Heat pump (ducted, outdoor unit + air handler) replacement cost in Memphis, TN
Installed, 3 ton system
A typical heat pump (3 ton system) costs about $5,700 installed in the Memphis area, 1% below the national figure, because HVAC technicians here earn a median $27 an hour against $29 nationally.
Prices by size in Memphis
| Size | Low | Typical | High | National typical |
|---|---|---|---|---|
| 2 ton system | $3,900 | $4,800 | $6,900 | $4,850 |
| 3 ton system | $4,950 | $5,700 | $7,550 | $5,750 |
| 4 ton system | $6,400 | $7,000 | $9,200 | $7,150 |
| 5 ton system | $7,600 | $8,300 | $10,750 | $8,450 |
Local labor: what HVAC technicians earn here
| Hourly wage | Memphis metro | United States |
|---|---|---|
| 25th percentile | $23 | $23 |
| Median | $27 | $29 |
| 75th percentile | $35 | $37 |
The Memphis market
Building permits in Memphis and Shelby County are handled through the Division of Planning and Development's construction enforcement office (develop901.com), which publishes fees for building, electrical, mechanical and plumbing permits and runs a DIY corner for homeowners. Whether a like-for-like water heater, furnace, AC or heat pump replacement needs a permit, what it costs, and whether a homeowner can pull it could not be confirmed for this page, so check with that office first. Mississippi and Arkansas suburbs follow their own rules. Statewide, EIA's 2020 survey found Tennessee homes mostly electric: 60% heat with electricity, 35% with a central heat pump, 86% have central air and 74% heat water electrically. Memphis Light, Gas and Water is a TVA power distributor, and TVA's EnergyRight program offers equipment rebates.
Memphis installers handle heat pumps often, since they heat a large share of Tennessee homes. TVA EnergyRight rebates for heat pumps go through its Quality Contractor Network. Tennessee's federal home energy rebates were not available as of October 2026. Ask how the system is sized for both summer and winter, and how much backup electric heat it will use on the coldest nights.
Permits in Memphis
We couldn't confirm all of Memphis's rules from official pages. Check with the building department before work starts.
| Permit for this job | Not stated on the city pages we checked (source) |
|---|---|
| Fee | Not stated on the city pages we checked |
| Who can pull it | Not stated on the city pages we checked |
| Inspection | Not stated on the city pages we checked |
Rebates in Tennessee
HEAR: announced, not open yet. HOMES: announced, not open yet. Source: TDEC Office of Energy Programs, checked October 13, 2026.
- TVA EnergyRight rebates: Heat pump $500-$800, central AC $200-$400, HPWH $900 via Quality Contractor Network
What these programs cover, and other states
Other systems in Memphis
Heat pump (ducted, outdoor unit + air handler) cost in other metros
Sources
- Memphis, TN permit source (water heater permit)
- Memphis, TN permit source (who can pull)
- Memphis, TN permit source: 2022 building fee schedule (fetch
- TVA EnergyRight: residential rebates
- EIA RECS 2020: Highlights for space heating fuel in U.S. homes by state
- EIA RECS 2020: Highlights for space heating in U.S. homes by state
- EIA RECS 2020: Highlights for air conditioning in U.S. homes by state
- EIA RECS 2020: Highlights for water heating in U.S. homes by state
- BLS OEWS May 2025, Memphis, TN-MS-AR (49-9021 HVAC mechanics and installers)
- DOE Residential CAC & Heat Pumps Direct Final Rule TSD (Dec 2016), Table 8.2.30, split heat pump (2015$; 4-ton interpolated)