Heat Pump vs. Central Air Conditioning (AC): Cost, Maintenance, Energy Efficiency

A heat pump system can heat and cool, while a central air system only cools. A central air conditioning (AC) system is usually paired with a furnace or boiler, creating a complete heating, ventilation, and air conditioning (HVAC) system.

Heat pumps typically cost more than traditional central air systems, but they are more energy efficient and can help you save on ongoing utility costs.

Heat pumps typically cost more than AC units, although energy bill savings and ongoing maintenance costs can help offset that investment.

Heat pumps cost a little more than AC units, although prices can vary depending on the model of the unit. According to Energy, popular AC units cost between $2,000 and $3,000, while heat pumps range from $3,000 to $6,000.

Also, heat pumps replace both heating and cooling in your home, while AC units only cool, so factor in the additional cost of a furnace or boiler, which can range from about $2,000 to $10,000.

Heat pumps typically cost between $4,000 and $7,000 to install. According to ANGI, the cost of installing a central AC ranges from about $3,500 to $7,000. Expect higher costs if you need to install or replace ductwork, which can be necessary for both central AC and heat pumps if you don’t have a ductless system.

The average heat pump repair costs between $160 and $40,640. Air conditioner repairs can cost as little as $200, but sometimes cost $2,000 or more, depending on the problem. Heat pumps may require more frequent repairs, though, as they typically run over multiple seasons, while air conditioning typically only runs during the warmer months.

Expect a heat pump to last about 15 years, and a central air system to last between 15 and 20 years.

The U.S. Department of Energy’s National Renewable Energy Laboratory estimates in a 2024 news release that 62% to 95% of U.S. households will see a reduction in energy bills by switching to heat pumps. ⁽⁰⁾

The Seasonal Energy Efficiency Ratio (SEER2) measures the energy efficiency of a home’s heating and cooling system. Both central AC and heat pump systems are available with high SEER2 ratings, but heat pump systems score higher.

There are many other options for heating and cooling your home that can be more cost-effective, energy-efficient or functional to suit your needs.

• Ductless mini split system Build modular, room-by-room solutions for ductless cooling and heating. They work best for cooling small spaces or focusing air conditioning on a specific zone, as multiple mini-splits can cost more than a central air system.

• Portable window unit There are small AC units that only cool one room. They are easy to turn on and off, allowing energy-conscious users to use them only when they really need cool air for comfort.

• Geothermal heat pump Requires extensive excavation but can produce high energy efficiency and low maintenance costs over a long lifespan. These systems can be a great investment for larger buildings, but can be too expensive for most homeowners.