Tempe, 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.
Tempe, AZ Heat Pump Load Calculator
Use our calculator below to estimate your home’s heating and cooling needs based on square footage. It uses ACCA-standard design conditions for Tempe, AZ: 110°F cooling and 60°F heating outdoor temperatures, with a 72°F indoor setpoint. 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 the 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 |
Tempe, 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 Tempe homeowners.
Efficiency Arizona HEAR
Up to $14,000
Eligibility: Low-income households are defined as households making less than 80% of the area median income, and moderate-income households are defined as households making between 80% and 150% of the area median income.
SRP Heat Pump Water Heater
$500
Eligibility: The HPWH must be installed in a home that has had permanent electric service from SRP for more than one year. Customers are eligible for an SRP Heat Pump Water Heater Rebate once every 10 years.
Federal IRA Tax Credit
Up to $2,000
Eligibility: Available to homeowners who purchase and install a qualifying heat pump system. Claimed on your annual federal tax return.
Climate Zones
Tempe sits in IECC Climate Zone 13, which means mild winters with design temperatures around 60°F and scorching summers that can hit 110°F. This hot-dry climate demands a heat pump system sized for serious cooling capacity while still handling those occasional chilly desert nights.
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
Tempe Electricity Prices
Understanding electricity costs in Tempe helps you make smarter decisions about home comfort systems that can save you money for years to come.
Arizona's electricity rates have climbed steadily from 12.5 cents per kWh in 2021 to 14.9 cents in 2024—a 19% increase in just three years that directly impacts your monthly cooling and heating bills.
Heat pumps offer a practical solution to rising energy costs.
Price of Energy: Arizona vs National Average
| Year | Arizona | US Average |
|---|---|---|
| 2021 | 12.5¢ | 13.0¢ |
| 2022 | 13.7¢ | 14.0¢ |
| 2023 | 14.9¢ | 16.0¢ |
| 2024 | 14.9¢ | 16.5¢ |
Tempe Area Utility Providers
Tempe residents primarily receive electricity from two major utilities: 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.
Tempe Utilities Electricity Rates
| Utility | Rate |
|---|---|
| APS | 15.30¢ |
| SRP | 12.50¢ |
| AZ Average | 14.00¢ |
| US Average | 16.0¢ |
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.
Ready to start saving with a heat pump?
Speak with a Palmetto heating & cooling expert to find out exactly how much you can save.
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 | Cost range | Description |
|---|---|---|
| Capacitor Replacement | $150 - $400 | Common issue when unit struggles to start or makes a humming noise. Capacitors store the electrical energy needed to start the compressor and fan motors. |
| Refrigerant Recharge | $250 - $750 | Needed when the system loses cooling or heating efficiency due to low refrigerant levels. Includes leak detection, repair of minor leaks, and recharging the system to the manufacturer-specified level. |
| 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 that cannot be economically repaired. |
| Control Board Replacement | $500 - $1,200 | Required when the system has electrical failures or erratic behavior. |
| Full System Replacement | $4,500 - $8,000+ | When repairs exceed the value of the unit or multiple major components fail simultaneously. |
Frequently Asked Questions
Do heat pumps make sense in Tempe?
Heat pumps make excellent sense in Tempe, where cooling demands dominate most of the year.
How efficient are heat pumps in Tempe's climate?
Heat pumps are highly efficient in Tempe's climate, particularly for cooling during the intense summer months.
Should I lease or buy a heat pump in Tempe?
The choice between leasing and buying a heat pump in Tempe depends on your financial priorities and homeownership plans.
How much does a heat pump cost in Tempe?
Heat pump costs in Tempe typically range from $5,000 to $15,000 for a complete installation.
Is a heat pump worth it financially?
In Tempe's hot climate, heat pumps are typically worth the investment due to significant cooling cost savings.
Who installs heat pumps in Tempe?
In Tempe, licensed HVAC contractors install heat pumps, and it's essential to choose professionals familiar with Arizona's Climate Zone 13 requirements.
What is the difference between a heat pump and HVAC?
HVAC is an umbrella term that stands for Heating, Ventilation, and Air Conditioning—it describes any system that controls your home's temperature and air quality. A heat pump is a type of HVAC system that both heats and cools your home.