Heat Pumps in Texas

A whole-home heat pump system in Texas typically costs $12,000–$22,000 installed before rebates. With the TX Utility Rebate rebate of up to $500, net cost can be as low as $11,500–$21,500. Note: the federal 25C heat pump tax credit expired December 31, 2025.

For Texas's climate, we recommend Daikin FIT, Goodman GSZC18, Lennox XP25. Both standard and cold-climate models work well in Texas.

A typical Texas home switching from oil heating saves approximately $950 per year — from $1,400/year in oil to roughly $450/year with a heat pump. Savings are even greater when paired with solar panels, which can reduce heat pump operating costs to near zero.

Texas's milder winters mean both standard and cold-climate heat pumps work well. Cold-climate models provide a performance margin but are not strictly required for most of Texas.

Texas utility rebates vary by provider (Oncor ~$600, CoServ ~$500).