Heat pump installation in Gilroy, CA
A heat pump cools Gilroy's hot summers and heats its cool winters from one system, and it is the equipment the Bay Area is moving toward. A new heat pump in Gilroy typically costs about $6,900 to $11,000 installed for common 2 to 4 ton systems.
We size it for your home, handle the permit and tell you honestly which rebates are open today. Emergency service is available 24/7.
The price in plain numbers
Average installed prices in Gilroy from our pricing guide are about $6,900 for a 2 ton system, $9,000 for a 3 ton and $11,000 for a 4 ton. See the heat pump installation pricing guide.
| System size | Typical home size | Average installed |
|---|---|---|
| 2 ton | Under 1,400 sq ft | $6,900 |
| 3 ton | 1,800 to 2,200 sq ft | $9,000 |
| 4 ton | 2,600 to 3,200 sq ft | $11,000 |
Examples of our work
Is a heat pump right for your Gilroy home?
Gilroy summers run hotter than San Jose's, and its winter nights are cool, not harsh. That mix suits a heat pump well.
The case is strongest when your furnace and air conditioner are both old, because one system replaces two. It is weaker when your furnace is newer and your ducts are poor, since the ducts decide the result.
The U.S. Department of Energy explains how heat pumps work. Because the Bay Area's rule on new gas furnaces starts in 2029, many Gilroy owners are pricing both options, and so should you.
Sizing for a hotter Gilroy summer
The right capacity comes from your home: floor area, layout, insulation, windows and sun. A unit sized from a cooler Bay Area city can fall short on a 100 degree afternoon in Gilroy, so we check how the equipment performs on very hot days and not only at the standard rating.
Old ducts, new heat pump
Houses in Old Gilroy and on the east side often have ducts that leak or were never built for high volume central air. Heat pumps need good airflow in both seasons, so we test the ducts during the estimate and tell you whether sealing, a larger return or a ductless unit would serve you better.
California's Title 24 energy standards can also require duct testing when a system is replaced.
Rebates: what to check first
The big California heat pump rebate, HEEHRA, stopped taking new single family reservations on February 24, 2026, and the federal tax credit ended after 2025.
Local programs may still help: Silicon Valley Clean Energy and the Bay Area Regional Energy Network have offered heat pump HVAC rebates, and TECH Clean California offers contractor applied rebates.
Programs change or close, so confirm on BayREN and SVCE before you buy. Our California rebates and rules guide explains how to avoid rebate scams.
Efficiency ratings and cost
| Rating | Tier | Added to base price |
|---|---|---|
| 14.3 to 15 SEER2 and 7.5 HSPF2 | Federal minimum | Base price |
| 16 to 17 SEER2 and 8 to 8.5 HSPF2 | Mid efficiency | Add $600 to $1,400 |
| 18 to 20 SEER2 and 9 HSPF2 | High efficiency | Add $1,500 to $2,800 |
| 21 SEER2 or more and 9.5 HSPF2 or more | Premium inverter | Add $3,000 to $6,000 |
New residential systems use lower impact refrigerants such as R-454B or R-32 under the EPA's Technology Transitions rule.
How a heat pump installation works
- We look at your home. The current equipment, ducts, panel and where the unit sits.
- We size and select, and explain the efficiency options.
- You get options and prices in writing before work begins.
- We pull the permit and install.
- We test everything and walk you through it.
What moves the price of a Gilroy heat pump job
- The size of the home and how well it holds heat.
- A single stage, two stage or variable speed system.
- An electrical panel that needs a new circuit or an upgrade.
- Duct sealing or a larger return, which are worth doing before the equipment.
- Whether a gas furnace is being removed, and what is done with the gas line.
We list each of these in your estimate so you can compare it with other bids.
Questions worth asking any Gilroy contractor
- What size is this system for a 100 degree afternoon, and how does it perform in heat?
- Will you test my ducts, and is sealing included?
- Is the permit included, and are you handling the rebate paperwork?
- Is the thermostat and backup heat part of the price?
- Which rebates did you confirm for my address today?
Where we serve
We serve Gilroy, Morgan Hill, San Martin and Hollister. See heat pump repair in Gilroy, AC installation in Gilroy and HVAC in Gilroy.
Brands we service
We repair and install all major brands. Each brand page lists the models we install, the problems we see most and what the warranty typically covers. See how we match a technician to your brand.
Gilroy, CA on the map
Common questions
How much does a heat pump cost in Gilroy, CA?
Average installed prices in our guide are about $6,900 for a 2 ton, $9,000 for a 3 ton and $11,000 for a 4 ton.
Will a heat pump keep my Gilroy home warm?
Yes. Winters here are mild enough for a heat pump to heat efficiently, with backup heat on the coldest mornings.
Is the $8,000 California rebate still available?
As of February 24, 2026, single family HEEHRA rebates were fully reserved statewide. See our rebates and rules guide.
Is there a federal tax credit?
No. The federal 25C credit ended after December 31, 2025.
Do I need a permit?
In most cases yes. We handle it.
Talk to a person
Call any hour for emergency service, or reach us during business hours for a visit or a quote.