Phoenix, AZ Heat Pump Leasing & Installation
In this guide
01
Benefits of Palmetto Heat Pumps
Say goodbye to clunky old systems and surprise repairs. Palmetto Comfort Plan gives you a brand-new heat pump, installation, and full support, all wrapped into one subscription.
Year Round Comfort
A high-efficiency heat pump keeps your home cool in summer, warm in winter, and your energy use in check all year long.
Forget the maintenance
With a Comfort Plan subscription, installation and maintenance are fully covered, no surprise bills, no weekend DIY.
Rewards for renewing
Stick with us and earn credits toward your next system upgrade. It’s our way of saying thanks for building a cleaner, comfier future with us.
02
Phoenix, AZ Heat Pump Load Calculator
This square-foot calculator estimates your home’s heating and cooling needs; it’s a starting point, not a full load assessment. It uses 72°F indoors and Phoenix, AZ’s ACCA-standard design conditions: 110°F outdoors for cooling and 60°F for heating. For an official Manual J load calculation and quote, contact Palmetto’s team. Get in touch with our team for an official quote.
Step 1 of 3
Home location & size
Your home’s location and size directly impact heating needs.
Step 2 of 3
Home attributes
Step 3 of 3
Additional details
Description of what this means for context.
Estimated Heating Needs
Your home’s location falls within the a climate zone with the average extreme winter falling between 10° – 15° F.
Home Details
Recommended equipment capacity
60,000 BTU
5 Tons
Calculated Cooling Mode
102,000 BTU
8.5 Tons
03
Buy it or finance it. Your comfort, your call
There's no wrong way to get cozy. Here's how the options stack up, so you can choose what works best for you.
|
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Cash |
Loan |
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|---|---|---|---|
| Payment schedule | $0 upfront, then monthly subscription | Full price upfront | $0 upfront, then monthly payment |
| Term length | 10 or 12 years | None | Variable |
| End of term options | Flexible with 25% renewal term credits to new system | No credits to new system | No credits to new system |
| Maintenance included | |||
| Eligible for incentives |
Cash
Loan
Local Incentives
Phoenix, AZ Heat Pump Rebates & Incentives
Local and federal incentive programs can significantly reduce the cost of a new heat pump system. Here are the programs available to Phoenix homeowners.
Efficiency Arizona
Up to $8,000Efficiency Arizona is accepting applications in 2026 under its revised guidelines, offering up to $8,000 for qualifying space-heating or cooling heat pumps. ([efficiencyarizona.com](https://efficiencyarizona.com/))
SRP Cool Cash
$75-$225Active in 2026, Cool Cash pays $75-$225 per ton for qualifying high-efficiency central heat pumps and mini-splits, depending on compressor type. ([srpnet.com](https://www.srpnet.com/energy-savings-rebates/home/rebates/air-conditioner))
SRP HPWH Rebate
$500SRP offers a $500 rebate for qualifying heat pump water heaters, and the offer is listed as valid beginning in 2026. ([energystar.gov](https://www.energystar.gov/dime?page_number=152&utm_source=openai))
Phoenix-area homeowners may qualify for Efficiency Arizona rebates, and SRP customers may also be eligible for Cool Cash heat pump rebates or an SRP heat pump water heater rebate. ([efficiencyarizona.com](https://efficiencyarizona.com/)) Palmetto can help homeowners identify applicable programs, apply for incentives and maximize eligible rebates.
Incentive information is based on publicly available data as of 2026 and may change. Contact program administrators to verify current availability and eligibility requirements.
04
Climate Zones
Phoenix is in USDA Hardiness Zone 13, with generally mild winters and intensely hot summers. Its design temperatures—60°F for heating and 110°F for cooling—show why a heat pump must be selected for substantial cooling demand while still keeping rooms comfortable on cooler nights. Palmetto understands Phoenix’s climate and can recommend a sized system. Explore other climate zones below or enter your ZIP code to confirm your zone.
Climate Zone 1
Climate zone 1 is not typically seen within the United States outside of Alaska. It represents the coldest climates on the planet.
Climate Zone 1A
Avg. extreme winters: -60° to -55° F
Climate Zone 1B
Avg. extreme winters: -55° to -50° F
Phoenix Electricity Prices
Phoenix summers make electricity bills hard to ignore—especially as rates climb.
Arizona’s average electricity price rose from 12.5 cents per kWh in 2021 to 14.9 cents in 2024, though it remained below the 2024 U.S. average of 16.5 cents.
Because they move heat rather than generate it, heat pumps can provide heating and cooling with less electricity—often at two to three times the efficiency of traditional HVAC systems.
Over time, using less electricity for comfort can help Phoenix homeowners manage future rate increases and make a heat pump a valuable long-term home upgrade.
Price of Energy: Arizona vs National Average
Phoenix Area Utility Providers
Phoenix electricity customers may be served by Arizona Public Service (APS) or Salt River Project (SRP). The latest utility figures available are from 2023: APS averaged 15.3¢ per kWh, while SRP averaged 12.5¢.
In 2023, Arizona’s average was 14¢ per kWh and the national average was 16¢. APS was above the state average but below the national one; SRP was below both. These differences reflect utility-specific electricity rates.
Electricity prices matter, but so does how efficiently a home uses it. Heat pumps can deliver heating and cooling efficiently, potentially reducing total energy spending compared with traditional HVAC—even where electricity costs are higher.
Phoenix Utilities Electricity Rates
Let our smart tools do the heavy lifting.
Get personalized tips, usage insights, project tracking, and that daily satisfaction of making your energy work smarter with the Palmetto mobile app.
- Rewards for smarter energy usage
- Energy insights & Dashboard
- Personalized Savings Tools
- Whole Home Energy Management
- Support Whenever You Need It
Repair versus replace
When a heat pump is in need of repair it is worth considering whether a replacement would be a better investment. While each case is unique, we generally recommend investing in a new unit when repairs exceed $5,000.
A heat pump's lifetime is impacted by a number of factors including environment, use and the quality of the unit. It's important to choose the right unit for your climate zone and home's unique attributes.
When you are in need of repair, we recommend choosing a service provider that is an expert in the heat pump brand you have installed, and checking online reviews to ensure you are investing in the right level of service.
| Potential repair | Cost range | Description |
|---|---|---|
| Capacitor Replacement | $150 - $400 | Common issue when unit struggles to start or makes a humming noise. Capacitors store the electrical energy needed to start the compressor and fan motors. |
| Refrigerant Recharge | $250 - $750 | Needed when the system loses cooling or heating efficiency due to low refrigerant levels. Includes leak detection, repair of minor leaks, and recharging the system to the manufacturer-specified level. |
| Reversing Valve Replacement | $450 - $900 | Required when the unit cannot switch between heating and cooling modes. The reversing valve directs refrigerant flow and is unique to heat pump systems. |
| Compressor Replacement | $1,500 - $3,000 | Major repair needed when the unit fails to heat or cool entirely. The compressor is the heart of the system, circulating refrigerant between the indoor and outdoor coils. |
| Evaporator/Condenser Coil Replacement | $1,200 - $2,800 | Replacement needed when coils develop leaks or corrosion that cannot be economically repaired. Coil damage reduces heat transfer efficiency and can cause refrigerant loss. |
| Control Board Replacement | $500 - $1,200 | Required when the system has electrical failures or erratic behavior. The control board manages all system operations including defrost cycles, fan speeds, and compressor staging. |
| Full System Replacement | $4,500 - $8,000+ | When repairs exceed the value of the unit or multiple major components fail simultaneously. Includes removal of the old system and installation of a new heat pump with updated refrigerant lines and electrical connections. |
Frequently Asked Questions
Yes, heat pumps can make sense in Phoenix because they provide both air conditioning and heating, and winters are generally mild. Phoenix is in Climate Zone 13, with design temperatures of 110°F for cooling and 60°F for heating, so proper equipment sizing and performance in extreme heat matter.
At Arizona’s average electricity price of 14.9¢ per kWh, running costs depend on equipment efficiency, home condition, and utility rates. Palmetto offers a $0-upfront Comfort Plan with maintenance and repairs included, or direct purchase with possible state or utility rebates. No federal heat pump tax credit applies to systems installed in 2026.
Heat pumps are generally well suited to Phoenix because they move heat rather than generate it, and mild winters let them heat efficiently. In Climate Zone 13, the design heating temperature is 60°F and the design cooling temperature is 110°F, so proper sizing and strong performance in extreme heat matter.
At Arizona’s electricity price of 14.9¢ per kWh, operating costs depend on equipment efficiency, home insulation, thermostat settings, and the utility rate plan; efficiency alone does not guarantee lower bills. Palmetto’s $0-upfront Comfort Plan includes predictable monthly payments, maintenance, repairs, and warranty coverage, while direct purchase gives you ownership outright.
In Phoenix, buy a heat pump if you can cover the upfront cost and want to own the equipment; lease through a service plan if you prefer no upfront payment and predictable costs. With Arizona electricity at 14.9¢ per kWh, compare estimated operating costs and total contract costs before deciding.
Palmetto’s Comfort Plan has $0 upfront cost, predictable monthly payments, and maintenance, repairs, and warranty coverage for the plan’s life. Direct purchase means you own the system and may qualify for state or utility rebates. Phoenix is Climate Zone 13, with 60°F heating and 110°F cooling design temperatures; no federal heat pump tax credit applies to 2026 installations.
Heat pump installation costs in Phoenix depend on equipment capacity, home layout, ductwork, and electrical work, so there isn’t one reliable price for every house. Phoenix’s Climate Zone 13 design temperatures—60°F for heating and 110°F for cooling—make proper system sizing especially important. A home assessment is the best way to get an accurate quote.
Palmetto’s Comfort Plan has $0 upfront cost, a predictable monthly payment, and maintenance, repairs, and warranty coverage for the plan’s life. Direct purchase requires an upfront payment and gives you ownership; eligible local rebates may apply. Arizona electricity costs 14.9¢ per kWh, and no federal heat pump tax credit is available for systems installed in 2026.
A heat pump can be financially worthwhile in Phoenix, especially when replacing an aging air conditioner and separate heater, but savings depend on your home, equipment, installation cost, and utility rates. Arizona electricity averages 14.9¢ per kWh. In Climate Zone 13, systems must handle 110°F cooling design temperatures and 60°F heating design temperatures.
Compare the estimated total cost of ownership, not just monthly energy bills. Palmetto’s Comfort Plan has no upfront cost and includes predictable payments, maintenance, repairs, and warranty coverage; buying means owning the system and may allow state or utility rebates where available. No federal heat pump tax credit is available for systems installed in 2026.
Heat pumps in Phoenix are installed by qualified HVAC professionals, and Palmetto offers homeowners installation through either its Comfort Plan or a direct-purchase option. Choose an installer who can assess your home, size the system correctly, and confirm it is suited to Phoenix’s hot summers and mild winters.
Phoenix is in Climate Zone 13, with design temperatures of 60°F for heating and 110°F for cooling, so system sizing and installation quality matter. The Comfort Plan has $0 upfront cost and includes maintenance, repairs, and warranty coverage; direct purchase means you own the equipment and may qualify for state or utility rebates where available.
HVAC stands for heating, ventilation, and air conditioning—the overall system that manages indoor comfort. A heat pump is one type of HVAC equipment: it moves heat rather than generating it by burning fuel, and can provide both heating and cooling. In Phoenix, it is sized for demanding summers and mild winter conditions.
Phoenix is in Climate Zone 13, with design temperatures of 60°F for heating and 110°F for cooling. Arizona electricity currently costs 14.9¢ per kWh, though actual operating costs vary. Palmetto offers a $0-upfront Comfort Plan with maintenance and repairs included for the plan’s life, or direct purchase with outright ownership.