Bloomington, IL 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
Bloomington, IL Heat Pump Load Calculator
Use our calculator below to estimate your home’s heating and cooling needs based on ACCA-standard design conditions for Bloomington, IL: 91°F cooling and -5°F heating temperatures. This square-footage method provides a helpful starting point. 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
Heat Pump Financing in Bloomington
While Illinois has authorized state heat pump rebate programs (HOMES and HEAR) through federal Inflation Reduction Act funding, these programs are not yet active in 2026 and remain pending federal approval. However, homeowners in Bloomington, IL can still take advantage of the federal IRA tax credit of up to $2,000 for qualifying heat pump installations. Additionally, individual utility companies serving the area may offer rebates and incentives. Palmetto's Comfort Plan lease offers $0 upfront cost as an alternative to purchasing a heat pump outright, allowing homeowners to benefit from heat pump efficiency without the initial investment burden.
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.
Palmetto Comfort Plan: $0 Upfront Heat Pump Leasing
Even without local rebates, Palmetto's Comfort Plan makes upgrading easy. You get a high-efficiency heat pump installed with $0 upfront cost, predictable monthly payments, and all maintenance and repairs included for the life of the plan.
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
Bloomington sits in IECC Climate Zone 6, which means cold winters that can drop to -5°F and warm summers reaching 91°F. This temperature range matters when sizing your heat pump—you need a system that can handle both extremes efficiently. At Palmetto, we understand Bloomington's climate and help homeowners choose equipment designed for these conditions. Explore the 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
Bloomington Electricity Prices
Understanding electricity costs in Bloomington helps you make smarter decisions about your home's heating and cooling systems.
Illinois electricity rates jumped from 13.2 cents per kWh in 2021 to 15.9 cents in 2024—a 20% increase in just three years. For Bloomington homeowners, that means higher bills for the same comfort.
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 heat and cool your home, which directly reduces your monthly energy costs.
As electricity prices continue climbing, efficiency becomes increasingly valuable. A heat pump's lower energy consumption means you're better insulated from future rate increases, protecting your household budget for years to come.
Price of Energy: Illinois vs National Average
Bloomington Area Utility Providers
Bloomington residents receive electricity primarily from Ameren Illinois. According to 2023 data, Ameren's residential rate averaged 17.0¢ per kilowatt-hour (kWh), slightly above both the national average of 16.0¢ and Illinois state average of 15.70¢.
Ameren's rates reflect Illinois's diversified energy mix and grid maintenance costs. While marginally higher than averages, the difference remains modest—typically adding just a few dollars monthly for typical households compared to the state baseline.
Even with rates slightly above average, heat pumps can reduce your total energy spending. Their high efficiency means they use less electricity than traditional heating and cooling systems, often offsetting higher per-kWh costs through lower overall consumption.
Bloomington 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.
- Rewards for smarter energy usage
- Energy insights & Dashboard
- Personalized Savings Tools
- Whole Home Energy Management
- Support Whenever You Need It
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 sense in Bloomington. Modern cold-climate heat pumps work efficiently even at Bloomington's design heating temperature of -5°F, providing both heating and cooling for Climate Zone 6. With Illinois electricity rates at 15.9¢ per kWh, heat pumps typically cost less to operate than traditional heating systems while keeping your home comfortable year-round.
Palmetto makes heat pump installation accessible through two 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 Bloomington homeowners reduce energy costs while improving home comfort during cold winters and warm summers that reach 91°F.
Heat pumps perform very well in Bloomington's Climate Zone 6, even during cold winters. Modern cold-climate heat pumps maintain efficiency down to -5°F—Bloomington's design heating temperature—and can reduce heating costs by 30-50% compared to traditional systems. With Illinois electricity at 15.9¢ per kWh, many homeowners see meaningful savings on their energy bills year-round.
During Bloomington's summers, which reach around 91°F, heat pumps also provide efficient cooling while using less energy than conventional air conditioners. Palmetto offers heat pumps through a Comfort Plan with $0 upfront and included maintenance, or through direct purchase where you may 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 Bloomington depends on your financial priorities and homeownership plans. 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.
For Bloomington's Climate Zone 6 conditions—with winter temperatures reaching -5°F—maintenance matters significantly for system longevity. If you prefer predictable monthly costs without repair worries, leasing offers peace of mind. If you plan to stay long-term and want to maximize incentives while building equity in your home, purchasing may provide better value over time.
Heat pump installation costs in Bloomington typically range from $5,000 to $20,000 depending on your home's size, existing ductwork, and the system capacity needed to handle Illinois Climate Zone 6 conditions (where winter temperatures can drop to -5°F). The total investment varies based on equipment specifications and installation complexity specific to your property.
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.
Yes, heat pumps are financially worthwhile for most Bloomington homeowners. Modern heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems, and with Illinois electricity at 15.9¢ per kWh, the savings add up quickly even during cold winters in Climate Zone 6.
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 homeowners see the investment pay for itself through lower energy bills within 5-10 years, while enjoying consistent comfort year-round.
In Bloomington, IL, licensed HVAC contractors install heat pumps, including companies like Palmetto that specialize in cold-climate systems suitable for Climate Zone 6. Professional installers assess your home's heating and cooling needs, considering Bloomington's design temperatures of -5°F in winter and 91°F in summer, to ensure proper equipment sizing and efficiency.
Palmetto offers heat pump installation in Bloomington through two flexible options: a Comfort Plan with $0 upfront cost and included maintenance, or direct purchase where you own the system outright and may qualify for up to $2,000 in federal tax credits. Both options include professional installation by certified technicians who understand the specific requirements of Illinois homes and climate conditions.
HVAC stands for Heating, Ventilation, and Air Conditioning—it's an umbrella term for all systems that heat and cool your home. A heat pump is actually a type of HVAC system that does both heating and cooling in one unit, making it a complete climate control solution for Bloomington homes.
Unlike traditional HVAC setups that use separate furnaces and air conditioners, heat pumps transfer heat rather than generate it, which can reduce energy costs even with Illinois electricity rates at 15.9¢ per kWh. They're particularly effective in Climate Zone 6 conditions and can handle Bloomington's temperature extremes from -5°F winters to 91°F summers.