Heat Pump Installation in Sacramento

How a heat pump works in Sacramento's climate

A heat pump is built like a central air conditioner, with one addition: a reversing valve. In summer it pulls heat out of the house and dumps it outside, exactly like an AC. In winter it reverses, pulling heat from the outdoor air and moving it inside. Even at 35°F, outdoor air holds plenty of heat to move.

• Summer. Cooling performance is the same as a comparable AC. Variable-speed models run longer at low speed, which helps with even temperatures during 100°F stretches.
• Winter. Valley winters are mild. Most nights stay above freezing, with occasional frost. Those are easy conditions for a modern heat pump.
• Defrost. On frosty or foggy mornings the outdoor coil can ice up. The heat pump briefly switches modes to melt it. You may see steam from the outdoor unit. That's normal.
• Foothills. Auburn, Placerville, Shingle Springs and higher towns run colder and see snow some winters. Those homes are where cold-climate models and careful sizing matter most.

Your options for replacing an AC and gas furnace

Option	How it heats	Gas needed	Fits when
Ducted heat pump with air handler	Heat pump, with small electric backup heat	No	You want to go all-electric and use your existing ducts
Dual-fuel (heat pump + gas furnace)	Heat pump most of the time, gas furnace on the coldest days	Yes	Your furnace is fairly new, or you live in a colder foothill area
Ductless mini-split heat pump	Wall, ceiling or floor units per room or zone	No	No ducts, an addition, an ADU or problem rooms
New AC + gas furnace (for comparison)	Gas furnace	Yes	You want to keep gas heat, with fewer rebates in 2026

No ducts? See ductless mini-split installation. Comparing a straight AC swap? See AC replacement. We also handle ground-source (geothermal) heat pump projects, which draw heat from the ground instead of the outdoor air.

When dual-fuel makes sense

A dual-fuel system pairs a heat pump with a gas furnace. The heat pump handles cooling and most heating, and the furnace takes over below a set outdoor temperature. It can make sense if your furnace is only a few years old or your home is in a colder foothill area. The trade-off is rebates: SMUD's largest rebates are for converting gas heating to electric, so a dual-fuel setup may not qualify for the same amount. Ask before you choose.

Sizing for summer heat and winter lows

In the valley, cooling usually sets the size. In the foothills, heating can. A Manual J load calculation figures both, and we pick equipment that covers each.

• Check capacity at cold temperatures. A heat pump's heating output drops as it gets colder. We look at the manufacturer's data at your winter design temperature, not just the rated tonnage.
• Keep backup heat small. Electric resistance backup strips are expensive to run. A well-sized heat pump uses them rarely, mainly during defrost.
• Variable-speed helps. Inverter-driven systems ramp up in cold weather and slow down in mild weather, which suits Sacramento's wide daily temperature swings.
• Cold-climate models for foothill homes. Cold-climate heat pumps are designed to keep most of their heating capacity well below freezing. For homes in Auburn, Placerville or Cameron Park, they can make all-electric heat practical without leaning on backup strips.

Electrical panel capacity

Switching from a gas furnace to a heat pump adds electric load, mostly from the backup heat strips. Many Sacramento homes have 100-amp panels, and adding an EV charger or induction range at the same time can push them over.

• We check the panel's rating, breaker space and existing loads during the estimate.
• A variable-speed heat pump with modest backup heat often fits where a larger, single-stage system wouldn't.
• If you're short, the options are a panel upgrade by a licensed electrician, a load-management device or a smart panel.
• SMUD's Go Electric bonus can help with panel and circuit work when it's paired with a gas-to-electric heat pump conversion, at the time of writing (2026).

Heat pump rebates and incentives in 2026

Incentives changed a lot between 2025 and 2026. Here's where things stand at the time of writing:

• SMUD. SMUD increased its heat pump rebates in February 2026, citing the end of federal tax credits and state programs running out of funds. The biggest rebates, up to $3,000, go to gas-to-electric conversions with a qualifying two-stage (15.2 SEER2 or higher) or variable-stage heat pump. Electric-to-electric upgrades get $1,000. See how the SMUD heat pump rebate works. Rebates must be submitted by a contractor in the SMUD Contractor Network. Airflow has been a participating contractor in that network since 2020, so we handle the submission for qualifying projects at SMUD addresses. Equipment must meet SMUD's efficiency requirements, and funding is first come, first served. SMUD is actively encouraging all-electric homes, and its rebates reflect that.
• PG&E territory. Much of Placer, El Dorado and Yolo counties, including Davis, Rocklin and El Dorado Hills, is served by PG&E. Statewide TECH Clean California heat pump incentives and the state's HEEHRA rebates were reported fully reserved for single-family homes as of mid-2026. Watch techcleanca.com for new phases and check PG&E for current offers and income-qualified programs.
• Roseville Electric. Roseville has its own utility and rebates. Check the city's site for current heat pump programs.
• Federal 25C tax credit. Ended for equipment placed in service after December 31, 2025. Systems installed in 2025 could still be claimed on a 2025 return.

Rebate rules and amounts change during the year. We confirm what your project qualifies for before you sign.

Permits, Title 24 and refrigerants

Heat pump installations need a building permit and Title 24 compliance. In most of the Sacramento region that includes HERS verification by an independent rater, such as a duct leakage test and refrigerant charge and airflow checks. Ducts that fail the leakage test must be sealed. See air duct sealing.

New heat pumps use A2L refrigerants such as R-454B or R-32. They need A2L-rated tools and follow updated safety standards, and many include a refrigerant leak sensor indoors. The federal minimum for split heat pumps is 14.3 SEER2 and 7.5 HSPF2. Rebate programs typically require higher.

What does a heat pump cost in Sacramento?

What moves the price:

• System type. Ducted, dual-fuel or ductless, and how many zones.
• Size and efficiency. Tonnage, SEER2/HSPF2, two-stage vs variable-speed, standard vs cold-climate.
• Air handler or furnace. A new air handler, or keeping the furnace for dual-fuel.
• Electrical. Circuits, disconnects and any panel work.
• Ducts. Sealing or repairs needed to pass HERS testing.
• Gas line capping when the furnace is removed, plus permit and HERS fees.
• Rebates that lower your net cost.

How a heat pump installation works

1. Free estimate. We look at your current system, ducts, electrical panel and comfort problems, and ask how you use the house.
2. Load calculation. Heating and cooling loads, with equipment checked against winter and summer conditions.
3. Options and rebates. Ducted, dual-fuel or ductless, each with a clear price and the rebates it qualifies for.
4. Permit. Pulled with your city or county, and any panel work coordinated with a licensed electrician.
5. Install. The old furnace and AC are removed, the gas line is capped if going all-electric, and the air handler, outdoor unit, line set, controls and thermostat go in. Most ducted conversions take two to three days.
6. Testing and sign-off. Charge, airflow and duct tests, HERS verification and the final inspection. We show you how the thermostat handles heating, cooling and backup heat.

Where we install heat pumps

We install heat pumps across the Sacramento region and into the foothills, including Auburn, Placerville, Cameron Park and Elk Grove.

Heat pump installation FAQ