Heat Pump Installation Cost in Memphis, Tennessee
Expect to pay $5,100 to $12,400 for heat pump installation in Memphis, TN. Most homeowners end up near $9,100, depending on the equipment tier and how much of the old setup can be reused.
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Memphis Weather and HVAC Load
NOAA's 1991-2020 climate normals put Memphis at 2,874 heating degree days and 2,313 cooling degree days per year. Neither season dominates in Memphis. That balance is a big reason heat pumps and dual-fuel systems sell well in Tennessee. Count on roughly 44 nights below 32°F and 72 afternoons past 90°F in a typical year. Snowfall averages about 3 inches. For a 2,000 sq ft house, this climate points to a heating load somewhere near 45,000 BTU/h. Treat that as a starting number. A Manual J calculation will move it up or down based on insulation and windows.
| Heating degree days / year | 2,874 |
|---|---|
| Cooling degree days / year | 2,313 |
| Nights at or below 32°F | 44 |
| Days above 90°F | 72 |
| Average low / high | 53.8°F / 73°F |
Memphis Housing Stock
The median Memphis home dates to 1970, according to the Census ACS. That makes the typical house about 56 years old. A lot of these homes are on their second or third system by now. The ductwork is usually original, and leaky joints are common. Memphis has roughly 117,000 owner-occupied homes, or 46% of households. The median home value is $157,100, and median household income is $51,211. We use both figures to adjust labor and pricing for this page.
Between 2020 and 2025, NOAA's Storm Events Database logged 20 hail days and 47 days with damaging thunderstorm winds in Shelby County. The largest hail reported was 2 inches across. Hail flattens the thin aluminum fins on condenser coils and cuts airflow. After a big storm, take a look at the outdoor unit; homeowners insurance often covers the damage.
When It Makes Sense
- The house heats with electric baseboard, oil or propane
- Your AC needs replacing, and you'd like cheaper heat at the same time
- Energy bills are higher than you want them to be
What Moves the Price
- Electrical panel capacity and wiring
- Backup heat, either electric strips or a gas furnace (dual-fuel)
- Variable-speed (inverter) or single-stage compressor
- A ducted system or a ductless mini-split
- Size in tons, and whether the unit is cold-climate rated
We lowered the national figures about 8% for Memphis using local income, home values and the equipment size this climate needs. Real bids can still come in outside the range, so collect three written quotes.
What the Quote Should Cover
- Thermostat setup and backup heat settings
- A load calculation and equipment selection
- The outdoor heat pump and an indoor air handler or coil
- Commissioning and warranty registration
- Line set, drain and electrical hookups
Tennessee Permits, Efficiency Rules and Rebates
Tennessee is in the DOE's Southeast region, where new split central air conditioners need at least 14.3 SEER2 (13.8 SEER2 for systems of 45,000 BTU/h and up). Expect the contractor to pull a mechanical permit for a replacement job in Memphis. If a bidder suggests skipping it, move on. Also ask for a Tennessee license or registration number and proof of insurance. The federal 25C tax credit ended for equipment installed after December 31, 2025, so incentives now come mostly from utilities and state programs. Check your electric and gas utility's rebate page before you pick equipment.
Before You Hire
- Ask your electric utility and state energy office what heat pump rebates are open right now.
- Make sure the installer sized the system for your heating load, not only cooling.
- A dual-fuel setup keeps your gas furnace as backup for the coldest nights.
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Heat Pump Installation Questions from Memphis Homeowners
How much is heat pump installation in Memphis?
Plan on $5,100 to $12,400, with most jobs near $9,100. Equipment efficiency, house size and the condition of the ducts and wiring decide where your quote falls.
When is the best time to schedule heat pump installation in Memphis?
In spring or fall. Those are the slow months between heating and cooling season in Memphis.
Do heat pumps work in cold weather?
Yes. Cold-climate heat pumps keep making heat well below 0°F. They lose efficiency as it gets colder, so many homes in cold regions keep backup heat.
How long does a heat pump last?
Usually 12 to 15 years. A heat pump runs year-round, so it needs maintenance twice a year rather than once.
Heat Pump Installation Near Memphis
- Nashville $5,900 to $14,500
- Knoxville $5,000 to $12,400
- Chattanooga $5,300 to $13,100
- Clarksville $5,400 to $13,200
Sources: U.S. Census Bureau ACS 5-year estimates 2019-2023 and 2024 population estimates; NOAA NCEI U.S. Climate Normals 1991-2020, station Memphis International Airport; NOAA Storm Events Database 2020-2025, Shelby County. Prices are our estimates, not contractor quotes. Updated 2026.