Tempe, 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
Tempe, AZ Heat Pump Load Calculator
This calculator uses the square foot method to estimate your home’s heating and cooling needs, based on a 72°F indoor temperature, 110°F outdoor cooling design temperature, and 60°F heating design temperature—the ACCA-standard design conditions for Tempe, AZ. 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.
|
|
Cash |
Loan |
|
|---|---|---|---|
| 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
Tempe, 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 Tempe homeowners.
Efficiency Arizona HEAR
Up to $8,000Statewide rebate for income-qualified households installing an eligible heat pump. Applications are still being accepted under updated 2026 guidelines. ([efficiencyarizona.com](https://efficiencyarizona.com/))
SRP Cool Cash Rebate
Up to $225/tonRebate for qualifying high-efficiency heat pumps and mini-splits installed by a participating contractor. Heat pump rebate levels depend on system type and are paid per ton. ([srpnet.com](https://www.srpnet.com/energy-savings-rebates/home/rebates/air-conditioner))
Tempe homeowners may qualify for Efficiency Arizona rebates, while eligible SRP customers may also qualify for Cool Cash. Eligibility depends on household income, existing equipment, system requirements, and electric utility; Palmetto can help homeowners check eligibility, navigate applications, and identify incentives they may be able to combine.
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
Tempe’s USDA Hardiness Zone 13 points to mild winters and long, intensely hot summers—not prolonged freezes. With design temperatures of 60°F for heating and 110°F for cooling, heat pumps here need to handle substantial summer cooling while providing dependable comfort on cooler winter days. Palmetto understands Tempe’s climate and can recommend a system sized for local conditions. Explore other zones below or enter your ZIP code to confirm yours.
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
Tempe Electricity Prices
Arizona electricity prices have climbed, making efficient heating and cooling worth a closer look for Tempe homeowners.
Arizona’s average electricity price rose from 12.5¢ per kWh in 2021 to 14.9¢ in 2024—about 19%. Tempe customers’ actual rates can vary by utility, plan, and time of use.
Heat pumps can be two to three times as efficient as conventional HVAC systems, delivering more heating or cooling per unit of electricity. That can help Tempe households use less power to stay comfortable.
Over time, using less electricity for heating and cooling can help limit the impact of higher rates. Actual results depend on your home, system, energy use, and utility plan.
Price of Energy: Arizona vs National Average
Tempe Area Utility Providers
Tempe homeowners may get electricity from APS or SRP. The latest utility figures available are for 2023, not 2024: APS averaged 15.3¢ per kWh, while SRP averaged 12.5¢.
In 2023, APS’s rate was 1.3¢ above Arizona’s 14.00¢ average and 0.7¢ below the 16.0¢ national average. SRP’s rate was below both benchmarks.
Even where electricity costs more, a heat pump’s high efficiency can help reduce total energy spending compared with traditional HVAC. Your home’s energy use also matters, so consider efficiency alongside the price per kWh.
Tempe 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 Tempe because they provide both heating and cooling, and the area has long, very hot summers. In Climate Zone 13, the design cooling temperature is 110°F, while the design heating temperature is 60°F, so choosing equipment sized for local conditions is important.
At Arizona’s average electricity price of 14.9¢ per kWh, operating costs depend on the heat pump’s efficiency, your home, and thermostat settings. Palmetto offers a $0-upfront Comfort Plan with maintenance and repairs included, or direct purchase and ownership. No federal heat pump tax credit is available for systems installed in 2026; check for active local rebates.
Heat pumps are well suited to Tempe’s mild winters and hot summers, moving heat rather than making it through combustion. In Climate Zone 13, the design heating temperature is 60°F and the design cooling temperature is 110°F. A correctly sized system can heat efficiently in winter and provide cooling through long, intense summers.
At Arizona’s current electricity price of 14.9¢ per kWh, bills depend on equipment efficiency, home insulation, thermostat settings, and summer use; request an estimate based on your home. Palmetto offers a $0-upfront Comfort Plan with maintenance and repairs included, or direct purchase, which may qualify for state or utility rebates where available.
In Tempe, leasing through Palmetto’s Comfort Plan may suit homeowners who prefer no upfront cost and predictable monthly payments. The plan includes maintenance, repairs, and warranty coverage for the life of the plan, reducing ownership tasks. Buying requires a one-time payment but gives you ownership and may suit those who want long-term control.
Tempe’s Climate Zone 13 design temperatures are 60°F for heating and 110°F for cooling, and Arizona electricity averages 14.9¢ per kWh. Compare lease payments with purchase cost and expected energy use. State or utility rebates may be available for eligible purchased systems, but no federal heat pump tax credit applies to systems installed in 2026.
Heat pump installation costs in Tempe vary with your home’s size, existing ductwork, equipment, and electrical work, so there isn’t one reliable local price. A contractor should assess your home and provide a written quote. Tempe’s Climate Zone 13 design temperatures—60°F heating and 110°F cooling—affect equipment sizing.
Palmetto offers a Comfort Plan with $0 upfront, predictable monthly payments, maintenance, repairs, and warranty coverage, or direct purchase with one upfront payment and equipment ownership. Direct buyers may qualify for state or utility rebates where available. No federal heat pump tax credit applies to systems installed in 2026; Arizona’s 14.9¢/kWh average helps estimate operating costs.
A heat pump can be financially worthwhile in Tempe, especially when replacing separate or aging heating and cooling equipment, but savings depend on installation cost, home efficiency, and utility rates. Arizona electricity averages 14.9¢ per kWh, and Tempe’s Climate Zone 13 has a 110°F design cooling temperature, so compare estimated annual operating costs with your current system.
Palmetto offers a Comfort Plan with no upfront cost, predictable monthly payments, and maintenance, repairs, and warranty coverage, or direct purchase with ownership and possible active state or utility rebates. For systems installed in 2026, federal heat pump tax credits are no longer available. Compare each option’s total cost over its expected life before deciding.
In Tempe, licensed HVAC professionals install heat pumps, assess the home, size the equipment, and complete the installation. Palmetto offers heat pump installation with two options: a Comfort Plan or direct purchase. Before choosing an installer, ask about licensing, permits, equipment sizing, and what is included in the installation.
Tempe is in Climate Zone 13, with a 60°F design heating temperature and a 110°F design cooling temperature, so proper sizing matters in both seasons. Palmetto’s Comfort Plan has no upfront cost and includes maintenance, repairs, and warranty coverage for the life of the plan. With direct purchase, you own the system and may qualify for state or utility rebates where available.
HVAC stands for heating, ventilation, and air conditioning—the broad term for a home’s systems that manage temperature and airflow. A heat pump is one type of HVAC equipment. It moves heat rather than generating it: in summer, it carries indoor heat outside, and in winter, it can bring heat indoors.
In Tempe’s Climate Zone 13, systems are planned for a 60°F design heating temperature and a 110°F design cooling temperature, so proper sizing matters. A heat pump can serve both functions in one system. Palmetto offers installation through a Comfort Plan lease or direct purchase; these are payment choices, not different HVAC technologies.