Ohio 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 Ohio
While Ohio has received federal funding for the HEEHRA and HOMES rebate programs, these state-level programs have not yet launched as of February 2026 and remain pending federal approval. However, Ohio homeowners can still take advantage of the federal IRA tax credit of up to $2,000 for qualifying heat pump installations. Palmetto’s Comfort Plan lease offers $0 upfront cost as an alternative way to access heat pump technology without waiting for state rebate programs to become available.
Federal IRA Tax Credit
Up to $2,000
The Inflation Reduction Act provides a federal tax credit of up to $2,000 for qualifying heat pump installations through 2032.
Eligibility: Available to homeowners who purchase and install a qualifying heat pump system. Claimed on your annual federal tax return.
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.
Incentive information is based on publicly available data as of 2026 and may change. Contact program administrators to verify current availability and eligibility requirements. Ohio’s state rebate programs (HEEHRA and HOMES) are not yet active; check with the Ohio Department of Development for launch updates.
Ohio Electricity Prices
Understanding electricity costs in Ohio helps you make smarter decisions about home heating and cooling—especially as rates continue to climb.
Ohio electricity rates have risen 26% since 2021, climbing from 12.8 to 16.1 cents per kWh. While rates have tracked close to the national average, every increase impacts your monthly energy bills.
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 heating and cooling comfort.
As electricity rates continue their upward trend, efficiency becomes increasingly valuable. A heat pump’s lower energy consumption means you’re better insulated against future rate increases, protecting your budget for years to come.
Price of Energy: Ohio vs National Average
0¢
10¢
20¢
30¢
13.7¢
12.8¢
15.0¢
13.9¢
16.0¢
15.4¢
16.5¢
16.1¢
2021
2022
2023
2024
US Average
Ohio
Source: US Bureau of Labor Statistics, Energy Information Administration, Form 861
Ohio Utility Providers
Ohio residents have access to multiple utility providers with varying electricity rates. According to 2023 data, rates ranged from 5.67¢ per kWh (Energy Harbor) to 18.63¢ per kWh (Ohio Power Co), with most falling below the national average of 16.0¢ per kWh.
Ohio’s competitive energy market allows customers to choose suppliers, creating price variation across providers. Larger utilities like Ohio Power and Dayton Power & Light showed higher rates, while competitive suppliers like Energy Harbor and Dynegy offered lower rates through market competition.
Heat pumps can help manage energy costs regardless of your utility provider. Their high efficiency means they use less electricity than traditional heating and cooling systems, potentially reducing your total energy spending even in areas with higher electricity rates.
Ohio Utilities Electricity Rates
| Provider | Rate (¢/kWh) |
|---|---|
| Energy Harbor Corp. | 5.67¢ |
| Ohio Power Co | 18.63¢ |
| Ohio Edison Co | 14.59¢ |
| AEP Energy | 7.73¢ |
| Duke Energy Ohio Inc | 14.73¢ |
| Cleveland Electric Illum Co | 14.40¢ |
| Dynegy Energy Services, LLC | 6.10¢ |
| NextEra Energy Services, LLC | 6.50¢ |
| Dayton Power & Light Co | 16.40¢ |
| Adjustment 2023 | 12.84¢ |
| Interstate Gas Supply, Inc. | 9.88¢ |
| South Central Power Company | 14.25¢ |
| OH Average | 15.40¢ |
| US Average | 16.0¢ |
Source: US Energy Information Administration, 2023, Form 861, Table 6
Ohio Heat Pump City Guides
Explore detailed heat pump installation guides for cities across Ohio. Each guide includes local utility rates, incentives, and climate-specific recommendations.
Akron Cincinnati Cleveland Columbus Dayton Toledo Youngstown
Palmetto Reviews
We have already told friends about how well we were treated during our new HVAC purchase and installation. Your service met our needs and everything was done easily and promptly.
Palmetto Customer
SC
Everything about my experience was excellent. My new HVAC system was installed the next day; the process took less time than expected; the technicians were friendly, polite, and professional; and my home has been a comfortable temperature since with zero issues.
Palmetto Customer
MD
The overall process was very easy. The specific payment plan offered was a tremendous help when I needed to resolve my AC problem. I would recommend for convenience and service.
Palmetto Customer
VA
Ready to start saving with a heat pump?
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Frequently Asked Questions
Do heat pumps work well in Ohio?
Yes, heat pumps work well in Ohio. Modern heat pumps are designed to operate efficiently in cold climates and can effectively heat homes even when temperatures drop below freezing. Ohio’s winters, while cold, fall well within the operating range of today’s cold-climate heat pump technology, making them a reliable heating and cooling solution year-round.
How much does a heat pump cost in Ohio?
Heat pump costs in Ohio typically range from $5,000 to $20,000 for a complete installation, depending on your home’s size, existing infrastructure, and the system’s efficiency rating. This upfront investment can be offset by federal tax credits of up to $2,000 under the Inflation Reduction Act, plus any available local utility rebates.
What are the best heat pump brands for Ohio homeowners?
The best heat pump brands for Ohio homeowners include Carrier, Lennox, Trane, Mitsubishi Electric, and Daikin. These manufacturers offer cold-climate models with excellent performance ratings, even during Ohio’s winter temperatures. Look for units with high HSPF2 ratings (ideally 9.0 or above) and ENERGY STAR certification to maximize efficiency year-round.
Are there heat pump rebates available in Ohio?
Yes, Ohio homeowners can access heat pump rebates through federal programs and potentially local utility incentives. The federal Inflation Reduction Act offers tax credits up to $2,000 for qualifying heat pump installations when you purchase your system outright. Some Ohio utility companies also provide additional rebates or incentives for energy-efficient heating and cooling upgrades.
Should I lease or buy a heat pump in Ohio?
The choice between leasing and buying a heat pump in Ohio depends on your financial situation and priorities. Buying means paying upfront but owning the equipment outright, with potential access to federal tax credits up to $2,000 under the Inflation Reduction Act. Leasing through a Comfort Plan requires $0 upfront and includes all maintenance and repairs in your monthly payment.
Is a heat pump worth it financially in Ohio?
Yes, heat pumps are typically worth it financially in Ohio. Modern heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems, and with Ohio’s electricity rate at 16.1¢ per kWh, the operating savings add up quickly. Federal tax credits of up to $2,000 and local rebates can further improve the financial return.
What size heat pump do I need for my Ohio home?
The right heat pump size for your Ohio home depends on several factors: your home’s square footage, insulation quality, ceiling height, number of windows, and local climate conditions. Most Ohio homes need a heat pump ranging from 2 to 5 tons, with each ton covering roughly 400-600 square feet in a well-insulated home.