Chicago, IL 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.
Chicago, IL 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 Chicago, IL: 91°F for cooling, -5°F for heating, and 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.
Step 1 of 3
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)
Next
Step 2 of 3
Home attributes
- Amount of sunlight: Low, Moderate, High
- Insulation: Poor, Standard, Good, Excellent
- Number of Windows
- Window and Door Seals: Poor fit & Seal, Typical fit & Seal, Good fit & Seal
Next
Step 3 of 3
Additional details
- Do you have a kitchen? Yes/No
- Do you have any glassed-in rooms? Yes/No
- Extra Device Wattage (W)
Calculate my Heating Needs
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 |
Local Incentives
Heat Pump Financing in Chicago
While Illinois has announced plans for state heat pump rebate programs (HOMES and HEAR) through the Inflation Reduction Act, these programs have not yet launched as of February 2026. However, the federal IRA tax credit of up to $2,000 remains available for qualifying heat pump installations. Palmetto's Comfort Plan lease offers an alternative path to heat pump installation with $0 upfront cost, allowing you to benefit from energy savings immediately while waiting for state 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. Illinois state rebate programs (HOMES and HEAR) are pending final approval and launch.
Climate Zones
Chicago sits in IECC Climate Zone 6, where winters can dip to -5°F and summers peak around 91°F. That wide temperature swing means your heat pump needs to handle both bitter cold and serious heat. At Palmetto, we know Chicago's climate inside and out, and we'll help you find a system that's sized and selected for exactly these conditions.
Climate Zone 6
Cool climate zone with cold winters and warm summers.
Climate Zone 6A
Average extreme winters: -10° to -5° F
Climate Zone 6B
Average extreme winters: -5° to 0° F
Chicago Electricity Prices
Understanding Chicago's electricity costs is crucial when choosing your home heating and cooling system—especially as rates continue to climb.
Illinois electricity rates have jumped from 13.2 cents per kWh in 2021 to 15.9 cents per kWh in 2024. That's a 20% increase in just three years, impacting every Chicago homeowner's energy bills.
Heat pumps offer a smart 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 for your home.
Price of Energy: Illinois vs National Average
| 0¢ | 10¢ | 20¢ | 30¢ |
|---|---|---|---|
| 13.7¢ | 13.2¢ | 15.0¢ | 15.7¢ |
| 2021 | 2022 | 2023 | 2024 |
Chicago Area Utility Providers
Chicago residents are served by two main utility providers with varying electricity rates. According to 2023 data, ComEd charges 14.8¢ per kWh while Ameren charges 17.0¢ per kWh, compared to the national average of 16.0¢ per kWh.
Understanding your electricity costs helps you make informed heating and cooling decisions. Heat pumps use electricity more efficiently than traditional systems—often delivering three times more heating or cooling energy than the electricity they consume—which can lower your overall energy spending regardless of your utility provider.
Chicago Utilities Electricity Rates
- Ameren: 17.00¢ (+6%)
- ComEd: 14.80¢ (-8%)
- IL Average: 15.70¢ (-2%)
- US Average: 16.0¢
Palmetto Reviews
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 🙂
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. |
| Refrigerant Recharge | $250 - $750 | Needed when the system loses cooling or heating efficiency due to low refrigerant levels. |
| 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 Chicago?
Yes, heat pumps make sense in Chicago, even in Climate Zone 6 where winter temperatures can drop to -5°F. Modern cold-climate heat pumps are designed to work efficiently in freezing conditions and can provide both heating and cooling year-round.
How efficient are heat pumps in Chicago's climate?
Heat pumps are highly efficient in Chicago's Climate Zone 6, even during cold winters.
Should I lease or buy a heat pump in Chicago?
The choice between leasing and buying a heat pump in Chicago depends on your financial situation and preferences.
How much does a heat pump cost in Chicago?
Heat pump costs in Chicago typically range from $8,000 to $20,000 for a complete installation, depending on your home's size, existing ductwork, and the system's efficiency rating.
Is a heat pump worth it financially?
Yes, heat pumps are typically worth it financially in Chicago, especially with Illinois electricity rates at 15.9¢ per kWh.
Who installs heat pumps in Chicago?
Heat pumps in Chicago are installed by licensed HVAC contractors who specialize in heating and cooling systems suited for Climate Zone 6 conditions.