Houston, TX 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
Houston, TX Heat Pump Load Calculator
This square-foot calculator provides a rough estimate of your Houston home’s heating and cooling needs using a 72°F indoor temperature and ACCA-standard design conditions for Houston, TX: 95°F outdoors for cooling and 33°F for heating. For an official Manual J load calculation and quote, get in touch with 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
Houston, TX 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 Houston homeowners.
CenterPoint HVAC Incentives
From $200CenterPoint offers invoice-applied incentives for residential HVAC replacements, including central heat pumps and mini-splits. Published incentives start at $200 and vary by installation.
Houston homeowners with CenterPoint electric delivery may qualify for HVAC replacement incentives starting at $200 on eligible heat pumps installed through participating contractors. Palmetto can help homeowners apply for and maximize available 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
Houston is in USDA Hardiness Zone 10, where mild winters can bring occasional cold snaps and summers are long, hot, and humid. With a 33°F design heating temperature and 95°F design cooling temperature, a heat pump must handle brief heating needs and sustained summer cooling. Palmetto understands Houston’s climate and can recommend a system suited to Houston. Explore other 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
Houston Electricity Prices
Houston homeowners may be watching electricity bills rise. Here’s how a more efficient system can help each kilowatt-hour go further.
Texas’s average electricity price rose from 12.1 cents per kilowatt-hour in 2021 to 14.9 cents in 2024—about a 23% increase. It remained below the national average, which reached 16.5 cents in 2024.
Heat pumps can be two to three times as efficient as traditional HVAC systems, delivering more heating or cooling for each unit of electricity used.
Over time, using less electricity for heating and cooling can help soften the impact of rate increases and make a heat pump a practical long-term choice. Actual bills depend on rates, your home, and usage.
Price of Energy: Texas vs National Average
Houston Area Utility Providers
For Houston readers, the chart lists Entergy Texas at 13.2¢ per kWh in 2023, the latest utility data available. That’s below the 2023 Texas average of 14.5¢ and national average of 16.0¢.
Entergy Texas’s price was 1.3¢ per kWh below the state average and 2.8¢ below the national average. The figures show the difference, but the available data doesn’t explain what caused it.
Electricity rates are one part of home energy costs. Because heat pumps are highly efficient, they can reduce total energy spending compared with traditional HVAC—even where electricity prices are higher.
Houston 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.
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- 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 make sense in Houston because they provide both heating and cooling, and the city’s winters are relatively mild. In Climate Zone 10, the design heating temperature is 33°F, while the design cooling temperature is 95°F. At Texas’s current electricity price of 14.9¢ per kWh, actual costs depend on equipment efficiency and use.
Your equipment and installation choice affects the budget. Palmetto’s Comfort Plan has $0 upfront cost, predictable monthly payments, and maintenance, repairs, and warranty coverage included. With direct purchase, you own the system and may qualify for state or utility rebates where available. No federal heat pump tax credit is available for systems installed in 2026.
Heat pumps are generally well suited to Houston’s climate because they provide efficient heating in mild winters and cooling in hot summers. Houston’s Climate Zone 10 design temperatures are 33°F for heating and 95°F for cooling. Since heat pumps move heat rather than generate it, they can use less electricity than conventional electric resistance heating.
At Texas’s current electricity price of 14.9¢ per kWh, operating costs still depend on insulation, equipment sizing, thermostat settings, and your utility plan. Palmetto offers a Comfort Plan with $0 upfront and maintenance and repairs included, or direct purchase, which gives you ownership and may qualify for state or utility rebates where available.
In Houston, leasing may suit homeowners who want to avoid a large upfront payment and maintenance costs; Palmetto’s Comfort Plan has $0 upfront cost, a predictable monthly payment, and includes maintenance, repairs, and warranty coverage for the plan’s life. Buying suits those who prefer to own the heat pump outright after one upfront payment.
Houston’s Climate Zone 10 has a 33°F design heating temperature and 95°F design cooling temperature, so compare system sizing and estimated energy use as well as payment structure; Texas electricity averages 14.9¢ per kWh. Buyers may qualify for state or utility rebates where available, but no federal heat pump tax credit applies to systems installed in 2026.
There isn’t one standard heat pump price in Houston: installation cost depends on home size, equipment capacity, ductwork, and any electrical or other site work. Houston is in Climate Zone 10, with design temperatures of 33°F for heating and 95°F for cooling, so a contractor should size the system for local conditions before quoting.
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 one upfront payment and equipment ownership; state or utility rebates may be available. No federal heat pump tax credit applies to systems installed in 2026. Texas’s 14.9¢/kWh electricity price also affects operating costs.
A heat pump can be financially worthwhile in Houston, but savings depend on your home, current system, and electricity and fuel prices. The current Texas electricity price is 14.9¢ per kWh. In Climate Zone 10, with a 33°F design heating temperature and 95°F design cooling temperature, a heat pump can handle both seasons efficiently.
Compare total installed cost and expected energy bills with your existing equipment. Palmetto’s Comfort Plan has no upfront cost, a predictable monthly payment, and maintenance, repairs, and warranty coverage for the plan’s life. Direct purchase means ownership and may qualify for state or utility rebates where available. No federal heat pump tax credit applies to 2026 installations.
Houston homeowners can have a heat pump installed by a qualified HVAC contractor. Palmetto also offers heat pump installation in Houston through its Comfort Plan or direct-purchase option. An installer should assess your home, size the equipment, and check ductwork and electrical needs before providing an installation quote.
Houston is in Climate Zone 10, with a 33°F design heating temperature and a 95°F design cooling temperature, so sizing should account for both. Palmetto’s Comfort Plan has $0 upfront and includes maintenance, repairs, and warranty coverage. With direct purchase, you own the equipment and may qualify for available state or utility rebates.
HVAC stands for heating, ventilation, and air conditioning—the overall category of equipment that manages indoor temperature and air. A heat pump is one type of HVAC system: it moves heat indoors in winter and outdoors in summer, providing both heating and cooling. A traditional setup may use a furnace and a separate air conditioner.
In Houston, Climate Zone 10’s design temperatures are 33°F for heating and 95°F for cooling, so a properly sized heat pump can serve both needs. Palmetto offers installation through a $0-upfront Comfort Plan with maintenance and repairs included, or direct purchase, where you own the equipment and can check for eligible local rebates.