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How Much Does It Cost to Install a Heat Pump in Michigan?

The average cost to install a heat pump in Michigan ranges from $8,000 to $15,000.

That being said, the only way to accurately determine how much it will cost to install a heat pump is to have an HVAC professional come to your home and assess your home and heating needs.

There are a number of factors that will impact the overall cost for you to install a heat pump in Michigan, but the 3 that will make the biggest impact are:

  • Size
  • Energy efficiency
  • Technology (Blower motor & compressor)

Let’s start with answering the most obvious question, is installing a heat pump in Michigan a smart choice for your home?

Want to skip straight to having your heat pump installed? Our team of experts can come to your home and provide you with a free in-home estimate.

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Installing a heat pump in Michigan

Before knowing the cost to install a heat pump, you probably want to know if installing a heat pump is a smart choice for a Michigan homeowner. The answer? As long as it's paired with a furnace in the winter, yes, a heat pump is a cost-effective option for Michigan homeowners.

Here’s why:
Heat pumps are a great option because they work as both a heating and cooling system.

In the summer, heat pumps work as air conditioners. They absorb heat from your home and dump it outside. In the winter, heat pumps can work in reverse to absorb heat from the outdoor air and bring it into your home.

However, heat pumps tend to work best when the temperature is above 30 degrees.

In Michigan, winter temperatures frequently drop below 30 degrees, making it difficult for a heat pump to draw heat from the outside air.

The solution? A dual fuel system.

A dual fuel system is the best of both worlds...a heat pump (for when the temperature is above 30 degrees) combined with a furnace (that kicks on when the temperature drops below 30 degrees).

This kind of system maximizes your comfort in the winter months and could increase the efficiency of your heating system (and potentially lower the cost of your utility bills).

Think a heat pump is the right option for your home? If so, your next question is probably regarding price. To help you budget, we'll discuss the 3 main factors that dictate what you'll pay for a new heat pump.

3 heat pump installation price factors

Cost factor #1: Size

Unlike a furnace, the size of a heat pump is determined by tonnage. Tonnage is essentially the amount of heat a heat pump can move into (and out of) your home in an hour.

The larger the heat pump (i.e. the more tonnage the system has), the more expensive the installation.

Can I just get a smaller system to save money?

No. The size of heat pump you need for your home will depend on a variety of factors a Replacement Specialist will need to assess, called a load calculation. During a load calculation, a Replacement Specialist will evaluate many different factors that go into what size heat pump you need for your home, like:

  • Number and orientation of windows
  • Number of people living in your home
  • Quality and amount of insulation

Installing the right size heat pump for your home is extremely important because the wrong size heat pump can cause serious issues.

If you install a pump that’s too large for your home…your heat pump will likely work quickly to heat your home and then shut off. This is called short cycling and can cause a variety of issues, costing you money and shortening the lifespan of your heat pump.

If you install a pump that’s too small for your home...your heat pump will work constantly to try and heat your home, resulting in the same negative effects as an oversized heat pump: high monthly utility bills and a shortened heat pump lifespan.

Cost factor #2: Energy efficiency

Because heat pumps both heat and cool, there are two different ways to measure a heat pump’s efficiency, SEER and HSPF.

SEER or Seasonal Energy Efficiency Ratio measures the cooling output a heat pump can produce per watt of electricity consumed.

HSPF or Heating Season Performance Factor measures the opposite (the heat output per watt of electricity a heat pump consumes).

The higher the SEER and HSPF ratings are, the more expensive a heat pump will be. However, a higher-efficiency unit is probably worth the investment, because efficient units can reduce the cost of monthly utility bills.

Cost factor #3: Technology

The cost of a heat pump can also be affected by the “level” of technology you select, specifically in regards to the blower motor and the compressor.

Blower motor

There are three different speed options when it comes to the blower motor: fixed-speed, multi-speed and variable-speed.

A fixed-speed motor only has one speed, it’s either on or off. This is the least efficient and least expensive option.

A multi-speed motor has a few different set speeds, low, medium and high. Multi-speed motors are more efficient and more expensive than fixed-speed motors but are less efficient and less expensive than variable-speed motors.

A variable-speed motor is able to adjust automatically to meet whatever speed is needed at the time. This makes a variable-speed motor the most efficient and most expensive blower motor option.


Just like with the blower motor, there are three different compressor options: single-stage, two-stage and multi-stage.

Single-stage compressors have one speed “HIGH” or off.

Two-stage compressors have two speeds, “HIGH” or “LOW.”

Multi-stage compressors have a variety of speeds.

Like blower motors, single-stage compressors are the least efficient and least expensive while multi-stage compressors are the most efficient and most expensive.

However, as we mentioned above, the more efficient your unit is, the more long-term returns you’ll likely see.

Ready to install a heat pump in your Michigan home? Call our Replacement Specialists

Our team of experts has been serving the Metro Detroit area since 1937. We always look out for the best interest of our customers and will provide you with installation options and pricing before we start on your heat pump installation. Learn more about installing a heat pump or…

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