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

Killeen, TX Heat Pump Load Calculator

Use our calculator below to estimate your home’s heating and cooling needs based on Killeen’s ACCA-standard design conditions: 95°F for cooling, 33°F for heating, and a 72°F indoor target. 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

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

Killeen, 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 Killeen homeowners.

Heart of Texas Electric Cooperative Heat Pump Rebate

$100 - $200

HOTEC members can receive rebates for qualifying heat pump installations. The rebate amount depends on the SEER rating of the system installed.

Eligibility: Must be a Heart of Texas Electric Cooperative member. Rebates available for 15 SEER and 16 SEER heat pumps. Limit of 1 rebate per membership per calendar year.

Learn more →

Federal Geothermal Heat Pump Credit

Up to 30% of costs

The Inflation Reduction Act provides a federal tax credit for qualifying geothermal heat pump installations through 2032. This is the only federal heat pump credit available in 2026.

Eligibility: Available to homeowners who purchase and install a qualifying geothermal heat pump system. Claimed on your annual federal tax return. Air-source heat pumps do not qualify in 2026.

Learn more →

Killeen homeowners have limited heat pump incentive options in 2026. Heart of Texas Electric Cooperative (HOTEC) offers modest rebates of $100-$200 for qualifying heat pump installations. While Texas received $690 million in federal funding for the HOMES and HEAR rebate programs, these programs have not yet launched as of February 2026. For geothermal heat pump systems, a federal tax credit of up to 30% remains available through 2032. Palmetto's Comfort Plan lease offers homeowners a $0 upfront cost alternative to purchasing a heat pump system outright.

Incentive information is based on publicly available data as of 2026 and may change. The Texas HOMES and HEAR rebate programs have not been launched as of February 2026. Federal tax credits for air-source heat pumps expired December 31, 2025. Contact program administrators to verify current availability and eligibility requirements.

04

Climate Zones

Killeen sits in IECC Climate Zone 10, which means mild winters with design temperatures around 33°F and hot summers reaching 95°F. This climate profile makes heat pumps an excellent fit—they handle both your heating and cooling needs efficiently. At Palmetto, we understand Killeen's unique conditions and help homeowners choose properly sized systems for year-round comfort. Enter your ZIP code below to confirm your zone or explore other climate zones.

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

Killeen Electricity Prices

Understanding electricity costs in Killeen helps you make smarter decisions about home comfort and long-term savings.

Texas electricity rates have climbed steadily from 12.1 cents per kWh in 2021 to 14.9 cents in 2024—a 23% increase in just three years that directly impacts your monthly utility bills.

Heat pumps offer a practical response to rising rates. Because they're 2-3 times more efficient than traditional HVAC systems, they use significantly less electricity to deliver the same heating and cooling for your home.

As electricity costs continue their upward trend, that efficiency gap becomes more valuable each year. A heat pump's lower energy consumption means your monthly bills stay more manageable, even as rates rise.

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

Killeen Area Utility Providers

Killeen residents served by Bluebonnet Electric enjoyed notably low electricity rates in 2023—just 11.1¢ per kWh, well below both the Texas average of 14.50¢ and the national average of 16.0¢ per kWh.

Bluebonnet Electric's competitive rates stem from its cooperative structure and access to Texas's diverse energy mix, which includes wind, natural gas, and solar. This gives Killeen homeowners a cost advantage compared to much of the country.

With already-affordable electricity, heat pumps become even more economical in Killeen. Their superior efficiency means you'll use less energy for heating and cooling, translating those low rates into meaningful savings on your monthly bills.

Killeen Utilities Electricity Rates

Bluebonnet Electric
11.10¢
-31%
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 Killeen. With design temperatures ranging from 33°F in winter to 95°F in summer, Killeen's Climate Zone 10 classification means you need both heating and cooling throughout the year. Heat pumps efficiently handle both functions in one system, and with Texas electricity rates at 14.9¢ per kWh, their energy efficiency translates to meaningful savings on your utility bills.

Palmetto makes heat pump installation accessible for Killeen homeowners through two options: a Comfort Plan with $0 upfront cost and all maintenance included, or direct purchase where you may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. Either way, you're investing in a system well-suited to Killeen's climate that will keep your home comfortable year-round while reducing energy costs.

Heat pumps perform exceptionally well in Killeen's Climate Zone 10, where winter design temperatures rarely drop below 33°F and summers reach around 95°F. This mild climate allows heat pumps to operate at peak efficiency year-round, typically delivering 2-4 times more heating or cooling energy than the electricity they consume—making them far more cost-effective than traditional HVAC systems at Texas's current 14.9¢ per kWh rate.

The moderate winters mean heat pumps rarely encounter the extreme cold that reduces efficiency in northern climates, while their superior cooling capabilities handle Killeen's hot summers efficiently. Whether you choose Palmetto's Comfort Plan with zero upfront costs and included maintenance, or direct purchase to access up to $2,000 in federal tax credits, you'll benefit from lower energy bills and consistent comfort in Killeen's climate.

The choice between leasing and buying a heat pump in Killeen depends on your financial situation and preferences. Leasing through Palmetto's Comfort Plan requires $0 upfront and includes all maintenance and repairs, making it ideal if you want predictable costs without maintenance concerns. Buying outright means you own the equipment and may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act, plus local rebates.

Consider Killeen's climate, where your heat pump will run frequently during hot summers with temperatures reaching 95°F and electricity costs of 14.9¢ per kWh. If upfront costs are a barrier, leasing provides immediate comfort and efficiency without the financial strain. If you have available funds and want to maximize long-term savings through tax incentives and ownership, purchasing may be the better option.

In Killeen, heat pump installation typically costs between $5,000 and $15,000 for a complete system, depending on your home's size, existing ductwork, and the equipment's efficiency rating. Climate Zone 10's moderate winters (design temp: 33°F) and hot summers (design temp: 95°F) make heat pumps an efficient year-round solution for local homes.

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 Killeen. They use electricity more efficiently than traditional HVAC systems, which matters when Texas electricity costs average 14.9¢ per kWh. In Killeen's moderate climate (Zone 10), heat pumps can significantly reduce your heating and cooling bills year-round compared to older systems.

The financial benefit depends on how you acquire your system. Direct purchase may qualify you for up to $2,000 in federal tax credits under the Inflation Reduction Act, reducing upfront costs. Alternatively, Palmetto's Comfort Plan requires $0 upfront and includes all maintenance and repairs, making the investment predictable and eliminating surprise expense concerns while you enjoy lower energy bills.

In Killeen, heat pumps are installed by licensed HVAC contractors who specialize in residential heating and cooling systems. Palmetto partners with certified local installers who understand Killeen's Climate Zone 10 conditions, where systems must handle both 95°F summer temperatures and occasional 33°F winter lows, ensuring your heat pump is properly sized and installed for year-round comfort.

Palmetto offers two straightforward installation 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 include professional installation by experienced technicians who ensure your system operates efficiently in Killeen's climate, helping you manage energy costs with Texas electricity rates at 14.9¢ per kWh.

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.

In Killeen's Climate Zone 10, where winter temperatures typically stay around 33°F and summers reach 95°F, heat pumps work efficiently year-round as a complete HVAC solution. Unlike traditional systems that use separate furnaces and air conditioners, a single heat pump handles both heating and cooling, which can help manage your energy costs with Texas electricity rates at 14.9¢ per kWh.