Illinois Heat Pump Leasing & Installation Guide
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.
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.
| Comfort Plan | Cash | Loan | |
|---|---|---|---|
| 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 | Yes | No | No |
| Eligible for incentives | Yes | No | No |
Get a quote See how Comfort Plan works
Heat Pump Financing in Illinois
Illinois does not currently have active state-level heat pump rebate programs available in 2026. The federal IRA tax credit for heat pumps expired on December 31, 2025. However, some Illinois utilities may offer local rebates for heat pump installations. Homeowners should contact their electric utility directly to inquire about any available programs. Palmetto’s Comfort Plan lease offers an alternative path to heat pump installation with $0 upfront cost, allowing homeowners to benefit from heat pump technology without waiting for rebate programs or managing tax credits.
Federal IRA Tax Credit
Expired (was up to $2,000)
The Inflation Reduction Act provided a federal tax credit of up to $2,000 for qualifying heat pump installations. Eligibility: This credit is no longer available. It applied to homeowners who purchased and installed qualifying heat pump systems by December 31, 2025.
Palmetto Comfort Plan: $0 Upfront Heat Pump Leasing
Even without local rebates, Palmetto’s Comfort Plan makes upgrading easy. You get a high-efficiency heat pump installed with $0 upfront cost, predictable monthly payments, and all maintenance and repairs included for the life of the plan.
Illinois Electricity Prices
Understanding electricity costs in Illinois helps you make smarter decisions about home heating and cooling—and potentially save thousands over time.
Illinois electricity rates jumped 20% from 2021 to 2024, rising from 13.2 to 15.9 cents per kWh. While rates have stayed slightly below the national average, they’ve climbed steadily, impacting household budgets statewide.
Heat pumps offer a practical response to rising rates. Because they’re 2-3 times more efficient than traditional HVAC systems, they use significantly less electricity to deliver the same heating and cooling—reducing your consumption even as prices increase.
As electricity costs continue their upward trend, efficiency becomes increasingly valuable. A heat pump’s lower energy consumption means your monthly bills stay manageable today while protecting your budget against future rate increases for years to come.
Price of Energy: Illinois vs National Average
0¢
10¢
20¢
30¢
13.7¢
13.2¢
15.0¢
15.7¢
16.0¢
15.7¢
16.5¢
15.9¢
2021
2022
2023
2024
US Average
Illinois
Illinois Utility Providers
Illinois residents have access to several electricity providers with varying rates. According to 2023 data, costs ranged from 5.54¢ to 17.04¢ per kWh—well below to slightly above the national average of 16.0¢ per kWh.
Traditional utilities like Commonwealth Edison and Ameren Illinois maintain rates near state and national averages due to infrastructure costs and regulated pricing. Meanwhile, competitive retail suppliers often offer lower rates through market competition and flexible purchasing strategies.
Heat pumps can help you maximize savings regardless of your provider’s rates. Their exceptional efficiency means they use less electricity than traditional heating and cooling systems, reducing your total energy costs even in higher-rate service areas.
Illinois Utilities Electricity Rates
Commonwealth Edison Co 14.78¢
Ameren Illinois Company 17.04¢
Constellation NewEnergy, Inc 10.74¢
Energy Harbor Corp. 8.38¢
Reliant Energy Northeast LLC 12.80¢
MC Squared Energy Services,… 7.71¢
Homefield Energy 5.54¢
IL Average 15.70¢
US Average 16.0¢
Illinois Heat Pump City Guides
Explore detailed heat pump installation guides for cities across Illinois. Each guide includes local utility rates, incentives, and climate-specific recommendations.
Aurora Bloomington Chicago Elgin Evanston Joliet Naperville Peoria Rockford Springfield Waukegan
Frequently Asked Questions
Do heat pumps work well in Illinois?
Yes, heat pumps work well in Illinois, including during cold winters. Modern cold-climate heat pumps efficiently heat homes even when temperatures drop below freezing, which makes them suitable for Illinois’ climate. They also provide cooling in summer, replacing both your furnace and air conditioner with one efficient system.
How much does a heat pump cost in Illinois?
Heat pump installation costs in Illinois typically range from $5,000 to $20,000 depending on the system size, equipment type, and installation complexity. Factors like your home’s square footage, existing ductwork, and whether you choose a ducted or ductless system all influence the final price.
What are the best heat pump brands for Illinois homeowners?
Top heat pump brands for Illinois homeowners include Carrier, Trane, Lennox, Mitsubishi, and Daikin. These manufacturers produce cold-climate models that perform efficiently in Illinois winters, maintaining heating capacity even when temperatures drop below freezing.
Are there heat pump rebates available in Illinois?
Yes, Illinois homeowners can access heat pump rebates through several programs.
Should I lease or buy a heat pump in Illinois?
The decision between leasing and buying a heat pump in Illinois depends on your financial situation and priorities.
Is a heat pump worth it financially in Illinois?
Yes, heat pumps can be worth it financially in Illinois. Modern heat pumps operate efficiently even in cold climates, and with electricity at 15.9¢ per kWh, they typically cost less to run than traditional heating systems.
What size heat pump do I need for my Illinois home?
The right heat pump size for your Illinois home depends on several factors: your home’s square footage, insulation quality, ceiling height, window efficiency, and local climate conditions.