Phoenix, AZ Heat Pump Leasing & Installation
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.
Phoenix, AZ Heat Pump Load Calculator
Use this calculator to estimate your home’s heating and cooling needs based on square footage. It’s tailored to Phoenix’s ACCA-standard design conditions: 110°F cooling and 60°F heating outdoors, with 72°F indoors. For a precise Manual J load calculation and personalized quote, connect with Palmetto’s team. Get in touch with our team for an official quote.
Home location & size
Your home’s location and size directly impact heating needs.
- ZIP Code
- Number of residents
- Home Square Footage (sq ft)
- Home Ceiling Height (ft)
Home attributes
- Amount of sunlight: Low, Moderate, High
- Insulation: Poor Insulation, Standard Insulation, Good Insulation, Excellent Insulation
- Number of Windows
- Window and Door Seals: Poor fit & Seal, Typical fit & Seal, Good fit & Seal
Additional details
- Do you have a kitchen? Yes/No
- Do you have any glassed-in rooms? Yes/No
- Extra Device Wattage (W)
Estimated Heating Needs
Your home’s location falls within a climate zone with the average extreme winter falling between 10° – 15° F.
Home Details
Recommended equipment capacity
- 60,000 BTU
- 5 Tons
Calculated Cooling Mode
- 102,000 BTU
- 8.5 Tons
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 |
Phoenix, AZ Heat Pump Rebates & Incentives
Local and federal incentive programs can significantly reduce the cost of a new heat pump system. Here are the programs available to Phoenix homeowners.
Efficiency Arizona HEAR
- Up to $8,000
- Home Electrification and Appliance Rebates program providing point-of-sale rebates for qualifying heat pump installations. Available to low- and moderate-income households through September 30, 2031.
- Eligibility: Low-income households (below 80% AMI) receive up to 100% of project costs; moderate-income households (80-150% AMI) receive up to 50% of costs, up to $14,000 total per household. Homes must not have existing heat pumps. Installation must be by qualified Efficiency Arizona contractor.
SRP Cool Cash Rebate
- Up to $1,125
- Utility rebate program for high-efficiency air conditioning and heat pump systems. Rebates are paid per ton of cooling capacity based on system efficiency ratings.
- Eligibility: SRP residential electric customers in single-family homes, attached homes, or apartments/condos. The system must be installed by April 30, 2026, by a licensed Arizona contractor. Must meet minimum SEER2 efficiency ratings (15.2 SEER2 or higher for units installed after November 11, 2024).
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.
Climate Zones
Phoenix falls within IECC Climate Zone 13, which means mild winters with design temperatures around 60°F and scorching summers that can reach 110°F. This extreme cooling demand makes proper heat pump sizing critical—you need a system that can handle triple-digit heat without breaking a sweat. At Palmetto, we understand Phoenix's unique climate and can help you choose a heat pump that's right for your home.
Climate Zone 13
- Very hot climate zone with hot year-round temperatures.
- Climate Zone 13A: Avg. extreme winters: 60° to 65° F
- Climate Zone 13B: Avg. extreme winters: Above 65° F
Phoenix Electricity Prices
Understanding electricity costs in Phoenix helps you make smarter decisions about your home's heating and cooling systems.
Arizona electricity rates have climbed from 12.5 cents per kWh in 2021 to 14.9 cents in 2024—a 19% increase in just three years, outpacing inflation.
Heat pumps use 2-3 times less electricity than traditional HVAC systems to deliver the same heating or cooling. That efficiency means lower bills even as rates continue to rise.
Price of Energy: Arizona vs National Average
- 2021: 12.5¢
- 2022: 13.0¢
- 2023: 14.0¢
- 2024: 14.9¢ (Arizona)
- US Average: 16.0¢
Phoenix Area Utility Providers
Phoenix residents are served primarily by two utility providers: Arizona Public Service (APS) and Salt River Project (SRP). According to 2023 data, APS averaged 15.3¢ per kWh, while SRP averaged 12.5¢ per kWh.
Phoenix Utilities Electricity Rates
- APS: 15.30¢
- SRP: 12.50¢
- AZ Average: 14.00¢
- US Average: 16.0¢
Palmetto Reviews
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
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
Let our smart tools do the heavy lifting.
Get personalized tips, usage insights, project tracking, and that daily satisfaction of making your energy work smarter with the Palmetto mobile app.
Repair versus replace
When a heat pump is in need of repair it is worth considering whether a replacement would be a better investment. While each case is unique, we generally recommend investing in a new unit when repairs exceed $5,000.
Potential repair costs
| Potential repair | Cost range | Description |
|---|---|---|
| Capacitor Replacement | $150 - $400 | Common issue when unit struggles to start or makes a humming noise. |
| Refrigerant Recharge | $250 - $750 | Needed when the system loses cooling or heating efficiency. |
| Reversing Valve Replacement | $450 - $900 | Required when the unit cannot switch between heating and cooling modes. |
| Compressor Replacement | $1,500 - $3,000 | Major repair needed when the unit fails to heat or cool entirely. |
| Evaporator/Condenser Coil Replacement | $1,200 - $2,800 | Replacement needed when coils develop leaks or corrosion. |
| Control Board Replacement | $500 - $1,200 | Required when the system has electrical failures. |
| Full System Replacement | $4,500 - $8,000+ | When repairs exceed the value of the unit. |
Frequently Asked Questions
Do heat pumps make sense in Phoenix?
Yes, heat pumps are highly beneficial in Phoenix.
How efficient are heat pumps in Phoenix's climate?
Heat pumps can achieve efficiency ratings of 300-400%.
Should I lease or buy a heat pump in Phoenix?
Leasing offers predictable costs, while buying allows for ownership and potential tax credits.
How much does a heat pump cost in Phoenix?
Costs usually range from $5,000 to $15,000 for complete installation.
Is a heat pump worth it financially?
Yes, they can reduce costs by 30-50% compared to traditional systems.
Who installs heat pumps in Phoenix?
Licensed HVAC contractors specializing in Arizona's climate install heat pumps.