Lansing, 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
Lansing, MI Heat Pump Load Calculator
Use our calculator below to estimate your home’s heating and cooling needs based on square footage. It uses ACCA-standard design conditions for Lansing, MI: 91°F cooling, -5°F heating, and 72°F indoor comfort. 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
Lansing, 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 Lansing homeowners.
Michigan Home Energy Rebates
Up to $14,000Michigan's Home Energy Rebates (MiHER) program provides rebates for energy efficiency and electrification upgrades through two components: HOMES (whole-home efficiency) and HEAR (appliances and electrification). The program is funded by the federal Inflation Reduction Act and prioritizes low- and middle-income households.
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.
Lansing homeowners have access to Michigan's Home Energy Rebates (MiHER) program, which offers up to $14,000 in rebates for heat pump installations and other energy efficiency upgrades through the Home Electrification and Appliance Rebates (HEAR) component. Combined with the federal IRA tax credit of up to $2,000, homeowners can access substantial incentives to offset heat pump installation costs. Palmetto can help you navigate these programs, verify your eligibility, and maximize your total rebate savings.
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
Lansing sits in IECC Climate Zone 6, which means cold winters that can dip to -5°F and warm summers reaching 91°F. These temperature swings require a heat pump that's properly sized and selected for both extremes. At Palmetto, we understand Lansing's climate inside and out, and we'll help you find a system that keeps you comfortable year-round. 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
Lansing Electricity Prices
Understanding electricity costs in Lansing helps you make smarter decisions about heating and cooling your home efficiently.
Michigan's electricity rates have climbed steadily, rising from 17.5 cents per kWh in 2021 to 19.3 cents in 2024—consistently above the national average and showing no signs of slowing down.
Heat pumps offer a practical response to rising rates. Because they're 2-3x more efficient than traditional systems, they use significantly less electricity to deliver the same heating and cooling comfort to your home.
As electricity costs continue climbing, that efficiency gap becomes increasingly valuable. A heat pump's lower energy consumption means your monthly bills stay manageable even as rates rise, protecting your budget for years ahead.
Price of Energy: Michigan vs National Average
Lansing Area Utility Providers
Understanding electricity costs helps you make smarter energy decisions. Lansing residents are primarily served by Consumers Energy, which charged 18.8¢ per kWh in 2023—matching Michigan's state average and slightly above the national average of 16.0¢.
Michigan's electricity rates reflect the state's energy infrastructure and fuel mix. Consumers Energy's rates align with state averages due to similar generation costs and grid maintenance expenses across the region, keeping prices relatively consistent for Lansing households.
While electricity costs in Lansing sit above the national average, heat pumps offer a smart path to managing energy expenses. Their exceptional efficiency means they use significantly less energy than traditional heating systems, often reducing total energy spending even where electricity rates run higher.
Lansing 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 Lansing. Modern cold-climate heat pumps work efficiently even at Lansing's design heating temperature of -5°F, providing both heating and cooling for Michigan's varied seasons. With electricity at 19.3¢ per kWh, heat pumps typically cost less to operate than traditional heating systems while keeping your home comfortable year-round.
Lansing homeowners have flexible options to get started. Palmetto's Comfort Plan requires $0 upfront and includes all maintenance and repairs, while direct purchase may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. Both approaches help you benefit from efficient heating and cooling in Climate Zone 6.
Heat pumps perform well in Lansing's Climate Zone 6, even during cold winters. Modern cold-climate heat pumps maintain efficiency down to -5°F, Lansing's design heating temperature, and provide reliable heating and cooling year-round. With Michigan's electricity rate at 19.3¢ per kWh, heat pumps typically cost less to operate than traditional furnaces and air conditioners.
During Lansing's coldest days, heat pumps can be 2-3 times more efficient than electric resistance heating, transferring heat rather than generating it. Palmetto offers heat pumps through a Comfort Plan with $0 upfront cost and included maintenance, or through direct purchase with potential federal tax credits up to $2,000, making efficient heating accessible for your home.
The choice between leasing and buying a heat pump in Lansing depends on your financial priorities and homeownership plans. Buying means paying upfront but owning the equipment outright, with potential access to up to $2,000 in federal tax credits under the Inflation Reduction Act plus local rebates. Leasing through a Comfort Plan requires $0 upfront, offers predictable monthly payments, and includes all maintenance and repairs for the life of the plan.
For Lansing's Climate Zone 6 winters, where temperatures can drop to -5°F, reliable heating is essential. If you prefer avoiding surprise repair costs and maintenance responsibilities, leasing provides peace of mind with covered service. If you plan to stay in your home long-term and want to maximize incentives while building equity in your equipment, purchasing may offer better value over time.
Heat pump installation costs in Lansing typically range from $5,000 to $20,000 depending on your home's size, existing ductwork, and the system's capacity needed for Michigan's Climate Zone 6 conditions. The total investment varies based on whether you need a ducted or ductless system and any necessary electrical upgrades.
Palmetto offers two flexible 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 typically worth it financially in Lansing, especially with Michigan's electricity rate of 19.3¢ 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, making them highly efficient even in Climate Zone 6 conditions.
Palmetto makes heat pumps more accessible with two options: a Comfort Plan with $0 upfront cost and included maintenance, or direct purchase with potential federal tax credits up to $2,000. Most Lansing homeowners see the investment pay for itself within 5-10 years through lower energy bills, while enjoying year-round comfort and increased home value.
In Lansing, heat pumps are installed by licensed HVAC contractors who specialize in heating and cooling systems suitable for Michigan's Climate Zone 6 conditions. These professionals assess your home's specific needs, considering factors like insulation, ductwork, and the region's winter design temperature of -5°F to ensure proper system sizing and installation.
Palmetto partners with qualified local installers to provide heat pump installation through two flexible options: a Comfort Plan with $0 upfront 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 options ensure professional installation tailored to Lansing's climate while helping you reduce energy costs with Michigan's 19.3¢ per kWh electricity rates.
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 specific type of HVAC system that both heats and cools your home by transferring heat rather than generating it through combustion like traditional furnaces.
In Lansing's Climate Zone 6, modern heat pumps excel at both heating during -5°F winter nights and cooling during 91°F summer days, while typically using less electricity than separate heating and cooling systems. With Michigan's electricity rate at 19.3¢ per kWh, heat pumps offer an efficient alternative to traditional HVAC setups, and Palmetto makes installation accessible through flexible payment options including our Comfort Plan with zero upfront costs.