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

Heat pump costs in Indianapolis, Indiana, average $5,433, with costs ranging from $3,970 to $6,970 for parts and labor. The final cost depends on multiple factors, such as the type of heat pump and the size of your home. Indianapolis experiences a wide range of temperatures and weather throughout the year, so combining heating and cooling into one appliance, a heat pump, is convenient for homeowners here.

Heat Pump Cost Factors

A heat pump transfers heat to efficiently heat or cool your home, rather than relying on fuel to generate heat. This is a cost-saving way to maintain comfortable temperatures inside your home, ideal for a city like Indianapolis, where temperatures vary widely throughout the year.

Thinking of installing a heat pump for your Indianapolis home? The cost of a heat pump depends on several different factors, from the square footage of your home to the type of heat pump you install.

Size

It’s important to get the right size heat pump based on your home’s square footage. If you get a system that’s too small or too large, it won’t run efficiently, ultimately wasting more of your money.

With a median home size of 1,900 square feet, a 3-ton-capacity heat pump works best. Consider the following heat pump size recommendations based on square footage, but let an HVAC pro in Indianapolis, Indiana, find the best fit for your heating and cooling needs.

Type

The type of heat pump is an important consideration for Indianapolis homeowners. While a heat pump can offer reliable cooling in the summer, the below-freezing temperatures of Indiana’s winters mean many homeowners want a hybrid system. Hybrid heat pumps include a backup heat source, often gas, to offer consistent heating even on the coldest days of the year.

Consider the following costs, pros, and cons of different types of heat pumps available for Indianapolis homeowners.

Efficiency

Heat pumps come with different efficiency ratings, with higher SEER, or Seasonal Energy Efficiency Ratio, equating to bigger energy savings over time. In Indianapolis, all cooling systems (including a heat pump) must have a minimum SEER of 14. Higher SEER ratings cost more up front, but high- and premium-efficiency systems offer more savings and may also qualify for more rebates.

Ductwork

Before you move forward with a heat pump installation, hire a pro to check your HVAC ducts. Ductwork lasts 10 to 25 years, but any leaks or damage could lead to costly energy bills, even with a heat pump. In Indianapolis, air duct replacement costs $220 to $1,181 on average.

Prep

Although air-source models are most common, you may also be considering a geothermal heat pump for even bigger energy savings. In order to install a geothermal system, you’ll need to spend $1,842 to $5,594 on the cost of land excavation to lay the ground loop.

HVAC Pro Costs

Installing a heat pump in Indianapolis costs $75 to $125 per hour, per worker, with air-source and hybrid heat pumps taking about half a day to two days to install. Ground- and water-source heat pumps require land prep or drilling, increasing the project timeline up to a few weeks.

Your HVAC contractor will also include permit fees in the project total. The pro will need to secure a permit from the city’s Department of Business and Neighborhood Services. A permit for a heat pump costs $185 for a system covering 2,500 square feet, plus $23 for each additional 1,000 square feet.

Does a Heat Pump Increase Home Value?

A heat pump can increase the value of your Indianapolis home by up to 7% because many buyers seek out energy- and cost-saving HVAC solutions.

In addition to increasing home value, heat pumps offer year-round savings. According to the U.S. Department of Energy’s National Renewable Energy Laboratory, Indiana residents save an average of $1,023 to $1,332 per year on energy costs by installing a ductless or ducted heat pump.

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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