Texas Heat Pump Leasing & Installation Guide
In this guide
Texas homeowners face unique climate challenges—from scorching summers to occasional winter freezes. Heat pumps offer an efficient, year-round solution that adapts to the Lone Star State’s diverse weather patterns while reducing energy costs. Whether you’re in Houston’s humidity or Dallas’s temperature swings, Palmetto helps you navigate heat pump options, incentives, and professional installation to keep your home comfortable in every season.
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 Texas
While Texas state-level heat pump rebate programs have not yet launched as of 2026, 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 an alternative path to heat pump savings with $0 upfront cost, allowing homeowners to benefit from efficient heating and cooling without waiting for state programs or managing tax credits.
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.
Texas Electricity Prices
Understanding electricity costs in Texas helps you make smarter decisions about home heating and cooling for years to come.
Texas electricity rates have climbed from 12.1 cents per kWh in 2021 to 14.9 cents in 2024—a 23% increase in just three years, adding hundreds to annual energy bills.
Heat pumps offer a practical response to rising rates. Because they’re 2-3x more efficient than traditional HVAC systems, they use significantly less electricity to deliver the same heating and cooling comfort.
As electricity costs continue their upward trend, efficiency becomes increasingly valuable. A heat pump’s lower energy consumption means your monthly bills stay manageable even as rates rise, protecting your budget over time.
Price of Energy: Texas vs National Average
Texas Utility Providers
Texas electricity rates vary widely across providers. Based on 2023 data, costs ranged from Champion Energy’s 9.79¢ per kWh to Gexa Energy’s 19.57¢ per kWh—well below and above the national average of 16.0¢ per kWh.
Municipal utilities like San Antonio and Austin Energy, along with electric cooperatives such as Pedernales and Bluebonnet, typically offer lower rates due to nonprofit structures and local service areas. Retail providers in deregulated markets show higher variability based on market conditions and plan structures.
Understanding your electricity costs matters when considering home upgrades. Heat pumps use significantly less energy than traditional HVAC systems, which means lower monthly bills regardless of your provider’s rates—making them a smart investment even in higher-cost areas.
Texas Utilities Electricity Rates
05
Texas Heat Pump City Guides
Explore detailed heat pump installation guides for cities across Texas. Each guide includes local utility rates, incentives, and climate-specific recommendations.
Frequently Asked Questions
Yes, heat pumps work exceptionally well in Texas. The state’s mild winters and hot summers create ideal conditions for heat pump efficiency. Unlike traditional systems, heat pumps both heat and cool your home year-round, and they perform best in moderate climates where temperatures rarely drop below freezing for extended periods.
Texas homeowners can benefit from lower energy costs with heat pumps, especially with electricity rates averaging 14.9¢ 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 help you stay comfortable while managing energy expenses effectively.
Heat pump costs in Texas typically range from $5,000 to $15,000 for a complete installation, depending on your home’s size, the system’s efficiency rating, and installation complexity. This upfront investment can be offset by federal tax credits of up to $2,000 under the Inflation Reduction Act, plus potential local utility rebates available to Texas homeowners.
Palmetto offers flexible options to fit different budgets and preferences. You can purchase a system outright and take advantage of available incentives, or choose our Comfort Plan with $0 upfront cost and a predictable monthly payment that includes all maintenance, repairs, and warranty coverage—eliminating surprise expenses while you enjoy lower energy bills with Texas electricity rates at 14.9¢ per kWh.
Top heat pump brands for Texas homeowners include Carrier, Trane, Lennox, Rheem, and Mitsubishi Electric. These manufacturers produce reliable systems designed to handle Texas’s hot summers and mild winters efficiently. Look for models with high SEER2 ratings (16+) and HSPF2 ratings (8+) to maximize energy savings given Texas’s 14.9¢ per kWh electricity rates.
When selecting a brand, consider both equipment quality and installation expertise. Palmetto offers professionally installed heat pumps through a Comfort Plan with $0 upfront cost and all maintenance included, or direct purchase options that may qualify for up to $2,000 in federal tax credits. The right brand paired with proper installation ensures optimal performance and long-term comfort in Texas’s climate.
Yes, heat pump rebates are available in Texas through multiple sources. Texas homeowners who purchase a heat pump may qualify for federal tax credits up to $2,000 under the Inflation Reduction Act. Additionally, some local utility companies and municipalities offer their own rebate programs to encourage energy-efficient upgrades.
The availability and amount of rebates vary by location and utility provider within Texas. Palmetto’s direct purchase option allows homeowners to take advantage of these federal tax credits and local rebates where applicable. Our team can help you understand which incentives you may qualify for based on your specific situation and location in Texas.
The choice between leasing and buying a heat pump in Texas depends on your financial situation and priorities. Buying means paying upfront but owning the equipment outright, plus you may qualify for federal tax credits up to $2,000 under the Inflation Reduction Act. Leasing through a plan like Palmetto’s Comfort Plan requires $0 upfront and includes all maintenance and repairs in your monthly payment.
For Texas homeowners, leasing can make sense if you want predictable costs without maintenance concerns, especially with electricity at 14.9¢ per kWh making efficient heating and cooling valuable. Buying is often better if you can afford the upfront cost and want to maximize long-term savings through tax credits and full ownership. Consider your budget, how long you plan to stay in your home, and whether you prefer convenience or ownership.
Yes, heat pumps are typically worth it financially in Texas. They can significantly reduce heating and cooling costs compared to traditional systems, especially with electricity at 14.9¢ per kWh. Heat pumps are highly efficient—moving heat rather than generating it—which translates to lower monthly energy bills year-round in Texas’s climate.
Palmetto makes heat pumps 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. Most Texas homeowners see the investment pay for itself through energy savings over time, while enjoying more consistent comfort and reduced environmental impact.
The right heat pump size for your Texas home depends on square footage, insulation quality, ceiling height, and climate zone. Most Texas homes need between 2 to 5 tons of capacity. A professional energy assessment measures these factors to determine the precise size—an oversized or undersized system will waste energy and reduce comfort.
Proper sizing directly impacts your operating costs, especially with Texas electricity rates at 14.9¢ per kWh. Palmetto provides expert sizing assessments with both our Comfort Plan (no upfront cost, maintenance included) and direct purchase options (potential $2,000 federal tax credit). A correctly sized heat pump ensures efficient heating and cooling year-round in Texas’s variable climate.