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Texas heat pump costs vary significantly by metro area and system type. Houston averages $5,367 for a 3-ton system. Dallas-Fort Worth $8,250. Austin $7,057. San Antonio $5,231. Regional factors include labor costs, humidity requirements, and utility rebate programs.
2026 Update: The federal 25C heat pump tax credit expired December 31, 2025. Prices shown reflect full installed cost before utility rebates. Texas has no state-level heat pump tax credit. Utility rebates (Oncor, CenterPoint, Austin Energy, CPS Energy) remain the primary incentives.
Installed costs for a ducted central heat pump in each major Texas metro area as of February 2026. Prices include equipment, labor, electrical work, and permits.
| City | Average (3-ton) | Average (5-ton) | Range |
|---|---|---|---|
| Houston | $5,367 | $9,000 | $3,813 - $6,921 |
| Dallas-Fort Worth | $8,250 | $14,500 | $5,500 - $11,000 |
| Austin | $7,057 | $14,200 | $5,424 - $8,691 |
| San Antonio | $5,231 | $13,000 | $2,381 - $8,574 |
| El Paso | $6,500 | $12,500 | $4,500 - $9,000 |
Prices based on NuWatt Energy installer network data for Texas, February 2026. Actual costs vary by home layout, equipment brand, SEER2 rating, and installer. Does not include utility rebates.
Texas heat pump options range from affordable single-zone mini-splits to premium geothermal systems. Ducted central heat pumps are the most popular choice — replacing both your AC and furnace in one unit.
Additions, garages, single rooms
Replaces BOTH AC and furnace. Most common TX choice
Homes without ductwork
Heat pump + gas furnace backup for North TX cold snaps
Niche market, highest long-term savings
Unlike northern states where heating drives system sizing, Texas heat pumps are sized primarily for cooling. The SEER2 (cooling efficiency) rating matters more than HSPF2 (heating efficiency) for most Texas homeowners. A SEER2 16+ variable-speed system can cut cooling costs by 30-40% compared to a base SEER2 14.3 unit. Given that cooling accounts for 60-70% of Texas HVAC energy use, the investment in higher SEER2 pays off faster here than anywhere in the country.
Six factors drive the price difference between a $1,500 mini-split and a $28,000 geothermal system. Understanding these helps you compare quotes and avoid overpaying.
Texas homes need larger systems than northern states due to extreme cooling loads. A 2,000 sq ft home typically needs 3-4 tons; 3,000+ sq ft homes may need 5 tons. Oversizing for cooling capacity is common — but oversized systems short-cycle and waste energy. A proper Manual J load calculation accounts for insulation, window area, and regional climate data.
The federal minimum for Texas is SEER2 14.3 (as of January 2023). Gulf Coast humidity demands SEER2 16+ with variable-speed compressors for proper dehumidification. Premium SEER2 20+ units cost more upfront but deliver 30-40% lower cooling costs. In Texas, cooling dominates 8-9 months of the year, making SEER2 rating more impactful than HSPF2.
Houston and the Gulf Coast region require variable-speed or inverter-driven heat pumps that can run at low speed for extended dehumidification cycles. Single-stage units cool the air too quickly without removing enough moisture, leaving homes at 60-70% humidity. This is less of a concern in El Paso, Lubbock, and West Texas where dry conditions prevail.
Most Texas homes have existing ductwork, but attic-run ducts (common in TX) lose 20-30% of cooling capacity to extreme attic heat. Duct sealing costs $500-$1,500. Full duct replacement runs $2,000-$5,000. Insulating attic ducts or moving them to conditioned space significantly improves heat pump performance.
Heat pumps require a 30-60 amp dedicated circuit. Older homes with 100-amp panels may need a panel upgrade ($1,500-$3,000). Homes adding a heat pump alongside existing high-draw appliances (electric range, EV charger) are more likely to need panel work. Most homes built after 2000 with 200-amp panels can accommodate a heat pump without upgrades.
Houston and DFW have the most competitive HVAC markets in Texas, with dozens of qualified installers driving prices down. Austin labor costs run 10-15% higher due to construction demand. San Antonio offers the most affordable installation costs among major metros. Rural areas may have fewer options and higher travel charges.
Texas utility rebates vary significantly by territory. Austin Energy leads with approximately $3,000. Here is your net cost for a 3-ton ducted central heat pump in each major utility territory.
The Home Efficiency Rebates (HEAR) program under the Inflation Reduction Act would provide additional rebates for income-qualified Texas households. Texas received $690 million in HEAR allocation. The Texas State Energy Conservation Office (SECO) is developing implementation plans. Launch timeline is pending DOE approval.
The federal Section 25C energy efficiency tax credit expired December 31, 2025 under the One Big Beautiful Bill Act. There is no federal tax credit for residential heat pump purchases in 2026. Texas has no state-level heat pump tax credit. Any contractor claiming a $2,000 federal credit is providing outdated information.
Select your utility territory and system details to see your estimated net cost after rebates.
Replaces central AC + furnace using existing ductwork. Most common choice for TX homes.
3.5 tonelada(s) (la mayoria de casas TX: 3-5 toneladas)
Area desregulada: El reembolso de $300 viene deOncor (su TDU). Su tarifa de electricidad depende de que plan de REP (proveedor de electricidad minorista) elija.
Estimaciones basadas en programas de reembolso de companias electricas de TX 2026. El reembolso e instalacion reales son determinados por su contratista y compania electrica. El credito fiscal federal 25C vencio Dic 31, 2025 — no incluido.
Austin Energy offers up to ~$3,000 — the highest in Texas. CPS Energy offers $100-$275/ton. Oncor offers ~$600. CenterPoint offers ~$500. Rural co-ops and El Paso Electric generally offer no heat pump-specific rebates. Check with your utility for current programs and eligibility requirements.
Unlike Connecticut (Energize CT) or Massachusetts (Mass Save), Texas has no statewide heat pump rebate program. Incentives come exclusively from individual utilities and the pending federal HEAR program. Your location determines which rebates are available.
This is the key Texas selling point. When both your AC and furnace need replacement, a single heat pump replaces both — often for less money.
A ducted central heat pump at $5,500 - $11,000 replaces both systems for less than buying an AC and furnace separately at $7,000 - $14,000. That is $1,500 - $3,000 in equipment savings BEFORE utility rebates. Add in the savings from one maintenance contract instead of two, and the gap widens further.
Texas has no statewide financing program like Connecticut's Smart-E Loan. Financing options vary by city and are more limited than in northeastern states.
Through Velocity Credit Union. Austin Energy customers only.
Territory: AustinRepaid through monthly CPS Energy bill. San Antonio customers.
Territory: San AntonioCarrier, Lennox, Trane dealer programs. Statewide availability.
Territory: StatewideInterest may be tax-deductible. Requires sufficient home equity.
Territory: StatewideThe Section 48/48E investment tax credit is still available for projects beginning construction before July 4, 2026 — but only for third-party owned systems (lease or PPA arrangements). The third-party system owner (financing company) claims the ITC, not the homeowner. This does not apply to direct cash or loan purchases. If a Texas contractor offers an "ITC-backed lease," verify that the financing company — not you — is claiming the credit.
Preguntas comunes sobre costos de bombas de calor en Texas.
Oncor, CenterPoint, Austin Energy, CPS Energy rebate details.
Leer guíaOne system replaces two. Side-by-side efficiency and cost.
Leer guíaTDLR licensing, Manual J sizing, contractor red flags.
Leer guíaERCOT deregulation, REP selection, and heat pump economics.
Leer guíaGulf Coast SEER2 16+, variable-speed, dehumidification.
Leer guíaGas at $1.10/therm vs heat pump. Honest ROI at TX rates.
Leer guíaLast updated: February 2026. Prices and rebate amounts may change. Contact NuWatt Energy or your local utility for current information.
NuWatt Energy works with licensed HVAC contractors across Texas. Get a free assessment, proper Manual J sizing, and help maximizing your utility rebates — whether you are in Houston, Dallas, Austin, San Antonio, or anywhere in Texas.