Heat Pump Complete Guide 2025
Everything you need to know about heat pump selection and installation
40%
of new US installations
300-400%
efficiency (COP 3-4)
$2,000
federal tax credit
-25°C
cold climate operation
How Heat Pumps Work
A heat pump is an HVAC system that can both heat and cool your home by transferring heat rather than generating it. In cooling mode, it works like an air conditioner, removing heat from inside. In heating mode, it reverses the process, extracting heat from outdoor air (even in cold temperatures) and moving it inside.
Because heat pumps move heat rather than create it through combustion, they can achieve efficiencies of 300-400%—meaning they produce 3-4 units of heat for every unit of electricity consumed.
Heat Pump vs Furnace + AC
| Heating Efficiency | 300-400% vs 80-98% |
| Cooling Efficiency | Same (SEER2) |
| Fuel Source | Electric only |
| Carbon Emissions | Lower |
Types of Heat Pumps
Air Source Heat Pump
Most Common Type
Extracts heat from outdoor air. Works well in moderate climates and increasingly effective in cold climates with modern technology.
Subtypes: Ducted, Ductless (Mini Split)
Ductless Mini Split
Zoned Comfort
Wall-mounted indoor units connected to outdoor compressor. Perfect for homes without ductwork or for adding AC to specific rooms.
DIY options available (MRCOOL, etc.)
Geothermal Heat Pump
Ground Source
Uses underground loops to exchange heat with the earth's constant temperature. Most efficient but highest installation cost.
30% federal tax credit available
Cold Climate Heat Pumps (ccASHP)
Modern cold climate heat pumps can operate efficiently at temperatures as low as -25°C (-13°F). ENERGY STAR's "Cold Climate" designation requires a minimum COP of 1.75 at -15°C (5°F).
Key Features:
- Variable-speed inverter compressor
- Enhanced vapor injection (EVI)
- Pan heater for defrost drainage
- Base pan heater
Performance at Low Temperatures:
| Outdoor Temp | COP | Efficiency |
|---|---|---|
| 8°C (47°F) | 4.0 | 400% |
| -8°C (17°F) | 2.5 | 250% |
| -15°C (5°F) | 1.75 | 175% |
| -25°C (-13°F) | 1.3 | 130% |
* COP = Coefficient of Performance. COP of 1.0 = 100% efficient (same as electric resistance heat)
Heat Pump Sizing Calculator
Estimate the heat pump size needed for your space. This is a rough estimate—a Manual J calculation is recommended for accurate sizing.
Heat Pump Efficiency Ratings
SEER2 (Cooling Efficiency)
Seasonal Energy Efficiency Ratio measures cooling performance over a typical cooling season.
HSPF2 (Heating Efficiency)
Heating Seasonal Performance Factor measures heating performance over a typical heating season.
2025 Installation Costs
| Type | Equipment | Installation | Total |
|---|---|---|---|
| Mini Split (Single Zone) | $800 - $2,500 | $500 - $2,000 | $1,300 - $4,500 |
| Mini Split (Multi Zone) | $2,000 - $6,000 | $1,500 - $4,000 | $3,500 - $10,000 |
| Ducted Air Source (3 Ton) | $3,000 - $6,000 | $2,000 - $4,000 | $5,000 - $10,000 |
| Ducted Air Source (5 Ton) | $4,500 - $8,000 | $2,500 - $5,000 | $7,000 - $13,000 |
| Geothermal | $5,000 - $10,000 | $10,000 - $20,000 | $15,000 - $30,000 |
Tax Credits: Qualifying heat pumps are eligible for a 30% federal tax credit up to $2,000. Geothermal systems qualify for a 30% credit with no cap.