HVAC & Furnace Replacement Planning: Heat Pumps vs Traditional Split Systems

1. The Cost of Modern HVAC Replacement

With updated SEER2 efficiency standards and new refrigerants, replacing a complete split-system HVAC (outdoor condenser and indoor gas furnace or air handler) now averages $8,000 to $16,000 nationally.

If your ductwork is undersized or leaking, additional remediation can add $2,000 to $4,000 to the project.

2. Federal Energy Incentives (Inflation Reduction Act)

Homeowners upgrading to qualifying high-efficiency heat pump systems can often claim the 25C federal energy tax credit (up to $2,000), reducing the net capital outlay.