Waukegan, 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
Waukegan, IL Heat Pump Load Calculator
Our calculator estimates your home’s heating and cooling needs using ACCA-standard design conditions for Waukegan, IL: -5°F for heating and 91°F for cooling, based on a 72°F indoor temperature. 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
Waukegan, IL 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 Waukegan homeowners.
ComEd Heat Pump Rebate
Up to $2,000ComEd offers rebates for qualifying air-source heat pumps and ductless mini-split heat pumps installed by ComEd-certified contractors. Rebate amounts vary based on system efficiency ratings.
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.
Waukegan homeowners can access ComEd heat pump rebates of up to $2,000 for qualifying air-source and ductless mini-split systems installed by certified contractors. Additionally, all homeowners are eligible for the federal IRA tax credit of up to $2,000 through 2032. Palmetto can help you navigate these incentives and explore financing options like our Comfort Plan lease, which offers $0 upfront cost and includes professional installation and maintenance.
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
Waukegan sits in IECC Climate Zone 6, which means cold winters (design temps around -5°F) and warm summers (reaching 91°F). This wide temperature swing matters when sizing your heat pump—you need a system that can handle both extremes efficiently. At Palmetto, we understand Waukegan's climate and can help you find the right heat pump for your home. Explore other 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
Waukegan Electricity Prices
Understanding electricity costs in Waukegan helps you make smarter decisions about heating and cooling your home for years to come.
Illinois electricity rates jumped nearly 19% from 2021 to 2022, rising from 13.2 to 15.7 cents per kWh. While prices have stabilized recently at 15.9 cents per kWh, Waukegan residents continue paying close to the national average.
Heat pumps offer a practical response to these electricity 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—meaning lower bills even as rates climb.
Over a heat pump's 15-20 year lifespan, this efficiency advantage compounds. You're not just saving on today's rates—you're protecting yourself against future increases while maintaining comfortable temperatures year-round in your Waukegan home.
Price of Energy: Illinois vs National Average
Waukegan Area Utility Providers
Waukegan residents receive electricity from ComEd, which charged 14.8¢ per kWh in 2023—below both the Illinois state average of 15.7¢ and the national average of 16.0¢ per kWh.
ComEd's rates benefit from Illinois' diverse energy mix and efficient regional grid infrastructure. The utility's investments in transmission upgrades and energy efficiency programs have helped keep costs competitive compared to other regions.
Even with below-average electricity rates, heat pumps can further reduce your energy spending. Their exceptional efficiency means they use significantly less electricity than traditional heating and cooling systems, maximizing savings regardless of local utility costs.
Waukegan 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 Waukegan, even in Climate Zone 6 where winter temperatures can drop to -5°F. Modern cold-climate heat pumps are designed to handle these conditions efficiently, and with Illinois electricity rates at 15.9¢ per kWh, they often cost less to operate than traditional heating systems while providing both heating and cooling year-round.
Palmetto makes heat pump installation accessible through two options: a Comfort Plan with $0 upfront cost and included maintenance, or direct purchase with potential federal tax credits up to $2,000. The combination of Waukegan's climate needs, reasonable electricity costs, and available incentives creates a practical opportunity for homeowners to upgrade their heating and cooling systems.
Heat pumps perform efficiently in Waukegan's Climate Zone 6, even during cold winters. Modern cold-climate heat pumps maintain strong performance down to -5°F and below, delivering 2-3 times more heating energy than they consume in electricity. This efficiency translates to meaningful savings compared to traditional furnaces, especially with Illinois electricity rates at 15.9¢ per kWh.
During Waukegan's moderate summers (design temp: 91°F), heat pumps excel at cooling while using less energy than standard air conditioners. The year-round efficiency means lower utility bills in every season. Palmetto makes installation accessible through our Comfort Plan with $0 upfront cost and included maintenance, or direct purchase with potential federal tax credits up to $2,000.
The choice between leasing and buying a heat pump in Waukegan depends on your financial priorities and homeownership plans. Buying requires upfront investment but offers ownership and access to federal tax credits up to $2,000 under the Inflation Reduction Act. Leasing through Palmetto's Comfort Plan requires $0 upfront and includes all maintenance and repairs, making it ideal for predictable budgeting.
Consider Waukegan's Climate Zone 6 conditions, where winters reach -5°F and summers hit 91°F—your heat pump will work year-round. With Illinois electricity at 15.9¢ per kWh, long-term savings matter. If you prefer ownership and can manage maintenance, buying works well. If you want hassle-free comfort with no surprise repair costs, leasing provides peace of mind.
Heat pump installation costs in Waukegan typically range from $8,000 to $20,000 for a complete system, depending on your home's size, existing ductwork, and equipment efficiency. Climate Zone 6's cold winters (design temp: -5°F) may require cold-climate models with enhanced heating capacity, which can affect pricing.
Palmetto offers two payment options to fit your budget: a Comfort Plan with $0 upfront and predictable monthly payments including 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 Waukegan homeowners. Modern heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems, and with Illinois electricity rates at 15.9¢ per kWh, the savings add up quickly. Direct purchase may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act, plus local rebates.
Palmetto makes heat pumps accessible through two options: purchase outright to maximize tax benefits and own your equipment, or choose the Comfort Plan with $0 upfront and predictable monthly payments that include all maintenance and repairs. Either way, you'll benefit from lower energy bills while staying comfortable through Waukegan's cold winters and warm summers.
Heat pumps in Waukegan are installed by licensed HVAC contractors who specialize in heating and cooling systems. These professionals assess your home's specific needs, considering factors like Waukegan's Climate Zone 6 conditions (with winter temperatures dropping to -5°F), and ensure proper sizing and installation for optimal year-round performance.
Palmetto connects Waukegan homeowners with qualified installers through two flexible options: a Comfort Plan with $0 upfront cost and all maintenance included, or direct purchase where you own the equipment and may qualify for up to $2,000 in federal tax credits. Both approaches ensure professional installation tailored to your home's heating and cooling requirements.
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 through combustion, making it more energy-efficient than traditional furnaces and air conditioners.
In Waukegan's Climate Zone 6, where winter temperatures can drop to -5°F, modern heat pumps are designed to handle both the cold winters and warm summers efficiently. With Illinois electricity rates at 15.9¢ per kWh, a heat pump can provide year-round comfort while potentially lowering your energy costs compared to separate heating and cooling systems.