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

Sacramento, CA Heat Pump Load Calculator

Use this calculator to estimate your home’s heating and cooling needs based on square footage. It uses ACCA-standard design conditions for Sacramento, CA: 72°F indoor, 95°F outdoor for cooling, and 33°F for heating. 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

Sacramento, 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 Sacramento homeowners.

SMUD Heat Pump Rebate

Up to $3,000

Sacramento Municipal Utility District offers rebates for energy-efficient heat pump HVAC systems. Rebates are available to SMUD customers who install qualifying two-stage or variable-stage heat pump systems through participating contractors.

Eligibility: Must be a SMUD customer with an active account. System must be installed by a participating SMUD contractor. Qualifying systems include two-stage (15.2 SEER2 minimum) or variable-stage heat pump HVAC systems. Rebates subject to availability of funding.

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 →

Sacramento homeowners have access to the SMUD heat pump rebate program offering up to $3,000 for qualifying installations, plus the federal IRA tax credit of up to $2,000. Palmetto can help you navigate these incentives and maximize your savings when installing a heat pump system. Contact us to learn how our Comfort Plan lease can provide $0 upfront cost while you take advantage of 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

Sacramento sits in IECC Climate Zone 10, which means mild winters (design temp: 33°F) and hot summers (design temp: 95°F). This climate profile makes heat pumps an excellent fit—they'll keep you comfortable year-round without the inefficiency of traditional systems. At Palmetto, we factor in Sacramento's specific conditions when sizing and recommending your heat pump. Explore other zones below, or enter your ZIP code to confirm yours.

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

Sacramento Electricity Prices

Sacramento residents face some of the steepest electricity costs in the nation—and they're climbing fast.

California's electricity rates jumped 40% from 2021 to 2024, reaching 31.9 cents per kWh—nearly double the national average of 16.5 cents. Sacramento homeowners feel this impact with every utility bill.

Heat pumps offer a practical solution to rising costs. Because they're 2-3x more efficient than traditional HVAC systems, they use significantly less electricity to heat and cool your home—meaning lower bills despite higher rates.

As electricity prices continue their upward trend, the efficiency advantage of heat pumps becomes increasingly valuable. What saves you money today will save you even more tomorrow, protecting your household budget for years to come.

Price of Energy: California vs National Average

10¢
20¢
30¢
40¢
13.7¢
22.8¢
15.0¢
25.8¢
16.0¢
29.5¢
16.5¢
31.9¢
2021
2022
2023
2024
US Average
California

Sacramento Area Utility Providers

Sacramento residents are served by two main electricity providers with notably different rates. According to 2023 data, SMUD charges 16.9¢ per kWh while PG&E charges 34.0¢ per kWh—compared to the national average of 16.0¢.

SMUD's rates stay close to the national average thanks to its public utility structure and diverse energy mix. PG&E's rates run significantly higher than both the state average (29.5¢) and national average, largely due to infrastructure costs and California's renewable energy requirements.

These rate differences matter when choosing heating and cooling systems. Heat pumps use electricity so efficiently—moving heat rather than generating it—that they typically reduce total energy costs even in higher-rate areas, making them a smart choice regardless of your provider.

Sacramento Utilities Electricity Rates

SMUD
16.90¢
+6%
PG&E
34.00¢
+112%
CA Average
29.50¢
+84%
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 Sacramento. Climate Zone 10's mild winters (design temperature of 33°F) and hot summers (design temperature of 95°F) create ideal conditions for heat pump efficiency. With California's electricity rate at 31.9¢ per kWh, heat pumps can significantly reduce your energy costs compared to traditional heating and cooling systems.

Sacramento homeowners have flexible options to get started. Palmetto's Comfort Plan offers $0 upfront with all maintenance included, while direct purchase may qualify you for up to $2,000 in federal tax credits under the Inflation Reduction Act. Both approaches help you take advantage of Sacramento's climate while managing energy expenses more effectively.

Heat pumps are highly efficient in Sacramento's mild climate (Climate Zone 10), where winter temperatures rarely drop below 33°F and summers peak around 95°F. This temperature range allows heat pumps to operate at their optimal efficiency year-round, typically delivering 2-4 units of heating or cooling for every unit of electricity consumed—far more efficient than traditional furnaces or air conditioners.

With California's electricity rate at 31.9¢ per kWh, maximizing efficiency matters for your energy bills. Heat pumps excel in Sacramento's moderate conditions, avoiding the efficiency losses that occur in extreme cold climates. Whether you choose Palmetto's Comfort Plan with no upfront costs or direct purchase to access federal tax credits up to $2,000, you'll benefit from lower operating costs compared to conventional heating and cooling systems.

The choice between leasing and buying a heat pump in Sacramento depends on your financial priorities and preferences. Palmetto's Comfort Plan offers $0 upfront with predictable monthly payments and all maintenance included—ideal if you want immediate comfort without a large investment. Direct purchase means 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.

Consider Sacramento's climate (Zone 10) and California's electricity rates at 31.9¢ per kWh when deciding. If you prefer avoiding maintenance responsibilities and upfront costs, leasing provides hassle-free comfort. If you want to maximize long-term savings through tax incentives and ownership benefits, purchasing may be the better fit. Both options deliver efficient heating and cooling for your home.

Heat pump costs in Sacramento 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. Sacramento's mild Climate Zone 10 conditions (with winter lows around 33°F and summer highs near 95°F) make heat pumps particularly cost-effective, as they work efficiently year-round without extreme temperature 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. With California's electricity rates at 31.9¢ per kWh, an efficient heat pump can deliver meaningful energy savings compared to traditional heating and cooling systems.

Yes, heat pumps are financially worthwhile in Sacramento, especially with California's electricity rates at 31.9¢ per kWh. Heat pumps use significantly less energy than traditional heating and cooling systems, which means lower monthly utility bills. Sacramento's mild winters (design temp: 33°F) make heat pumps particularly efficient here, as they perform best in moderate climates and can reduce your energy costs year-round.

The financial benefits extend beyond energy savings. If you purchase directly, you may qualify for federal tax credits up to $2,000 under the Inflation Reduction Act, plus local rebates. Alternatively, Palmetto's Comfort Plan offers $0 upfront cost with predictable monthly payments and included maintenance, eliminating unexpected repair expenses. Both options provide clear paths to long-term savings while improving your home's comfort and efficiency.

Heat pumps in Sacramento 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 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 options help Sacramento homeowners reduce energy costs in a region where electricity averages 31.9¢ per kWh.

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 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 Sacramento's Climate Zone 10, where temperatures range from 33°F in winter to 95°F in summer, a heat pump handles both seasons efficiently using one system. This matters when electricity costs 31.9¢ per kWh in California—heat pumps typically use less energy than running separate heating and cooling equipment, which can lower your monthly utility bills year-round.