With rising energy costs and increasing demand for efficient home heating and cooling, many Americans are turning to heat pumps as a potential solution. However, understanding the actual cost to run a heat pump is essential before making the switch. This guide breaks down how much it costs to operate a heat pump in various climates, how different types of heat pumps compare, and how to estimate your own energy usage.
Summary Table: Average Monthly Operating Cost For Heat Pumps (By Climate Zone)
| Climate Zone | Average Winter Temp (°F) | Monthly Cost (Air-Source) | Monthly Cost (Ground-Source) |
|---|---|---|---|
| Cold (Northeast, Upper Midwest) | Below 32°F | $120–$200 | $80–$135 |
| Moderate (Mid-Atlantic, Midwest) | 32–45°F | $70–$140 | $55–$100 |
| Warm (South, West Coast) | 45°F & Above | $40–$90 | $35–$80 |
What Is A Heat Pump?
Heat pumps are energy-efficient systems that transfer heat from one place to another for heating or cooling your home. Unlike traditional furnaces that generate heat, heat pumps move heat using electricity, making them more efficient. The two main types are air-source heat pumps and ground-source (geothermal) heat pumps.
Key Factors Affecting Heat Pump Operating Costs
Several elements influence the cost to run a heat pump in the US:
- Electricity Rates: Costs fluctuate by state, with higher rates in the Northeast and California and lower in the South and Midwest.
- Climate: Colder areas require more energy to heat the same space than milder regions.
- Heat Pump Efficiency (COP/HSPF): Higher-rated units consume less power for the same output.
- Home Insulation: Well-insulated homes retain heat longer, reducing operation time.
- Size And Output: Larger homes or poorly sized units lead to more frequent running and higher bills.
- Usage Patterns: The more you heat or cool your home, the higher the cost.
Electricity Rates By State: Impact On Heat Pump Costs
As of 2025, the national average residential electricity rate is about $0.16 per kWh, though local rates range from $0.10 (Idaho) to $0.35 (Hawaii). For most Americans, this means that where you live can significantly affect your heat pump’s running cost.
| State | Average Electricity Rate (per kWh) |
|---|---|
| Idaho | $0.10 |
| Texas | $0.13 |
| California | $0.30 |
| New York | $0.23 |
| National Average | $0.16 |
Types Of Heat Pumps And Their Efficiency
Air-Source Heat Pumps
These are the most common in American homes. Modern air-source heat pumps have a Coefficient of Performance (COP) of 2.5–3.5 and a Heating Seasonal Performance Factor (HSPF) above 8, meaning they provide 2.5–3.5 times more heat energy than the electricity they consume.
Ground-Source (Geothermal) Heat Pumps
These use the stable temperature underground to reach higher efficiency, with a COP of 3.5–5. They can halve the running costs compared to conventional systems but require higher upfront investment for installation.
Mini-Split (Ductless) Heat Pumps
Mini-splits are ideal for smaller spaces or homes without ductwork. Their efficiency matches traditional air-source heat pumps, making them cost-effective for selective room heating or cooling.
How To Estimate Your Heat Pump Running Costs
To calculate the cost to run your heat pump, follow these steps:
- Find your heat pump’s power use (in kW). Most typical units draw 1.5–4 kW.
- Estimate daily running hours. In winter, an average of 5–12 hours/day is common.
- Multiply power (kW) × hours × days/month for monthly kWh usage.
- Multiply kWh/month by your local electricity rate ($/kWh).
For example, if your 2 kW heat pump runs 8 hours/day for 30 days in Texas ($0.13/kWh):
2 kW × 8 × 30 = 480 kWh/month × $0.13 = $62.40/month.
Comparing Heat Pump Costs With Other Heating Methods
Heat pumps are often much cheaper to run than electric resistance, oil, or propane heating. The following table compares costs for an average 2,000 sq. ft. home:
| Heating System Type | Annual Operating Cost |
|---|---|
| Heat Pump (Air-Source) | $850–$1,700 |
| Heat Pump (Ground-Source) | $500–$1,100 |
| Electric Furnace | $2,000–$3,500 |
| Natural Gas Furnace | $750–$1,500 |
| Propane/Oil Furnace | $1,800–$3,800 |
Seasonal Variation: Heating Vs Cooling Costs
Heat pumps provide both heating in winter and cooling in summer. Operating costs vary by season, depending on outdoor temperatures and humidity. Air-source units become less efficient below freezing, while both types cost less to cool than to heat.
Monthly Cost Estimates For Heating And Cooling
- Winter (Heating): $60–$200/month, depending on climate and size.
- Summer (Cooling): $30–$75/month, typically lower than heating due to mild heat loads.
Cost-Saving Tips To Reduce Heat Pump Running Expenses
- Improve Home Insulation: Upgrading insulation in attics, basements, and walls means your heat pump runs less frequently.
- Seal Windows And Doors: Prevent heat leaks by caulking gaps and installing weatherstripping.
- Use A Smart Thermostat: Program heating and cooling cycles for when you’re home, saving energy during off hours.
- Maintain Your Heat Pump: Regular filter changes and professional servicing keep your system operating at peak efficiency.
- Upgrade To A High-Efficiency Unit: Newer models with Energy Star certification can save 10–30% compared to older ones.
Hidden Costs: Maintenance and Repairs
Annual maintenance typically costs $120–$250. Occasional repairs (like compressor or electrical component replacements) should be factored in. Well-maintained units can last 15–20 years for air-source and up to 25 years for ground-source systems.
Heat Pump Incentives, Rebates, and Tax Credits
The Inflation Reduction Act (IRA) of 2022 offers federal tax credits up to $2,000 for qualifying heat pump installations, along with state or utility rebates worth up to $8,000 in some regions. These incentives can greatly offset initial installation costs, especially if you are upgrading from oil, propane, or electric resistance heating.
Factors To Consider Before Installing A Heat Pump
- Climate Zone: In very cold states, consider cold-climate heat pump models or supplemental heating sources.
- Insulation: Poor insulation will negate heat pump efficiency, leading to higher running costs.
- Existing Ductwork: Upgrading may be required for older or leaky ducts.
- Local Electricity Rates: The cost-effectiveness depends on utility prices in your region.
Common Questions About Heat Pump Operating Costs
Are Heat Pumps Expensive To Run In Cold Climates?
Modern cold-climate heat pumps remain efficient below freezing, but may need backup heating on the coldest days, slightly increasing costs. Geothermal models perform best in extreme cold.
How Do I Know If My Heat Pump Is The Right Size?
A professional HVAC installer will calculate load requirements based on your home’s size, insulation, and windows, ensuring optimal efficiency and reasonable operating costs.
Does It Help To Leave The Thermostat At One Setting?
Heat pumps are most efficient when running steadily. Small adjustments are fine, but large temperature swings can spike power use.
Real-Life Examples: Budgeting For Your Heat Pump Costs
Example 1 – Atlanta, GA: A 2,000 sq. ft. home with a 3-ton air-source heat pump runs about 6 hours daily in winter. With local rates at $0.14/kWh, monthly costs are about $75–$100 for heating and $40–$55 for cooling.
Example 2 – Minneapolis, MN: The same size house with a high-efficiency air-source heat pump will average $150–$180/month in winter using backup heat during cold snaps.
Example 3 – Phoenix, AZ: A mini-split system for a 1,000 sq. ft. home costs $35–$65 per month for air conditioning, with minimal winter heating required.
How Running Costs Change With Home Size
| Home Size (sq. ft.) | Estimated Monthly Heating Cost |
|---|---|
| 1,000 | $40–$90 |
| 2,000 | $75–$150 |
| 3,000 | $110–$220 |
Future Trends: Heat Pumps And The US Energy Landscape
As the US transitions to clean energy, heat pumps are crucial for decarbonizing homes. Their running costs will become even more competitive as grid electricity grows greener and efficiency technologies improve.
States are actively supporting heat pump adoption with rebates, electricity rate programs, and building codes, aiming for broader access and lower lifetime costs for homeowners nationwide.
Key Takeaways
- Heat pumps dramatically reduce running costs compared to many traditional heating methods, especially in regions with moderate climates and reasonable electricity rates.
- Operating costs depend on home size, insulation, system efficiency, and local electricity prices—making personalized estimates essential.
- Federal and state incentives can further offset both installation and running costs, making heat pumps affordable for millions of American homes.
- Careful installation, proper sizing, and regular maintenance are critical to maximizing savings and comfort year-round.