Our typical ranges
These are Bluffline Memphis Heat Pumps’ typical ranges for the jobs Memphis houses need. Each one ties to a site visit and a written estimate, which sets your price.
| Job | Typical range | What it covers |
|---|---|---|
| Whole-home ducted system | $8,000 to $16,000 | Outdoor unit and matched air handler, existing ducts reused with minor repair |
| Outdoor unit only | $4,500 to $9,000 | Heat pump replacing an AC or old heat pump; the air handler or furnace stays |
| Dual fuel on your furnace | $5,000 to $10,000 | Heat pump, matched coil and controls on a gas furnace you keep |
| Air handler only | $2,000 to $4,500 | Matched indoor unit with strips, pan and drain; outdoor unit kept |
| Duct repair and sealing | $800 to $3,500 | Done with an install |
| Light commercial packaged unit | $9,000 to $22,000 per unit | Rooftop unit on an existing curb, one-story crane lift |
All of these include the permit, the old refrigerant recovered, removal of the old equipment and the start-up readings in writing.
What moves the price
Seven things move a Memphis heat pump price most. The estimate names the ones that apply to your house.
Capacity
The load calculation sets the size, measured in tons. A larger heat pump costs more, but the right size is often smaller than the unit being replaced, especially after new windows or attic insulation. See how sizing works.
Efficiency tier
Higher SEER2 and HSPF2 ratings cost more up front and save more over long Memphis summers. Single-stage, two-stage and variable speed equipment sit at different points in each range. SEER2 and HSPF2, explained shows what each tier buys.
Matching the indoor half
A heat pump has to be paired with a matched coil or air handler to deliver its rating. If your indoor unit is old or the wrong match, replacing it moves you from the outdoor-only range to the whole-system range.
The line set
Reusing a sound, correctly sized line set saves money. A long run, a buried run or an undersized one means a new line set and more labor.
Ducts
A small return, leaky trunk seams or crushed runs add duct work. In a crawlspace house the ducts are the first thing we test, and duct work is cheaper done with the install than later. See heat pump ductwork.
Electrical
A heat pump and strip kit need two double-pole breakers. If the panel is full or undersized, circuit or panel work goes on the estimate.
Access
A tight side yard, an attic air handler with a narrow hatch, or a roof that needs a crane all add time.
Cost by the job you need
Your current system decides which range you start in. Here is how each common starting point plays out.
Replacing an old heat pump
A 15-year-old heat pump with a matched air handler of the same age is usually a whole-system job: $8,000 to $16,000. If the air handler is newer and still a rated match, an outdoor unit alone can do it for $4,500 to $9,000. Repair or replace covers the call.
Replacing strip heat
An electric furnace with a separate AC becomes a heat pump with a matched air handler and a smaller strip kit, in the whole-system range. This is where the heating bill changes most, because strips cost about three times as much per unit of heat as a heat pump on MLGW’s rates. See electric furnace to heat pump.
Keeping a gas furnace
A dual fuel system on a sound furnace runs $5,000 to $10,000: the heat pump, a matched coil and a dual fuel thermostat. See dual fuel heat pumps.
Retiring a gas furnace
An all-electric conversion lands in the whole-system range, plus any panel work and the gas line capped by MLGW. See gas furnace to heat pump.
What’s inside a Memphis heat pump price
A heat pump price is equipment, labor and a handful of local costs. Some of those have public figures; the rest depend on the house and get checked on the visit.
| Part of the price | What sets it | Local figure |
|---|---|---|
| Equipment | Size, efficiency tier, matched indoor half | Set by the models on your estimate |
| Labor | Hours on site, crew size, access | HVAC mechanics in the Memphis metro earn a median $27.30 an hour, about 7% below the $29.33 national median (Bureau of Labor Statistics, 2025 wage data) |
| Permit and inspection | Your town’s fee schedule | Set by the issuing office; listed on the estimate |
| Refrigerant and line set | Reuse or replace, run length | Checked on the visit |
| Duct, electrical and restoration work | What the visit finds | Priced as separate lines |
A wage is not a billing rate. The hourly rate a job carries also covers insurance, licensing, vehicles, tools and overhead, which is why labor on an estimate is higher than the wage figure.
Typical budgets
These are typical budgets for jobs we price around Memphis, each with the scope that sets it. Your house will differ, and your written estimate sets the price.
| Job | Typical budget | Time on site |
|---|---|---|
| Strip-heat swap in a 1971 Millington ranch, new air handler with an 8 kW strip kit | $8,900 | 2 days |
| Dual fuel on an eight-year-old furnace in a 1984 Germantown two-story | $8,200 | 1 day |
| Full replacement in a 1978 East Memphis ranch, sized down to 2.5 tons | $9,400 | 2 days |
| Variable speed system for a hot upstairs in a Collierville two-story | $15,600 | 2 days |
| Return and crawlspace trunk fix in a 1993 Bartlett ranch | $2,900 | 1 day |
The Germantown job is walked through stage by stage on our dual fuel page.
Cost by the house you live in
The age and layout of a Memphis house tell you a lot about where in a range it will land. These are the patterns we check for on the first visit.
A 1950s to 1970s ranch on a crawlspace
Much of Memphis was built in this era: the Census Bureau puts the city’s median year built at 1970. These houses tend to have one system, ducts under the floor and a closet or crawlspace air handler.
- What pushes the price up: a small return, old duct insulation, a full or 100-amp panel, and a strip-heat air handler that has to be replaced along with the outdoor unit.
- What keeps it down: a short run from the air handler to the outdoor unit, and ducts that only need sealing.
A 1980s or 1990s two-story
Typical of Germantown and Bartlett. One system often serves both floors, with the air handler in the attic or a garage closet.
- What pushes the price up: attic duct work, a hot upstairs that calls for a variable speed unit, and coil transitions in tight closets.
- What keeps it down: a sound gas furnace that can stay for dual fuel.
A newer house with two systems
Common in Collierville and Lakeland, where the median house was built around 1998 to 2000. Two systems mean two installs, each priced on its own line. Replacing both at once usually costs less than two separate visits.
When a job goes past the range
A few jobs land above our typical ranges, and the estimate says why:
- A panel or service upgrade. If the house needs a larger electrical service, that work and MLGW’s coordination are priced separately.
- Full duct replacement. Replacing every run, rather than repairing the trunk and returns, is its own scope.
- A crane. Rooftop units and some tight lots need one.
- Two systems. Each system has its own range.
Ways to keep the price down without cutting corners
Some savings are real and some only move cost into next summer. The real ones:
- Reuse a sound line set that is the right size and holds pressure.
- Keep a matched, newer air handler and replace only the outdoor unit. If it is the indoor half that has failed, an air handler replacement alone may do.
- Choose two-stage instead of variable speed when the ducts are tight and the house is not damp.
- Do duct repairs with the install, while the system is open.
- Pick equipment that reaches a TVA rebate tier when the price step is small.
What doesn’t save money: an oversized unit, a mismatched coil, or skipping the vacuum and pressure test.
What it costs to run
Running cost depends on what the heat pump replaces. On MLGW’s current residential rates, delivered heat costs roughly:
| Heat source | Cost per million BTU |
|---|---|
| Electric strips | About $35.80 |
| Heat pump, cold day | About $14.30 |
| Heat pump, mild day | About $10.20 |
| Gas furnace, 95% efficient | About $6.30 |
Those figures are worked from MLGW’s winter energy charge, the TVA fuel adjustment, the first-100-ccf gas charge and the purchased gas adjustment, without fixed monthly charges. They move every month. The gas furnace or heat pump guide turns them into a yearly comparison.
Rebates and credits
One rebate program pays on Memphis heat pump installs right now, and two others are closed or not yet open.
| Program | Amount | Who runs it | Status |
|---|---|---|---|
| TVA EnergyRight heat pump rebate | $500 at 15 SEER2, $800 at 17 SEER2 | TVA with MLGW and other local power companies | Open; a participating contractor installs and files |
| TVA EnergyRight duct sealing and insulation | $300 | TVA with your power company | Open |
| Federal 25C tax credit | Was 30%, up to $2,000 for heat pumps | IRS | Ended for equipment placed in service after December 31, 2025 |
| Tennessee home energy rebates | Up to $8,000 by income and savings | Tennessee Department of Environment and Conservation | Not yet open |
The TVA rebate needs equipment installed by a participating contractor in TVA’s Quality Contractor Network. See how the TVA rebate works. Mississippi and Arkansas homes are served by other utilities with their own programs, which we confirm per address.
How the estimate is built
After the visit, you get one page with everything that sets the price:
- The load calculation result and the size it points to
- The matched outdoor and indoor model numbers and their ratings
- Duct, electrical and access work, each as its own line
- The permit, refrigerant recovery and haul-away
- The rebate tier the equipment falls in
- The price, and what would change it
Compare quotes on those lines, not on the total alone. Two numbers that look far apart often describe two different jobs. The Memphis heat pump buying guide lists the questions to ask any installer.