Peoria, 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
Peoria, IL Heat Pump Load Calculator
Our calculator below estimates your home’s heating and cooling needs using square footage and ACCA-standard design conditions for Peoria, IL: 91°F for cooling, -5°F for heating, and 72°F indoors. 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 Peoria
While Illinois state rebate programs (HOMES and HEAR) are in development, they are not yet confirmed active in 2026. However, homeowners in Peoria can take advantage of the federal IRA tax credit of up to $2,000 for heat pump installations. Palmetto's Comfort Plan lease offers an alternative with $0 upfront cost, allowing you to benefit from heat pump efficiency without waiting for state programs or managing rebate applications.
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. Illinois state rebate programs (HOMES and HEAR) are pending final approval and may become available later in 2026. Contact Ameren Illinois directly for current utility rebate offerings.
04
Climate Zones
Peoria sits in IECC Climate Zone 6, which means cold winters that can drop to -5°F and warm summers reaching 91°F. This wide temperature range requires a heat pump that can handle both extremes efficiently. At Palmetto, we understand Peoria's climate and help homeowners choose systems sized and rated for reliable year-round comfort. Explore other 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
Peoria Electricity Prices
Understanding electricity costs in Peoria helps you make smarter decisions about home heating and cooling—especially as rates continue to climb.
Illinois electricity rates have risen from 13.2 cents per kWh in 2021 to 15.9 cents per kWh in 2024. That's a 20% increase in just three years, impacting every home's monthly energy bills.
Heat pumps offer a practical response to rising rates. Because they're 2-3 times more efficient than traditional HVAC systems, they use significantly less electricity to deliver the same heating and cooling—reducing your consumption even as prices increase.
Over the lifespan of your system, that efficiency advantage compounds. A heat pump doesn't just lower your bills today—it provides protection against future rate increases, making it a sound long-term investment for Peoria homeowners.
Price of Energy: Illinois vs National Average
Peoria Area Utility Providers
Peoria residents get their electricity from Ameren, which charged 17.0¢ per kWh in 2023. That's slightly above both the national average of 16.0¢ and Illinois's state average of 15.70¢ per kWh.
Ameren's rates reflect Illinois's aging energy infrastructure and the costs of maintaining a reliable grid across diverse weather conditions. The utility also invests in grid modernization and renewable energy programs, which contribute to pricing.
While electricity costs matter, efficiency matters more. Heat pumps use significantly less energy than traditional heating systems, meaning even with Ameren's rates, you're likely to see lower total energy bills compared to furnaces or electric resistance heating.
Peoria 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 Peoria. Modern cold-climate heat pumps work efficiently even at Peoria's design heating temperature of -5°F, providing both heating and cooling for Illinois' varied weather. With electricity 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 pumps accessible through two options: a Comfort Plan with $0 upfront and all maintenance included, or direct purchase with potential federal tax credits up to $2,000. Both approaches help Peoria homeowners reduce energy costs while enjoying reliable heating and cooling in Climate Zone 6's cold winters and warm summers.
Heat pumps are highly efficient in Peoria's Climate Zone 6, typically delivering 2-3 times more heating energy than the electricity they consume. Modern cold-climate heat pumps perform effectively even at Peoria's design heating temperature of -5°F, making them a reliable year-round solution that can significantly reduce energy costs compared to traditional furnaces.
With Illinois electricity rates at 15.9¢ per kWh, Peoria homeowners can see meaningful savings on heating bills. Palmetto makes installation accessible through two options: the Comfort Plan with $0 upfront and all maintenance included, or direct purchase with potential federal tax credits up to $2,000 under the Inflation Reduction Act.
The choice between leasing and buying a heat pump in Peoria 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 surprise expenses. 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.
Consider Peoria's Climate Zone 6 conditions, where temperatures range from -5°F in winter to 91°F in summer—your heat pump will work year-round. With Illinois electricity at 15.9¢ per kWh, both options offer energy-efficient heating and cooling. Leasing removes maintenance worries, while buying maximizes long-term savings through incentives and ownership. Evaluate your budget, how long you plan to stay in your home, and whether you prefer convenience or upfront savings.
Heat pump installation costs in Peoria typically range from $8,000 to $20,000 depending on your home's size, existing ductwork, and the system's heating capacity needed for Climate Zone 6 winters. The investment includes equipment, professional installation, and modifications to handle Peoria's -5°F design temperatures and 91°F summer highs.
Palmetto offers two payment options to fit your budget: a Comfort Plan with $0 upfront and predictable monthly payments including all maintenance, or direct purchase where you own the system outright and may qualify for up to $2,000 in federal tax credits. Both options provide reliable heating and cooling while reducing energy costs at Illinois's 15.9¢ per kWh electricity rate.
Yes, heat pumps are typically worth it financially in Peoria, especially with Illinois electricity rates at 15.9¢ per kWh. Heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems because they move heat rather than generate it. With federal tax credits up to $2,000 available for direct purchases, the payback period often ranges from 5-10 years.
Palmetto makes heat pumps more accessible through two options: a Comfort Plan with $0 upfront and included maintenance, or direct purchase to own outright. The Comfort Plan eliminates surprise repair costs, making budgeting predictable. Even in Climate Zone 6 with winter temperatures reaching -5°F, modern heat pumps remain efficient and deliver year-round savings on your energy bills.
In Peoria, licensed HVAC contractors install heat pumps, including companies like Palmetto that specialize in cold-climate systems designed for Climate Zone 6 conditions. Professional installers ensure your system is properly sized for Peoria's -5°F winter design temperatures and 91°F summer highs, which is critical for efficiency and performance.
Palmetto offers two installation options for Peoria homeowners: 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 include professional installation by certified technicians who understand local climate requirements and building codes.
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 Peoria's Climate Zone 6, where winter temperatures can drop to -5°F, modern heat pumps are designed to handle both extreme cold and summer highs of 91°F. With electricity at 15.9¢ per kWh in Illinois, heat pumps can significantly reduce your energy costs compared to conventional HVAC systems. Palmetto offers flexible options including our Comfort Plan with zero upfront costs and all maintenance included, or direct purchase with potential federal tax credits up to $2,000.