Georgia Heat Pump Leasing & Installation Guide

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

Georgia’s diverse climate—from humid summers to mild winters—makes heat pumps an ideal year-round solution for efficient home heating and cooling. As energy costs rise and homeowners seek sustainable alternatives, heat pumps offer significant savings and comfort. Palmetto brings trusted expertise to Georgia residents, guiding you through every step of your heat pump installation with transparent pricing, quality equipment, and local knowledge you can count on.

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

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 length10 or 12 years
End of term optionsFlexible with 25% renewal term credits to new system
Maintenance included
Eligible for incentives

Cash

Payment scheduleFull price upfront
Term lengthNone
End of term optionsNo credits to new system
Maintenance included
Eligible for incentives

Loan

Payment schedule$0 upfront, then monthly payment
Term lengthVariable
End of term optionsNo credits to new system
Maintenance included
Eligible for incentives

03

Georgia Heat Pump Rebates & Incentives

State and federal incentive programs can significantly reduce the cost of a new heat pump system. Here are the programs available to Georgia homeowners.

Home Efficiency Rebate (HER)

Up to $16,000

Provides rebates for any work that reduces energy use in the home, including replacing HVAC systems, as long as the work is estimated to reduce total household energy use by at least 20%. Participation requires residents to work with an approved contractor who will use specialized diagnostic tests and software to figure out which measures will reduce the most energy use and save the most money.

Eligibility: The efficiency rebate program covers 98% of the project cost up to $16,000 per household for low-income households (making less than 80% of the median income for the local area) and 50% of the project costs up to $4,000 for all other households. There is no income cap—any household that saves enough energy through qualifying improvements can receive a rebate.

Learn more →

Home Electrification and Appliance Rebates (HEAR)

Up to $8,000

Provides rebates to low- to medium-income households for heat pumps, heat pump water heaters, heat pump clothes dryers, electric stoves, cooktops, ranges, ovens, and other electrification upgrades.

Eligibility: The Electrification and Appliance program rebates are reserved for only low- and middle-income households, with low-income households (making less than 80% of the median income) eligible for larger rebates than middle-income households (making between 80% and 150% of the area median income). Households with income less than 80% of AMI qualify for a 100% rebate.

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 →

Georgia homeowners have access to two robust state-level heat pump rebate programs in 2026. The Home Efficiency Rebate (HER) program offers up to $16,000 for whole-home energy efficiency improvements including heat pump installation, while the Home Electrification and Appliance Rebates (HEAR) program provides up to $8,000 for qualifying low- and moderate-income households switching to electric heat pumps. Combined with the federal IRA tax credit of up to $2,000, Georgia residents can significantly reduce the upfront cost of heat pump installation. Palmetto can help homeowners navigate these programs, verify eligibility, and maximize available rebates and incentives.

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

Georgia Electricity Prices

Understanding Georgia’s electricity costs is essential when considering your home’s heating and cooling options—especially as rates continue to climb.

Georgia electricity rates have increased 12.8% since 2021, rising from 12.5 to 14.1 cents per kWh. While still below the national average, these steady increases impact your monthly energy bills year after year.

Heat pumps offer a practical solution to rising electricity costs. 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 rates continue their upward trend, efficiency becomes even more valuable. A heat pump’s lower energy consumption means you’re better insulated from future rate increases, keeping more money in your pocket over time.

Price of Energy: Georgia vs National Average

10¢
20¢
30¢
13.7¢
12.5¢
15.0¢
13.8¢
16.0¢
13.7¢
16.5¢
14.1¢
2021
2022
2023
2024
US Average
Georgia

Georgia Utility Providers

Georgia residents benefit from electricity rates below the national average. Based on 2023 data, major providers like Georgia Power, Cobb EMC, and GreyStone Power charge between 11.67¢ and 14.62¢ per kWh—well under the national average of 16.0¢.

Georgia’s competitive electricity costs stem from diverse energy sources, including nuclear, natural gas, and renewable energy. The state’s electric cooperatives often deliver lower rates through community-focused operations, while Georgia Power’s extensive infrastructure serves millions efficiently across urban and rural areas.

Even with Georgia’s favorable rates, heat pumps can reduce your total energy spending. Their exceptional efficiency means they use less electricity than traditional HVAC systems to heat and cool your home—turning Georgia’s already-reasonable electricity costs into even greater savings year-round.

Georgia Utilities Electricity Rates

Georgia Power Co
14.62¢
-9%
Jackson Electric Member Cor…
11.98¢
-25%
Cobb Electric Membership Corp
11.67¢
-27%
Sawnee Electric Membership …
12.58¢
-21%
GreyStone Power Corporation
11.98¢
-25%
Walton Electric Member Corp
13.36¢
-16%
Adjustment 2023
13.37¢
-16%
Snapping Shoals El Member Corp
12.41¢
-22%
GA Average
13.70¢
-14%
US Average
16.0¢

05

Georgia Heat Pump City Guides

Explore detailed heat pump installation guides for cities across Georgia. Each guide includes local utility rates, incentives, and climate-specific recommendations.

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
07

Frequently Asked Questions

Yes, heat pumps work exceptionally well in Georgia’s mild climate. The state’s moderate winters rarely see extended periods below freezing, which allows heat pumps to operate efficiently year-round for both heating and cooling. Modern heat pumps can effectively heat homes even when temperatures dip into the 20s, making them well-suited for Georgia’s typical winter conditions.

Georgia homeowners also benefit from the state’s relatively moderate electricity costs at 14.1¢ per kWh, which helps maximize heat pump savings compared to traditional heating systems. Palmetto makes installation accessible through two options: a Comfort Plan with $0 upfront and maintenance included, or direct purchase where you may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act.

Heat pump costs in Georgia typically range from $5,000 to $20,000 for a complete system, depending on your home’s size, the equipment type, and installation complexity. The final price varies based on factors like your existing ductwork, the unit’s efficiency rating, and whether you need a single-zone or whole-home system.

Palmetto offers two flexible ways to get a heat pump in Georgia. Our Comfort Plan requires $0 upfront and includes all maintenance and repairs in your monthly payment. Alternatively, direct purchase allows you to own your system outright and potentially qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act, plus local rebates.

The best heat pump brands for Georgia homeowners include Carrier, Trane, Lennox, Rheem, and Mitsubishi Electric. These manufacturers offer models with high SEER2 ratings and strong warranties, making them well-suited for Georgia’s hot summers and mild winters. Look for ENERGY STAR certified units that can handle the state’s humidity while keeping energy costs manageable at Georgia’s 14.1¢ per kWh electricity rate.

When choosing a heat pump, consider both the equipment brand and how you’ll purchase it. Palmetto offers access to quality heat pump systems through a Comfort Plan with $0 upfront cost and included maintenance, or through direct purchase if you prefer to own outright and claim available federal tax credits up to $2,000. The right brand matters, but proper installation and ongoing maintenance are equally important for long-term performance.

Yes, Georgia homeowners can access heat pump rebates through federal programs. The Inflation Reduction Act offers tax credits up to $2,000 for qualifying heat pump installations when you purchase your system outright. Some Georgia utility companies and local programs may also offer additional rebates or incentives, though availability varies by location and provider.

With Palmetto, you can take advantage of these savings through direct purchase, or choose our Comfort Plan with $0 upfront cost if you prefer predictable monthly payments with included maintenance. Either way, heat pumps can significantly reduce your energy costs compared to traditional heating and cooling systems, especially with Georgia’s average electricity rate of 14.1¢ per kWh.

The choice between leasing and buying a heat pump in Georgia depends on your financial situation and preferences. Buying means paying upfront but owning the equipment outright, plus you may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. Leasing through a Comfort Plan requires $0 upfront and includes all maintenance and repairs covered for life.

Consider leasing if you prefer predictable monthly payments without maintenance worries or a large initial investment. Buying makes more sense if you can take advantage of tax credits and rebates, want to own your equipment, and are comfortable managing repairs. Both options can help you save on Georgia’s 14.1¢ per kWh electricity costs with an efficient heat pump.

Yes, heat pumps are financially worth it in Georgia. They typically use 50% less electricity for heating compared to traditional systems, which translates to meaningful savings given Georgia’s 14.1¢ per kWh electricity rate. Heat pumps also handle cooling efficiently, reducing your energy bills year-round in Georgia’s climate.

Palmetto makes heat pumps accessible through two options: a Comfort Plan with $0 upfront and maintenance included, or direct purchase with potential federal tax credits up to $2,000. Most Georgia homeowners see the investment pay for itself through lower energy bills within several years, while enjoying consistent comfort throughout the home.

The right heat pump size for your Georgia home depends on several factors: your home’s square footage, insulation quality, ceiling height, window efficiency, and local climate conditions. Most Georgia homes need between 2 to 5 tons of cooling capacity, with each ton covering roughly 400-600 square feet in our humid subtropical climate.

A professional energy assessment is essential to determine the correct size—an oversized unit will cycle on and off inefficiently, while an undersized one won’t adequately heat or cool your home. Palmetto provides expert sizing evaluations whether you choose our Comfort Plan with $0 upfront cost and included maintenance, or direct purchase to own your equipment outright.