Heat Pump Installation & Replacement in Philadelphia, PA
A complete heat pump system installed by Lumen Heating & Cooling costs $10,000–$14,000 before rebates, and Philadelphia-area utility rebates can take $1,900 or more off that (up to $7,500 in New Jersey). One system heats your home in winter and cools it in summer. The estimate is free, we file the rebate paperwork, and we also repair and service heat pumps of every major brand across Philadelphia, the PA suburbs, South Jersey and northern Delaware.
What a heat pump installation costs
We publish our prices so you can plan before anyone visits. These are installed prices, before rebates:
Heat pump system
$10,000 – $14,000Air handler, outdoor heat pump and backup electric heat kit: a complete ducted split system.
Ductless mini-split heat pump
$10,000 – $14,000Inverter outdoor unit plus wall-mounted indoor heads, for rowhomes and additions with no ductwork. Single-room setups sit at the low end, multi-zone systems at the top.
Heat pump repair visit
$150Full diagnosis, coil wash, filter replacement and small parts like a capacitor or contactor included, with an upfront price before any repair.
What moves the number: the size (tonnage) your home needs, the efficiency rating, whether your existing ductwork can be reused, and where the outdoor unit goes. We give you a firm price after we see the house, and nothing starts until you approve it. See the full HVAC pricing page.
Every heat pump install includes
- Free in-home estimate with the rebate math included
- Sizing from a load calculation on your house
- ENERGY STAR equipment when a rebate is in the plan
- Testing in both heating and cooling mode
- PECO, EAP, NJ and Energize Delaware paperwork filed for you
- 10-year manufacturer parts + 5-year Lumen labor warranty
- Financing for every credit profile
or call (267) 252-2969, 24/7
Do heat pumps work in a Philadelphia winter?
Yes. A heat pump doesn't burn fuel. It moves heat: in summer it pulls heat out of your home like an air conditioner, and in winter it pulls heat from the outdoor air and brings it inside. Today's cold-climate inverter heat pumps keep heating efficiently well below freezing, which covers the vast majority of winter days in the Philadelphia area.
For the few deep-cold nights each year, a ducted heat pump system includes a backup electric heat kit, so you're never left cold. Heat pump air also feels different from furnace air: milder air delivered over longer, steadier cycles instead of short hot blasts. If the house holds its temperature, that's the system working as designed.
The honest trade-off is up-front cost and installation quality. A heat pump that's sized and installed correctly performs well and costs less to run than electric resistance heat. A rushed install disappoints. Read the full breakdown in Is a heat pump worth it in Pennsylvania?
Who a heat pump makes the most sense for
- Homes heating with electric baseboard or an electric furnace. This is where heat pumps save the most, because they move heat instead of making it with resistance coils.
- Homes replacing an old AC. A heat pump costs more than a straight AC swap but adds efficient heating on the same equipment. We've done exactly this, replacing an older AC condenser with a Trane heat pump.
- Rowhomes and additions with no ductwork. A ductless mini-split heat pump heats and cools without opening walls for ducts.
- Homes with gas heat that want lower cooling bills and a backup. A hybrid system pairs a heat pump with a gas furnace and uses whichever is cheaper to run. In Delaware it earns one of the larger rebates.
If you heat with gas and only need a new heater, a high-efficiency furnace is usually the lower-cost route. See furnace replacement for those numbers.
How a Lumen heat pump installation works
1. Free estimate with a load calculation
We size the system from a Manual J load calculation: square footage, insulation, windows and orientation. We don't copy the old unit's nameplate. An oversized heat pump short-cycles and an undersized one runs nonstop and leaves rooms cold, so sizing is the most important decision on the job.
2. A written price with your rebates spelled out
Rebates have efficiency rules (SEER2 and HSPF2 ratings), so the equipment has to be chosen with the rebate in mind before the install. Your quote lists the system, the price and the programs your home and utility qualify for.
3. Installation
We set the outdoor unit level and off the ground on a pad with risers, a wall bracket or a roof stand, wherever it fits the property. Then we run and insulate the line set, install the disconnect, and connect the matched indoor air handler or ductless heads.
4. Commissioning in both modes
Every heat pump is tested in heating and cooling before we leave, so you know it works in both seasons.
5. Rebate filing
We submit the applications with the required documentation. PECO's deadline is 90 days from installation, which is why we handle it instead of leaving it to you.
Recent heat pump installs by Lumen
Real heat pump jobs, and what they solved
Daikin inverter heat pump replacing costly electric heat
The home ran on electric backup heat with no central cooling: expensive to heat and uncomfortable in summer. We installed a Daikin inverter heat pump as the primary heating and cooling source, matched to a new air handler, and kept the existing electric heat as backup for the coldest nights. See the Daikin heat pump project.
High-capacity Lennox heat pump for an undersized home
A larger home's old system was undersized: long run times, hot upstairs rooms and rising bills. We sized a new high-capacity Lennox two-fan heat pump from a load calculation rather than the old nameplate. Two smaller fans move the same air at lower speed, so it runs quieter than most single-fan units. See the Lennox heat pump project.
Trane heat pump replacing an old AC
An older AC condenser was replaced with a Trane heat pump to add efficient heating alongside cooling. It was set on a new composite pad with riser feet, which keeps it level and clear of snow, with a new line set and disconnect, and tested in both modes. See the Trane heat pump project.
Ductless heat pump on a Philadelphia rowhome
A rowhome that needed heating and cooling without ductwork got a TOSOT inverter mini-split heat pump, with the outdoor unit on a roof stand and the line set routed to the indoor head. See the rowhome mini-split project, or read more about ductless mini-split installation.
Heat pump rebates by state (2026)
Heat pumps carry the biggest rebates of any home HVAC equipment right now. Every program below pays only on ENERGY STAR certified equipment, and we file the applications for you.
Philadelphia and the PA suburbs
- PECO: $200–$300 on a ducted air-source heat pump and $150–$300 on a ductless mini-split, based on the SEER2 rating. Filed within 90 days of installation.
- Electrical Association of Philadelphia (EAP), Fall 2026: $250–$1,650 on complete high-efficiency systems through a participating contractor. It stacks with PECO, so combined savings can top $1,900.
New Jersey (Cherry Hill, Camden, Voorhees and beyond)
- NJ Whole Home Energy Program: $2,000 base plus $200 per point of modeled energy savings, up to $7,500, with 0% financing options for qualifying projects. Terms run through June 30, 2027.
- Utility instant rebates on top: PSE&G up to $900 and Atlantic City Electric up to $1,300 on qualifying heat pumps.
Delaware (Wilmington and Newark)
- Energize Delaware: $800–$1,600 on a ducted air-source heat pump, $550–$1,100 on a ductless mini-split plus $350–$550 per additional indoor head, and $1,450–$2,250 on a hybrid heat pump + furnace system. Income-qualified households can get up to $2,200 on a heat pump. It starts with a $50 home energy assessment.
The federal heat pump tax credit ended December 31, 2025. If a contractor promises you the 30% credit on a 2026 install, it doesn't exist anymore. Full details: current rebates and our 2026 heat pump rebate guide.
Financing
Approved credit finances through Joist homeowner financing. Bad or limited credit goes through Microf, a lease-purchase program that approves without a traditional credit score (available in PA and DE; not offered in NJ). Both are arranged on the free estimate visit.
Heat pump service and repair
We repair and maintain all major heat pump brands, not just the ones we install. Before you call, two things are worth knowing. During the defrost cycle, a heat pump briefly blows cool air on purpose to melt frost off the outdoor coil, and it should finish within about 10–15 minutes. A fan set to ON instead of AUTO also circulates room-temperature air between cycles. Those are normal.
Call for service if the outdoor unit is caked in ice that never clears, the air is genuinely cold and the house keeps losing temperature, or the unit runs constantly with no heat. That's often a refrigerant leak that needs a licensed technician. Our service call is $150 with the full diagnosis included. More in why is my heat pump blowing cold air? and on our heating repair page.
They were quick and efficient at installing a new Mini split in our home. Their prices were good and their work was high quality. They were communicative, transparent and professional. Would definitely recommend them.
John Martin
Contacted them last week to install 2 ductless mini splits that I had purchased. Came by to install them a few days later and they work perfectly!
Brittany Feghali
Where we install heat pumps
Lumen is an owner-run, licensed and insured HVAC contractor based in Philadelphia, with three crews serving the city, the PA suburbs, South Jersey and northern Delaware. Heat pump installation and service are available in Philadelphia, Bensalem, Levittown, Norristown, King of Prussia, Conshohocken, Media, Upper Darby, Cherry Hill, Voorhees, Camden, Deptford, Wilmington, Newark and the rest of our service area.
Heat Pump FAQ
A complete heat pump split system installed by Lumen costs $10,000–$14,000 before rebates. Ductless mini-split heat pump systems are in the same range depending on the number of zones. The estimate is free. See all pricing →
Yes. Cold-climate inverter heat pumps keep heating efficiently well below freezing, and ducted systems include backup electric heat for the coldest few nights of the year.
In Philadelphia, PECO ($200–$300) and EAP ($250–$1,650) stack for $1,900+. New Jersey's Whole Home program pays up to $7,500 plus utility rebates. Energize Delaware pays $800–$1,600 on a ducted heat pump. The federal tax credit ended December 31, 2025. We file the paperwork.
With a Manual J load calculation on the house (square footage, insulation, windows and orientation), not the old unit's nameplate. Oversizing is as bad as undersizing.
Yes. We repair and maintain all major heat pump brands. The service call is $150 and includes a full diagnosis, coil wash, filter and small parts, with an upfront price before any repair.
Yes. A heat pump cools exactly like an AC and adds efficient heating on the same equipment. We've replaced old AC condensers with heat pumps matched to the indoor air handler; see the Trane project above.
Yes. Approved credit finances through Joist homeowner financing. Bad or limited credit goes through Microf lease-purchase, available in PA and DE (not NJ). Both are arranged on the free estimate visit.
Get a Free Heat Pump Estimate
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- 📞 (267) 252-2969 — call or text, 24/7
- ✉ lumenheatingandcooling@gmail.com
- 📍 Serving Philadelphia & the PA, NJ & DE suburbs
- 🕐 Open 24 hours — emergency service available
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