Heat Pump Buying Guide: How to Choose the Right Heat Pump for Your Home

Buying a heat pump is a major home heating and cooling decision. The right system can provide both heating and air conditioning, improve energy efficiency, and deliver reliable comfort throughout the year. However, choosing the right heat pump involves more than simply selecting the model with the highest efficiency rating or the largest capacity.

Your home’s size, climate, insulation, ductwork, electrical system, heating requirements, cooling requirements, budget, and installation conditions all affect which heat pump is appropriate.

This heat pump buying guide explains the most important factors to consider before purchasing a system, including heat pump type, capacity, efficiency, climate performance, system configuration, installation requirements, operating costs, and available incentives.

Quick Guide: What to Look for When Buying a Heat Pump

Factor	What to Consider
Heat pump type	Choose between ducted, ductless, air-source, geothermal, or other configurations based on your home.
System size	The system should be properly sized using a heating and cooling load calculation.
Climate	Cold-climate homes may require a heat pump specifically designed to maintain heating performance at low temperatures.
Efficiency	Compare ratings such as SEER2, EER2, HSPF2, and COP where applicable.
Heating capacity	Check how much heating capacity the system provides at relevant outdoor temperatures.
Cooling capacity	Make sure the system can meet the home’s cooling load without excessive cycling.
Backup heating	Cold-climate homes may benefit from auxiliary or backup heating.
Installation	Installer quality, ductwork, refrigerant charging, airflow, and electrical requirements are important.
Noise	Check outdoor and indoor sound ratings if noise is a concern.
Warranty	Compare equipment, compressor, parts, and labor warranty coverage.
Total cost	Consider equipment, installation, electrical upgrades, maintenance, and operating costs.

What Is a Heat Pump?

A heat pump is a heating and cooling system that transfers heat rather than generating heat in the same way as a combustion furnace.

In cooling mode, a heat pump removes heat from inside the home and transfers it outdoors. In heating mode, the refrigeration cycle operates in reverse, allowing the system to extract heat from outdoor air and transfer it indoors.

This allows one system to provide both heating and cooling.

1. Decide Which Type of Heat Pump You Need

The first step is determining which heat pump configuration is appropriate for your home.

Air-Source Heat Pumps

Air-source heat pumps use outdoor air as the heat source during heating operation. They are one of the most common options for residential heating and cooling.

Air-source systems are available in both ducted and ductless configurations.

Ducted Heat Pumps

Ducted heat pumps distribute conditioned air through the home’s existing or newly installed ductwork.

They can be a good choice when a home already has suitable central HVAC ductwork.

Ductless Mini-Split Heat Pumps

Ductless heat pumps use indoor air handlers instead of traditional ductwork. They can be useful for homes without ducts, additions, converted spaces, garages, or rooms where extending ductwork would be difficult.

Geothermal Heat Pumps

Geothermal heat pumps exchange heat with the ground or groundwater rather than relying directly on outdoor air.

They can provide highly efficient heating and cooling but generally require more extensive installation and site-specific planning.

2. Determine the Correct Heat Pump Size

Proper sizing is one of the most important parts of buying a heat pump.

A larger heat pump is not automatically better. An oversized system can cycle on and off more frequently, while an undersized system may struggle to maintain the desired temperature during periods of extreme weather.

ENERGY STAR recommends that contractors determine the appropriate equipment size using a Manual J heating and cooling load calculation rather than relying on a simple rule of thumb. 1

Factors That Affect Heat Pump Size

Home size
Climate
Insulation levels
Window area
Window efficiency
Ceiling height
Air leakage
Number of occupants
Orientation of the home
Ductwork condition
Heating requirements
Cooling requirements

Do not select a heat pump solely because it is advertised as suitable for a particular square footage. Actual heating and cooling loads can vary substantially between homes of the same size.

3. Consider Your Climate

Climate should play a major role in heat pump selection.

A system designed primarily for moderate weather may not be the best choice for a home that regularly experiences very low winter temperatures.

Heat Pumps for Cold Climates

If you live in a cold region, look for equipment specifically designed and tested for low outdoor temperatures.

ENERGY STAR’s cold-climate criteria include low-temperature performance requirements, including testing at 5°F. Certified cold-climate systems are designed to retain useful heating capacity and efficiency under colder conditions. 2

Cold-climate homes should also be evaluated for backup heating requirements, particularly in areas where outdoor temperatures can fall significantly below the heat pump’s optimal operating range.

4. Compare Heat Pump Efficiency Ratings

Efficiency ratings help you compare different heat pump systems, but you should not evaluate a heat pump using only one number.

SEER2

SEER2 measures seasonal cooling efficiency. A higher SEER2 generally indicates greater cooling efficiency under the standardized test conditions.

HSPF2

HSPF2 is a seasonal heating efficiency rating used for heat pumps.

EER2

EER2 measures cooling efficiency under a specific set of conditions rather than across an entire cooling season.

COP

Coefficient of performance, or COP, compares useful heating or cooling output with electrical energy input under specific operating conditions.

When comparing models, look at the complete performance data rather than selecting the system with the highest single efficiency number.

5. Look at Heating Capacity at Low Temperatures

For a heat pump, the advertised maximum heating capacity does not tell the entire story.

Heating capacity can change as outdoor temperatures change. A system that provides a particular amount of heat at moderate outdoor temperatures may provide less heating capacity when temperatures fall.

For cold climates, ask the contractor to show the system’s heating capacity at temperatures relevant to your location.

This is particularly important if you want the heat pump to provide most or all of your home’s heating without relying heavily on supplemental electric resistance heat.

6. Decide Whether You Need Backup Heat

Some homes use a heat pump as the primary heating system with another source of heat available when necessary.

Common backup options include:

Electric resistance heating
Gas furnaces in dual-fuel systems
Propane heating
Existing heating equipment
Wood or pellet heating systems

A backup heating system may be particularly useful in areas with severe winter temperatures or during unusual cold-weather events.

7. Choose Between Single-Stage, Two-Stage, and Variable-Speed Systems

Heat pumps are available with different compressor and capacity-control technologies.

Single-Stage Heat Pumps

A single-stage compressor generally operates at one primary capacity. These systems can be simpler and may have a lower initial cost.

Two-Stage Heat Pumps

Two-stage systems can operate at different capacity levels, allowing the system to provide lower output during milder conditions and higher output when more capacity is required.

Variable-Speed Heat Pumps

Variable-speed systems can adjust compressor operation over a wider range. This can improve comfort, reduce temperature swings, and allow the system to operate more continuously at lower output when conditions permit.

However, variable-speed technology can increase the initial equipment cost, so consider whether the additional cost makes sense for your home and climate.

8. Decide Whether You Need Ducted or Ductless Heating

If your home already has good ductwork, a ducted heat pump may be the simplest replacement option.

If the home does not have ducts, a ductless mini-split system may avoid the need to install a complete duct network.

Existing ductwork should be inspected rather than automatically assumed to be suitable. Leaky, poorly insulated, improperly sized, or restrictive ducts can reduce system performance.

9. Check Electrical Requirements

Heat pumps run on electricity, and some installations may require electrical work.

Before purchasing a system, ask the installer to evaluate:

Electrical service capacity
Breaker requirements
Voltage requirements
Disconnect requirements
Existing wiring
Auxiliary electric heat requirements
Potential electrical panel upgrades

Do not assume that your existing electrical system will automatically support every heat pump configuration.

10. Consider the Outdoor Unit Location

The outdoor unit needs sufficient clearance for airflow and service access.

The location should also take into account:

Snow accumulation
Flooding risk
Drainage
Airflow
Service access
Noise
Proximity to bedrooms
Roof runoff
Vegetation

In cold climates, installation height and protection from snow accumulation can be particularly important.

11. Consider Noise Levels

Heat pump noise can matter when the outdoor unit is installed near bedrooms, patios, property lines, or neighboring homes.

Compare published sound ratings between models and discuss the planned outdoor-unit location with the installer.

Variable-speed operation may also allow some systems to operate at lower output for longer periods rather than repeatedly starting at full capacity.

12. Check the Refrigerant

Refrigerant selection is becoming increasingly important when purchasing new HVAC equipment.

Ask the contractor which refrigerant the system uses and whether the equipment meets the current requirements applicable to your installation.

Because refrigerant regulations and equipment availability can change, verify current requirements when purchasing rather than relying on older information.

13. Look for ENERGY STAR Certification

ENERGY STAR certification provides a useful starting point when comparing efficient residential heat pumps.

ENERGY STAR maintains a product finder that can be used to identify certified air-source heat pumps and compare qualifying equipment. 3

Certification should not replace proper sizing and professional installation, however. A highly efficient heat pump that is incorrectly sized or poorly installed may not deliver the expected performance.

14. Compare the Total Installed Cost

The purchase price of the heat pump is only one part of the total cost.

Your project may also include:

Indoor air handler
Outdoor unit
Thermostat or controls
Duct modifications
Refrigerant lines
Electrical work
Electrical panel upgrades
Condensate drainage
Mounting equipment
Permits
Labor
Old equipment removal
Backup heating equipment

Get multiple detailed installation estimates and compare what each quote actually includes.

15. Consider Operating Costs, Not Just Purchase Price

A cheaper heat pump is not necessarily the least expensive option over its lifetime.

When comparing systems, consider:

Purchase price
Installation cost
Electricity rates
Expected heating demand
Expected cooling demand
Efficiency ratings
Maintenance costs
Expected equipment life
Warranty coverage
Available rebates and incentives

DOE notes that evaluating lifetime energy costs can provide a better picture of the economic value of a more efficient heat pump than simply comparing its initial purchase price. 4

16. Check Available Rebates and Incentives

Heat pump incentives can vary by state, utility, income level, equipment type, and installation date.

Before purchasing equipment, check federal, state, local, and utility programs that may apply to your project.

Do not purchase equipment solely because a salesperson says it qualifies for an incentive. Verify the current eligibility requirements and keep the required documentation.

ENERGY STAR provides tools for finding available incentives and certified equipment. 5

17. Choose the Right Thermostat and Controls

The thermostat or control system should be compatible with the heat pump and its operating features.

Some advanced heat pumps require compatible communicating controls to access their full range of operating capabilities.

If you are installing a variable-speed or multi-stage heat pump, ask whether the proposed thermostat can properly control those stages.

18. Evaluate Warranty Coverage

Compare warranty terms before buying a heat pump.

Pay attention to:

Compressor warranty
Parts warranty
Heat exchanger warranty where applicable
Labor coverage
Registration requirements
Warranty transferability
Requirements for authorized installation

A long equipment warranty does not necessarily mean that labor or service costs are covered for the same period.

19. Choose the Installer Carefully

Even a high-quality heat pump can perform poorly if it is incorrectly installed.

Ask potential contractors about:

Experience installing heat pumps
Cold-climate heat pump experience if applicable
Load calculations
Ductwork evaluation
Refrigerant charging procedures
Airflow testing
Electrical requirements
Permits
Commissioning
Warranty service

DOE notes that installation issues such as oversizing, improper charging, and leaky ducts can reduce efficiency and comfort and may shorten equipment life. 6

20. Get at Least Three Quotes

For a major heat pump installation, getting several quotes can make it easier to compare equipment and installation practices.

Do not compare quotes based only on the final price.

Compare the:

Heat pump model
System capacity
Efficiency ratings
Heating performance
Thermostat
Electrical work
Ductwork work
Warranty
Labor
Permits
Maintenance

Best Heat Pump Buying Strategy

For most homeowners, the best approach is to work through the decision in this order:

Determine whether a heat pump is appropriate for the home.
Choose ducted or ductless equipment.
Determine the heating and cooling loads.
Select the appropriate system capacity.
Consider the home’s climate.
Compare heating performance at relevant temperatures.
Compare SEER2, HSPF2, EER2, and other applicable ratings.
Check ENERGY STAR certification.
Evaluate electrical and ductwork requirements.
Compare installation costs.
Check available incentives.
Compare warranties.
Choose an experienced installer.

Common Heat Pump Buying Mistakes

Choosing the Largest System

Bigger is not automatically better. Proper sizing should be based on the home’s heating and cooling requirements.

Choosing Only by SEER2

Cooling efficiency is important, but heating performance matters just as much for a heat pump used as a primary heating system.

Ignoring Low-Temperature Performance

If you live in a cold climate, check how much heating capacity the system provides at low outdoor temperatures.

Ignoring Installation Quality

Equipment specifications cannot compensate for poor installation.

Comparing Only Equipment Prices

The cheapest equipment quote may not be the cheapest system to own over its useful life.

Assuming Existing Ductwork Is Perfect

Existing ducts should be inspected for leakage, sizing, insulation, and airflow problems.

Ignoring Electrical Requirements

Some heat pump installations may require electrical modifications or additional capacity.

Is an Expensive Heat Pump Worth It?

Not necessarily.

A premium heat pump can make sense when its additional performance, controls, low-temperature capability, efficiency, comfort, noise characteristics, or warranty provide meaningful benefits for your home.

However, paying substantially more for efficiency that you will rarely use may not provide the best return on investment.

The best heat pump is the one that provides the required heating and cooling performance at a reasonable total cost over its expected service life.

What Size Heat Pump Should You Buy?

There is no reliable universal rule that says a particular number of tons is appropriate for every home of a given square footage.

The correct size depends on the home’s actual heating and cooling loads. A professional contractor should perform an appropriate load calculation before selecting equipment. ENERGY STAR specifically recommends using Manual J to determine the heating and cooling requirements of a home. 7

What Efficiency Rating Should You Look For?

There is no single efficiency rating that is best for every home.

Compare cooling and heating efficiency together, while also considering the system’s actual capacity at the temperatures your home experiences.

For a heating-dominated climate, low-temperature heating performance may be more important than simply choosing the model with the highest cooling efficiency.

Are Cold-Climate Heat Pumps Worth It?

They can be, particularly in regions where winter temperatures are low and the heat pump will be used extensively for heating.

Modern cold-climate heat pumps are specifically evaluated for low-temperature performance. ENERGY STAR’s cold-climate criteria include performance testing at 5°F. 8

However, the appropriate choice depends on climate, electricity prices, backup heating, insulation, system sizing, and installation quality.

Frequently Asked Questions

What is the most important factor when buying a heat pump?

Proper sizing and installation are among the most important factors. Efficiency, climate suitability, heating capacity, equipment quality, and total cost are also important.

Should I buy the highest-efficiency heat pump?

Not automatically. A higher-efficiency model costs more, so compare its additional purchase cost with the expected energy savings and the amount of time you expect to use the system.

Do heat pumps work in cold climates?

Yes. Modern cold-climate heat pumps are designed to operate at low outdoor temperatures. However, performance varies by model, so check low-temperature capacity and efficiency before purchasing.

Should I replace my furnace with a heat pump?

It depends on your climate, electricity and fuel prices, existing HVAC system, home insulation, and heating requirements. A heat pump can provide both heating and cooling, but the economics vary by location.

Do I need a new thermostat with a heat pump?

Not always. However, the thermostat must be compatible with the specific heat pump system and its control requirements.

How long does a heat pump last?

Service life varies depending on equipment quality, installation, climate, maintenance, operating conditions, and usage. Regular maintenance and correct installation can help maximize equipment life.

Should I buy a ducted or ductless heat pump?

Ducted systems are often convenient for homes with suitable existing ductwork, while ductless systems can be useful where ducts are unavailable or difficult to install.

Is a heat pump expensive to operate?

Operating cost depends on the system’s efficiency, outdoor temperature, electricity price, heating demand, home insulation, and how the system is operated.

Final Buying Advice

Choosing a heat pump should be treated as a whole-system decision rather than simply a product purchase.

Start with your home’s heating and cooling loads. Then determine the appropriate heat pump type, capacity, climate performance, efficiency, controls, and installation requirements.

Compare complete installation proposals rather than equipment prices alone, and verify current rebates and incentive requirements before making the purchase.

The goal is not to buy the most powerful or most expensive heat pump. The goal is to buy a properly sized, climate-appropriate, efficient system that provides reliable heating and cooling at a reasonable lifetime cost.