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
Use this calculator to estimate your home’s heating and cooling needs based on square footage. It’s tailored to Phoenix’s ACCA-standard design conditions: 110°F cooling and 60°F heating outdoors, with 72°F indoors. For a precise Manual J load calculation and personalized quote, connect 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
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 HEAR
Up to $8,000Home Electrification and Appliance Rebates program providing point-of-sale rebates for qualifying heat pump installations. Available to low- and moderate-income households through September 30, 2031.
SRP Cool Cash Rebate
Up to $1,125Utility rebate program for high-efficiency air conditioning and heat pump systems. Rebates are paid per ton of cooling capacity based on system efficiency ratings.
Federal IRA Tax Credit
Up to $2,000The Inflation Reduction Act provides a federal tax credit of up to $2,000 for qualifying heat pump installations through 2032.
Phoenix homeowners have access to multiple heat pump incentive programs in 2026. The Efficiency Arizona HEAR program offers substantial rebates up to $8,000 for qualifying low- and moderate-income households, while SRP customers can receive up to $1,125 through the Cool Cash Rebate program. Combined with the federal IRA tax credit of up to $2,000, homeowners can significantly reduce their heat pump installation costs. Palmetto can help you navigate these programs, verify your eligibility, and maximize your total rebate savings.
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 falls within IECC Climate Zone 13, which means mild winters with design temperatures around 60°F and scorching summers that can reach 110°F. This extreme cooling demand makes proper heat pump sizing critical—you need a system that can handle triple-digit heat without breaking a sweat. At Palmetto, we understand Phoenix's unique climate and can help you choose a heat pump that's right for your home. Explore other climate 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
Phoenix Electricity Prices
Understanding electricity costs in Phoenix helps you make smarter decisions about your home's heating and cooling systems.
Arizona electricity rates have climbed from 12.5 cents per kWh in 2021 to 14.9 cents in 2024—a 19% increase in just three years, outpacing inflation.
Heat pumps use 2-3 times less electricity than traditional HVAC systems to deliver the same heating or cooling. That efficiency means lower bills even as rates continue to rise.
Over a system's 15-year lifespan, this efficiency advantage compounds significantly. As electricity costs keep climbing, your heat pump becomes more valuable each year, protecting your budget long-term.
Price of Energy: Arizona vs National Average
Phoenix Area Utility Providers
Phoenix residents are served primarily by two utility providers: Arizona Public Service (APS) and Salt River Project (SRP). According to 2023 data, APS averaged 15.3¢ per kWh, while SRP averaged 12.5¢ per kWh.
Both utilities remain competitive compared to the national average of 16.0¢ per kWh in 2023. SRP's rates are particularly favorable, coming in below both the state average (14.0¢) and national benchmark, while APS sits slightly above the state average.
These relatively moderate electricity rates make Phoenix an ideal market for heat pumps. Because heat pumps are significantly more efficient than traditional HVAC systems, they can reduce your total energy spending—even when switching from gas to electric heating and cooling.
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.
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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 excellent sense in Phoenix. While the city is known for extreme summer heat reaching 110°F, modern heat pumps efficiently cool homes year-round and handle Phoenix's mild winters (design heating temp: 60°F) with ease. With Arizona's electricity rate at 14.9¢ per kWh, heat pumps typically cost less to operate than traditional HVAC systems.
Phoenix homeowners can access heat pumps through Palmetto's Comfort Plan with $0 upfront and all maintenance included, or purchase directly to qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. The consistent cooling demands in Climate Zone 13 mean your heat pump works efficiently throughout the year, maximizing your investment.
Heat pumps are highly efficient in Phoenix's climate, particularly for cooling during the intense summer months when temperatures reach 110°F. Modern heat pumps can achieve efficiency ratings of 300-400%, meaning they transfer three to four times more energy than they consume. With Arizona's electricity rate at 14.9¢ per kWh, this efficiency translates to lower operating costs compared to traditional air conditioning and heating systems.
Phoenix's mild winters, with design temperatures around 60°F, make heat pumps especially practical since they don't have to work as hard during heating season. The year-round efficiency means homeowners can see consistent energy savings throughout the year. Whether you choose Palmetto's Comfort Plan with no upfront costs and included maintenance, or direct purchase to access federal tax credits up to $2,000, you'll benefit from a system designed to perform well in Climate Zone 13.
The choice between leasing and buying a heat pump in Phoenix depends on your financial situation and preferences. Buying means paying upfront but you'll own the equipment and may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. Leasing through Palmetto's Comfort Plan requires $0 upfront and includes all maintenance and repairs in your monthly payment.
In Phoenix's extreme climate—with summer temperatures reaching 110°F—heat pumps work hard year-round, making maintenance coverage particularly valuable. If you prefer predictable costs and worry-free service, leasing offers peace of mind. If you want to maximize long-term savings and can handle the upfront investment, purchasing allows you to benefit from tax incentives and full ownership from day one.
Heat pump costs in Phoenix typically range from $5,000 to $15,000 for a complete installation, depending on your home's size, existing ductwork, and the system's efficiency rating. Phoenix's extreme cooling demands in Climate Zone 13—with summer temperatures reaching 110°F—often require robust systems that can handle the heat while maintaining efficiency.
Palmetto offers two flexible options to fit your budget: a Comfort Plan with $0 upfront cost and predictable monthly payments that include all maintenance and repairs, or direct purchase where you own the equipment outright and may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act plus local rebates.
Yes, heat pumps are typically worth it financially in Phoenix. Modern heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems, and with Arizona's electricity rate of 14.9¢ per kWh, those savings add up quickly in a climate requiring year-round temperature control.
Palmetto makes heat pumps accessible through two options: a Comfort Plan with $0 upfront and maintenance included, or direct purchase with potential federal tax credits up to $2,000. Most Phoenix homeowners see the investment pay for itself through lower energy bills within several years, while enjoying more consistent comfort.
Heat pumps in Phoenix are installed by licensed HVAC contractors who specialize in heating and cooling systems suitable for Arizona's extreme climate. These professionals must understand the unique demands of Climate Zone 13, where cooling temperatures can reach 110°F, and ensure proper sizing and installation for optimal performance and efficiency.
Palmetto partners with certified local installers to provide heat pump installation through two flexible options: a Comfort Plan with $0 upfront cost and all maintenance included, or direct purchase where you own the system outright and may qualify for up to $2,000 in federal tax credits. Both approaches ensure professional installation tailored to Phoenix's climate needs.
HVAC is an umbrella term that stands for Heating, Ventilation, and Air Conditioning—it describes any system that controls your home's temperature and air quality. A heat pump is actually a specific type of HVAC system that both heats and cools your home by transferring heat rather than generating it, making it more energy-efficient than traditional furnaces and air conditioners.
In Phoenix's Climate Zone 13, where summer temperatures reach 110°F, heat pumps work exceptionally well because they excel at cooling while also providing efficient heating during mild winters. With Arizona's electricity rate at 14.9¢ per kWh, a heat pump's efficiency can lead to meaningful energy savings compared to conventional HVAC systems that use separate heating and cooling equipment.