; Angi
2,500 sq ft $12,000–$22,000+ (3.5–4 tons) $3,900–$6,400 (3.5 tons) HomeGuide; Angi
3,000 sq ft $18,000–$25,000+ (4–5 tons) $4,000–$7,300 (4 tons) HomeGuide; Angi

Source: HomeGuide (updated Oct 30, 2025) and Angi (updated Oct 28, 2026), as of Oct 30, 2026. National figures. Neither table is limited to one type of heat pump. Angi says its 3-ton figure is "including labor." The two sources assign slightly different tonnage to the same home size.

Ductless mini-split heat pump cost by number of zones (national):

Zones HomeGuide, installed (national) Angi (national) Source
1 $2,000–$4,000 $1,750–$4,500 HomeGuide ductless; Angi ductless
2 $3,000–$8,000 $3,000–$8,000 HomeGuide ductless; Angi ductless
3 $7,000–$11,000 $6,600–$11,000 HomeGuide ductless; Angi ductless
4 $9,000–$14,000 $8,500–$14,000 HomeGuide ductless; Angi ductless
5 $11,000–$17,000 $11,500–$16,500 HomeGuide ductless; Angi ductless

Source: HomeGuide "Ductless heat pump cost" (updated Sept 17, 2024, the oldest page we cite) and Angi "How Much Does It Cost to Install a Ductless Heat Pump?" (updated Oct 30, 2026), as of Oct 30, 2026. National figures.

Which type fits your home

From ENERGY STAR, HomeGuide and Angi, as of Oct 30, 2026:

  • Ducted air-source: ENERGY STAR says these can be installed and connected to "the conventional forced-air ductwork system," and "In most zones, an ASHP can be installed as a drop-in replacement when either a central air conditioner or a furnace needs replacement" (ENERGY STAR).
  • Ductless mini-split: ENERGY STAR lists "Older homes with no existing ductwork (e.g., radiators or baseboard heat) that have never had central air conditioning before" among common uses. It also says certified mini-splits "use up to 60% less energy than standard home electric radiators" (ENERGY STAR).
  • Cold-climate models: ENERGY STAR says its certification requires verified low-temperature performance, "testing ASHPs down to 5°F." It says a cold-climate heat pump "will continue working at temperatures below 5°F, but pairing it with a back-up energy source will heat your home the most efficiently when temperatures are even lower." HomeGuide says newer cold-climate models "function effectively down to -13°F." Angi says cold-climate models "may only need to rely on auxiliary heat when temperatures fall to between 0°F and -10°F for an extended time."
  • Dual-fuel (heat pump plus gas furnace): ENERGY STAR says that if "you have a relatively new furnace with an older central AC," a certified heat pump "creates a dual-fuel system for a modest extra cost over an AC system."
  • Geothermal: HomeGuide says horizontal loops "require at least 0.25 acres of land," while vertical systems need boreholes "100 to 400 feet deep." Angi says you'll need "roughly 1,200 to 1,800 feet of space in your yard." These figures are national; we found no source on geothermal in Philadelphia rowhomes or small lots.

What this means for you (our reading, not advice for your home): a Philadelphia-area home with radiators or baseboard heat and no ducts matches one of the situations ENERGY STAR lists for mini-splits. A home with ducts and an aging central AC or furnace matches its drop-in and dual-fuel guidance for ducted systems. A load calculation should decide the size either way (see below).

What drives the price

Add-on or factor National range Notes and requirements Source
Load calculation (sizing) Not priced ENERGY STAR: your contractor "should verify the proper size system for your home using a tool called 'Manual J'" ENERGY STAR
New ductwork $40–$65 per linear foot (Angi: $2,000–$7,500) Only if you want ducted heat and don't have ducts HomeGuide; Angi
Electrical panel upgrade $1,800–$2,500 "if your current panel can't handle the heat pump's power requirements" HomeGuide
New dedicated circuit (ductless) $250–$900 "a new dedicated 220V electrical circuit from the main panel to the outdoor unit location" HomeGuide ductless
Air handler replacement $1,500–$3,400+ If your existing unit isn't compatible HomeGuide
Cold-climate system $2,000–$5,000 more Angi's figure for a system "designed to handle freezing temperatures," listed under location as a cost factor Angi
Removing old equipment $200–$500 (ductless: $80–$150) HomeGuide's ductless page: "Most HVAC contractors include this cost in their quote" HomeGuide; HomeGuide ductless
Longer refrigerant line sets $15–$25 per foot HomeGuide
Concrete pad for the outdoor unit $300–$500 HomeGuide
Site preparation $500–$2,000 Tree removal, landscaping or leveling HomeGuide
Higher-end brands $1,500–$4,000 more (HomeGuide: 20%–40% more) Angi; HomeGuide
Labor $80–$200+ per hour (Angi: $75–$125 per hour per worker) HomeGuide: standard installs take 3–8 hours; complex systems may take 2+ days HomeGuide; Angi
Geothermal yard work $5,000–$15,000 Excavation, soil testing, regrading, trenching and piping Angi geothermal

Sources: HomeGuide (heat pump page updated Oct 30, 2025; ductless page updated Sept 17, 2024), Angi (updated Oct 5–28, 2026) and ENERGY STAR, as of Oct 30, 2026. National figures, not Philadelphia prices.

Replacing vs. adding a heat pump (as of Oct 30, 2026): HomeGuide says "heat pump replacement costs less since most of the infrastructure remains in place," but replacing a standard air conditioner with a heat pump can mean "a lot of new utility infrastructure." If your quote includes a panel upgrade, ask how the new load compares with your panel's capacity. Our water heater guide covers panel and circuit costs for heat pump water heaters, if you're planning both.

Lifespan (as of Oct 30, 2026): HomeGuide says "Most heat pumps last 10 to 15 years," or 15–20 with regular maintenance. For geothermal, it gives 20–25 years for the indoor unit and 40–60 years for the ground loops. Angi gives 10–15 years.

Operating costs: what we can and can't say

From ENERGY STAR, HomeGuide and Angi, as of Oct 30, 2026:

  • Efficiency: ENERGY STAR says an air-source heat pump "can deliver up to three times more heat energy to a home than the electrical energy it consumes," and lists "Lower energy bills by switching from electric resistance, propane, and oil to heat pumps." HomeGuide says homes using "propane, heating oil, or old electrical gear usually save the most energy."
  • National dollar figures: ENERGY STAR says certified geothermal heat pumps save "nearly $830 annually" compared with "a standard model." Angi estimates $300–$1,200 a year to run a ductless heat pump and $100–$200 a month for geothermal. These are national figures, not Philadelphia bills.
  • Gas vs. electric in Philadelphia: we found no source comparing heat pump running costs at PECO or PPL electric rates with PGW or PECO gas heat. So we can't say whether a heat pump will cost more or less to run than your gas furnace. Ask installers to show their assumptions in writing.
  • Thermostat settings: ENERGY STAR says heat pumps "do not save energy by turning it down when you're away or asleep," and recommends picking "a comfortable temperature and leave it there."

Permits: Philadelphia, the Pennsylvania suburbs and New Jersey

Where Permit or fee Key requirement Source
Philadelphia: L&I Mechanical Permit $69 per appliance in one- or two-family homes (if submitted separately); $189 flat fee for new ductwork in one- or two-family homes; $189 minimum (listed with the per-register ductwork fee) A licensed contractor must do all work. EZ permits (no plans) cover new installations and appliance replacements in one- or two-family homes L&I Get a Mechanical Permit
Philadelphia: L&I Electrical Permit $25 per $1,000 (or fraction) of estimated electrical construction cost; $63 minimum Licensed electrical contractor; the owner or the owner's agent "must hire a licensed electrical inspection agency to perform all inspections" L&I Get an Electrical Permit
Philadelphia: filing fee and surcharges $100 filing fee per permit; $3 city + $4.50 state surcharges The filing fee is credited toward the final permit fee L&I Mechanical; L&I Electrical
Pennsylvania suburbs (Uniform Construction Code) Set locally; we couldn't confirm fees A permit is required to "install … convert or replace an electrical, gas, mechanical or plumbing system regulated by the Uniform Construction Code" 34 Pa. Code §403.62
New Jersey Set by the local enforcing agency; we couldn't confirm fees Replacing furnaces, air conditioning units and condensing units "with new appliances of like capacity" is "minor work." Heat pumps aren't named; ask your construction office N.J.A.C. 5:23-2.17A

Sources: City of Philadelphia L&I permit pages; 34 Pa. Code §403.62; N.J.A.C. 5:23-2.17A (via Cornell LII). All as of Oct 30, 2026.

Philadelphia details (as of Oct 30, 2026):

  • Mechanical Permit: you need one "to install devices regulated by the Philadelphia Mechanical and Fuel Gas Codes," including "Heating, venting, and air conditioning" and "Ductwork." You don't need one for "Ordinary repairs or maintenance to mechanical systems." The contractor must have an active license, be current on all City of Philadelphia taxes and have current insurance on file with L&I. "Sheet metal work must be performed by a registered sheet metal technician or apprentice employed by the contractor" (L&I Mechanical).
  • Electrical Permit: L&I's mechanical permit page says "If any component of the system requires electrical power you need an Electrical Permit" (L&I Mechanical). The electrical permit page adds that "A separate PECO service and meter application (PDF) may be required" (L&I Electrical).
  • Which fee applies: L&I doesn't say which mechanical fee line a typical heat pump swap falls under, so we couldn't confirm the total permit cost. We also couldn't confirm what a licensed electrical inspection agency charges.
  • Codes: from July 1, 2026, Philadelphia's Mechanical Code is the 2021 International Mechanical Code with local amendments (L&I applicable codes).

Pennsylvania suburbs (Bucks, Montgomery, Delaware and Chester counties; as of Oct 30, 2026):

  • Emergencies: "An emergency repair or replacement of equipment may be made without first applying for a permit if a permit application is submitted to the building code official within 3 business days of the repair or replacement" (§403.62(b)).
  • Licensing: Pennsylvania has "no licensure or certification requirements for most construction contractors," and some of its 2,562 municipalities license trades locally (PA Labor & Industry).

New Jersey (as of Oct 30, 2026):

  • Minor work: notice must be given "before work commences," and the permit application is due "within five business days from the date of the notice." Minor work also includes "new electrical work incidental to the installation of air conditioning" in one- and two-family homes (N.J.A.C. 5:23-2.17A).
  • No permit for some repairs: ordinary maintenance, which needs no permit, includes "Repair of air conditioning equipment and systems" and "Repair and replacement of duct work" (N.J.A.C. 5:23-2.7).
  • Licensing: New Jersey's HVACR licensing law says "A person shall not work as a Master HVACR contractor … unless licensed." It exempts "a single family home owner who personally occupies his own dwelling and who solely performs HVACR work on his own dwelling, upon receipt of all required permits," except work involving CFCs or HCFCs (P.L.2007, c.211, as enacted Dec 20, 2007; we didn't check later amendments).

Rebates and tax credits

Rebates for a heat pump come from your electric utility, and amounts, tiers and deadlines can change. For full rules and deadlines, see our PECO and PPL rebate guide. These are the heat pump amounts we re-checked on the utilities' own pages today:

Utility Rebate Key requirement Source
PECO: air-source heat pump $200 or $300 ENERGY STAR; AHRI whole-system rating (15.2–17.0 or 17.1+ SEER2; 11.0 EER2; 7.8+ HSPF2); replaces an existing system; no new construction; application received within 90 days of purchase PECO Heating & Cooling; PECO form
PECO: ductless mini-split $150 or $300 Same tiers; "Additional rebate will not be paid for indoor units installed at a later date than the original system" PECO ductless form
PPL: air-source heat pump $225 or $325 ($350 or $475 income-qualified) ENERGY STAR; under 65 kBTU/h; whole-system AHRI; no new construction; submit within 180 days of installation PPL ASHP form
PPL: mini-split / ground-source $225 per outdoor unit ($350 income-qualified) / $500 Mini-split: ENERGY STAR, under 65 kBTU/h, one form per outdoor unit. Ground-source: ENERGY STAR certified PPL mini-split form; PPL rebates
Atlantic City Electric: air-source / ductless $500 or $750 / $750 AHRI-rated efficiency tiers; your contractor submits ACE HVAC Efficiency Program
Atlantic City Electric: cold-climate heat pump $2,000 NEEP/AHRI certified; limited time, April 1, 2026 – June 30, 2027 ACE
Atlantic City Electric: geothermal $10,000 for a new system; $2,500 replacing geothermal Installs July 1, 2026 – June 30, 2027; "applies only to customers replacing an electric heating system." A footnote caps both: replacing an air-source heat pump, electric forced-air furnace or central AC, "half of the project cost, not to exceed $10,000"; replacing a ground-source heat pump, "half of the project cost, not to exceed $2,500" ACE

Sources: the utilities' rebate pages and forms listed, as of Oct 30, 2026. PECO, PPL and ACE heat pump amounts, including ACE's geothermal rebate, match our rebate guide.

  • Dual-fuel homes: if you're also replacing a gas furnace, gas rebates come from your gas utility (PECO gas or PGW). PGW lists a $400 rebate for a first 95% AFUE furnace; on Oct 30, 2026, its page showed "Percentage of Funds Used: 50%." PECO's electric air-source heat pump form says the heat pump "is considered by this program to be the primary heat source regardless of any supplemental heat source. No other heating source is eligible for a rebate." We couldn't confirm whether that stops a PECO gas customer from also getting PECO's gas furnace rebate on a dual-fuel install, so ask PECO before you count on both. See the rebate guide for the gas details.
  • No federal tax credit for 2026 installs. The IRS says the 25C energy efficient home improvement credit "will not be allowed for any property placed in service after December 31, 2025." The 25D residential clean energy credit, which covered geothermal heat pumps (IRS Residential Clean Energy Credit), "will not be allowed for any expenditures made after December 31, 2025" (IRS FS-2025-05, Aug 21, 2025). A Senate bill (S.3722) introduced January 29, 2026 is listed on Congress.gov as introduced only, which means it isn't law.
  • Watch for outdated tax credit claims. As of Oct 30, 2026, several pages still describe the old credits. HomeGuide says a heat pump credit is "worth 30% of their installation costs, up to $2,000," and a geothermal credit "is available through 2032." Angi says geothermal installs "prior to 2033 qualify for a 30% rebate." ENERGY STAR's heat pump pages say the credit runs "between January 1, 2023, and December 31, 2032." The IRS pages above say otherwise.
  • Pennsylvania HOMES and HEEHR rebates haven't launched. PA DEP says "As of September 2026, DEP is awaiting final DOE approval to launch the Home Energy Rebate programs" (PA DEP). The Penn Energy Savers site says "Coming Soon- Spring 2027."

How to get and compare quotes

Sources as of Oct 30, 2026:

  1. Know what you have now: your heating fuel, whether you have ducts, the age of your AC and furnace, and the name on your electric and gas bills (that decides which rebates apply).
  2. Get at least three written, detailed quotes. HomeGuide recommends this, and says to "Compare equipment specifications, not just total prices" and make sure "estimates include all necessary permits, electrical work, and materials."
  3. Ask for a load calculation. ENERGY STAR says your contractor should size the system with a "Manual J" calculation.
  4. Ask for the AHRI certificate number. PECO, PPL and ACE rebates depend on the system's AHRI rating. PECO says its rebates "are not based on 'up to' ratings, but on actual, whole-system ratings."
  5. Check registration and the contract. In Pennsylvania, home improvement contractor registration covers "the installation of central heating, air conditioning." Contractors doing $5,000 or more of work a year must register. Contracts over $500 must be in writing and include your right to cancel (PA AG FAQ). In New Jersey, home improvement contracts over $500 must be in writing, and you can cancel before midnight of the third business day after you receive a copy (N.J.S.A. 56:8-151). Our sewer line guide covers both states' rules in full in its "Hiring a contractor" section.

Questions to ask each installer:

  1. Will you do a Manual J load calculation, and can I see the result?
  2. Which system do you recommend (ducted, ductless, cold-climate or dual-fuel), and why for my house?
  3. What's the AHRI certificate number for the whole system, and which PECO, PPL or Atlantic City Electric rebate tier does it meet?
  4. Does my electrical panel have room for this system? If not, what does the upgrade cost, and is a new dedicated circuit included?
  5. Do my existing ducts work with this system? Is any ductwork, air handler or line-set work priced separately?
  6. What backup heat is included, and at what outdoor temperature will it run?
  7. Who pulls the permits (in Philadelphia, the Mechanical and Electrical Permits and the electrical inspection agency), and are those fees in the price?
  8. Are you licensed for this work (in Philadelphia, an L&I-licensed contractor; in New Jersey, a Master HVACR license)? What's your PA home improvement registration number?
  9. Does the price include removing and disposing of the old equipment?
  10. What are the equipment and labor warranties, and how long does each last?
  11. Will you file the rebate, or give me the paperwork? (PECO's 90-day and PPL's 180-day windows start at purchase and installation, respectively.)
  12. What operating-cost assumptions are you using (electric and gas rates), and can you put them in writing?

FAQ

How much does a heat pump cost to install in Philadelphia? We couldn't find local price data. Nationally, HomeGuide puts a ducted air-source system at $10,000–$25,000+, while Angi says $4,500–$8,000. A one-zone ductless system runs $2,000–$4,000 (HomeGuide) or $1,750–$4,500 (Angi) nationally. Get several written quotes.

Do I need a permit to install a heat pump in Philadelphia? Yes. L&I requires a Mechanical Permit for "Heating, venting, and air conditioning." L&I says you also need an Electrical Permit "If any component of the system requires electrical power." Electrical inspections are done by a licensed third-party inspection agency hired by the owner or the owner's agent.

Is there a federal tax credit for heat pumps in 2026? No. The IRS says 25C isn't allowed for property placed in service after December 31, 2025, and 25D (geothermal) isn't allowed for expenditures after that date. Utility rebates are still available; see the table above.

Will a heat pump work in a Philadelphia winter? ENERGY STAR says its certification tests air-source heat pumps down to 5°F. It says a cold-climate model keeps working below 5°F, but pairing it with a back-up energy source heats most efficiently when it's even colder. Ask installers what backup heat their quote includes.

How long do heat pumps last? HomeGuide says most last 10–15 years, or 15–20 with regular maintenance. Geothermal indoor units last 20–25 years, and ground loops 40–60 years.

Thinking about a project?

If you'd like a quote from a local installer, you can use our quote form. We may be paid by contractors when we refer a job to them. That doesn't change the costs, rules or rebates in this guide, which come from the sources listed below. Learn how we make money.

Sources

All checked Oct 30, 2026 unless noted.