Nathan Healy
Certified by Nathan Healy
Updated: February 2026
Quality home solutions since 2011
Palmetto serves thousands of customers across 25 states with an over 85% approval rating

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

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

Forget the maintenance

With a Comfort Plan subscription, installation and maintenance are fully covered, no surprise bills, no weekend DIY.

Rewards for renewing

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

Tucson, AZ Heat Pump Load Calculator

Use our calculator below to estimate your home’s heating and cooling needs based on Tucson’s ACCA-standard design conditions: 110°F outdoor cooling and 60°F heating temperatures, with a 72°F indoor setpoint. 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

Get Started

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
Payment schedule $0 upfront, then monthly subscription
Term length 10 or 12 years
End of term options Flexible with 25% renewal term credits to new system
Maintenance included
Eligible for incentives

Cash

Payment schedule Full price upfront
Term length None
End of term options No credits to new system
Maintenance included
Eligible for incentives

Loan

Payment schedule $0 upfront, then monthly payment
Term length Variable
End of term options No credits to new system
Maintenance included
Eligible for incentives

Local Incentives

Tucson, 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 Tucson homeowners.

Efficiency Arizona HEAR

Up to $14,000

Efficiency 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.

Eligibility: Low-income households defined as households making less than 80% of the area median income. Moderate-income households defined as households making between 80% and 150% of the area median income. Homes with existing heat pumps are not eligible for the heat pump rebate.

Learn more →

TEP Efficient Home Program

Up to $900

The Efficient Home Program offers instant rebates for the purchase and installation of a new certified air conditioning and heat pump unit through one of the participating contractors.

Eligibility: To qualify for the rebates, you must use a participating Efficient Home Program contractor. This ensures your equipment or services were properly completed, inspected and tested for optimal performance.

Learn more →

Federal IRA Tax Credit

Up to $2,000

The Inflation Reduction Act provides a federal tax credit of up to $2,000 for qualifying heat pump installations through 2032.

Eligibility: Available to homeowners who purchase and install a qualifying heat pump system. Claimed on your annual federal tax return.

Learn more →

Tucson homeowners have access to multiple heat pump incentive programs in 2026. The Efficiency Arizona HEAR program provides up to $14,000 in rebates for qualifying low- and moderate-income households, while Tucson Electric Power (TEP) offers instant rebates up to $900 through their Efficient Home Program. Combined with the federal IRA tax credit of up to $2,000, homeowners can stack these incentives to significantly reduce heat pump installation costs. Palmetto can help you navigate these programs, verify your eligibility, and maximize your total savings across all 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

Tucson sits in IECC Climate Zone 13, characterized by mild winters (design temp: 60°F) and intensely hot summers (design temp: 110°F). This unique climate profile means your heat pump needs to excel at cooling while handling occasional heating demands efficiently. At Palmetto, we understand how Tucson's desert conditions affect system sizing and equipment selection. Explore the climate zones below or enter your ZIP code to confirm your specific zone.

US Climate Zone Map
Your location

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

05

Tucson Electricity Prices

Understanding electricity costs in Tucson 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 per kWh in 2024—a 19% increase in just three years that directly impacts your monthly energy 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 comfort for your home.

As electricity costs continue rising, that efficiency gap becomes increasingly valuable. A heat pump's lower energy consumption means your monthly bills stay more manageable, even as rates climb over the years ahead.

Price of Energy: Arizona vs National Average

10¢
20¢
30¢
13.7¢
12.5¢
15.0¢
13.0¢
16.0¢
14.0¢
16.5¢
14.9¢
2021
2022
2023
2024
US Average
Arizona

Tucson Area Utility Providers

Understanding electricity costs helps you make informed decisions about home heating and cooling. Tucson Electric Power charged 15.0¢ per kWh in 2023—slightly above Arizona's state average of 14.0¢ but below the national average of 16.0¢.

Tucson's electricity rates sit in the middle range partly due to Arizona's abundant solar resources and relatively low natural gas costs, which help keep generation expenses manageable compared to many other regions across the country.

Even with moderate electricity costs, efficient heating and cooling matters. Heat pumps use significantly less energy than traditional HVAC systems, which means lower monthly bills regardless of your utility rate—making them a smart choice for Tucson homes.

Tucson Utilities Electricity Rates

Tucson Electric Power
15.00¢
-6%
AZ Average
14.00¢
-12%
US Average
16.0¢
06

Palmetto Reviews

Ready to start saving with a heat pump?

Speak with a Palmetto heating & cooling expert to find out exactly how much you can save.

Get a Free Quote
Palmetto mobile app
07

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
Download the App
08

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.

$5,000
Recommended repair threshold

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.

Ready to start saving with a heat pump?

Speak with a Palmetto heating & cooling expert to find out exactly how much you can save.

Get a Free Quote
09

Frequently Asked Questions

Yes, heat pumps make excellent sense in Tucson. With design temperatures ranging from 60°F in winter to 110°F in summer, heat pumps efficiently handle both heating and cooling needs in one system. They use electricity at 14.9¢ per kWh to move heat rather than generate it, making them more energy-efficient than traditional HVAC systems in Tucson's mild winters and hot summers.

Tucson homeowners can access heat pumps through Palmetto's Comfort Plan with $0 upfront and all maintenance included, or through direct purchase to qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. The combination of year-round comfort, lower operating costs, and flexible payment options makes heat pumps a practical choice for Arizona's climate.

Heat pumps are highly efficient in Tucson's climate, particularly for cooling during the hot summers when temperatures reach 110°F. Modern heat pumps can deliver 2-4 times more heating or cooling energy than the electricity they consume, making them cost-effective with Arizona's current electricity rate of 14.9¢ per kWh. Tucson's mild winters (design heating temp: 60°F) are ideal for heat pump performance.

Because Tucson rarely experiences freezing temperatures, heat pumps maintain their efficiency year-round without the performance drops seen in colder climates. This means lower energy bills and consistent comfort throughout all seasons. Palmetto offers heat pumps through a Comfort Plan with $0 upfront cost and included maintenance, or direct purchase with potential federal tax credits up to $2,000.

The choice between leasing and buying a heat pump in Tucson depends on your financial priorities 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 the hassle. 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 Tucson's hot climate (with summer temperatures reaching 110°F), your heat pump will work hard during cooling season. With electricity at 14.9¢ per kWh, leasing eliminates surprise repair costs during peak use, while buying maximizes long-term savings and available incentives. Consider your budget, how long you plan to stay in your home, and whether you prefer ownership or convenience when making your decision.

Heat pump costs in Tucson 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. Tucson's Climate Zone 13 conditions—with cooling demands up to 110°F—often require appropriately sized units to handle the extreme summer heat efficiently.

Palmetto offers two payment options to fit your budget: a Comfort Plan with $0 upfront and a predictable monthly payment that includes 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. Both options help you save on Arizona's 14.9¢ per kWh electricity costs year-round.

For Tucson homeowners, heat pumps typically deliver strong financial returns through lower energy bills and available incentives. With Arizona's electricity rate at 14.9¢ per kWh and Tucson's hot climate requiring significant cooling, heat pumps can reduce your monthly energy costs compared to traditional HVAC systems while handling both heating and cooling efficiently.

The financial picture becomes even more attractive with flexible payment options. Direct purchase allows you to claim up to $2,000 in federal tax credits under the Inflation Reduction Act, while Palmetto's Comfort Plan requires $0 upfront and includes all maintenance and repairs in your monthly payment—eliminating unexpected costs that can strain your budget over time.

In Tucson, heat pumps are installed by licensed HVAC contractors who specialize in heating and cooling systems. These professionals must understand Tucson's unique climate demands—with design temperatures ranging from 60°F in winter to 110°F in summer—to properly size and install equipment that performs efficiently year-round.

Palmetto works with certified local installers to provide heat pump installation through two options: a Comfort Plan with $0 upfront cost and included maintenance, or direct purchase where you own the equipment and may qualify for up to $2,000 in federal tax credits. Both approaches ensure professional installation tailored to your home's needs in Climate Zone 13.

A heat pump is actually a type of HVAC system. HVAC stands for Heating, Ventilation, and Air Conditioning—it's an umbrella term for all systems that heat and cool your home. Heat pumps are a specific kind of HVAC technology that efficiently transfers heat rather than generating it, making them ideal for Tucson's climate where cooling demands are high.

Unlike traditional HVAC systems that use separate units for heating and cooling, a heat pump handles both functions in one system. In Tucson's Climate Zone 13, where temperatures can reach 110°F, heat pumps work especially well by moving heat out during summer and bringing warmth in during mild winters. With Arizona's electricity rate at 14.9¢ per kWh, this efficiency can mean real savings on your energy bills.