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Costs of a New Heat Pump in South Denver

For more than 50 years, our Littleton team has helped homeowners across the South Denver Metro area choose comfortable, efficient heating and cooling without surprises. If you’re researching a new system, it’s natural to start with price. Below, you’ll find clear, locally grounded guidance to help you understand what an HVAC system cost looks like for our climate and elevation—so you can plan with confidence.

Costs of a New Heat Pump in South DenverWhat Drives HVAC System Cost in the South Denver Metro Area

A few key factors shape the final price you’ll see on a proposal:

Home Size and Layout:

Larger or multi-level homes require more capacity and careful airflow design.

System Type:

Furnace + central AC, heat pump, or ductless mini-splits each come with different price ranges.

Efficiency Level:

Higher-efficiency and variable-speed systems cost more upfront but typically deliver lower utility bills and quieter comfort.

Ductwork Condition:

New or modified ductwork can add to the overall investment and improve comfort room to room.

Installation Quality:

Proper load calculation, high-altitude setup, and clean workmanship in South Denver’s 5,000+ ft elevation are essential to long-term reliability.

Local Permits and Code Requirements:

Inspections and permits are part of a professional installation and protect your investment.

Rebates and Credits:

Xcel Energy rebates and tax credits can meaningfully reduce net cost.

Typical Price Ranges by System Type

While every installation is unique, these general ranges can help you understand what to expect when planning for a replacement.

Furnace + Central AC (Whole-Home Replacement)

  • Standard efficiency (80% furnace / 14–16 SEER AC): $9,000 – $13,000
  • High efficiency (96%+ furnace / 17–18 SEER AC): $13,000 – $17,000
  • Premium variable-speed systems: $17,000 – $22,000+
 

Heat Pump (Ducted, All-Electric or Dual-Fuel)

  • Standard efficiency (14–16 SEER2, single-stage): $10,000 – $14,000
  • High efficiency (17–19 SEER2, variable-speed): $14,000 – $19,000
  • Cold-climate or dual-fuel variable-speed models: $19,000 – $25,000+
    (Rebates from Xcel Energy and tax credits can reduce costs by $5,000 – $7,400.)
 

Central AC or Furnace Only

  • AC replacement only: $6,000 – $10,000
  • Furnace replacement only: $5,000 – $9,000
  • High-efficiency or variable-speed upgrade: Add $1,500 – $3,000+
 

Ductless Mini-Split (Per Outdoor Unit + 1–4 Indoor Heads)

  • Single-zone system: $3,000 – $7,000
  • Multi-zone (2–4 zones): $8,000 – $15,000+
    (Excellent for additions, basements, or partial electrification projects.)
 

Ductwork (New Installation or Replacement)

  • Partial retrofit: $2,000 – $5,000
  • Whole-home new duct system: $6,000 – $12,000+
    (Pricing varies by accessibility, home size, and insulation level.)
 

Indoor Air Quality (IAQ) Upgrades

  • Whole-home humidifier: $700 – $2,000
  • Air purifier / UV system: $600 – $3,000+
  • Smart thermostat (installed): $200 – $500
 

Why Local Conditions Matter

Our high altitude and wide temperature swings mean equipment must be sized and set up correctly to deliver reliable, year-round comfort. Experienced, certified technicians ensure proper airflow, gas adjustments, and controls configuration—details that protect performance and longevity.

What’s Usually Included in a Quality Installation

A trustworthy proposal typically covers:

  • Load calculation (right-sizing the system for your home)
  • Equipment and parts, including compatible indoor/outdoor components
  • Permits and inspections required by local codes
  • Professional installation, start-up, and commissioning
  • Thermostat setup and homeowner orientation
  • Manufacturer warranty registration
  • Post-install check and support

With more than five decades serving Littleton and surrounding neighborhoods, our team believes in transparent, neighborly service and a simple promise: If you’re not satisfied, we’ll make it right.

Smart Ways to Save in South Denver

Leverage Rebates and Tax Credits:

Xcel Energy offers incentives for high-efficiency equipment, and tax credits are available to lower your costs even more.

Choose the Right Efficiency:

Balance upfront price with expected energy savings and comfort features like variable-speed operation.

Bundle Projects:

Combining furnace and AC (or converting to a heat pump) can reduce labor duplication and streamline ductwork updates.

Prioritize Ductwork Health: 

Well-sealed, properly sized ducts improve comfort and can allow for smaller, more efficient equipment.

Maintain Your System:

Routine maintenance helps prevent breakdowns and protects warranties, keeping costs predictable over time.

Signs You’re Getting Good Value

  1. Clear, detailed proposal with model numbers, scope, and warranties.
  2. Right-sized system verified by a load calculation—not just a swap of similar equipment.
  3. Strong workmanship standards, including clean install practices and documented start-up.
  4. Straightforward warranties and a company willing to stand behind its work.
  5. Rebate and financing guidance that reduces out-of-pocket expense without pressure.
Save Up To $7,400 on an Air Source Heat Pump

Rebates, Tax Credits & Financing Made Simple

One of the biggest advantages of upgrading to a heat pump is the availability of rebates.

Many homeowners can significantly reduce upfront costs by combining:


We handle the entire rebate process for you.

From identifying eligible programs to completing and submitting paperwork, our team makes it easy to maximize your savings without added stress.

Contact Us

Why Homeowners Have Trusted Us Since 1973

  • Serving South Denver for over 50 years

  • Deep knowledge of Colorado homes and climate

  • Customer-first service—not sales-driven pressure

  • Expertise in heat pump and high-efficiency systems

  • Trusted by generations of local homeowners

Our longevity is built on consistency, integrity, and quality work—year after year.

We Proudly Serve Littleton, Highlands Ranch, Centennial, Castle Rock, Lakewood, and All Surrounding South Denver Communities.

Benefits of Heat Pumps FAQs

Do heat pumps really work during Colorado winters?

Yes. Modern cold-climate heat pumps are designed to deliver efficient, reliable heating even in freezing temperatures.

No. Heat pumps provide both heating and cooling, making them ideal for year-round comfort in Colorado.

Many homeowners see reduced energy costs, especially when replacing older or inefficient systems.

Yes. Many systems qualify for rebates, and we help guide you through the process.

Yes. Flexible financing options are available to help make upgrading more affordable.

Discover the Benefits for Your Home

Colorado’s climate demands a smarter approach to home comfort. With decades of local experience and deep knowledge of heat pump technology, Southwest Heating & Cooling helps homeowners enjoy efficient, reliable heating and cooling all year long.

Contact us today to schedule your consultation and see how a heat pump can benefit your South Denver home.

What Your Neighbors Are Saying About Us

Alison K.
Aaron came out to service my AC unit. He was prompt courteous and knowledgeable and did not try upselling which I appreciate. I like that this company sends photos of their technician ahead of the visit and ask for feedback on their performance. They are very customer centered. I also get great courteous service whenever I need to call and schedule with them. Highly recommend!
Sam S.
This was the most pleasant installation I’ve ever been part of. There was no attempt to upsell. Had a great conversation about what we needed, we set a date they were prompt, clean, and so professional. Did the job explain to us everything they did. I would use them seven days a week and twice on Sunday! Highly recommend!
Eric S.
These folks are the best HVAC company I think that I have ever worked with. Everyone and I mean everyone was wonderful! From Aaron who did a fantastic job assessing the system and getting the replacement mapped out, to Preston and Phaylan who did an amazing job with the install, to Lisa in the office who kept me informed and supported throughout the whole process. They are cost effective, super friendly and extremely high quality. I cannot thank them enough for a stellar job! Truly elite level service at a very accessible price. A++ all around!
Mike McD.
STRONGLY RECOMMEND! What a great experience. Chris McCollum was the technician that came out and identified the issue very quickly. I am always wary of these kinds of services and being upsold on solutions. He fixed the issue and gave me some options for preventative measures we could take to make the system last longer, but didn't push for any of them to be done immediately. Which weirdly made me more receptive to having some of these scheduled to be done soon.
Mary R.
Thank goodness for Southwest Heating and Cooling! They were so helpful on the phone when I called in to say that my thermostat seemed to be dead. Jeremiah was able to diagnose the problem, gave me a couple of options for the fix, and got everything taken care of right away. He was professional, explained everything to me, made sure all my questions were answered. Highly recommend.
Marie McG.
This was the second time that I have had Southwest Heating and Air Conditioning upgrade my HVAC system and they did another excellent job. Jeremiah installed a new steam humidifier in my home and was professional, knowledgeable, and conscientious. He stepped me through the process and answered all my questions. I would highly recommend the company and Jeremiah.
Julie G.
I am so pleased with the work that has been done by Southwest Plumbing and Heating. The owner personally came out to give me a quote. The staff and installers were very professional and extremely friendly. Anyone is welcome to call me to talk about it.
Jeff M.
Great service. Aaron did a great job.
Lebowski
Just had Jeremiah to the house for a system check and to make some adjustments to the fan. He was on time, courteous, extremely knowledgeable, and had out system working at peak efficiency in no time. Cant be happier with SWH&C!
Mark J.
Southwest is committed to excellent service no matter what your needs. They want to do what’s right not just provide a bandaid to your HVAC system.
Judith K. V.
My technician did a good and professional job. Was also very helpful and knowledgeable with answering questions I had.
Debbie A.
Great attention to detail. Gave many options. Very nice.
Bob S.
Very knowledgeable.
Will S.
I was impressed with communication. The technician that came out was very knowledgeable and professional.
Fredes G.
They arrived on time, and they were truly dedicated professionals. I whole heartily recommend Southwest Heating & Air Conditioning for all your Heating and Air Conditioning needs.
Greg B.
Jeremy was very easy to work with.