There are no standard rates for heat pump installation costs and there is little data on current heat pump installation costs.
Several things seem clear:
- Homeowners are likely to receive a wide range of bids.
- Accepted contract prices vary widely across homes.
- Overall, prices are much higher than expected only a couple of years ago.
- The high incentives from Mass Save are likely contributing to the high prices.
Escalation of heat pump install prices in Massachusetts
Sources: Building Sector Technical Report for Decarbonization Roadmap Study, page 52; Energy Pathways to Decarbonization (p.97); Residential ccASHP Building Electrification Study (slide 30); Eversource Benefit-Cost Model filing in DPU Docket 21-129 – see MeasureYR1 tab, column M; conversations with heat pump installation coaches and others.?
I’m in the trade. First, all equipment manufacturers have been raising prices. Heat pumps are no exception. Secondly, I think some contractors have used the run up in energy prices and the ensuing panic from some consumers to increase prices. Energy prices have dropped substantially from this time last year, so that dynamic may be over. Mass Save rebates have definitely added pricing power for installers. Even with incentives, there’s a 2-3x multiple over conventional equipment cost. With operating costs very high due to high electric rates in New England as well as feedback regarding overall lack of comfort relative to conventional heating sources, the uptake for these will be a challenge. In short, the average homeowner who is loathe to spend money on a heating system to begin with is unlikely to spend 2-3x more to get an uncertain result. Those with relatively new equipment (<10 years) will not follow your lead and remove and replace with heat pumps.