Detroit, MI 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
Detroit, MI Heat Pump Load Calculator
Use this calculator to estimate your home’s heating and cooling needs based on square footage. It’s calibrated to ACCA-standard design conditions for Detroit, MI: 72°F indoor, 91°F outdoor cooling, and -5°F 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
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
Detroit, MI 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 Detroit homeowners.
Michigan Home Energy Rebates
Up to $14,000 (HEAR); Up to $20,000 (HOMES)Michigan's MiHER program includes HEAR (Home Electrification and Appliance Rebates) for heat pump installations and HOMES (Home Efficiency Rebates) for whole-home energy efficiency upgrades. Rebates are available statewide for qualifying households.
DTE Energy Heat Pump Rebates
Varies by efficiency ratingDTE Energy offers rebates for air source heat pumps, ground source heat pumps, and ductless mini-split heat pumps for eligible electric customers.
Consumers Energy Rebates
Varies by equipment efficiencyConsumers Energy provides rebates on eligible heat pumps, furnaces, air conditioners, and thermostats for qualifying customers.
Federal IRA Tax Credit
30% of equipment and installation costThe Inflation Reduction Act provides a federal tax credit for qualifying geothermal heat pump installations through 2032. Note: air-source heat pump credits expired December 31, 2025.
Detroit homeowners have access to multiple active heat pump rebate programs in 2026. The Michigan Home Energy Rebates (MiHER) program offers substantial rebates through HEAR and HOMES, with priority for low- and middle-income households. Additionally, DTE Energy and Consumers Energy provide utility-specific rebates for heat pump installations. Palmetto can help homeowners navigate these programs, understand eligibility requirements, and maximize available rebates to reduce upfront costs. For geothermal heat pump installations, the federal IRA tax credit remains available through 2032.
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
Detroit sits in IECC Climate Zone 6, which means cold winters that can drop to -5°F and warm summers reaching 91°F. These temperature swings matter when sizing a heat pump—you need a system that can handle both extremes efficiently. At Palmetto, we understand Detroit'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
Detroit Electricity Prices
Understanding Detroit's electricity costs is essential when choosing your home heating and cooling system—especially as rates continue to climb.
Michigan residents pay 19.3 cents per kilowatt-hour as of 2024, nearly 17% above the national average. That's a steady increase from 17.5 cents in 2021, adding up to higher bills year after year.
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 comfort your home needs.
As electricity costs continue their upward trend, that efficiency gap becomes more valuable. A heat pump's lower energy consumption means your monthly bills stay manageable even when rates rise, protecting your budget for years to come.
Price of Energy: Michigan vs National Average
Detroit Area Utility Providers
Detroit residents are primarily served by two major utilities: DTE Energy and Consumers Energy. As of 2023, electricity rates were 19.7¢ and 18.8¢ per kWh respectively—both above the national average of 16.0¢ per kWh.
Michigan's electricity costs reflect the state's aging infrastructure and the transition to cleaner energy sources. Both utilities have invested heavily in grid modernization and renewable energy, costs that are partially passed to customers through rates.
While Detroit's electricity rates run higher than the national average, heat pumps can still lower your overall energy spending. Their exceptional efficiency means they use significantly less electricity than traditional heating systems, helping offset higher per-kilowatt costs.
Detroit Utilities Electricity Rates
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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 Detroit. Modern cold-climate heat pumps work efficiently even at Detroit's design heating temperature of -5°F, and they provide both heating and cooling for the city's 91°F summer days. With Michigan's electricity rate at 19.3¢ per kWh, heat pumps typically cost less to operate than traditional heating systems while keeping your home comfortable year-round.
Detroit homeowners have flexible options for heat pump installation. Palmetto's Comfort Plan offers $0 upfront with maintenance included, while direct purchase may qualify you for up to $2,000 in federal tax credits under the Inflation Reduction Act. Both options deliver efficient heating and cooling suited to Climate Zone 6, where Detroit's weather demands reliable performance in both cold winters and warm summers.
Heat pumps perform well in Detroit's Climate Zone 6, even during cold winters. Modern cold-climate heat pumps effectively heat homes down to -5°F and below, maintaining efficiency when temperatures drop. They also provide excellent cooling during Detroit's 91°F summer days, making them a year-round solution for home comfort.
While heat pump efficiency decreases in extreme cold, they typically achieve 200-300% efficiency compared to traditional heating systems. With Michigan's electricity rate at 19.3¢ per kWh, many Detroit homeowners see lower energy bills. Palmetto makes installation accessible through our Comfort Plan with $0 upfront cost or direct purchase options that may qualify for federal tax credits up to $2,000.
The choice between leasing and buying a heat pump in Detroit depends on your financial situation and preferences. Buying means paying upfront but owning the equipment outright, plus you may qualify for federal tax credits up to $2,000 and local rebates. Leasing through a Comfort Plan requires $0 upfront and includes all maintenance and repairs in your monthly payment.
For Detroit's cold winters in Climate Zone 6, consider that leasing eliminates unexpected repair costs during heavy heating seasons, while buying allows you to capture immediate incentives and build equity. With Michigan's electricity rate at 19.3¢ per kWh, either option will deliver energy savings compared to traditional heating systems, so your decision comes down to upfront affordability versus long-term ownership goals.
Heat pump costs in Detroit typically range from $5,000 to $20,000 for a complete installation, depending on your home's size, existing ductwork, and the system's efficiency rating. Climate Zone 6's cold winters (design temps around -5°F) often require cold-climate models, which can affect pricing but deliver better performance year-round.
Palmetto offers two ways to get a heat pump: a Comfort Plan with $0 upfront 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 Detroit rebates.
Yes, heat pumps are financially worth it for most Detroit homeowners. Modern heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems, even in Michigan's Climate Zone 6 winters. With electricity at 19.3¢ per kWh, the energy savings typically pay back your investment within 7-12 years.
Palmetto makes heat pumps more accessible with two options: our Comfort Plan requires $0 upfront and includes all maintenance and repairs, or purchase directly and qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. Either way, you'll enjoy lower monthly energy bills while staying comfortable year-round.
Heat pumps in Detroit are installed by licensed HVAC contractors who specialize in heating and cooling systems suitable for Climate Zone 6 conditions. Companies like Palmetto partner with certified local installers who understand Detroit's unique climate requirements, including design temperatures that range from -5°F in winter to 91°F in summer, ensuring your system is properly sized and configured.
Palmetto offers two installation options for Detroit homeowners: a Comfort Plan with $0 upfront cost that includes 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. Both options connect you with experienced installers who handle permitting, installation, and system setup.
HVAC is an umbrella term that stands for Heating, Ventilation, and Air Conditioning—it describes any system that controls temperature and air quality in your home. 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.
In Detroit'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 efficiently. Unlike traditional HVAC systems that use separate furnaces and air conditioners, a single heat pump handles year-round comfort while typically using less energy at Michigan's current rate of 19.3¢ per kWh.