How Much Value Does A Heat Pump Add To Your Home?

Homeowners in Pennsylvania, New Jersey, Delaware, and Maryland can add up to $17,000 in value to their homes with a heat pump or mini split installation. These energy efficient heat and air conditioning systems provide better comfort with lower expenses than traditional HVAC systems.


As a heating and cooling expert over a decade of experience, I’ve seen how these systems have improved over the years. As a product manager for the HVAC distributor Peirce Phelps, I’ve worked closely with contracts in Mid-Atlantic states to communicate the latest innovations and understand the needs and concerns of homeowners.

In this article, I’ll explain how mini splits and heat pumps increase home value and explore the costs and return on investment for these systems. Then, our dealer locator can match with a certified contractor in your area who offers free consultations.


Before we dive into the reasons why these systems can add value to your home, let’s take a quick look at how they work.

How Mini Splits And Heat Pumps Work

Heat pumps and mini splits provide both heating and cooling to your home by moving heat from one place to another rather than creating it. A mini split uses a heat pump as its outdoor unit.

The outdoor unit contains the compressor and the condenser. It can extract heat from the air outside and compress it so there’s enough warmth, even in the winter, to heat a house.

It connects to an air handler inside via copper tubes that run refrigerant in a continual loop between the components. That refrigerant absorbs heat from the air when it reaches one component and releases that heat to the other when it travels back.

Mini Splits: Ductless Heating and Cooling

Mini splits are ductless heating and cooling systems with two main components: an outdoor heat pump and one or more indoor units, or air handlers.

Inside, the air handlers draw in air from the rooms where they are located, heat or cool that air, and then recirculate it. In the summer, the refrigerant draws heat from inside and sends it to the heat pump, which exports it to the outside air. The process reverses in the winter.

Each mini split air handler treats a single room, or zone, in the house, They’re all controlled independently, allowing you to customize the temperature in each room separately.

Ductless Vs. Ducted Air-Source Heat Pumps

Ducted air-source heat pumps work on the same principle as mini splits. But there’s only one air handler inside, usually in the attic or basement like a furnace. It uses ductwork to deliver warm or cool air throughout your home. They’re centralized, so one thermostat regulates the whole house.

How Much Do Heat Pumps Increase Property Values?

According to a 2020 study in Nature Energy a heat pump can increase home value by $10,000 to $17,000. It varies depending on the energy efficiency and type of heat pump. Air-source ducted and ductless heat pumps most common. Solar powered and geothermal heat pumps are also available residentially.

How Much Do Mini Splits Increase Home Value?

A mini split system can increase home value up to around $17,000 as of 2020. These heat pump systems offer more customization and energy efficiency than ducted systems. They’re also easy to install in homes without ductwork.

How Heat Pumps And Mini Split Increase Home Values

Heat pumps and mini-split systems can greatly increase the value of your home by making it more attractive to buyers both in terms of comfort and finances. They offer:

Lower Bills

Heat pumps and mini splits are known for their energy efficiency. They reduce your monthly energy bills, saving you money over time. The difference should be more than a slight increase in a homeowner’s monthly mortgage payment over 30 years.

Better Comfort

A ductless system controls the temperature of each room in your home separately. This is a major selling point for split level homes or rooms above a garage, houses with cathedral ceilings, or third floors.

Traditional home heating and cooling usually leave those areas too hot or too cold. Ductless mini splits can give each of these spaces the individualized treatment they need.

Long Lifespan

Heat pumps and mini splits typically have a longer lifespan than traditional central air systems. Mini splits in particular can last two decades. That’s more time a homebuyer will have to go before paying for a new HVAC installation.

Green Energy

Ductless systems and heat pumps use less energy than traditional central air systems, which reduces your carbon footprint. They can also work off solar panels for an even more energy-efficient home.

Installation Costs and Return On Investment

Heat pumps and mini splits offer more value than conventional HVAC, but also cost more to install. I’ll go through the average installation and savings costs so you can get an idea on how long it will take to get a return on your investment through reduced energy costs and added home value.

Ducted Heat Pump Installation Costs

The installation cost for a ducted heat pump system varies based on the size of the home, the number of rooms, the complexity of the system, and its efficiency rating. On average, a ducted heat pump system costs between $5,000 and $10,000 to install.

Multi-Zone Mini Split Installation Costs

Ductless mini-split systems come in single zone (one indoor air handler) setups and multi-zone (two or more air handlers) setups.

A heat pump can support up to eight indoor units. The average cost of a single-zone installation is around $4,000. Whole-home solutions can reach $25,000 depending on the number of units.

You’ll find prices for these systems much cheaper than what I’m quoting. But, there are a lot of risks if you try to install a mini split yourself.

Return on Investment Through Energy Savings

According to the Department of Energy, heat pumps can save homeowners up to $1,000 a year in heating and cooling costs. But, that depends on the previous system and the new setup. Still, up to 30 percent savings annually is common.

To calculate the ROI, first determine how much more you paid for a heat pump versus a comparable replacement. Do the same with your monthly or annual savings.

When the savings match the extra cost, the system has paid for its extra expense. This usually takes five years or less. Continue the calculations with the total installation cost. The lower monthly expenses should take less than a decade to pay for the entire system.

Added Home Value

You can expect up to $17,000 of added value to your home, especially if you go with a mini split. If you sell after you’ve recouped the difference of the installation cost, that increased value is all profit.

A mini split is an excellent, safe home improvement: You’ll enjoy better comfort in your home, and then get even more money back as house prices increase and you can add more value to yours.  

Ready to find an excellent mini split installation company in Cherry Hill, NJ or anywhere in New Jersey, Pennsylvania, Maryland, or Delaware? Use our dealer locator button to find a certified contractor near you.