Ohio Heat Pump Leasing & Installation Guide
In this guide
Ohio’s diverse climate—from humid summers to cold winters—makes heat pumps an increasingly smart choice for year-round comfort and energy savings. These efficient systems both heat and cool your home while reducing carbon emissions. Palmetto helps Ohio homeowners navigate heat pump options, incentives, and professional installation, ensuring you find the right solution for your home’s unique needs and budget.
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
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.
|
|
Cash |
Loan |
|
|---|---|---|---|
| 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
03
Heat Pump Financing in Ohio
While Ohio has received federal funding for the HEEHRA and HOMES rebate programs, these state-level programs have not yet launched as of February 2026 and remain pending federal approval. However, Ohio homeowners can still take advantage of the federal IRA tax credit of up to $2,000 for qualifying heat pump installations. Palmetto’s Comfort Plan lease offers $0 upfront cost as an alternative way to access heat pump technology without waiting for state rebate programs to become available.
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. Ohio’s state rebate programs (HEEHRA and HOMES) are not yet active; check with the Ohio Department of Development for launch updates.
Ohio Electricity Prices
Understanding electricity costs in Ohio helps you make smarter decisions about home heating and cooling—especially as rates continue to climb.
Ohio electricity rates have risen 26% since 2021, climbing from 12.8 to 16.1 cents per kWh. While rates have tracked close to the national average, every increase impacts your monthly energy bills.
Heat pumps offer a practical response to rising 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 comfort.
As electricity rates continue their upward trend, efficiency becomes increasingly valuable. A heat pump’s lower energy consumption means you’re better insulated against future rate increases, protecting your budget for years to come.
Price of Energy: Ohio vs National Average
Ohio Utility Providers
Ohio residents have access to multiple utility providers with varying electricity rates. According to 2023 data, rates ranged from 5.67¢ per kWh (Energy Harbor) to 18.63¢ per kWh (Ohio Power Co), with most falling below the national average of 16.0¢ per kWh.
Ohio’s competitive energy market allows customers to choose suppliers, creating price variation across providers. Larger utilities like Ohio Power and Dayton Power & Light showed higher rates, while competitive suppliers like Energy Harbor and Dynegy offered lower rates through market competition.
Heat pumps can help manage energy costs regardless of your utility provider. Their high efficiency means they use less electricity than traditional heating and cooling systems, potentially reducing your total energy spending even in areas with higher electricity rates.
Ohio Utilities Electricity Rates
05
Ohio Heat Pump City Guides
Explore detailed heat pump installation guides for cities across Ohio. Each guide includes local utility rates, incentives, and climate-specific recommendations.
Frequently Asked Questions
Yes, heat pumps work well in Ohio. Modern heat pumps are designed to operate efficiently in cold climates and can effectively heat homes even when temperatures drop below freezing. Ohio’s winters, while cold, fall well within the operating range of today’s cold-climate heat pump technology, making them a reliable heating and cooling solution year-round.
Heat pumps can help Ohio homeowners reduce energy costs compared to traditional heating systems, especially with electricity rates at 16.1¢ per kWh. Palmetto makes installation 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. Both approaches provide efficient climate control suited to Ohio’s seasonal temperature variations.
Heat pump costs in Ohio typically range from $5,000 to $20,000 for a complete installation, depending on your home’s size, existing infrastructure, and the system’s efficiency rating. This upfront investment can be offset by federal tax credits of up to $2,000 under the Inflation Reduction Act, plus any available local utility rebates.
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 if you prefer to own your equipment outright. Both options help Ohio homeowners transition to efficient heating and cooling while managing costs in a way that works for their situation.
The best heat pump brands for Ohio homeowners include Carrier, Lennox, Trane, Mitsubishi Electric, and Daikin. These manufacturers offer cold-climate models with excellent performance ratings, even during Ohio’s winter temperatures. Look for units with high HSPF2 ratings (ideally 9.0 or above) and ENERGY STAR certification to maximize efficiency year-round.
When selecting a brand, consider both the equipment quality and your installation partner. Palmetto offers professionally installed heat pumps through a Comfort Plan with $0 upfront cost and all maintenance included, or through direct purchase where you may qualify for up to $2,000 in federal tax credits. The right brand paired with expert installation ensures reliable heating and cooling for Ohio’s variable climate.
Yes, Ohio homeowners can access heat pump rebates through federal programs and potentially local utility incentives. The federal Inflation Reduction Act offers tax credits up to $2,000 for qualifying heat pump installations when you purchase your system outright. Some Ohio utility companies also provide additional rebates or incentives for energy-efficient heating and cooling upgrades.
To maximize savings, it’s worth checking with your local utility provider about current rebate programs in your area. If upfront costs are a concern, Palmetto’s Comfort Plan offers an alternative with $0 down and no large initial investment, though federal tax credits apply only to direct purchases where you own the equipment outright.
The choice between leasing and buying a heat pump in Ohio depends on your financial situation and priorities. Buying means paying upfront but owning the equipment outright, with potential access to federal tax credits up to $2,000 under the Inflation Reduction Act. Leasing through a Comfort Plan requires $0 upfront and includes all maintenance and repairs in your monthly payment.
For Ohio homeowners concerned about unexpected repair costs or who prefer predictable budgeting with electricity at 16.1¢ per kWh, leasing offers peace of mind without capital investment. If you have funds available and want to maximize long-term savings through tax incentives and eventual ownership, purchasing may be the better path. Consider your home timeline and comfort with managing equipment maintenance when deciding.
Yes, heat pumps are typically worth it financially in Ohio. Modern heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems, and with Ohio’s electricity rate at 16.1¢ per kWh, the operating savings add up quickly. Federal tax credits of up to $2,000 and local rebates can further improve the financial return.
Palmetto makes heat pumps accessible through two options: a Comfort Plan with $0 upfront cost and predictable monthly payments that include all maintenance, or direct purchase where you own the system outright and claim available incentives. Both approaches can deliver meaningful savings compared to conventional heating and cooling over the system’s 15-20 year lifespan.
The right heat pump size for your Ohio home depends on several factors: your home’s square footage, insulation quality, ceiling height, number of windows, and local climate conditions. Most Ohio homes need a heat pump ranging from 2 to 5 tons, with each ton covering roughly 400-600 square feet in a well-insulated home.
A professional energy assessment is essential to determine the correct size—an oversized unit wastes energy and money at Ohio’s 16.1¢ per kWh electricity rate, while an undersized system won’t keep your home comfortable during cold winters. Palmetto provides expert sizing assessments with both our Comfort Plan lease and direct purchase options to ensure your system matches your home’s specific heating and cooling needs.