Heat pump cost in Arizona

Energy bills compared

Expect to pay roughly $45 a year more with the heat pump; it makes most sense if your AC needs replacing too.

15.44¢/kWh (EIA, July 2026 YTD); gas $1.81/therm (EIA 2025, $18.58/Mcf at 1,024 Btu/ft³). Energy only; estimates.

Winter performance

Here winters are mild (Dec averages roughly 50°F by a degree-day approximation), so backup heat rarely runs and the cooling side does most of the work. The numbers behind that: 1,919 heating and 3,063 cooling degree days a year (NOAA nClimDiv).

A heat pump sized like a replacement AC is usually close here; confirm with a Manual J calculation.

Upfront price

Tier to price first in Arizona: 14–15 SEER2 / 7.5 HSPF2, roughly $6,000–$12,000+ installed (national estimate). Across all efficiency levels, a 2,000 sq ft home typically runs $10,000–$20,000+. No state-specific price data exists in our sources.

Source: HomeGuide, “How much does a heat pump cost?” (2026).

Arizona by month

Arizona heat pump FAQ

Heat pump price in Arizona?

$10,000–$20,000+ installed for a 2,000 sq ft home, per HomeGuide's national figures.

When does a heat pump win in Arizona?

About 14.3¢/kWh for a 7.5 HSPF2 heat pump against a 95% furnace at $1.81/therm; prices would need to fall about 1.1¢ from Arizona's 15.44¢ average. A 9.5 HSPF2 unit would heat for $494 a year.

Does the 25C credit still apply?

No. Per the IRS, the Energy Efficient Home Improvement Credit (25C) covered improvements made through December 31, 2025, at 30% up to $2,000 a year for heat pumps, with a QMID requirement for 2025 property. IRS: Energy Efficient Home Improvement Credit.

Regional comparison