$5,500 – $6,650
The average cost of a packaged heat pump is $5,915. The low cost is $4,125 with a high cost of $8,200. These are direct replacement prices. When extras such as ductwork modification, a new thermostat, zoning controls and other changes are included, the price can approach $10,000.
Last Updated: Wednesday, January 12, 2022
How Much does a Packaged Heat Pump Unit Cost?
$4,125 – $5,385
Average Cost Estimate
$5,500 – $6,650
$6,800 – $8,200
|Retail Cost||$2,300 – $3,800||$3,900 – $4,775||$4,900 – $6,150|
|Efficiency||14 SEER||14 – 15 SEER||15 – 16+ SEER|
|Features||Standard||Standard or Premium||Premium|
|Unit Size||2-4 Ton||3-5 Ton||4-5 Ton|
|Installation Location||Ground||Ground or Roof||Roof|
|Parts Warranty||5 Years||5-10 Years||5-10 Years|
|Brand Rating||Good | 2-3 Stars||Better | 3-4 Stars||Best | 4-5 Stars|
|Supplies||$250 – $600||$700 – $1,000||$1,000+|
|DIY Installation||Partial DIY||Partial DIY or Pro||Pro|
|Permit & Inspection||$50 – $100||$100 – $150||More than $150|
Sections: Overview | Product Costs | Installation Cost | DIY or Pro
Overview of Heat Pump Package Units
This Costimate provides detailed package heat pump cost information for the units, installation and extras.
Heat pump package cost factors are included to help you determine where in the price range your cost will fall.
Is a packaged heat pump your best option? There are pros and cons.
A package system is a common HVAC choice in homes without basements, especially in moderate and warm climates, or where interior space isn’t sufficient for the equipment. Packaged heat pump prices are lower than split system heat pump costs in most cases.
First, equipment and installation cost is lower because the components are housed in one cabinet instead of two. Also, packaged heat pumps are less efficient than many split system heat pumps, and that keeps cost down too.
The disadvantage, besides lower efficiency, is that all the equipment is subject to the elements, so often requires repair or replacement sooner.
In addition to cost factors below, you will find heat pump installation prices from around the web and actual costs submitted by other readers. Feel free to return to share your own package heat pump cost when your project is complete.
Packaged Heat Pump Cost Details
System Price Factors
While a system cost of $4,000 to almost $8,000 is a wide range, these factors will help you narrow down to a closer range, depending on features and other relevant factors an HVAC installer if going to consider when quoting your job.
- Energy Efficiency – Packaged heat pumps list SEER and EER ratings for cooling and HSPF ratings for heating. The higher the ratings, the more efficient the unit and the higher the cost.
- Unit Size – In any model or efficiency level, the larger the capacity, the higher the cost. Your options range from 24,000 to 60,000 BTU/hour, also know as 2-5 tons.
- Two-stage Operation – A two-stage compressor runs at low speed, which is about 70% of capacity, most of the time. Many have variable-speed fans. These features improve indoor control of temperature and humidity. Low speed quieter. Two-stage packaged heat pumps cost $300 to $6,000 more than comparable single-stage models.
- Brand Rating – Trane/American Standard, Lennox and Carrier/Bryant are considered premium brands and cost the most. Goodman/Amana are budget brands and cost the least. The rest are moderately priced.
- Supplemental Heat – Most heat pumps are equipped with heat strips, like space heaters inside the air handler, to provide supplemental and emergency heat. Heat strips from 5kW to 20kW are common, and price rises with kW power.
- Dual Fuel Models – A dual fuel model packaged heat pump is equipped with a gas furnace instead of an air handler. This is done for installation in cold climates where heat pumps lose efficiency in very cold temperatures. When the temperature falls into the 30s F, the system automatically switches from the heat pump to the furnace. Dual fuel packaged units cost $200-$500 more than comparable units without a gas furnace. The Trane Earthwise, Carrier Hybrid Heat and Goodman dual fuel packaged heat pumps are among the most popular dual fuel series.
- Warranty – It’s difficult to determine what part in pricing a better warranty plays, but it probably raises cost to cover the manufacturer’s increased risk. Your options are either 5-year or 10-year parts warranties. Heil, Arcoaire and Day & Night are among the brands that also offer complete package unit replacement if the compressor or coil fail during the warranty period.
- Removal and Disposal of Old HVAC Equipment – This can increase cost by several hundred dollars.
- Demand at Time of Replacement – Each region of the country has slightly different busy/slow times. If you have to replace your system during the peak busy season, cost will be higher. We recommend proactively replacing an older package unit before it fails. This gives you control over when the job is done – and should help you get a lower cost during a slow season.
- Cost of Living – You’re likely aware of the relative cost of living in your city or region. Equipment and installation cost reflects the general cost of living in your area.
Retail Cost Range (Packaged Heat Pump Only)
Goodman is one of the few brands that allow their packaged heat pump models to be sold online and at large home improvement stores. Most brands including Carrier, Bryant, Trane, American Standard and Lennox, do not. We mention that because Goodman prices are among the lowest, so not reflective of the whole range of products.
Regardless of the brand you choose, installation has a far bigger impact on the quality and longevity of your packaged unit, than any other factor.
- $2,300 – $4,450| 14 or 15 SEER single-stage packaged heat pump
- $3,000 – $5,200| 16 SEER single-stage packaged heat pump
- $3,300-$5,725| 16 SEER two-stage packaged heat pump
- $3,550 – $6,150| Dual fuel packaged heat pump
Cost of Installation Supplies
New installations require all the supplies listed. Replacements typically require some of the supplies. If the old package unit is 20+ years old, it might require replacing all the supplies accept ductwork.
- $75 – $300 | Sheet metal for transition / plenum to return and supply air duct.
- $40 – $760 | New Thermostat
- $200 – $400 | Package unit pad for ground installation
- $500-$850 | Package unit rack and sheet metal for sloped roof installation.
- $65 – $115 | Electrical wire, and/or new breaker switch for connecting to power.
- $35 – $100 | Miscellaneous screws, fasteners, mastic, tape etc.
- $1,250 – $4,000+| New ductwork (if needed)
- $1,000 – $2,750 | Zoning controls (optional)
Permits, Inspection, and Unit Installation Costs
A permit is required for the installation of a packaged heat pump, whether it is a replacement or installed in new construction. Most permits call for one or two inspections to ensure the work is done properly and the heat pump will operate safely.
- $50 – $200 | Packaged heat pump installation permit with inspection(s)
Installation Labor Factors
Packaged heat pump installation cost is about $1,100 to $3,300 depending on a range of factors.
- Ground or Roof – Roof installation usually requires hiring a crane/boom at a cost of $200-$500.
- Installation of the Supplies and Extras – The more items from the supplies list above that are installed, the higher the labor cost will be.
- Size of the Unit – Larger units sometimes require a larger crew, so cost is higher.
- Removal and Disposal of Old HVAC Equipment – Labor costs are higher due to the one to two hours required to remove the old system. Disposal costs are $15 to $50+.
Installation in new construction and when ductwork is installed takes longer than when replacing an old unit with one very much like it.
- 1-3 days | Install new ductwork, if needed
- Up to 1 day | Prepare roof or ground and modify connecting ductwork or plenum, if needed
- Up to half day | Remove old HVAC equipment
- About 1 day | Install, connect and tune a new package unit
DIY or Hire a Pro
Package units are easier to install in some ways than split systems. There are no refrigerant lines to install, and the system comes precharged. In short, you don’t need a refrigerant handling license for most installations.
But there are a couple things to consider here. First, complete DIY installation voids almost every HVAC warranty in the industry. The manufacturers won’t warranty a unit installed, or at minimum, inspected by by someone that isn’t certified and licensed before the unit is started for the first time, so they don’t incur risks due to faulty installation. This also protects the network of dealers selling and installing their products.
That is enough reason for most homeowners to choose pro installation. Since your HVAC system is a large investment – one of the 10 most expensive home repairs – it’s important to do it properly.
Secondly, you might be able to find an installer that will allow you to disconnect the old unit and set the new unit. Then they would do the final connection, test and tune the system for your installation requirements and sign off on the installation. This might cut your installation labor costs in half and still give you warranty coverage. You’ll probably have to shop around for that kind of deal, but it doesn’t hurt to ask.
Rooftop installation is a different animal due to the equipment required and the inherent danger of working on a roof. We recommend leaving every aspect of packaged heat pump rooftop installation to the pros.
A lawyer never retires. So I would just say that I am not as active as I used to be. Now I simply dedicate myself to fishing, my hobby, and my grandchildren. For Business Finance News I write about legal aspects of mortgage policies, mostly regarding the rights of policyholders. I also have articles about personal injuries.