Nathan Healy
Certified by Nathan Healy
Updated: February 2026
Quality home solutions since 2011
Palmetto serves thousands of customers across 25 states with an over 85% approval rating

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

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

Forget the maintenance

With a Comfort Plan subscription, installation and maintenance are fully covered, no surprise bills, no weekend DIY.

Rewards for renewing

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

Dallas, TX Heat Pump Load Calculator

Use our calculator below to estimate your home’s heating and cooling needs based on Dallas’s ACCA-standard design conditions: 72°F indoor, 95°F outdoor cooling, and 33°F heating temperatures. This square-footage method provides a helpful starting point—contact Palmetto’s team for a precise Manual J load calculation and personalized quote. 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

Get Started

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.

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
Payment schedule $0 upfront, then monthly subscription
Term length 10 or 12 years
End of term options Flexible with 25% renewal term credits to new system
Maintenance included
Eligible for incentives

Cash

Payment schedule Full price upfront
Term length None
End of term options No credits to new system
Maintenance included
Eligible for incentives

Loan

Payment schedule $0 upfront, then monthly payment
Term length Variable
End of term options No credits to new system
Maintenance included
Eligible for incentives

Local Incentives

Dallas, TX 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 Dallas homeowners.

Oncor Energy Efficiency Program

Up to $3,400

Utility rebate program for high-efficiency HVAC systems including heat pumps. Rebates are performance-based and vary by system efficiency rating (SEER2/EER2). Must include smart thermostat and be installed by approved contractor.

Eligibility: Must be Oncor customer in service area (Dallas-Fort Worth region). New equipment must meet 2026 SEER2, EER2, and HSPF2 standards. Smart thermostat required. Installation must be completed by Oncor-approved Participating Service Provider.

Learn more →

Federal IRA Tax Credit

Up to $2,000

The Inflation Reduction Act provides a federal tax credit of up to $2,000 for qualifying heat pump installations through 2032.

Eligibility: Available to homeowners who purchase and install a qualifying heat pump system. Claimed on your annual federal tax return.

Learn more →

Dallas homeowners have access to the Oncor Energy Efficiency Program, which offers substantial rebates up to $3,400 for high-efficiency heat pump installations, plus the federal IRA tax credit of up to $2,000. Palmetto's team can help you navigate these programs, verify your eligibility with Oncor, and maximize your total savings by stacking available incentives. While Texas state-level HOMES and HEAR rebate programs are not yet launched, the Oncor utility rebate combined with federal credits provides significant financial support for heat pump upgrades in 2026.

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

Dallas sits in IECC Climate Zone 10, which means mild winters with design heating temps around 33°F and hot summers reaching 95°F. This climate profile makes heat pumps an excellent fit—they handle your cooling needs efficiently while providing backup heat during those occasional cold snaps. At Palmetto, we factor in these local conditions when sizing and selecting the right system for your home. Explore other zones below or enter your ZIP code to confirm yours.

US Climate Zone Map
Your location

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

05

Dallas Electricity Prices

Understanding electricity costs in Dallas helps you make smarter decisions about your home's heating and cooling systems.

Texas electricity rates have climbed 23% since 2021, rising from 12.1 to 14.9 cents per kWh. For Dallas homeowners running traditional HVAC systems year-round, these increases add up quickly on monthly bills.

Heat pumps offer a practical solution to rising energy costs. Because they're 2-3 times more efficient than conventional systems, they use significantly less electricity to deliver the same heating and cooling comfort your home needs.

As electricity rates continue their upward trend, efficiency becomes increasingly valuable. A heat pump's lower energy consumption means your monthly bills stay more manageable, even when rates rise, protecting your budget for years to come.

Price of Energy: Texas vs National Average

10¢
20¢
30¢
13.7¢
12.1¢
15.0¢
13.8¢
16.0¢
14.5¢
16.5¢
14.9¢
2021
2022
2023
2024
US Average
Texas

Dallas Area Utility Providers

Dallas residents are served by two main electric cooperatives: Denton County Electric Cooperative at 12.8¢ per kWh and Tri-County Electric Cooperative at 14.1¢ per kWh (2023 data). Both rates fall below the national average of 16.0¢.

These competitive rates reflect Texas's deregulated energy market and the efficiency of local cooperative utilities. Denton County's rate sits notably below both the state average (14.5¢) and national benchmark, while Tri-County remains slightly under the state average.

Lower electricity costs make Dallas an ideal location for heat pumps, which use electricity to move heat rather than generate it. Their high efficiency means you'll use less energy overall compared to traditional HVAC systems, maximizing savings in an already affordable electricity market.

Dallas Utilities Electricity Rates

Denton County Electric Cooperative
12.80¢
-20%
Tri-County Electric Cooperative
14.10¢
-12%
TX Average
14.50¢
-9%
US Average
16.0¢
06

Palmetto Reviews

Ready to start saving with a heat pump?

Speak with a Palmetto heating & cooling expert to find out exactly how much you can save.

Get a Free Quote
Palmetto mobile app
07

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
Download the App
08

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.

$5,000
Recommended repair threshold

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.

Ready to start saving with a heat pump?

Speak with a Palmetto heating & cooling expert to find out exactly how much you can save.

Get a Free Quote
09

Frequently Asked Questions

Yes, heat pumps make excellent sense in Dallas. The city's mild winters (with design temperatures around 33°F) and hot summers (reaching 95°F) create ideal conditions for heat pump efficiency. These systems excel in moderate climates, providing both heating and cooling while typically using less energy than traditional HVAC systems at Texas's current electricity rate of 14.9¢ per kWh.

Dallas homeowners can access heat pump technology through flexible options that fit different needs. Palmetto's Comfort Plan offers installation with no upfront cost 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 deliver year-round comfort and potential energy savings in Dallas's Climate Zone 10 conditions.

Heat pumps are highly efficient in Dallas's climate, which falls into Climate Zone 10 with mild winters (design temp: 33°F) and hot summers (design temp: 95°F). Modern heat pumps typically deliver 2-4 units of heating or cooling for every unit of electricity consumed, making them significantly more efficient than traditional HVAC systems, even with Texas electricity rates at 14.9¢ per kWh.

Dallas's relatively mild winters are ideal for heat pump performance, as they operate most efficiently when outdoor temperatures stay above freezing. During summer months, heat pumps provide efficient cooling while using less energy than conventional air conditioners. Palmetto offers flexible options to help Dallas homeowners access this efficiency—either 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 Dallas depends on your financial priorities and homeownership plans. Buying outright means you own the equipment and can claim up to $2,000 in federal tax credits under the Inflation Reduction Act, plus any local rebates. Leasing through a plan like Palmetto's Comfort Plan requires $0 upfront and includes all maintenance and repairs, which removes the burden of unexpected costs.

For Dallas homeowners, consider your budget and how long you plan to stay in your home. With electricity at 14.9¢ per kWh and Dallas's hot summers in Climate Zone 10, a heat pump will run frequently for cooling. If upfront costs are a concern or you prefer predictable monthly payments with included maintenance, leasing offers peace of mind. If you want to maximize long-term savings and qualify for tax incentives, purchasing may be the better investment.

Heat pump costs in Dallas typically range from $5,000 to $15,000 for a complete installation, depending on your home's size, existing ductwork, and the system's efficiency rating. Dallas's Climate Zone 10 conditions—with design temperatures of 33°F in winter and 95°F in summer—mean you'll want a system sized appropriately for both heating and cooling demands.

Palmetto offers two ways to get a heat pump that fit different budgets and preferences. Our Comfort Plan requires $0 upfront and includes all maintenance and repairs in a predictable monthly payment. Alternatively, direct purchase means 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 that can significantly reduce your total cost.

Yes, heat pumps are typically worth it financially in Dallas. Modern heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems, and with Texas electricity rates at 14.9¢ per kWh, those savings add up quickly. Dallas's mild winters (design temp: 33°F) mean your heat pump runs efficiently year-round without the extreme cold that challenges some systems.

Palmetto makes the investment even more accessible with two options: our 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. Most Dallas homeowners see payback within 5-10 years, then enjoy continued savings for the system's 15-20 year lifespan.

Heat pumps in Dallas are installed by licensed HVAC contractors who specialize in heating and cooling systems. These professionals assess your home's specific needs based on Dallas's Climate Zone 10 conditions (where summer temperatures reach 95°F and winter lows around 33°F), then properly size and install equipment that works efficiently year-round.

Palmetto partners with certified local installers to provide heat pump installation through two options: a Comfort Plan with $0 upfront cost and all maintenance included, or direct purchase where you own the system outright and may qualify for up to $2,000 in federal tax credits. Both options ensure professional installation tailored to your home's requirements and Dallas's unique climate demands.

A heat pump is actually a type of HVAC system. HVAC stands for Heating, Ventilation, and Air Conditioning—it's an umbrella term for any equipment that controls your home's temperature. Heat pumps are unique because they provide both heating and cooling in one efficient unit, transferring heat rather than generating it through combustion.

In Dallas's Climate Zone 10, where winter lows average 33°F and summer highs reach 95°F, heat pumps excel at year-round comfort while typically using less electricity than traditional HVAC systems. With Texas electricity rates at 14.9¢ per kWh, this efficiency can translate to meaningful savings. Palmetto makes heat pump installation accessible through flexible options including our Comfort Plan with $0 upfront cost.