Prescott, 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
Prescott, AZ Heat Pump Load Calculator
Use our calculator below to estimate your home’s heating and cooling needs based on Prescott’s ACCA-standard design conditions: 110°F for cooling and 60°F for heating, with a 72°F indoor target. 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.
|
|
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
Prescott, 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 Prescott homeowners.
Efficiency Arizona HEAR
Up to $14,000Efficiency Arizona offers a HEAR rebate program through September 30, 2031 for qualified projects including the installation of Energy Star certified electric heat pumps for space heating and cooling. This is a point-of-sale rebate for qualified electrification projects in low- and moderate-income and historically underserved households.
SRP Cool Cash Rebate
Up to $225/tonSRP offers the Cool Cash Rebate for customers who install high-efficiency air conditioners, heat pumps, or mini-split systems. Rebates are paid on a per-ton basis and can be up to $225 per ton for the highest efficiency variable-capacity units. The current program guidelines require equipment to be installed by April 30, 2026.
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.
Prescott homeowners have access to multiple active heat pump incentive programs in 2026. The Efficiency Arizona HEAR program offers up to $14,000 in point-of-sale rebates for qualifying low- and moderate-income households, while SRP's Cool Cash Rebate provides up to $225 per ton for high-efficiency heat pump installations (deadline April 30, 2026). Additionally, the federal IRA tax credit of up to $2,000 is available through 2032. Palmetto can help you navigate these programs, determine your eligibility, and maximize your total rebate and tax credit 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
Prescott sits in IECC Climate Zone 13, which means cold winters that can dip to 60°F design temps and scorching summers that reach 110°F. That wide swing matters—your heat pump needs to handle both extremes efficiently. At Palmetto, we've sized and installed systems across Prescott's unique climate, so we know exactly what works here. Want to confirm your zone? Enter your ZIP code below or explore other climate zones to see how yours compares.
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
Prescott Electricity Prices
Understanding electricity costs in Prescott helps you make smarter decisions about home heating and cooling for years to come.
Arizona electricity rates have climbed steadily from 12.5 cents per kWh in 2021 to 14.9 cents in 2024—a 19% increase in just three years, impacting every household's energy budget.
Heat pumps use 2-3x less electricity than traditional HVAC systems to deliver the same heating and cooling. This efficiency means lower energy consumption even as electricity rates continue their upward trend.
As electricity costs rise, heat pump efficiency becomes increasingly valuable. A system that uses half the electricity today will save you even more tomorrow, protecting your budget against future rate increases.
Price of Energy: Arizona vs National Average
Prescott Area Utility Providers
Prescott residents receive electricity primarily from Arizona Public Service (APS), which charged an average of 15.3¢ per kWh in 2023—slightly above Arizona's state average of 14.0¢ but below the national average of 16.0¢.
APS rates in Prescott fall between state and national benchmarks due to Arizona's energy mix, which includes natural gas, nuclear, and growing solar resources. Regional infrastructure costs and service territory characteristics also influence local pricing.
Even with moderate electricity rates, heat pumps can reduce your total energy spending. Their high efficiency means they use significantly less energy than traditional heating and cooling systems, helping offset electricity costs while keeping your home comfortable year-round.
Prescott 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 make excellent sense in Prescott. The area's moderate climate—with design temperatures ranging from 60°F in winter to 110°F in summer—is ideal for heat pump efficiency. These systems both heat and cool your home year-round, and with Arizona's electricity rate at 14.9¢ per kWh, operating costs remain reasonable compared to traditional heating methods.
Prescott homeowners have flexible options to get started. Palmetto's Comfort Plan requires $0 upfront and includes all maintenance and repairs, while direct purchase may qualify you for up to $2,000 in federal tax credits under the Inflation Reduction Act. Both approaches deliver efficient heating and cooling suited to Prescott's climate zone.
Heat pumps perform exceptionally well in Prescott's Climate Zone 13, where winter design temperatures rarely drop below 60°F and summers reach around 110°F. Modern heat pumps can operate efficiently in these conditions, delivering 2-3 times more heating or cooling energy than the electricity they consume. With Arizona's electricity rate at 14.9¢ per kWh, this efficiency translates to meaningful savings on your energy bills year-round.
The mild winters in Prescott are ideal for heat pump technology, as these systems work most efficiently in moderate climates. During summer's peak heat, heat pumps cool your home while using less energy than traditional air conditioning systems. Palmetto makes installation accessible through our Comfort Plan with $0 upfront cost and included maintenance, or through direct purchase where you may qualify for up to $2,000 in federal tax credits.
The choice between leasing and buying a heat pump in Prescott depends on your financial situation and preferences. Leasing through Palmetto's Comfort Plan requires $0 upfront and includes all maintenance and repairs, making it ideal if you want predictable costs without maintenance concerns. Buying outright means you own the equipment and may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act, plus potential local rebates.
Consider Prescott's climate demands—with summer temperatures reaching 110°F and winter lows around 60°F—your heat pump will work year-round. If you prefer avoiding repair costs and want hassle-free service, leasing offers peace of mind. If you have funds available and want to maximize incentives while building home equity, purchasing may provide better long-term value. Both options deliver efficient heating and cooling at Arizona's 14.9¢ per kWh electricity rate.
Heat pump costs in Prescott 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. Prescott's climate—with winter lows around 60°F and summer highs reaching 110°F—means you'll need a system sized appropriately for both heating and cooling demands.
Palmetto offers two payment 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.
Heat pumps are typically worth it financially in Prescott, especially with Arizona's moderate electricity rate of 14.9¢ per kWh. They provide both heating and cooling in one efficient system, which can reduce energy bills compared to traditional HVAC equipment. Direct purchases may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act.
Palmetto offers two financially flexible options: a Comfort Plan with $0 upfront cost and predictable monthly payments including all maintenance, or direct purchase for homeowners who prefer ownership. The right choice depends on your budget and whether you value lower upfront costs or long-term ownership benefits like tax credits.
In Prescott, heat pumps are installed by licensed HVAC contractors who specialize in heating and cooling systems. These professionals assess your home's specific needs, considering Prescott's climate zone requirements (design temperatures ranging from 60°F to 110°F), and ensure proper sizing and installation for optimal year-round performance.
Palmetto partners with certified local installers to provide heat pump installation in Prescott through two flexible options: a Comfort Plan with $0 upfront cost and included maintenance, or direct purchase where you own the system and may qualify for up to $2,000 in federal tax credits. Both options ensure professional installation tailored to your home's heating and cooling needs.
HVAC stands for Heating, Ventilation, and Air Conditioning—it's an umbrella term for all systems that heat and cool your home. A heat pump is actually a type of HVAC system that provides both heating and cooling in one unit, transferring heat rather than generating it through combustion like traditional furnaces.
In Prescott's Climate Zone 13, where temperatures range from 60°F in winter to 110°F in summer, heat pumps offer an efficient all-in-one solution. Modern heat pumps can handle both seasonal extremes while typically using less energy than separate heating and cooling systems, which matters when Arizona electricity costs average 14.9¢ per kWh.