Houston, TX 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.
Houston, TX Heat Pump Load Calculator
Use our calculator below to estimate your home’s heating and cooling needs based on ACCA-standard design conditions for Houston, TX: 72°F indoor, 95°F outdoor cooling, and 33°F 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
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 Houston
While Texas has received federal funding for heat pump rebate programs (HOMES and HEAR), these programs have not yet launched as of early 2026. However, Houston homeowners can take advantage of the federal IRA tax credit of up to $2,000 for qualifying heat pump installations. Palmetto's Comfort Plan lease offers $0 upfront cost as an alternative way to access heat pump technology without the need for rebates or tax credits.
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.
Climate Zones
Houston sits in IECC Climate Zone 10, where winters are mild—rarely dipping below 33°F—and summers are hot and humid, regularly reaching 95°F. This means your heat pump needs to handle serious cooling demands while providing occasional heating. At Palmetto, we understand Houston's climate inside and out, so we can help you find a system sized perfectly for your home.
Climate Zone 10
Warm climate zone with mild winters and very hot summers.
Climate Zone 10A
Avg. extreme winters: 30° to 35° F
Climate Zone 10B
Avg. extreme winters: 35° to 40° F
Houston Electricity Prices
Understanding Houston's electricity costs is essential when choosing your home's heating and cooling system, especially as rates continue to climb.
Texas electricity rates have risen from 12.1 cents per kWh in 2021 to 14.9 cents in 2024—a 23% increase in just three years, impacting every Houston household's monthly energy bills.
Heat pumps offer a practical solution to rising costs. Because they're 2-3x more efficient than traditional HVAC systems, they use significantly less electricity to deliver the same heating and cooling comfort your home needs.
Price of Energy: Texas vs National Average
Houston Area Utility Providers
Houston residents primarily receive electricity from Entergy, which charged an average of 13.2¢ per kWh in 2023—notably below both the Texas state average of 14.5¢ and the national average of 16.0¢ per kWh.
Houston's competitive electricity costs stem from Texas's deregulated energy market and the region's proximity to natural gas supplies. This pricing advantage makes Houston an attractive location for energy-conscious homeowners looking to maximize their savings.
Houston Utilities Electricity Rates
- Entergy: 13.20¢
- TX Average: 14.50¢
- 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.
Palmetto Customer, SC
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
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 costs
| 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 Houston?
Yes, heat pumps make excellent sense in Houston. The city's mild winters (with design temperatures around 33°F) and hot summers (reaching 95°F) create ideal conditions for heat pump efficiency.
How efficient are heat pumps in Houston's climate?
Heat pumps are highly efficient in Houston's climate, which sits in Climate Zone 10 with mild winters and hot summers.
Should I lease or buy a heat pump in Houston?
The choice between leasing and buying a heat pump in Houston depends on your financial priorities and preferences.
How much does a heat pump cost in Houston?
Heat pump installation costs in Houston typically range from $5,000 to $15,000 for a complete system.
Is a heat pump worth it financially?
For Houston homeowners, heat pumps offer strong financial value through lower energy bills and flexible payment options.
Who installs heat pumps in Houston?
Heat pumps in Houston are installed by licensed HVAC contractors who specialize in heating and cooling systems.