Scottsdale, 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
Scottsdale, AZ Heat Pump Load Calculator
Use this calculator to estimate your home’s heating and cooling needs based on square footage. It’s calibrated to ACCA-standard design conditions for Scottsdale, AZ: 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
Scottsdale, 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 Scottsdale 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. The incentive value is 100% of electrification project costs, up to $14,000, for low-income households, and 50% of costs, up to $14,000, for moderate-income 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, confirming its operation into that year.
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.
Scottsdale homeowners have access to multiple heat pump incentive programs in 2026. The Efficiency Arizona HEAR program offers up to $14,000 in rebates for qualifying low- and moderate-income households, while SRP customers can receive up to $225 per ton for high-efficiency heat pump installations. 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, determine your eligibility, and maximize your available rebates and tax credits.
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
Scottsdale sits in IECC Climate Zone 13, which means mild winters with design temperatures around 60°F and scorching summers reaching 110°F. This extreme heat dominance requires a heat pump sized primarily for cooling efficiency while still handling those cooler desert nights. At Palmetto, we understand Scottsdale's unique climate and can help you find the right system for year-round comfort. 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
Scottsdale Electricity Prices
Understanding electricity costs in Scottsdale helps you make smarter decisions about home comfort and long-term energy savings.
Arizona's electricity rates have climbed steadily, rising from 12.5 cents per kWh in 2021 to 14.9 cents in 2024—a 19% increase in just three years that directly impacts your monthly cooling and heating bills.
Heat pumps offer a practical response to rising rates. Because they're 2-3x more efficient than traditional HVAC systems, they use significantly less electricity to deliver the same heating and cooling, reducing the impact of rate increases on your wallet.
As electricity costs continue their upward trend, efficiency becomes increasingly valuable. A heat pump's lower energy consumption means you're better protected against future rate hikes while maintaining year-round comfort in your Scottsdale home.
Price of Energy: Arizona vs National Average
Scottsdale Area Utility Providers
Scottsdale residents primarily receive electricity from two major utilities: Arizona Public Service (APS) at 15.3¢ per kWh and Salt River Project (SRP) at 12.5¢ per kWh, based on 2023 data.
Both utilities charge below the 2023 national average of 16.0¢ per kWh, though APS rates slightly exceed Arizona's state average of 14.0¢. These competitive rates reflect Arizona's diverse energy mix and abundant solar resources.
Lower electricity costs make heat pumps even more attractive for Scottsdale homes. Their exceptional efficiency means they use less energy than traditional HVAC systems, helping you reduce total energy spending while maintaining year-round comfort.
Scottsdale 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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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 Scottsdale. With a climate that demands significant cooling (design temps reaching 110°F) and mild winters (design heating around 60°F), heat pumps efficiently handle both needs in one system. They use electricity at 14.9¢ per kWh to transfer heat rather than generate it, delivering substantial energy savings compared to traditional HVAC systems.
Scottsdale homeowners have flexible options to get started. Palmetto's Comfort Plan offers $0 upfront with maintenance included, eliminating surprise repair costs. Alternatively, direct purchase may qualify you for up to $2,000 in federal tax credits under the Inflation Reduction Act. Either way, you're investing in year-round comfort tailored to Arizona's unique climate.
Heat pumps are highly efficient in Scottsdale's climate, particularly for cooling during the intense summer months when temperatures reach 110°F. Modern heat pumps can deliver 3-4 times more cooling energy than the electricity they consume, making them significantly more efficient than traditional air conditioners. With Arizona's electricity rate at 14.9¢ per kWh, this efficiency translates to meaningful savings on your energy bills year-round.
Scottsdale's mild winters (design heating temperature of 60°F) create ideal conditions for heat pump performance, as they operate most efficiently in moderate temperatures. Whether you choose Palmetto's Comfort Plan with zero upfront costs and included maintenance, or direct purchase to take advantage of federal tax credits up to $2,000, you'll benefit from a system designed to handle Scottsdale's unique Climate Zone 13 conditions efficiently.
The choice between leasing and buying a heat pump in Scottsdale depends on your financial priorities and homeownership goals. Leasing through Palmetto's Comfort Plan requires $0 upfront and includes all maintenance and repairs, making it ideal if you prefer predictable monthly 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 local rebates.
In Scottsdale's extreme climate—where summer temperatures reach 110°F—heat pump reliability is crucial. Leasing eliminates the worry of unexpected repair costs during peak cooling season, while buying offers long-term ownership benefits and immediate tax savings. Consider your budget, how long you plan to stay in your home, and whether you prefer the security of included maintenance or the financial advantages of ownership and available incentives.
Heat pump installation costs in Scottsdale typically range from $5,000 to $15,000 for a complete system, depending on your home's size, existing ductwork, and the unit's efficiency rating. Scottsdale's extreme cooling demands—with summer temperatures reaching 110°F—often require appropriately sized systems that can handle the climate while maintaining energy efficiency at Arizona's 14.9¢ per kWh electricity rate.
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. Both options provide quality heat pump solutions designed for Scottsdale's unique climate needs.
Yes, heat pumps are typically worth it financially in Scottsdale. They use significantly less energy than traditional HVAC systems—often reducing cooling and heating costs by 30-50%—which translates to meaningful savings with Arizona's electricity rate of 14.9¢ per kWh. Over the system's 15-20 year lifespan, these monthly savings can add up to thousands of dollars.
Palmetto makes heat pumps accessible with two options: a Comfort Plan with $0 upfront and predictable monthly payments including all maintenance, or direct purchase where you own the equipment and may qualify for up to $2,000 in federal tax credits. Either way, most Scottsdale homeowners see the investment pay for itself through lower energy bills within several years.
Heat pumps in Scottsdale are installed by licensed HVAC contractors who specialize in heating and cooling systems. These professionals assess your home's specific needs, considering Scottsdale's extreme climate conditions—with summer temperatures reaching 110°F—to recommend and install the right heat pump system for year-round comfort.
Palmetto offers professional heat pump installation in Scottsdale through two flexible options: a Comfort Plan with $0 upfront cost and all maintenance included, or direct purchase where you own the equipment and may qualify for up to $2,000 in federal tax credits. Both options include expert installation by certified technicians who understand Arizona's unique climate requirements.
A heat pump is actually a type of HVAC system. HVAC stands for Heating, Ventilation, and Air Conditioning—it's an umbrella term for any equipment that controls your home's temperature. Heat pumps are unique because they provide both heating and cooling in one efficient unit, moving heat rather than generating it through combustion.
In Scottsdale's Climate Zone 13, where temperatures range from 60°F in winter to 110°F in summer, heat pumps excel at year-round comfort while typically using less electricity than traditional HVAC systems. With Arizona's current electricity rate of 14.9¢ per kWh, this efficiency can translate to meaningful savings on your energy bills over time.