How Much Does a Heat Pump Cost in Denver? [2025 Data]

Installing a heat pump costs around $10,039 in Denver, but the total may vary between $5,607 and $14,472 based on the type and size of the heat pump, the efficiency rating, and other factors, like ductwork replacement or excavation costs for ground-source models. With hot summers and chilly, windy winters, Denver homeowners can benefit greatly from a heat pump for all of their heating and cooling needs. 

Heat Pump Cost Factors

A heat pump is a heating and cooling appliance that uses a refrigerant, electricity, and the natural temperature from the air, ground, or water to efficiently provide warm or cool air to your home.

Heat pumps come in many different types, sizes, and efficiency levels, so consider these common cost factors to budget for your heat pump installation.

Size

One major influence on the cost of a heat pump is what size heat pump your home needs. The heat pump size, or capacity, is measured in tons, and you’ll need about one ton of capacity for every 500 square feet of space.

For the median home size in Denver, which is about 1,300 square feet, you’d need about 2.5 tons of capacity in a heat pump. Here are the average costs based on the home size and heat pump capacity.

Type

The most common type of heat pump in Denver is an air-source unit, although hybrid systems with a backup heating source to supplement the air-source heat pump are also common. Ground-source heat pumps are also an option, but these are better-suited for homes on the outskirts of the city, where there’s more space to dig and lay the ground loop.

Not sure which heat pump is right for you? Consider these pros, cons, and costs, then consult with an HVAC pro in Denver, Colorado, to determine the best option for your home.

Efficiency

The SEER, or Seasonal Energy Efficiency Ratio, measures how efficiently your heat pump works. Higher SEER numbers mean the unit is more efficient, so these models will save you more on energy costs. Lower SEER units cost less upfront, but they come with higher energy costs over time. In Colorado, the minimum SEER requirement is 14.

Ductwork

If you’re installing a forced-air heat pump that’ll move heated or cooled air through ducts in your home, it’s important those ducts are in prime condition. Otherwise, you’ll miss out on the energy- and cost-saving benefits of having a heat pump. Air duct replacement costs about $280 to $910.

Prep

For ground-source heat pumps, you’ll need to pay to dig the land. That’s because the ground loop, or piping, for the system is buried underground. In a big city like Denver, land excavation costs about $990 to $8,290.

HVAC Pro Costs

The labor costs to install a heat pump in Denver are around $150 per hour per worker, or about $1,200 per day of work. An air-source heat pump can usually be installed within one day, while a ground-source model may take up to a few weeks to complete.

Additionally, your HVAC contractor will need to apply for permits for heat pump installation from the Denver Community Planning and Development office. Permits cost around $35 for projects between $500 and $2,000, plus $8 for every $1,000 more in project value. Additionally, you’ll pay a plan review fee worth 50% of the permit cost for projects more than $2,000. 

For example, an average heat pump installation totalling about $10,000, you’d pay $99 for a permit and $49.50 for the plan review fee. Luckily, you don’t have to spend time calculating this out. Your local heat pump pro can ensure you have the right permits and pay the correct fee amounts, so you don’t face fines or project delays down the line.

Does a Heat Pump Increase Home Value?

Installing a heat pump in your Denver home could increase the home’s value by about 5% to 7%, or as much as $17,000. Buyers appreciate a newly added HVAC system, especially one as energy-efficient as a heat pump. Plus, whether you’re staying in your home for years to come or are planning on selling soon, a heat pump will save homeowners about 30% to 50% on energy costs.

How Angi Gets Its Cost Data

Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We survey real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects. 

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