Installing a heat pump can make a huge difference in what you pay for heating and cooling your home. A heat pump will replace both the furnace and air conditioner/central air unit. It may be costly to install, but it will save you considerable money in energy costs. Consider the following factors before installing a heat pump:
Installation Costs
As of 2026, most Triangle heat pump replacements run roughly $6,000 to $12,000 installed, depending on the size of your home, the efficiency tier you choose, and whether your ductwork or electrical panel needs work. Larger homes and high-efficiency equipment push higher. Before you compare quotes, check which North Carolina heat pump rebates in 2026 you qualify for, because state and Duke Energy programs can take thousands off that number. If you’re replacing a gas furnace, read switching from a gas furnace to a heat pump first, because the state rebate rules changed for gas homes on September 1, 2026. The cost of installing a heat pump will be more expensive for the geothermal type than air-source as it needs to be installed underground.
The difficultly associated with the excavation of the ground will affect the installation costs. Make sure to talk to a few installation pros to get a number of bids, as this installation can vary quite a bit in price. For example, drilling through a concrete slab or driveway to install the heat pump will be more expensive than no excavation.
Size of Your Home
The biggest single factor is determining the price of your heat pump is the size of your house. The size needed is determined by the square footage of your home. The larger your heat pump, the more you will pay for it. Do not try to cut costs by installing a larger pump. What you might gain in savings will be lost quickly in efficiency and higher energy costs.
Type of Heat Pump
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.
Geothermal heat pumps will cost more to install. However, maintenance is generally less since they are installed underground and protected from the elements. When you compare the installation cost to what it will save you in energy bills and maintenance, a geothermal system pays for itself twice as fast as an air source system. Air-source heat pumps are less expensive than geothermal heat systems and optimal in cold and mild temperatures.
Heat Pump Rebates and Tax Credits
The federal tax credits that used to apply here have ended. The IRS closed both the Energy Efficient Home Improvement Credit (25C) and the Residential Clean Energy Credit (25D, the one that covered geothermal) to any system placed in service after December 31, 2025. State and utility programs are what remain. Energy Saver North Carolina pays up to $8,000 toward a qualifying heat pump for income-eligible households, and Duke Energy’s Smart $aver rebate carries no income limit and, unlike the state program, applies when you are replacing a heat pump you already have. Our guide to which rebates still apply in North Carolina covers who qualifies for what. Call us for more details 919-813-2556.
- Learn about Boer Brothers and How we can Help
- To Repair or Replace that is the Question
- Choose the best Contractor
- Choose the Right Brand
- Comparing Bids
- How much does it cost to replace a Furnace
- How much does it cost to replace an Air Conditioner
- How much does it cost to replace a Heat Pump
- Financing
- Customer Reviews
