Grand Rapids, MI 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.
Grand Rapids, MI Heat Pump Load Calculator
Use our calculator below to estimate your home’s heating and cooling needs based on square footage. This tool uses ACCA-standard design conditions for Grand Rapids, MI: 91°F for cooling, -5°F for heating, and 72°F indoors. For a precise Manual J load calculation and personalized quote, connect with our 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 sunlightLowModerateHigh
InsulationPoor InsulationStandard InsulationGood InsulationExcellent Insulation
Number of Windows
Window and Door SealsPoor fit & SealTypical fit & SealGood fit & Seal
Next
Step 3 of 3
Additional details
Do you have a kitchen?
YesNo
Do you have any glassed-in rooms?
YesNo
Extra Device Wattage (W)
Description of what this means for context.
Calculate my Heating Needs
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 | |||
| Eligible for incentives |
Local Incentives
Grand Rapids, MI 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 Grand Rapids homeowners.
Michigan Home Energy Rebates
Up to $8,000
The Home Electrification and Appliance (HEAR) program provides rebates to households installing heat pumps and other efficient equipment.
Eligibility: EGLE aims to prioritize serving Michigan's low- and middle-income households.
Consumers Energy Heat Pump Rebate
Varies by system type
Consumers Energy offers rebates on eligible furnaces, air conditioners, heat pumps and thermostats.
Eligibility: All equipment must be installed by a participating Trade Ally. Homeowners should contact Consumers Energy directly for current rebate amounts and eligibility requirements.
Federal IRA Tax Credit
Up to 30% of cost
The Inflation Reduction Act provides a federal tax credit for qualifying geothermal heat pump installations.
Eligibility: Geothermal heat pumps follow a separate incentive pathway under Section 25D.
Climate Zones
Grand Rapids sits in IECC Climate Zone 6, which means cold winters (design temps around -5°F) and warm summers (up to 91°F). This wide temperature range matters when sizing your heat pump.
Climate Zone 6
Cool climate zone with cold winters and warm summers.
Climate Zone 6A
Avg. extreme winters: -10° to -5° F
Climate Zone 6B
Avg. extreme winters: -5° to 0° F
Grand Rapids Electricity Prices
Understanding electricity costs in Grand Rapids helps you make smarter decisions about home heating and cooling—especially as rates continue climbing.
Michigan residents pay 19.3 cents per kilowatt-hour in 2024. That's notably higher than the national average.
Heat pumps offer a practical response to rising rates.
Price of Energy: Michigan vs National Average
0¢
10¢
20¢
30¢
2021
2022
2023
2024
US Average
Michigan
Grand Rapids Area Utility Providers
Grand Rapids residents are primarily served by two utility providers: Consumers Energy and Great Lakes Energy.
Grand Rapids Utilities Electricity Rates
| Utility | Rate (¢/kWh) | Difference |
|---|---|---|
| Consumers Energy | 18.80¢ | +18% |
| Great Lakes Energy | 17.70¢ | +11% |
| MI Average | 18.80¢ | +18% |
| US Average | 16.0¢ | — |
Palmetto Reviews
Long term lease plans aren’t for everyone! But for my specific situation, it made sense.
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. |
| 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. |
| 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 or multiple major components fail. |
Frequently Asked Questions
Do heat pumps make sense in Grand Rapids?
Yes, heat pumps make sense in Grand Rapids.
How efficient are heat pumps in Grand Rapids's climate?
Heat pumps perform very efficiently in Grand Rapids's Climate Zone 6, even during cold winters.
Should I lease or buy a heat pump in Grand Rapids?
The choice depends on your financial priorities and homeownership plans.
How much does a heat pump cost in Grand Rapids?
Heat pump installation costs in Grand Rapids typically range from $5,000 to $20,000.
Is a heat pump worth it financially?
Yes, heat pumps are typically worth it financially in Grand Rapids.
Who installs heat pumps in Grand Rapids?
Heat pumps in Grand Rapids are installed by licensed HVAC contractors experienced with Climate Zone 6 requirements.
What is the difference between a heat pump and HVAC?
HVAC 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.