Houston, TX 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
Houston, TX Heat Pump Load Calculator
Use our calculator below to estimate your home’s heating and cooling needs based on ACCA-standard design conditions for Houston, TX: 72°F indoor, 95°F outdoor cooling, and 33°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
Heat Pump Financing in Houston
While Texas has received federal funding for heat pump rebate programs (HOMES and HEAR), these programs have not yet launched as of early 2026. However, Houston homeowners can 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 the need for rebates or 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.
04
Climate Zones
Houston sits in IECC Climate Zone 10, where winters are mild—rarely dipping below 33°F—and summers are hot and humid, regularly reaching 95°F. This means your heat pump needs to handle serious cooling demands while providing occasional heating. At Palmetto, we understand Houston's climate inside and out, so we can help you find a system sized perfectly 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
Houston Electricity Prices
Understanding Houston's electricity costs is essential when choosing your home's heating and cooling system, especially as rates continue to climb.
Texas electricity rates have risen from 12.1 cents per kWh in 2021 to 14.9 cents in 2024—a 23% increase in just three years, impacting every Houston household's monthly energy bills.
Heat pumps offer a practical solution to rising costs. Because they're 2-3x more efficient than traditional HVAC 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 manageable even when rates rise, protecting your budget for years to come.
Price of Energy: Texas vs National Average
Houston Area Utility Providers
Houston residents primarily receive electricity from Entergy, which charged an average of 13.2¢ per kWh in 2023—notably below both the Texas state average of 14.5¢ and the national average of 16.0¢ per kWh.
Houston's competitive electricity costs stem from Texas's deregulated energy market and the region's proximity to natural gas supplies. This pricing advantage makes Houston an attractive location for energy-conscious homeowners looking to maximize their savings.
With below-average electricity rates and heat pumps' superior efficiency—often using 50% less energy than traditional HVAC systems—Houston homeowners can significantly reduce their total energy spending while maintaining year-round comfort.
Houston 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 excellent sense in Houston. The city's mild winters (with design temperatures around 33°F) and hot summers (reaching 95°F) create ideal conditions for heat pump efficiency. Heat pumps both cool and heat your home using electricity, and with Texas electricity rates at 14.9¢ per kWh, they typically cost less to operate than traditional heating and cooling systems.
Houston homeowners have flexible options for getting a heat pump. Palmetto's Comfort Plan offers $0 upfront with maintenance included, making it easy to start saving without a large investment. Direct purchase is also available, with potential federal tax credits up to $2,000 under the Inflation Reduction Act, plus local rebates that can reduce your overall cost.
Heat pumps are highly efficient in Houston's climate, which sits in Climate Zone 10 with mild winters (design heating temp: 33°F) and hot summers (design cooling temp: 95°F). Since heat pumps work by transferring heat rather than generating it, they can deliver 2-4 times more heating or cooling energy than the electricity they consume, making them particularly cost-effective in regions with moderate heating needs like Houston.
With Texas electricity rates at 14.9¢ per kWh, Houston homeowners typically see significant savings on their energy bills compared to traditional HVAC systems. Heat pumps handle Houston's long cooling season efficiently while providing reliable heating during occasional cold snaps. Palmetto makes installation accessible through our Comfort Plan with $0 upfront cost and included maintenance, or through direct purchase with potential federal tax credits up to $2,000.
The choice between leasing and buying a heat pump in Houston depends on your financial priorities and preferences. Buying through direct purchase means paying upfront but owning the equipment outright, plus you may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. Leasing through Palmetto's Comfort Plan requires $0 upfront and includes all maintenance and repairs covered for life.
For Houston homeowners, leasing can be particularly appealing given the year-round demand on heating and cooling systems in Climate Zone 10. With cooling season temperatures reaching 95°F and electricity costs at 14.9¢ per kWh, having predictable monthly payments with maintenance included eliminates surprise repair costs. Direct purchase makes sense if you prefer ownership and want to maximize available incentives upfront.
Heat pump installation costs in Houston typically range from $5,000 to $15,000 for a complete system, depending on your home's size, existing ductwork, and the unit's efficiency rating. Houston's mild winters and hot summers (Climate Zone 10) make heat pumps particularly cost-effective, as they efficiently handle both heating and cooling needs year-round.
Palmetto offers two ways to get a heat pump: our Comfort Plan with $0 upfront and a predictable monthly payment 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 plus local rebates.
For Houston homeowners, heat pumps offer strong financial value through lower energy bills and flexible payment options. Heat pumps typically use 50% less electricity than traditional heating and cooling systems, which translates to meaningful savings given Texas electricity rates of 14.9¢ per kWh. Houston's mild winters (design temp: 33°F) allow heat pumps to operate efficiently year-round.
Palmetto makes heat pumps financially accessible through two approaches: the Comfort Plan requires $0 upfront with predictable monthly payments and included maintenance, while direct purchase may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. Most Houston homeowners see the investment pay for itself through energy savings within several years.
Heat pumps in Houston are installed by licensed HVAC contractors who specialize in heating and cooling systems. These professionals assess your home's specific needs in Climate Zone 10, where summer temperatures reach 95°F and winter lows around 33°F, to recommend and install the right system for year-round comfort.
Palmetto works 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 equipment and may qualify for up to $2,000 in federal tax credits. Both options ensure professional installation tailored to Houston's climate and your home's requirements.
A heat pump is actually a type of HVAC system. HVAC stands for Heating, Ventilation, and Air Conditioning—it's an umbrella term for all climate control equipment. A heat pump is a specific HVAC technology that both heats and cools your home by transferring heat rather than generating it, making it more energy-efficient than traditional furnaces and air conditioners.
In Houston's Climate Zone 10, where temperatures range from 33°F in winter to 95°F in summer, a heat pump handles both seasons efficiently with one system. Unlike conventional HVAC setups that use separate heating and cooling units, a heat pump does both jobs. With Texas electricity at 14.9¢ per kWh, this efficiency can mean lower energy bills year-round compared to traditional systems.