Lexington, KY 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.
Lexington, KY Heat Pump Load Calculator
Use our calculator below to estimate your home’s heating and cooling needs based on square footage. It’s calibrated to ACCA-standard design conditions for Lexington, KY: 72°F indoor, 92°F outdoor for cooling, and 5°F for heating. 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 |
Heat Pump Financing in Lexington
Unfortunately, there are currently no active heat pump rebate or incentive programs available to homeowners in Lexington, KY in 2026. The federal tax credits that were available through the Inflation Reduction Act expired on December 31, 2025, and Kentucky's Home Energy Rebates Program has not yet launched. However, Palmetto's Comfort Plan lease offers an alternative solution with $0 upfront cost, allowing homeowners to access efficient heat pump technology without waiting for future rebate programs or managing complex application processes.
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.
Climate Zones
Lexington sits in IECC Climate Zone 7, which means cold winters that can dip to 5°F and hot summers reaching 92°F. This wide temperature swing matters—your heat pump needs to handle both extremes efficiently.
Climate Zone 7
Mixed climate zone with moderate winters and warm summers.
Climate Zone 7A
Avg. extreme winters: 0° to 5° F
Climate Zone 7B
Avg. extreme winters: 5° to 10° F
Lexington Electricity Prices
Understanding electricity costs in Lexington helps you make smarter decisions about home heating and cooling for the years ahead.
Kentucky electricity rates have climbed from 11.5 cents per kWh in 2021 to 13.0 cents in 2024—a 13% increase in just three years.
Heat pumps offer a practical response to rising rates. Because they're 2-3x more efficient than traditional HVAC systems, they use significantly less electricity to deliver the same heating and cooling, helping offset increasing utility costs.
Price of Energy: Kentucky vs National Average
| Year | Kentucky | US Average |
|---|---|---|
| 2021 | 11.5¢ | 16.0¢ |
| 2022 | 12.9¢ | 12.7¢ |
| 2023 | 13.0¢ | 16.5¢ |
| 2024 | 13.7¢ | 15.0¢ |
Lexington Area Utility Providers
Kentucky Utilities (KU), the primary provider, charged 12.0¢ per kWh in 2023—well below both the state average of 12.70¢ and the national average of 16.0¢.
Kentucky's lower electricity costs stem from its diverse energy mix, including coal, natural gas, and hydroelectric power. This regional advantage, combined with KU's established infrastructure, helps keep rates affordable compared to other parts of the country.
Lexington Utilities Electricity Rates
| Provider | Rate |
|---|---|
| KU | 12.00¢ |
| KY Average | 12.70¢ |
| 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
"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?
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.
- Rewards for smarter energy usage
- Energy insights & Dashboard
- Personalized Savings Tools
- Whole Home Energy Management
- Support Whenever You Need It
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
| 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. |
| 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 Lexington?
Yes, heat pumps make excellent sense in Lexington. With Climate Zone 7 temperatures ranging from 5°F in winter to 92°F in summer, modern heat pumps efficiently handle both heating and cooling needs year-round.
How efficient are heat pumps in Lexington's climate?
Heat pumps perform very efficiently in Lexington's climate, which falls in Climate Zone 7. Modern heat pumps can effectively heat and cool homes in this temperature range while using significantly less energy than traditional systems, helping homeowners save.
Should I lease or buy a heat pump in Lexington?
The choice between leasing and buying a heat pump depends on your financial priorities and homeownership plans. Palmetto offers both options to fit your needs.
How much does a heat pump cost in Lexington?
Heat pump costs in Lexington typically range from $5,000 to $15,000 for a complete installation, depending on your home's size and system efficiency rating.
Is a heat pump worth it financially?
Yes, heat pumps are typically worth it financially in Lexington, offering long-term savings on heating and cooling costs.
Who installs heat pumps in Lexington?
In Lexington, heat pumps are installed by licensed HVAC contractors. Palmetto partners with certified local installers who ensure proper sizing and configuration for Kentucky's climate.
What is the difference between a heat pump and HVAC?
HVAC is an umbrella term that stands for Heating, Ventilation, and Air Conditioning; a heat pump is a specific type of HVAC system that both heats and cools your home.