Air Source Heat Pump: A Comprehensive Cost Analysis

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By Debarghya Roy

Are you looking to invest in an air source heat pump but unsure of how much it will cost? Air source heat pumps are growing in popularity as the preferred environmentally-friendly, and often cost effective, way to heat and cool your home.

In this blog post we’ll explore all aspects of the cost associated with purchasing and installing an air source heating system.

Key Takeaways

  • Air source heat pumps are a reliable and cost effective form of eco friendly heating and cooling for residential or commercial spaces.
  • Installation costs can vary widely depending on size, model, local labor rates, ducting requirements and more.
  • Hybrid systems offer more efficient energy savings over time compared to traditional fuel alternative boilers or furnaces due to reduced electricity consumption.
  • Cold climate air source heat pumps provide greater levels of efficiency than standard models while also producing fewer pollutants in colder weather climates.

Types Of Air Source Heat Pumps

There are several types of air source heat pumps, including typical air source heat pump, hybrid air source heat pump, cold climate air source heat pump, commercial air source heat pump, and swimming pool air source heat pump.

Typical Air Source Heat Pump

A typical air source heat pump is a reliable and efficient heating and cooling system for both residential and commercial use. 

It works by transferring heat from the outside air into the home or building, making it an effective and budget-friendly alternative to traditional fossil fuel power.

Generally composed of two parts a compressor and mountable units like fans or coils an air source heat pump requires professional installation due to its complexity. 

The size of the unit as well as the quality of materials used in its composition are some key factors that influence cost.

However, air source heat pumps tend to be fairly competitively priced compared with other HVAC systems on both purchase prices and running costs.

Most homeowners can expect energy savings over time when using a typical air source heat pump, thanks largely to its ability to draw enough thermal energy from outdoor temperatures while utilizing fewer resources than gas furnaces or baseboard heaters.

Hybrid Air Source Heat Pump

Hybrid air source heat pumps are an energy efficient and cost effective way to heat your home. 

This type of air source heat pump uses a combination of energy sources, including electricity and natural gas, to provide consistent heating all winter long.

In cold weather climates they act as a backup to traditional electric or oil fired boilers, helping reduce the upfront costs associated with normal installation. 

Hybrid systems typically have higher upfront costs than other types of air source heat pumps but their efficiency ensures that savings can be felt over time from lower operating bills due to reduced consumption.

Hybrid air source heat pumps are ideal for outdoor applications such as commercial spaces which are not always occupied throughout the winter months. 

Cold Climate Air Source Heat Pump

Cold climate air source heat pumps are becoming the go-to choice for those in weather patterns with much colder temperatures than average, as they provide reliable heating while maintaining energy efficiency.

Not only do these pumps cost significantly less to install than traditional heating systems like furnaces and air conditioners, but they can also save homeowners up to 40% on their heating bills.

The Northeast Energy Efficiency Program provides information regarding some of the best cold climate brands and models including prices ranging from $7000 up to over $16500 after incentives available on the market today.

Commercial Air Source Heat Pump

Commercial air source heat pumps are a type of heating system that utilizes external air as its primary heating (and cooling) source. These systems are suitable for businesses and large industrial premises.

Air-source heat pumps provide a low-cost, energy efficient way to maintain comfort in commercial settings year around. 

They require less maintenance than traditional HVAC systems and can often qualify for government incentives like tax breaks.

Commercial grade ASHPs tend to have higher efficiencies, longer life cycles, more robust components and better warranties compared to residential models due to their larger operating capacities and the possibility of running continuously throughout the year.

Swimming Pool Air Source Heat Pump

Swimming pool air source heat pumps are a cost-effective and energy efficient way to maintain comfortable water temperatures year round. 

Unlike traditional heating methods, these pumps utilize renewable sources such as ambient or ground temperature air to heat the pool’s water, resulting in lower running costs than with other electric systems.

They also improve energy efficiency, since they require less electricity for operation than electric boilers and gas furnaces.

Air source heat pumps can be used effectively in any type of swimming pool regardless of its location or size. 

For instance, if it is located in colder climates where traditional systems may struggle to provide enough warmth during winter months; an Air Source Hot Pump will keep them comfortably heated throughout the season.

Pool owners may also need different sizes depending on their needs; bigger households tend to benefit from larger units that offer more power and greater capacity.

Cost Comparisons Of Air Source Heat Pumps

Comparing the cost of air source heat pumps with traditional fuel methods such as gas boilers, oil boilers, and ground source heat pumps can help to identify which type is most suitable for a property.

Air Source Heat Pump Cost Vs. Gas Boiler

CostAir source heat pumpsGas boiler
Upfront Cost$2600$1800
Annual Cost$723$1500
Long Term SavingsLong term savings on electricity bills over time.Lesser rate of long term savings.

Air Source Heat Pump Cost Vs. Oil Boiler

When considering their costs, air source heat pumps are typically more affordable for homes than oil boilers due to the high price of fuel oil. 

CostAir source heat pumpsOil  boiler
Installation Cost$3,500 – $7,500 $5,000-$10,000
Annual Cost$850$1265
Tax Credits and rebates30% of the cost will be covered10% of the cost will be covered

Ground Source Vs. Air Source Heat Pump Cost

Ground source and air source heat pump systems are both efficient ways to heat your home, with either offering varying degrees of energy savings depending on which you choose.

CostAir source heat pumpsGround Source Heat Pump
Installation Cost$3200 – $8600 $6000-$12000
Annual Cost$107 per season$225 per season
Tax Credits and rebates10% of the cost will be covered20% of the cost will be covered

Factors Affecting Air Source Heat Pump Cost

It includes size of the pump, brand and model of the equipment, installation cost, maintenance cost and operational costs.

air source heat pump cost

Size Of The Heat Pump

The size of an air source heat pump significantly affects its cost, installation and performance. 

The appropriate size of an air source heat pump for a particular space is determined by several factors including the size and layout of the home, local climate conditions and desired levels of heating or cooling.

Choosing a unit that is either too small or too large can lead to poor performance, higher energy bills and ultimately a waste of money. 

Too small a unit may be unable to provide sufficient heating/cooling output or result in short cycling continually switching on-and-off leading to increased operational costs due to overworking the system as it struggles to meet demand.

Brand And Model Of Heat Pump

The choice of brand and model for an air source heat pump has a major influence on its cost and functionality. 

As with any appliance, selecting a good-quality product from a popular manufacturer is often essential to ensure the system performs at a high level while minimizing maintenance costs over time.

Common brands include Mitsubishi, Carrier, Trane, Daikin, Bosch, Gree and Fujitsu – each of which offers various models with different HSPF (Heating Seasonal Performance Factor) and SEER (Seasonal Energy Efficiency Ratio).

Generally speaking, units with higher HSPF and SEER ratings will be more expensive but may also offer greater energy efficiency in terms of decreased electricity bills over time.

For instance , two identical sized heat pumps may have varying price tags depending on their energy efficiency; the higher rated unit could cost $3,500 compared to $2,500 for the lower rating .

Installation Cost Of Heat Pump

Installing an air source heat pump system can provide a great long-term return on investment, but understanding the factors that affect installation cost is essential to ensure the project fits into your budget.

Typically, air source heat pumps range in price from $2,799 to $7,255 for full professional installation and include additional expenses such as HVAC components and ducting material costs.

The size of the pump, type of model selected, complexity of installation and brand all play a role in determining the overall cost of the project.

For example, installing a typical three ton two-stage packaged heat pump will typically range between $5,700- $8,000 depending upon factors such as where it is located and whether additional modifications are needed.

Maintenance Cost Of Heat Pump

Regular maintenance is essential for keeping an air source heat pump functioning efficiently and cost-effectively. 

Depending on the size of the unit and its usage, routine maintenance can typically range from $150 to $450 a year.

Professional service providers typically offer different levels of service plans which include regular inspection, cleaning, lubrication, calibration and adjustment when needed.

Common maintenance tasks such as changing air filters, inspecting indoor coil components or fan blades usually only cost around $25 -$50 each. 

In addition to these basic jobs some advanced repairs may be required in certain cases where parts need replacement due to wear and tear or damage, resulting in additional costs ranging from around $400 -$1,950 per task depending on the model of heat pump being serviced.

Operational Costs Of Heat Pump

Air source heat pumps vary in cost depending on their size, brand and model. Generally, the bigger the unit, the higher its initial purchase price

The cost for running air-source heat pumps also depends on factors such as efficiency when used with radiators or underfloor heating systems and lasting performance over time.

On average, a 3 ton 2 stage packaged heat pump will range from 5800$ to 8000$ depending on installation charges.

The operational costs of air source heat pumps are highly dependent on how efficiently they are used and how much energy you are consuming per hour or kWh.

Air source heat pumps can be up to 25% cheaper than gas boilers when operated at peak efficiency levels so what may seem like an expensive investment could easily become cheaper than alternative solutions in the long run.

Cost Effectiveness Of Air Source Heat Pumps

The cost effectiveness of air source heat pumps is significantly increased by government incentives and rebates as well as long-term return on investments.

Saving On Energy Bills Of Heat Pumps

Air source heat pumps are a great way for homeowners to save money on their energy bills. 

The cost of an air-source heat pump can be similar to that of a gas furnace, depending on the brand, size, and efficiency level.

By installing an air source heat pump in your home, you could see much bigger savings than with an inefficient traditional boiler or aging furnace. 

Additionally, because efficient units require less electricity to run than other types of heaters or boilers, they also offer healthier air quality levels inside homes.

Government Incentives And Rebates Of Heat Pumps

Government programs and incentives can help make the cost of purchasing an air source heat pump more affordable for consumers. 

The federal Clean Energy Tax Credits for Consumers covers 30% of eligible costs with a cap at $2,000 per tax year (which resets annually).

Additionally, ENERGY STAR certified air source heat pumps are eligible for up to a $2,000 federal tax credit each year. 

Other options include the Inflation Reduction Act credits and rebates that offer up to $457 or more in savings as well as the HEERHA Heat Pump Rebate Program which helps lower-income households save money on their installations.

Local and state governments may also offer funding opportunities such as grants or low-interest loans used to offset installation expenses. 

Long Term Return On Investment Of Heat Pumps

The long-term return on investment for air source heat pumps is considered to be favorable, particularly when electric prices increase compared to gas and oil.

Studies indicate that after the wastage of an initial investment of around $3,500-$7,000 on both the unit and installation fees, users will see a net savings over time with an average lifespan of up to 20 years.

Government incentives such as tax credits or rebates may also offset some of the upfront costs in some cases providing thousands back at tax time if you install a suitable air source heat pump system.

Installation Costs Of Air Source Heat Pump

The installation costs of an air source heat pump can vary depending on several factors. The most important factor is the size and model of the unit.

Larger units often require more installation time and thus are more expensive to install than smaller ones.

Additionally, a higher quality, more advanced unit may involve additional labor and use of specialized equipment that will add to the cost.

In addition to the heat pump itself, site preparation for installation may also incur extra costs that include making modifications such as replacing ductwork or modifying existing electrical wiring.

Labor costs for professional heating technicians who specialize in installing air source heat pumps will also impact overall cost significantly.

These rates typically range between $50-$100 per hour but can be much higher depending upon region or individual contractor’s experience level.

Running Costs Of Air Source Heat Pump

The running costs of air source heat pumps are comparable to traditional heating systems and, when you factor in energy savings, can provide significantly lower operating costs over the long-term.

Air Source Heat Pump Electricity Cost

Air source heat pumps can be an effective and efficient way to provide space heating in a home. 

The energy costs associated with operating air source heat pumps depend on several factors, including the size of the pump, its operating hours, regional climate and electricity rates.

Heating a 1,000 square foot living space using an air source heat pump will typically require around 3kWh (kilowatt-hours) per hour. 

With average UK electricity prices at 15p/kWh, this might cost approximately £45 per month or £540 annually for 10 hours of daily operation over six months during cold weather.

Air Source Heat Pump Cost Per Hour

The cost of running an air source heat pump is calculated per hour by taking into account a number of factors. 

The main elements that must be considered include the electricity rate charged to operate the pump, the unit’s efficiency rating, and temperature differentials between outdoor and indoor air.

For example, higher electricity rates naturally increase total costs while high efficiency ratings lower those same totals due to more efficient operation over time.

Additionally, more extreme differences in outside temperatures result in longer run cycles where more energy is expended on maintaining desired levels within homes or buildings using these pumps for heat production or climate control purposes.

Air Source Heat Pump Cost Per KWh

The cost of running an air source heat pump is measured in kilowatt-hours (kWh), which refers to the amount of energy consumed per hour. 

The cost per kWh varies from location to location and depends on local electricity prices, as well as other factors such as the size and efficiency rating of the system itself.

Generally speaking, more efficient systems consume less energy for the same output, resulting in lower costs per kWh.

Air Source Heat Pump Monthly Cost

Air Source Heat Pumps offer significant cost savings compared to other heating systems, making them an attractive option for many homes and businesses. 

The monthly cost of Air Source Heat Pump ownership varies depending on factors such as size, model and brand of the heat pump as well as installation and maintenance costs.

Operational costs include electricity use which can vary greatly depending on location and weather conditions over a given period. 

Generally speaking, Air source Heat pumps are less expensive than gas boilers or oil boilers in terms of energy efficiency per month resulting in huge savings over the life-span of the system.

For example, installing a 3 TON (36000 BTUs) air-source heat pump with a 16 SEER rating instead of a similar size 14 SEER regular central AC could result in annual savings of up to nearly $300.

Air Source Heat Pump Cost Per Year

The cost of running an air source heat pump per year will depend on several factors including energy efficiency, electricity rates, and the size of the unit.

The amount saved in monthly bills is a function of the price difference in natural gas versus electricity, usually favoring the use of a heat pump over other fuel sources if electric rates remain consistent throughout the course of a year or multiple years.

Investing in larger units can be beneficial long-term and may initially require higher up-front expenditure, but they offer greater savings due to increased efficiency doing far less work for longer periods of time.

Savings generated by using an air source unit could potentially yield quick return on investment since their lower operational costs offset initial installation costs fairly quickly.

Governments often offer incentives and rebates specifically geared towards renewable energy production closely linked with adoption rate increases across home domestic markets .

Air Source Heat Pump Cost Per Ton

The cost of an air source heat pump system per ton is calculated by dividing the total cost of installation and equipment by the capacity in tons of a particular unit. 

Factors such as size, brands and efficiency ratings can play into this calculation.

A 3-ton 16 SEER rated unit costs around $6,750 to install compared to a 14 SEER rated unit which will have a lower cost at about $4,990 for the same size

This difference reflects that the 16 SEER product is more energy efficient so requires less energy consumed for cooling or heating needs per hour than its counterpart.

Swimming pool air source heat pumps vary in overall price due rapid advancements in technology but their estimated price tag is from £8,000 to £18,000 in most cases and also factor into the system’s cost per ton.

Repair Costs Of Air Source Heat Pump

Regular maintenance will help keep air source heat pump running costs relatively low, with service and repair costing anywhere from $100 to over $1,000 depending on the complexity of the system.

Air Source Heat Pump Cost Breakdown

Installing an air source heat pump (ASHP) is often more affordable than traditional heating systems like gas boilers or baseboard heaters. 

The average ASHP installation cost ranges from $2,500 to $10,000, with the typical homeowner paying around $5,500.

This number could be even lower for simple one-room installations and can increase significantly depending on the complexity of the system’s design. 

The monthly running cost of a 3 ton system averages between 25 cents per kWh (0 COP) in normal conditions up to 45 cents/kWh when temperatures drop below zero Celsius degrees (-17°F).

Maintenance and repair costs are minimal but they do vary depending on several factors such as brand & model quality and frequency of use among others.

Maintenance And Service Cost Of Air Source Heat Pump 

The cost of service and maintenance for an air source heat pump can vary greatly depending on the type of service required and the brand, size, and model of the heat pump.

Common services may include,

  • Cleaning or replacing filters 
  • Testing valves
  • Checking refrigerant pressure levels
  • Inspecting ductwork for leaks or blockages
  • Repairing damaged wiring or motors 
  • Treating any microbial growths found in moist areas of HVAC systems.

Maintenance costs also depend on whether specialized Duct Cleaning Services (DCS) certification is necessary to restore proper operation of AC units. 

The cost typically ranges from $150 to $1,950 depending on accessibilities & special requirements prevailing at site even with a standard contract’s terms already established.

Cost Of Replacing Gas Boiler With Air Source Heat Pump

Replacing a gas boiler with an air source heat pump can be more cost effective in the long term than traditional heating systems, but it can also require an upfront investment.

Residential installations of air-to-air models typically cost between $3,000 and $6,000 for the heat pump itself. 

Ductwork installation costs may range from as low as $2,500 to more than $5,000 depending on the specific requirements.

High-end brands such as Daikin and Carrier can run upwards of $6,000 for installation alone. 

In comparison, installing a new gas boiler tends to cost around an average of about $8,000 plus any additional expenses for replacing radiators if necessary.

Thus, replacing your old furnace with an air source heat pump could save you money in energy bills over time while also providing similar advantages that would come with traditional heating systems without impacting your carbon emissions.

Small Air Source Heat Pump Cost

Small air source heat pumps can be a cost-effective and environmentally-friendly option for heating, cooling and providing hot water in smaller properties.

  • The cost of an air source heat pump is determined by several factors including size, model, brand, installation fees and maintenance costs. 
  • Smaller units are generally cheaper, with costs ranging from $3,500 to $7,500 on average depending on the HSPF (Heating Seasonal Performance Factor) and SEER (Seasonal Energy Efficiency Ratio).
  • Installation fees typically range between $1500 to $2500 US dollars but may require extra wiring or control customization which could increase the fee up further.
  • Small Air Source Heat Pumps also have running costs which are dependent upon their efficiency rating as well as the electricity tariff charged in your area. 
  • Depending on its efficiency rating they can save you money when compared to gas or oil boilers or even traditional electric heaters.

Air Source Heat Pump Kit Cost

Air source heat pump kits are a cost-effective and energy-efficient choice for your home or business. 

  • The cost of the unit itself typically ranges from $2,580 to $4,739 depending on size, brand and model chosen.
  • Other factors like installation and ductwork will affect the overall price as well. Professional installation can range anywhere from $3,500 to $7,500 depending on what is required.
  • If the HVAC system requires any electrical upgrades in order to work with an air source heat pump, that too could add to the total cost estimate.
  • In addition to up-front costs associated with purchasing an air source heat pump kit, there are incentives available in some states that can reduce those upfront expenses even more.

Is Air Source Heat Pump Cost Effective?

Air source heat pumps have grown in popularity over the past few years due to their efficiency, cost-effectiveness and environmental benefits. 

However, installation costs are typically higher than installing a traditional heating system, so many homeowners may be hesitant to make the switch.

When determining an air source heat pump’s long-term cost effectiveness it’s important to factor in upfront purchasing and installation costs alongside operational running expenses such as electricity for powering them up, tax credits/rebates that some states offer and warranty coverage.


Air source heat pumps provide an affordable and efficient method of heating residential, commercial, and even swimming pool space. The overall cost to install an air source heat pump will depend on the size and brand of unit, along with any ductwork or special installation requirements necessary.

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