Redding, CA 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.

Redding, CA Heat Pump Load Calculator

Use our calculator below to estimate your home’s heating and cooling needs based on ACCA-standard design conditions for Redding, CA: 33°F for heating and 95°F for cooling, with a 72°F indoor target. For a precise Manual J load calculation and personalized quote, reach out to Palmetto’s team. Get in touch with our team for an official quote.

Home location & size

Home attributes

Additional details

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

Calculated Cooling Mode

Buy it or finance it. Your comfort, your call

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

Redding, CA 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 Redding homeowners.

Redding Electric Heat Pump Water Heater

Up to $1,000

Local rebate for replacing natural gas water heaters with ENERGY STAR-certified heat pump water heaters. Requires building permit and replacement of existing gas unit.

Eligibility: Redding Electric Utility customers replacing natural gas water heaters with qualifying heat pump water heaters. Minimum 40-gallon capacity required. Final City of Redding building permit required.

Redding Electric New Construction Heat Pump

Up to $1,800

Rebate for builders and contractors installing heat pump HVAC systems and water heaters in new single-family homes, multifamily properties, or ADUs with smart Wi-Fi thermostats.

Eligibility: Developers, general contractors, or owner-builders constructing new single-family, multifamily (2-4 units), or ADU projects. Must meet California Title 24 Building Energy Code. Maximum 10 rebates per builder per program year.

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.

Redding homeowners have access to local heat pump rebates through Redding Electric Utility and the federal IRA tax credit. The local utility offers up to $1,000 for heat pump water heater replacements and up to $1,800 for new construction projects. Combined with the federal tax credit of up to $2,000, homeowners can access meaningful financial support for heat pump installations. Palmetto can help you navigate these programs and maximize your rebate eligibility.

Climate Zones

Redding sits in IECC Climate Zone 10, which means mild winters with lows around 33°F and hot summers reaching 95°F. This temperature range is ideal for heat pumps—they'll keep you comfortable year-round without the extreme demands of harsher climates. At Palmetto, we understand Redding's unique conditions and can help you choose a system sized perfectly for your home.

Climate Zone 10

Climate Zone 10A

Climate Zone 10B

Redding Electricity Prices

For Redding homeowners, understanding local electricity costs is essential when evaluating heating and cooling options for your home.

California electricity rates have climbed sharply, jumping from 22.8 cents per kWh in 2021 to 31.9 cents in 2024—nearly double the national average of 16.5 cents per kWh.

Heat pumps offer a practical response to these rising 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.

Price of Energy: California vs National Average

Year California (cents) US Average (cents)
2021 22.8 16.5
2022 25.8 16.0
2023 29.5 15.0
2024 31.9 13.7

Redding Area Utility Providers

Redding residents receive electricity from Pacific Gas and Electric (PG&E), which charged 34.0¢ per kWh in 2023—significantly above the national average of 16.0¢ and California's state average of 29.50¢.

PG&E's rates reflect California's investment in renewable energy infrastructure, wildfire prevention costs, and the expense of maintaining power lines across vast, challenging terrain. These factors contribute to electricity costs that exceed both state and national benchmarks.

Redding Utilities Electricity Rates

Provider Rate (cents)
PG&E 34.00¢
CA Average 29.50¢
US Average 16.0¢

Palmetto Reviews

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

Long term lease plans aren’t for everyone! But for my specific situation it made sense. For some it may not! But my experience has been great overall 🙂

Palmetto Customer, IL

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

Ready to start saving with a heat pump?

Speak with a Palmetto heating & cooling expert to find out exactly how much you can save.

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 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. The reversing valve directs refrigerant flow and is unique to heat pump systems.
Compressor Replacement $1,500 - $3,000 Major repair needed when the unit fails to heat or cool entirely. The compressor is the heart of the system, circulating refrigerant between the indoor and outdoor coils.
Evaporator/Condenser Coil Replacement $1,200 - $2,800 Replacement needed when coils develop leaks or corrosion that cannot be economically repaired. Coil damage reduces heat transfer efficiency and can cause refrigerant loss.
Control Board Replacement $500 - $1,200 Required when the system has electrical failures or erratic behavior. The control board manages all system operations including defrost cycles, fan speeds, and compressor staging.
Full System Replacement $4,500 - $8,000+ When repairs exceed the value of the unit or multiple major components fail simultaneously. Includes removal of the old system and installation of a new heat pump with updated refrigerant lines and electrical connections.

Frequently Asked Questions

Do heat pumps make sense in Redding?

Yes, heat pumps make excellent sense in Redding. Climate Zone 10's mild winters and hot summers create ideal conditions for heat pump efficiency.

How efficient are heat pumps in Redding's climate?

Heat pumps perform exceptionally well in Redding's Climate Zone 10, where modern heat pumps operate efficiently in both heating and cooling modes.

Should I lease or buy a heat pump in Redding?

The choice depends on your financial situation and preferences.

How much does a heat pump cost in Redding?

Installation costs typically range from $5,000 to $20,000.

Is a heat pump worth it financially?

Heat pumps typically deliver strong financial returns due to California's electricity rates.

Who installs heat pumps in Redding?

Heat pumps in Redding are installed by licensed HVAC contractors who specialize in heating and cooling systems.

What is the difference between a heat pump and HVAC?

A heat pump is a type of HVAC system that heats and cools your home using electricity.