SMUD customers who replaced a gas furnace with a heat pump paid a median of $18,804 for the installation, before rebates. The cheapest job in SMUD's data was $3,500 and the most expensive was $65,620.
So the honest answer is a wide range, and the published median is the best anchor. SMUD is one of the few utilities that publishes what its customers actually paid. Here's that data, checked on October 8, 2026.
How Much Does an Air Source Heat Pump Cost in California?
SMUD's data puts the median installed cost at $18,804 for gas-to-electric heat pump projects, with a range of $3,500 to $65,620. Electric-to-electric upgrades had a median of $17,336, ranging from $7,250 to $44,763. Prices are before any rebates or credits.
| Project type (SMUD data) | Median installed cost | Lowest | Highest |
|---|---|---|---|
| Gas-to-electric, all heat pumps | $18,804 | $3,500 | $65,620 |
| Gas-to-electric, ducted | $21,296 | $9,550 | $39,045 |
| Gas-to-electric, ductless | $15,980 | $3,500 | $51,814 |
| Electric upgrade, all heat pumps | $17,336 | $7,250 | $44,763 |
| Electric upgrade, ducted | $19,703 | $15,870 | $26,500 |
| Electric upgrade, ductless | $14,842 | $7,250 | $23,540 |
SMUD says the data comes from actual SMUD residential customer projects over the past 12 months, refreshed each quarter, and includes only single-measure projects. And SMUD doesn't guarantee its accuracy, so treat it as a guide, not a quote.
Why Do Heat Pump Prices Vary So Much?
SMUD's own ranges show it: a ductless gas-to-electric job ran from $3,500 to $51,814. The type of system (ducted, ductless, split or package), whether it replaces gas or electric heat, and the home itself all move the price.
SMUD's table also separates package units (median $19,218 gas-to-electric) from split systems ($18,646). So 2 or 3 written quotes for your specific home are the only reliable price. Ask each contractor which rebates they'll file for you.
What Rebates Lower the Cost?
It depends on your utility. SMUD pays $3,000 for a variable-stage and $2,000 for a two-stage (15.2 SEER2 minimum) gas-to-electric heat pump, plus up to $4,000 in Go Electric rebates for panel and circuit work. LADWP pays $1,000 to $2,500 per ton, depending on the system's efficiency.
- SMUD: $3,000 variable-stage or $2,000 two-stage for gas-to-electric; $1,000 for an electric-to-electric multi-stage upgrade. SMUD's Go Electric rebates (smart panel, subpanel, new circuit) go up to $4,000; SMUD says the subpanel and circuit rebates need a gas-to-electric conversion. A SMUD Contractor Network contractor submits the rebate.
- LADWP: $1,000 to $1,250 per ton for ducted systems and $1,500 to $2,500 per ton for ductless, with at least 15.2 SEER2 and 7.7 HSPF2.
For example, a $18,804 gas-to-electric project that qualifies for SMUD's $3,000 variable-stage rebate would cost $15,804 after that rebate. The heat pump efficiency ratings guide explains the SEER2 and HSPF2 numbers rebates require.
Are There State or Federal Incentives in 2026?
Not for new single-family projects. TECH Clean California's single-family heat pump incentives are no longer open: TECH's page says they've been reserved statewide since November 14, 2025. The federal 25C heat pump credit ended for property placed in service after December 31, 2025.
SMUD's page still says its rebates can be stacked with statewide and federal programs. That line is out of date for 2026 installations, since 25C ended after December 31, 2025 (IRS FS-2025-05). The guide to the federal home energy credits that ended covers 2025 projects.
Official Sources
The installed-cost figures come from SMUD's own published project data, and the rebate amounts from SMUD's and LADWP's own pages, all checked on October 8, 2026.
- SMUD heating and cooling rebates, rebates and average installation pricing
- LADWP Consumer Rebate Program, per-ton heat pump rebates
- TECH Clean California single-family incentives, which shows its single-family incentives fully reserved
Frequently Asked Questions
What is the average cost of a heat pump in Sacramento?
SMUD's published data shows a median installed cost of $18,804 for gas-to-electric heat pump projects and $17,336 for electric-to-electric upgrades, from SMUD customer projects over the past 12 months as of October 8, 2026. Those prices are before SMUD's rebates of up to $3,000.
Is a ductless heat pump cheaper than a ducted one?
In SMUD's data, yes on median price: ductless gas-to-electric projects had a median of $15,980 versus $21,296 for ducted. But ductless jobs also had the widest range, from $3,500 to $51,814, so the number of indoor units and the home itself matter.
Do I need a special contractor to get the SMUD rebate?
Yes. SMUD says its heat pump HVAC rebates must be submitted by a qualified participating contractor through the SMUD Contractor Network. Your contractor files the rebate for your signature and may offer the amount upfront, then collect it from SMUD after the project.
Pricing a heat pump? See the verified rebates for your address with the free rebate calculator.