Tyler, 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
Tyler, TX Heat Pump Load Calculator
Use our calculator below to estimate your home’s heating and cooling needs based on square footage. It uses ACCA-standard design conditions for Tyler, TX: 72°F indoor, 95°F outdoor for cooling, and 33°F for heating. For a precise Manual J load calculation and personalized quote, connect with our 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
Tyler, 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 Tyler homeowners.
Oncor Heat Pump Rebate
Up to $600+Oncor Electric Delivery offers energy efficiency rebates for qualifying heat pump installations in Tyler. Rebates are calculated based on energy savings and require installation of a US DOE-listed smart thermostat.
Federal IRA Tax Credit
Up to $2,000The Inflation Reduction Act provides a federal tax credit of up to $2,000 for qualifying geothermal heat pump installations through 2032. Note: Air-source heat pump credits expired December 31, 2025.
Tyler homeowners have access to Oncor Electric Delivery's heat pump rebate program, which offers substantial incentives for qualifying high-efficiency heat pump installations. While Texas state-level HOMES and HEAR rebate programs have not yet launched in 2026, Oncor's utility-level incentives remain available on a first-come, first-served basis. Palmetto can help homeowners navigate these rebate programs and explore alternative financing options like our Comfort Plan lease, which offers $0 upfront cost for heat pump installations.
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
Tyler 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 matters because your heat pump needs to handle significant cooling loads while providing efficient heating during occasional cold snaps. At Palmetto, we understand Tyler's unique conditions and can help you choose a system sized and selected for East Texas weather. Explore other zones below or enter your ZIP code to confirm your climate zone.
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
Tyler Electricity Prices
Understanding electricity costs in Tyler helps you make smarter decisions about home heating and cooling—especially as rates continue to climb.
Texas electricity rates have risen 23% since 2021, climbing from 12.1 to 14.9 cents per kilowatt-hour. For Tyler homeowners, this translates to higher monthly bills for the same amount of heating and cooling.
Heat pumps offer a practical response to rising electricity costs. Because they're 2-3 times more efficient than traditional HVAC systems, they use significantly less electricity to deliver the same comfort—meaning lower bills even as rates increase.
As electricity rates continue their upward trend, efficiency becomes increasingly valuable. A heat pump installed today protects you from future rate increases by reducing your overall electricity consumption for decades to come.
Price of Energy: Texas vs National Average
Tyler Area Utility Providers
Tyler residents receive electricity primarily from SWEPCO (Southwestern Electric Power Company). Based on 2023 data, SWEPCO's average rate was 11.9¢ per kWh—notably lower than both the Texas average of 14.5¢ and the national average of 16.0¢.
Tyler's below-average electricity costs stem from Texas's deregulated energy market and the region's diverse energy mix, including natural gas and renewable sources. SWEPCO's rates benefit from efficient transmission infrastructure and regional competition, keeping costs more manageable for East Texas customers.
Lower electricity rates make Tyler an ideal location for heat pump systems. Heat pumps run on electricity alone, and their high efficiency means they use less energy than traditional HVAC systems—so you're multiplying savings with both competitive rates and reduced consumption.
Tyler 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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- 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 Tyler. Located in Climate Zone 10 with mild winters (design heating temp: 33°F) and hot summers (design cooling temp: 95°F), Tyler's climate is ideal for heat pump efficiency. Heat pumps both heat and cool your home while using less energy than traditional systems, which matters with Texas electricity rates at 14.9¢ per kWh.
Tyler homeowners have flexible options to get started. Palmetto's Comfort Plan offers $0 upfront with maintenance included, while direct purchase may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. Either way, you'll enjoy year-round comfort with lower energy bills compared to conventional heating and cooling systems.
Heat pumps perform exceptionally well in Tyler's Climate Zone 10, where winter temperatures rarely drop below the 33°F design heating threshold. Modern heat pumps operate efficiently in Tyler's mild winters and hot summers (up to 95°F), typically delivering 2-3 times more heating or cooling energy than the electricity they consume, making them cost-effective given Texas's 14.9¢ per kWh electricity rates.
Tyler's climate is ideal for year-round heat pump efficiency since extreme cold snaps are infrequent. This means your system will maintain consistent performance throughout most heating and cooling seasons. Whether you choose Palmetto's Comfort Plan with included maintenance or direct purchase to access federal tax credits up to $2,000, you'll benefit from lower energy bills compared to traditional heating and cooling systems.
The choice between leasing and buying a heat pump in Tyler depends on your financial priorities and homeownership plans. Palmetto's Comfort Plan lease requires $0 upfront and includes all maintenance and repairs, making it ideal if you prefer predictable monthly costs. Direct purchase 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 Tyler's climate needs—with cooling demands reaching 95°F and heating down to 33°F—your heat pump will run year-round. If you want hassle-free service and no surprise repair costs, leasing offers peace of mind. If you plan to stay in your home long-term and want to maximize incentives while building equity in your equipment, purchasing may provide better value over time.
Heat pump costs in Tyler 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. Tyler's Climate Zone 10 conditions—with winter lows around 33°F and summer highs near 95°F—mean you'll need a properly sized system that handles both heating and cooling efficiently year-round.
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. With Texas electricity rates at 14.9¢ per kWh, an efficient heat pump can significantly reduce your energy bills compared to traditional heating and cooling systems.
Yes, heat pumps are typically worth it financially in Tyler, TX. With Texas electricity rates at 14.9¢ per kWh and Tyler's moderate climate (heating design temp of 33°F), 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 the investment even more accessible with two options: a Comfort Plan with $0 upfront and all maintenance included, or direct purchase with potential federal tax credits up to $2,000. The financial benefit depends on your current system's efficiency and energy usage, but most Tyler homeowners see meaningful savings on their monthly utility bills starting immediately.
Heat pumps in Tyler are installed by licensed HVAC contractors who are trained to work with these efficient heating and cooling systems. Palmetto partners with certified local installers in Tyler, TX who understand the specific needs of Climate Zone 10, where systems must handle both 95°F summer temperatures and occasional winter lows around 33°F.
Palmetto offers two installation options for Tyler homeowners: 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 heat pump is properly sized and configured for Tyler's climate and your home's specific 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. Heat pumps are unique because they both heat and cool your home using electricity to transfer heat rather than burning fuel, making them highly efficient in Tyler's moderate climate.
Traditional HVAC systems typically use separate equipment for heating (like a gas furnace) and cooling (an air conditioner). Heat pumps handle both jobs with one unit, which can lower energy costs at Texas's current rate of 14.9¢ per kWh. Palmetto offers heat pump installation through flexible options including our Comfort Plan with zero upfront cost and included maintenance, or direct purchase with potential federal tax credits up to $2,000.