Redding, CA 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
Redding, CA Heat Pump Load Calculator
Use our calculator below to estimate your home’s heating and cooling needs based on ACCA-standard design conditions for Redding, CA: 33°F for heating and 95°F for cooling, with a 72°F indoor target. For a precise Manual J load calculation and personalized quote, reach out to 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
Redding, CA 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 Redding homeowners.
Redding Electric Heat Pump Water Heater
Up to $1,000Local rebate for replacing natural gas water heaters with ENERGY STAR-certified heat pump water heaters. Requires building permit and replacement of existing gas unit.
Redding Electric New Construction Heat Pump
Up to $1,800Rebate for builders and contractors installing heat pump HVAC systems and water heaters in new single-family homes, multifamily properties, or ADUs with smart Wi-Fi thermostats.
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.
Redding homeowners have access to local heat pump rebates through Redding Electric Utility and the federal IRA tax credit. The local utility offers up to $1,000 for heat pump water heater replacements and up to $1,800 for new construction projects. Combined with the federal tax credit of up to $2,000, homeowners can access meaningful financial support for heat pump installations. Palmetto can help you navigate these programs and maximize your rebate eligibility.
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
Redding sits in IECC Climate Zone 10, which means mild winters with lows around 33°F and hot summers reaching 95°F. This temperature range is ideal for heat pumps—they'll keep you comfortable year-round without the extreme demands of harsher climates. At Palmetto, we understand Redding's unique conditions and can help you choose a system sized perfectly for your home. Explore other California 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
Redding Electricity Prices
For Redding homeowners, understanding local electricity costs is essential when evaluating heating and cooling options for your home.
California electricity rates have climbed sharply, jumping from 22.8 cents per kWh in 2021 to 31.9 cents in 2024—nearly double the national average of 16.5 cents per kWh.
Heat pumps offer a practical response to these rising costs. Because they're 2-3 times more efficient than traditional HVAC systems, they use significantly less electricity to deliver the same heating and cooling comfort.
As electricity rates continue their upward trend, that efficiency gap translates into meaningful savings. A heat pump's lower energy consumption helps insulate your household budget from future rate increases over the system's lifespan.
Price of Energy: California vs National Average
Redding Area Utility Providers
Redding residents receive electricity from Pacific Gas and Electric (PG&E), which charged 34.0¢ per kWh in 2023—significantly above the national average of 16.0¢ and California's state average of 29.50¢.
PG&E's rates reflect California's investment in renewable energy infrastructure, wildfire prevention costs, and the expense of maintaining power lines across vast, challenging terrain. These factors contribute to electricity costs that exceed both state and national benchmarks.
While Redding's electricity rates are elevated, heat pumps offer a path to lower energy bills through exceptional efficiency. By moving heat rather than generating it, heat pumps can reduce your total energy spending even in higher-cost electricity markets.
Redding Utilities Electricity Rates
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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 Redding. Climate Zone 10's mild winters (design temp: 33°F) and hot summers (design temp: 95°F) create ideal conditions for heat pump efficiency. They provide both heating and cooling in one system, which is valuable given Redding's temperature swings throughout the year.
With California's electricity rates at 31.9¢ per kWh, efficient heating and cooling matters for your budget. Palmetto offers flexible options: a Comfort Plan with $0 upfront and included maintenance, or direct purchase with potential federal tax credits up to $2,000. Both approaches help Redding homeowners stay comfortable year-round.
Heat pumps perform exceptionally well in Redding's Climate Zone 10, where winter temperatures rarely drop below 33°F and summers reach around 95°F. Modern heat pumps operate efficiently in both heating and cooling modes within this temperature range, typically delivering 2-3 times more heating or cooling energy than the electricity they consume—a significant advantage given California's electricity rate of 31.9¢ per kWh.
In Redding's mild winters and hot summers, heat pumps can reduce your energy costs compared to traditional HVAC systems while providing year-round comfort. Palmetto offers flexible options to fit your budget: our Comfort Plan requires $0 upfront with maintenance included, or you can purchase directly and potentially qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act.
The choice between leasing and buying a heat pump in Redding depends on your financial situation and preferences. Palmetto's Comfort Plan offers $0 upfront with predictable monthly payments and all maintenance included, while direct purchase requires upfront payment but may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act plus local rebates.
Consider leasing if you want to avoid maintenance responsibilities and large upfront costs, especially valuable in Redding's Climate Zone 10 where your system works year-round (heating to 33°F, cooling to 95°F). Buying makes sense if you can utilize tax incentives and prefer owning equipment outright, though you'll handle maintenance yourself as your heat pump manages California's 31.9¢ per kWh electricity costs.
Heat pump installation costs in Redding typically range from $5,000 to $20,000 depending on your home's size, existing ductwork, and system capacity needed for Climate Zone 10's temperature range (33°F to 95°F). Direct purchase allows you to own the equipment outright and potentially qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act, plus local rebates.
Palmetto also offers a Comfort Plan with $0 upfront cost and a predictable monthly payment that includes all maintenance, repairs, and warranty coverage for life. This option works well for Redding homeowners who want reliable heating and cooling without large upfront expenses, especially valuable given California's 31.9¢ per kWh electricity rates where an efficient heat pump can meaningfully reduce energy bills.
In Redding, heat pumps typically deliver strong financial returns due to California's electricity rates of 31.9¢ per kWh and the region's moderate climate (Climate Zone 10). Heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems, with most homeowners seeing payback within 5-10 years through lower monthly energy bills.
Palmetto makes heat pumps financially accessible through two options: a Comfort Plan with $0 upfront and predictable monthly payments including all maintenance, or direct purchase that may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act plus local rebates. Both paths offer long-term savings while improving home comfort year-round.
Heat pumps in Redding are installed by licensed HVAC contractors who specialize in heating and cooling systems. These professionals assess your home's specific needs in Climate Zone 10, where temperatures range from 33°F in winter to 95°F in summer, and ensure proper sizing and installation for year-round comfort.
Palmetto partners with certified local installers to provide heat pump installation in Redding through two 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 help you reduce energy costs in a region where electricity averages 31.9¢ per kWh.
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 both heat and cool your home using electricity, transferring heat rather than generating it through combustion like traditional furnaces.
In Redding's Climate Zone 10, where winter lows reach 33°F and summer highs hit 95°F, heat pumps handle both seasons efficiently. With California's electricity rate at 31.9¢ per kWh, choosing an efficient system matters. Palmetto offers heat pumps through a Comfort Plan with zero upfront costs and included maintenance, or direct purchase with potential federal tax credits up to $2,000.