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Are Heat Pumps Cheaper than Furnaces?

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Investigating the Costs of Installing a Heat Pump & Furnace

Although it’s not a yearly household chore, replacing the heating system in your home can be a task requiring a lot of research, communication between you and your local HVAC contractor, and expensive. No matter where you live, one of the first decisions in the heating system replacement process you need to make is whether or not you want to install a heat pump or install a furnace in your home.

Both systems provide benefits that the other does not, but one major factor when considering which type of system to install is price. So, are heat pumps cheaper than furnaces? We explore this question and more below!

Retail Price – Heat Pumps vs. Furnaces

Like most HVAC products, the retail price of a new heat pump or furnace largely depends on three things:

  1. Make and model
  2. Size of your home (heating capacity)
  3. Installation costs

The average retail price of a furnace ranges anywhere from $900 – 1,500. Keep in mind, this is a price HVAC contractors buy the furnace for, not the retail price to homeowners. The average retail price of a residential heat pump can range anywhere between $2,000 – 2,500.

Although a heat pump tends to be a more expensive initial purchase, our question of, “Are heat pumps cheaper than furnaces?” quite yet.

Installation Costs – Heat Pumps vs. Furnaces

Installing your new heating system entails its own costs, regardless of the retail price of your heat pump or furnace. When installing a new heat pump or furnace, we always recommend getting a written estimate from at least three HVAC contractors in your area. The more estimates you receive, the better idea if it’s cheaper to install a heat pump or furnace in your home.

When installing a new heating system (assuming no major changes need to be made to your previously existing HVAC equipment, like ductwork) you are largely paying for the installers’ time. This can vary, depending on the individual contractor you decided to hire.

On average, you can expect to pay anywhere around $125 to install a furnace or heat pump–$75 per hour for a licensed installer plus around $50 per hour for any additional laborers needed (typically one).

Are Heat Pumps Cheaper than Furnaces?

When it comes to installing a heat pump or furnace, the answer to the question of “Are heat pumps cheaper than furnaces?” is an easy answer. No, heat pumps are not cheaper than furnaces.

Heat Pump & Furnace Installation in New Jersey

At Air Professionals Heating & Air Conditioning, we offer high quality heat pump and furnace installation services in New Jersey. We’ve been installing new heating systems in New Jersey since we first opened our doors in 1996. Our goal was to provide local homeowners and their families with comfort solutions that fit their lifestyles and their budgets.

Contact us online to learn more about heat pump installation and furnace installation from our heating experts!

We service the following New Jersey areas:

Hunterdon County: Annandale, Asbury, Bloomsbury, Califon, Clinton, Flemington, Frenchtown, Glen Gardner, Hampton, High Bridge, Lambertville, Lebanon, Milford, Pittstown, Ringoes, Stockton, Three Bridges, and Whitehouse Station

Somerset County: Basking Ridge, Bedminster, Belle Mead, Bernardsville, Bound Brook, Branchburg, Bridgewater, Far Hills, Franklin Park, Gladstone, Green Brook, Hillsborough, Kingston, Martinsville, Millstone, Montgomery, Neshanic Station, North Plainfield, Peapack, Raritan, Rocky Hill, Skillman, Somerset, Somerville, South Bound Brook, and Warren

Mercer County: East Windsor, Ewing, Hamilton Township, Hopewell Township, Lawrence Township, Mercerville, Robbinsville, and West Windsor Township

Middlesex County: East Brunswick, Kendall Park, New Brunswick, Highland Park, Plainsboro Township, South Brunswick, and South Plainfield

Warren County: Alpha, Greenwich, Lopatcong Township, Phillipsburg, and Pohatcong Township