⚠️ The federal clean-energy tax credits were rolled back in 2026 (solar/battery credits ended Dec 31, 2025; the EV-charger credit June 30, 2026). State & utility rebates are now the main savings.
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Heat Pump Cost in Peoria, Arizona

Local pricing, rebates, and heating savings data for Peoria homeowners.

$325
Annual Savings
30 yrs
Payback Period
$12,500
Net Cost
-$6,352
15-Year Savings

Heat Pumps in Peoria: What Homeowners Should Know

Peoria has roughly 942 heating degree days a year, a mild climate that determines how hard a heat pump works each winter. A typical 2,000 sq ft home here needs about a 3-ton system, installed for around $13,000 — or about $12,500 after the local rebate of up to $500.

Swapping electric-resistance heat for a heat pump in Peoria cuts heating costs from about $467 to $142 a year — a saving of roughly $325 annually at the local electricity rate of $0.141/kWh, and an estimated -$6,352 over 15 years. Savings are even larger if you currently heat with propane or oil. Note: the federal 25C heat-pump tax credit expired at the end of 2025, but Arizona rebates and the income-qualified HEEHRA program (up to $8,000) can still bring the cost down. The local utility is Arizona Public Service.

Cost & Savings Breakdown

2,000 sq ft home switching from electric resistance in Peoria

System Size
~3 tons
Installed Cost
$13,000
State/Utility Rebate
-$500
Net Cost
$12,500
Current Heating Cost/yr
$467
Heat Pump Cost/yr
$142
Annual Savings
$325
CO₂ Avoided/yr
1,962 lbs

15-Year Savings Projection

-$12k-$11k-$9k-$8k-$6kyr 1yr 5yr 10yr 15yr 20yr 25

Available Rebates

Up to $500
Arizona State/Utility RebateArizona utilities (APS, SRP) offer heat-pump rebates of roughly $500.
Up to $8,000
HEEHRA (income-qualified) — Households at or below 150% of area median income can get up to $8,000 toward a heat pump.
Federal 25C Credit — The $2,000 federal heat-pump tax credit expired Dec 31, 2025.
View all Arizona rebates →

Choosing a Heat Pump Installer in Peoria

  • 1.Get at least 3 quotes. Prices in Arizona vary widely — comparing bids on the same ~3-ton system is the fastest way to avoid overpaying.
  • 2.Insist on a Manual J load calculation. Proper sizing for Peoria's 942 heating degree days is the single biggest factor in comfort and efficiency.
  • 3.Ask about high-efficiency variable-speed units. Look for a strong HSPF2 rating and a 10-year compressor warranty.
  • 4.Ask about rebate paperwork. Good installers handle Arizona rebate and HEEHRA applications for you.

Common Questions

How much does a heat pump cost in Peoria?

A whole-home heat pump in Peoria, Arizona costs approximately $13,000 installed, or about $12,500 after the state/utility rebate of up to $500. The federal 25C tax credit expired December 31, 2025.

How much can a heat pump save in Peoria?

A typical Peoria home switching from electric-resistance heat saves about $325 per year — roughly -$6,352 over 15 years — with a payback of about 30 years. Savings are even larger versus propane or heating oil.

What size heat pump do I need in Peoria?

A typical 2,000 sq ft home in Peoria needs roughly a 3-ton heat pump, given the local climate of 942 heating degree days. A Manual J load calculation from your installer will confirm the exact size.

Do heat pumps work in Peoria's climate?

Yes. With 942 heating degree days, Peoria is a mild climate. Standard heat pumps perform well in this climate year-round.

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Planning other home-energy upgrades?

Solar, batteries, heat pumps and EV chargers all work together. Run the numbers on the rest of your electrification plan: