San Antonio, 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
San Antonio, TX Heat Pump Load Calculator
Use this calculator to estimate your home’s heating and cooling needs based on square footage. It uses ACCA-standard design conditions for San Antonio, TX: 72°F indoor, 95°F outdoor cooling, and 33°F heating temperatures. 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
San Antonio, 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 San Antonio homeowners.
CPS Energy Heat Pump Rebate
$100 - $275 per tonSan Antonio's local utility offers rebates for qualifying high-efficiency heat pump installations. Rebate amounts vary based on system efficiency tier and whether replacing a functioning or burned-out unit.
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.
San Antonio homeowners have access to the CPS Energy heat pump rebate program, which offers $100-$275 per ton for qualifying high-efficiency systems installed through January 2027. Combined with the federal IRA tax credit of up to $2,000, homeowners can stack these incentives for significant savings. Palmetto's Comfort Plan lease offers an alternative with $0 upfront cost, allowing you to benefit from heat pump efficiency without the burden of ownership.
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
San Antonio sits in IECC Climate Zone 10, which means mild winters (design heating at 33°F) and hot summers (design cooling at 95°F). This climate profile heavily favors cooling capacity when sizing your heat pump—you'll use air conditioning far more than heating. At Palmetto, we understand San Antonio's unique climate and can help you choose a system that handles those long, hot summers efficiently. Explore other 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
San Antonio Electricity Prices
Understanding electricity costs in San Antonio helps you make smarter decisions about home comfort systems that can save you money long-term.
Texas electricity rates have climbed 23% since 2021, rising from 12.1 to 14.9 cents per kWh by 2024. While still below the national average, San Antonio homeowners are feeling the impact on monthly bills.
Heat pumps offer a practical solution to rising energy costs. Because they move heat rather than generate it, they deliver 2-3 times more heating or cooling per unit of electricity compared to traditional HVAC systems.
As electricity rates continue to rise, that efficiency gap becomes increasingly valuable. A heat pump installed today could save you hundreds annually, with those savings growing as energy costs climb over the system's 15-20 year lifespan.
Price of Energy: Texas vs National Average
San Antonio Area Utility Providers
San Antonio residents enjoy electricity rates well below national averages. In 2023, CPS Energy charged 12.1¢ per kWh, Bluebonnet Electric Cooperative 11.1¢, and Pedernales Electric Cooperative 11.7¢—all significantly lower than the national average of 16.0¢.
These competitive rates stem from Texas's diverse energy mix and deregulated market structure. San Antonio's municipal utility model, combined with access to natural gas and renewable energy sources, helps keep costs roughly 20-30% below the national average.
Lower electricity rates make heat pumps even more economical in San Antonio. Since heat pumps use electricity more efficiently than traditional systems—often moving three units of heat for every unit of electricity consumed—your already-affordable power goes further toward comfortable heating and cooling.
San Antonio 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.
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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 San Antonio. The city's mild winters (with design temperatures around 33°F) and hot summers (reaching 95°F) create ideal conditions for heat pump efficiency. Since heat pumps both heat and cool your home using electricity at 14.9¢ per kWh in Texas, they can significantly reduce energy costs compared to traditional HVAC systems year-round.
San Antonio homeowners have flexible options to access this technology. Palmetto's Comfort Plan offers heat pump installation with $0 upfront and includes all maintenance and repairs, while direct purchase may qualify you for up to $2,000 in federal tax credits under the Inflation Reduction Act. Either way, you're investing in a system perfectly suited to San Antonio's climate.
Heat pumps are highly efficient in San Antonio's climate, which features mild winters (design heating temp of 33°F) and hot summers (design cooling temp of 95°F). In this Climate Zone 10 environment, heat pumps can deliver 2-4 times more heating and cooling energy than the electricity they consume, making them significantly more efficient than traditional HVAC systems year-round.
With Texas electricity rates at 14.9¢ per kWh, this efficiency translates to meaningful savings on your energy bills. San Antonio's relatively warm winters mean your heat pump won't struggle in extreme cold, maintaining peak performance when you need heating most. Palmetto makes accessing this efficiency easy through our Comfort Plan with $0 upfront or direct purchase options that may qualify for up to $2,000 in federal tax credits.
The choice between leasing and buying a heat pump in San Antonio depends on your financial priorities and homeownership plans. Leasing through a Comfort Plan requires $0 upfront and includes all maintenance and repairs, making it ideal if you prefer predictable monthly costs. Buying means paying upfront but you'll own the equipment and may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act.
In San Antonio's Climate Zone 10, where cooling demands are high with summer temperatures reaching 95°F, heat pumps run frequently. With electricity at 14.9¢ per kWh, leasing eliminates worry about repair costs during peak usage months, while buying offers long-term savings potential and immediate equity. Consider how long you plan to stay in your home and whether you prefer ownership benefits or maintenance-free convenience.
Heat pump installation costs in San Antonio typically range from $5,000 to $15,000 depending on your home's size, existing ductwork, and the system's efficiency rating. San Antonio's Climate Zone 10 conditions—with winter lows around 33°F and summer highs near 95°F—make heat pumps an efficient year-round solution for both heating and cooling.
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.
In San Antonio, heat pumps typically deliver strong financial value due to their efficiency in our mild winters and hot summers. With Texas electricity at 14.9¢ per kWh, heat pumps can reduce your heating and cooling costs by 30-50% compared to traditional systems, often paying for themselves within 7-10 years through energy savings alone.
Palmetto makes heat pumps financially accessible through two options: our Comfort Plan with $0 upfront and predictable monthly payments including all maintenance, or direct purchase where you own the system and may qualify for up to $2,000 in federal tax credits. Your best choice depends on whether you prefer immediate savings without upfront costs or long-term ownership with available incentives.
Heat pumps in San Antonio 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 drop to around 33°F, to recommend the right system size and configuration for year-round comfort.
Palmetto works with certified local installers to provide heat pump installation through two flexible 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 San Antonio's unique climate needs.
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 type of HVAC system, but unlike traditional setups that use separate furnaces and air conditioners, a heat pump handles both heating and cooling in one efficient unit by transferring heat rather than generating it.
In San Antonio's Climate Zone 10, where winter temperatures rarely drop below 33°F, heat pumps work exceptionally well year-round. They're more energy-efficient than conventional HVAC systems because they move heat instead of burning fuel, which can help lower your electricity costs at Texas's current rate of 14.9¢ per kWh. Palmetto offers flexible installation options including a Comfort Plan with zero upfront costs and included maintenance, or direct purchase with potential federal tax credits up to $2,000.