Install a Heat Pump – Phoenix, Arizona

Are you paying too much to cool your home?

You can save thousands on your energy bills with a new, energy efficient heat pump. To learn more about the costs and benefits of a new heat pump in Phoenix, start by giving us a call at (623) 581-5298, or reach out to schedule an appointment today.

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AZ Energy Efficient Home has won the ENERGY STAR Contractor of the Year – Sustained Excellence Award every year since 2016. No other contractor in the country has won the Contractor of the Year title more times than us.

energy star contractor of the year award

What it's like - Heat pump installation in Phoenix

“I received a couple of quotes for the job and found the combination service from AZ Energy Efficient Home to be the best value – they were the only company I interviewed that could do both projects: insulate the attic and do the HVAC work… It was a very clean, efficient and professional job. There was good communication and the job was explained to me very thoroughly before they started.”

-Dave D in Phoenix, AZ  (Read more AZ Energy Efficient Home reviews on Google)

All your heat pump replacement questions answered

If you're just starting to think about a heat pump:
If you're considering a heat pump for your home:
If you're trying to make a final decision about a heat pump:

Are heat pumps good in Phoenix?

The short answer: Definitely.

The longer answer: Check out The Benefits of Heat Pumps for Southwest Homes, a 2022 study by the Southwest Energy Efficiency Project (SWEEP).

In Phoenix, heat pumps are the most cost effective HVAC system

Upfront, you’ll pay slightly more to install a heat pump in Phoenix compared to an air conditioner and gas furnace.

However, heat pumps operate so efficiently that you save significant money on both your heating costs and cooling costs. How much? 

SWEEP estimates that an average homeowner in Phoenix saves $2,040 over 15-years when they replace a gas furnace with a heat pump. 

Even after accounting for the higher upfront cost, the average Phoenix homeowner comes out way ahead because of the savings on their heating bills.

And we haven’t even gotten to the cooling bills…

Replacing an older 13 SEER cooling system with an energy efficient 19 SEER heat pump will save $294 a year or $4,410 over 15-years for an average homeowner in Arizona (source).

What are the steps to install a heat pump in Phoenix?

#1. Reach Out

Start by giving us a call at (623) 581-5298, or send us a message to schedule an appointment.

#2. Appointment

Too many Phoenix HVAC contractors give estimates for oversized cooling systems that cause comfort issues and high energy bills. 

When we design a heat pump or central air conditioning system, we consider your duct design, air leakage, static pressure, room pressure, and all the small things that add up to make a big difference for your home.

#3. Install Your System

There’s a reason that we’ve earned the ENERGY STAR Contractor of the Year Award for the last seven-years in a row. We care about the details and offer every client a satisfaction guarantee. We’ll do what it takes to make sure you’re satisfied with your new heat pump or central air conditioner.

When to replace heat pumps in Phoenix?

A heat pump can run for 20 to 30 years with proper maintenance. The rule of thumb: Replace your heat pump when you have to start investing significant resources just to keep it going.

At some point, you may have heard that you should replace your heat pump after 10 years.

That’s not very good advice.

Some HVAC contractors set out to install as many HVAC systems as possible. That’s partly why they tell homeowners to replace heat pumps after 10 years.

Start with Duct Sealing and Insulation

If you replace your heat pump after 10 years without addressing other issues that degrade the performance of the heat pump – like issues with ducts, air leaks, and insulation – then the new heat pump will continue to underperform just like the old heat pump.

Rather than shelling out $10,000 to $15,000 for a new heat pump, we recommend that our clients address the underlying issues first in order to relieve stress or pressure on their current heat pump.

When you do that, you’ll extend the life of your system, and you’ll be able to install a smaller, more efficient heat pump when it’s finally time to upgrade.

Get 30 Years from Your Heat Pump

To get 20 to 30 years of life out of your heat pump, you need the right amount of insulation in your Phoenix home, and your ducts need to move conditioned air without placing undue stress on the heat pump. Give us a call to talk about the heat pump in your home: (623) 581-5298.

What are the types of heat pumps, and which is best for me?

There are several types of heat pumps, and each has advantages and disadvantages. The type of heat pump that’s best for your home depends on things like the size and layout of your home, your budget, and what you need to keep your home comfortable.

Here we’ll give a rundown of the most popular heat pumps for homeowners in Phoenix. 

What is a ductless heat pump, and when to install a ductless heat pump in Phoenix?

In contrast to a central air system, which heats and cools an entire home, a ductless heat pump (also known as a ductless mini split or mini split heat pump) delivers conditioned air to a single area of your home.

A ductless heat pump has two main parts: (1) an outdoor compressor/condenser unit; and (2) an indoor air-handler, which typically comes with a remote control. These two units are connected by a conduit that contains the power cable and refrigerant tubing along with a few other things.

black ductless heat pump installed in phoenix home

So when does it make sense to install a ductless heat pump in Phoenix?

Add to your home:  Ductless heat pumps are a great choice for any new addition – like a garage apartment, bonus space, sunroom, or man cave. If you smoke cigars in your man cave, for example, you won’t have to worry about sharing ductwork with the rest of the house. 

One of the main advantages of using a ductless system in these situations is that it can be properly sized for the new space without overloading your existing HVAC system or stealing air from other rooms.

Customize your heating and cooling:  Some families can never seem to agree on where they should set the thermostat. That’s fair. Every home and every room is different. A ductless heat pump delivers what’s called “zonal” heating and cooling. That means you can set specific temperatures for different zones or rooms of your home.

Address problem areas:   If you notice issues heating and cooling a specific room, consider a ductless heat pump. For example, if you have an upstairs bedroom that never seems to maintain a consistent temperature with the rest of the house, it may make sense to install a ductless heat pump to condition the space after first addressing issues with air sealing and insulation.

When to install a ducted heat pump in Phoenix? Heat pump vs. AC?

Just like your furnace or air conditioner, a ducted heat pump uses your existing ducts to deliver conditioned air throughout your home. Let’s start with a practical question: When does it make sense to install a ducted heat pump in Phoenix? 

#1. If you have an older furnace, AC, or heat pump:  Replace it with a ducted heat pump. We offer a full breakdown of the energy savings below. In a nutshell, replacing an older HVAC system with a high performance heat pump will save an average homeowner more than $5,000 over the life of the system.

#2. If you don’t have an addition or problem areas:  In our introduction to ductless heat pumps in Phoenix, we mentioned that a ductless heat pump makes sense if a room or floor of your home never seems to heat up or cool down like the rest of your home. The flip-side of that point applies to ducted heat pumps.

A ducted heat pump is a good choice if you don’t have problem areas (e.g. rooms or floors that need targeted heating and cooling). When your ducts effectively deliver conditioned air throughout your home, you should strongly consider a ducted heat pump when it’s time to replace your existing system.

mitsubishi heat pump phoenix

Heat pump vs. AC in Phoenix:  If the upfront cost is your #1 concern, then you should go with an air conditioner.

That said, if you pay less upfront, you’ll end up paying more over time for your energy bills and maintenance costs.

You’ll find our breakdown of energy costs below, but in a nutshell, replacing an older AC with a new heat pump can result in annual savings of around $294 or $4,410 in 15 years for an average homeowner in Phoenix.

To install a new heat pump, most of our clients in Phoenix pay between $90 and $130 a month. Learn more about financing from EnerBank, which has 0% interest over a 60-month term.

If you can afford $90 to $130 a month, then you should definitely consider installing a heat pump rather than a central air conditioner. You’ll save more over time and get better delivery of both heating and cooling at home.

If you have limited space, get a side discharge inverter heat pump
side discharge inverter heat pump
Side Discharge Inverter Heat Pump from AC Pro

A side discharge inverter heat pump uses a variable speed compressor and a side discharge fan to provide heating and cooling to a home or building.

A side discharge inverter heat pump may be the best fit for your home if you have the following three priorities.

#1. Flexibility of Installation

The side discharge design of these heat pumps allows for more flexible installation options, especially in areas where space is limited or where vertical clearance is restricted. 

They can be easily installed in tight spaces, and their design also ensures that the hot air is directed away from the unit, preventing recirculation and improving their overall efficiency.

#2 Energy Efficiency 

The inverter technology used in side discharge inverter heat pumps allows the compressor to operate at varying speeds, consuming only the necessary amount of energy to maintain the desired temperature.

This results in reduced energy consumption, making them more efficient and cost-effective to operate than traditional single-speed heat pumps.

#3. Whisper-Quiet Operation

The side discharge inverter heat pumps operate at lower sound levels than traditional heat pumps due to the placement of the fan and the improved compressor technology.

The lower noise levels make them ideal for residential areas, and their quieter operation ensures they are not a disturbance to occupants or neighbors.

Should I replace my furnace with a heat pump?

The answer depends on the details of your home. Give us a call to talk more: (623) 581-5298.

In general, it makes sense to replace a furnace with a heat pump in Phoenix, especially if you have an older, inefficient furnace.

The Southwest Energy Efficiency Project (SWEEP) estimates that the average homeowner will save 30% on their heating bills or about $136 a year when replacing a furnace with a heat pump in Phoenix.

Heat pump vs. gas furnace: What’s safer?

It’s unlikely that a new, well maintained gas furnace will make your family sick. However, if you have an older furnace or if you don’t get regular maintenance, then it’s much more likely that you’ll get exposed to carbon monoxide and other air pollutants.

Carbon monoxide (CO) can cause serious problems. Every year, exposure to CO sends about 50,000 people to emergency rooms, and at least 430 people die in the U.S.

Carbon monoxide is a colorless, odorless gas that enters the air when you burn gas in your furnace, stove, or other combustion appliances. If your furnace has any of the following issues, then carbon monoxide and other gasses have potential to build up in your home:

    1. Cracked or corroded heat exchanger
    2. Blocked, leaking, or damaged flue
    3. Lack of supply air, which can cause older furnaces to backdraft

If you’d like a technician from AZ Energy Efficient Home to evaluate your HVAC system, start by giving us a call at (623) 581-5298, or send us a message to schedule.

Schedule an Appointment Today

A heat pump is safer to operate than a gas furnace because it runs entirely on electricity. If you don’t burn natural gas in your home, then you don’t need to worry about exposure to carbon monoxide and other byproducts of the combustion process.

To take your indoor air quality to the next level, consider adding an energy recovery ventilator (ERV), which automatically and invisibly filters 99.97% of allergens and other microscopic particles from the air that you breathe at home.

What’s the difference between a ducted and ductless heat pump?

If you only need to heat or cool a particular room or area of your home, you’ll want to install a Mitsubishi ductless heat pump, also known as a “ductless mini split” or “mini split heat pump”.

A ductless heat pump has a single indoor unit or “head” and an outdoor compressor similar to a traditional air conditioner.

Check out this video overview of how Mitsubishi ductless heat pumps work:

Play Video about ductless heat pump phoenix, ductless mini split phoenix, mini split heat pump phoenix, video

A ducted heat pump typically replaces a furnace and uses the existing ducts to distribute conditioned air throughout the home. This video helps to explain how ducted heat pumps work:

Play Video about heat pump phoenix video, heat pumps phoenix video

How long does it take to get a heat pump installed in Phoenix?

Timelines vary. For the latest estimates, please give us a call at (623) 581-5298.

At this time, we have openings within the next few weeks. It’s possible that we could install a heat pump in your Phoenix home within the next two to four weeks, depending of course on the availability of the type and brand of heat pump system that you want.

How much does a heat pump cost?

It’s a big range, so we usually ask, “What’s your budget?” We find the best heat pump for each customer at a price that works for them.

​Here are a few things to know about heat pump costs:

#1. Not all heat pumps are created equal

If you pay less upfront, you’ll end up paying more for operation and maintenance.

For low energy bills and reliable performance, I recommend choosing a heat pump with variable speed air flow and an efficiency rating of at least 16 SEER.

#2. Most customers pay between $90 and $130 a month

The details:  Many of our clients choose to finance their heat pump installation with EnerBank, which offers a competitive 0% interest, 60-month term.

In general, a variable speed 16 SEER heat pump ranges between $7K and $9K. A 14 SEER heat pump starts at $5.5K. Please note that pricing is subject to change.

#3. Choose a reputable installer

Because of issues related to the installation, most new heat pumps operate at about half their rated capacity – somewhere between 45% and 65%.

Here at AZ Energy Efficient Home, we test every heat pump installed by our team to make sure they operate between 92% to 98% of their capacity – exactly where they should be.

If you have questions about heat pump costs in Phoenix, don’t hesitate to give us a call at 623) 581-5298 or send us a message.

What are the tax credits for Phoenix heat pump installation?

You can get a tax credit of up to $2,000, which covers 30% of the installation cost (including labor) for a heat pump in Phoenix. The tax credit is valid until December 31, 2032.

Which heat pumps qualify for the tax credit?

It’s really important to hire the right heat pump installer for your home. If your installer doesn’t understand the requirements to qualify for the $2,000 tax credit, you could miss serious savings.

The IRS has specific criteria for heat pumps that qualify for the tax credit. Here’s what they say:

The heat pump you install must match or exceed the highest efficiency level (except for any extra level) that the CEE sets at the beginning of the year of installation. You can look up the CEE Directory of Efficient Equipment to see which systems qualify.

If you have questions about which heat pump system to install for your home in Phoenix, start by giving us a call at (623) 581-5298

We follow the tax credit criteria and track the heat pump brands / models that are both dependable in Phoenix and eligible for the largest tax credits. 

What are the other restrictions on the heat pump tax credit?

Your tax credits are limited by an annual cap on the total amount of tax credits you can claim. The annual cap is currently $3,200. Here are the details:

  • $2,000: You can qualify for a tax credit of up to $2,000 if you install any combination of heat pumps, heat pump water heaters and biomass stoves / boilers in your home. This limit does not include ENERGY STAR-certified geothermal heat pumps, which have their own tax credit.)
  • $1,200: You can also claim up to $1,200 for additional energy efficiency improvements, such as air sealing and attic insulation for your home in Phoenix.

Besides the total limits on tax credits, you also need to be aware that some systems have specific limits.  If you want to make a plan to get the most out of your tax credits, please contact us to set up an appointment.

Schedule an Appointment Today
Who is eligible for the heat pump tax credit?

This credit only applies to the main home that you own. Your main home is where you spend most of your time. You can’t use it for new homes or rentals. It has to be in the United States and can be any of the following: Single-family houses, houseboats, mobile homes, cooperative apartments, condominiums, or manufactured homes.

Is there an AC / heat pump rebate for homeowners in Phoenix?

Yes! Both APS and SRP offer rebates for ACs and heat pumps. For the latest, please visit the rebate page for your electricity provider – APS or SRP.

Rebates are subject to change and availability. If you’re serious about an AC or heat pump replacement, don’t wait. You’ll lock in the largest rebate by doing the project sooner rather than later. Give us a call to get started: (623) 581-5298

APS - AC / Heat Pump Rebate

Get $200 from APS when you work with a participating contractor to install an AC or heat pump with an efficiency rating of 15 SEER or more. Rebates typically take 6 – 8 weeks to process.

APS offers an additional $1,000 to $1,200 to help income-qualified homeowners with emergency AC / heat pump replacements.

SRP - AC / Heat Pump Rebate

If you’re an SRP customer, you can get a rebate between $75 and $,1,125 depending on the size and efficiency of the system you install. 

That’s a big range, so let’s break it down. 

You would get $75 per ton for the least efficient AC / heat pump or $225 per ton for the most efficient. Our average customer goes with a a 16 SEER variable capacity, 4-ton unit.

You could claim a $900 rebate if you get electricity from SRP and install a 16 SEER variable capacacity, 4-ton heat pump or AC. Send us a message to find out what your rebate would be.

How much will a heat pump save on my energy bills?

Every home is different, but on average, a homeowner who replaces an older heat pump with a new heat pump in Phoenix will save about $353 a year or almost $5,300 over 15-years.

An average homeowner who replaces a furnace and AC with a new heat pump will save even more – about $430 a year or $6,452 over 15-years.

We’ll break it down below.

Replace an older heat pump with a new heat pump

ENERGY STAR created a calculator you can use to estimate energy savings based on the efficiency ratings of your current heat pump and new heat pump.

In the table below, we entered typical estimates for heating and cooling efficiencies for heat pumps in Phoenix. The Energy Information Administration estimates the cost of electricity to be $0.13 per kWh in Arizona, but your costs (and savings) will likely be more because of taxes and fees.

Phoenix heat pump operating costs
System TypeHeating EfficiencyCooling EfficiencyFuel TypeAnnual Operating Costs15-Year Savings
New Ducted Heat Pump10.4 HSPF18.4 SEERElectricity (kWh)$880 $5,295
Old Ducted Heat Pump7.5 HPF13.0 SEERElectricity (kWh)$1,233 $0
Replace a furnace and AC with a heat pump in Phoenix

The Southwest Energy Efficiency Project estimates that an average homeowner in Phoenix who replaces an existing gas furnace with a heat pump will save about $136 a year or $2,040 over 15-years.

Because heat pumps provide energy efficient heating and cooling, you can also rid of your air conditioner. Using a SEER Energy Savings Calculator, you’ll see that an average homeowner in Phoenix saves about $294 a year or $4,410 over 15-years by replacing an older AC with a new heat pump.

Heat pump vs. AC costs
System TypeCooling EfficiencyFuel TypeAnnual Operating Costs15-Year Savings
New Heat Pump18.4 SEERElectricity (kWh)$638 $4,410
Older Air Conditioner13.0 SEERElectricity (kWh)$932 $0

Adding up the savings, an average homeowner in Phoenix can expect to save about $6,452 over 15-years by replacing a furnace and AC with a heat pump. 

What's different about AZ Energy Efficient Home?

In short, we work with care.

Too many HVAC contractors recommend larger systems than you need without taking the time to assess your duct leakage, duct design, air leakage, static pressure, or room pressure.

We properly size and scope every heat pump system. The result – You get consistent temperatures throughout your home, and you pay less on your energy bills over months and years. Every client gets a satisfaction guarantee.

No other contractor in the country has won the ENERGY STAR Contractor of the Year Award more times than AZ Energy Efficient Home. 

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