Heat pump (ducted, outdoor unit + air handler) replacement cost in Nashville, TN
Installed, 3 ton system
A typical heat pump (3 ton system) costs about $5,750 installed in the Nashville area, about the same as the national figure, because HVAC technicians here earn a median $29 an hour against $29 nationally.
Prices by size in Nashville
| Size | Low | Typical | High | National typical |
|---|---|---|---|---|
| 2 ton system | $3,900 | $4,850 | $6,850 | $4,850 |
| 3 ton system | $5,000 | $5,750 | $7,500 | $5,750 |
| 4 ton system | $6,450 | $7,100 | $9,200 | $7,150 |
| 5 ton system | $7,650 | $8,450 | $10,700 | $8,450 |
Local labor: what HVAC technicians earn here
| Hourly wage | Nashville metro | United States |
|---|---|---|
| 25th percentile | $23 | $23 |
| Median | $29 | $29 |
| 75th percentile | $34 | $37 |
The Nashville market
Metro Nashville's Department of Codes and Building Safety prices a hot water heater under both plumbing permits ($43) and gas/mechanical permits ($21), with a $75 minimum per permit. Furnaces, AC units and package units are gas/mechanical appliances, with each residential appliance beyond the first at $11 and a charge of $32 per 100,000 Btuh. Reinspections cost $50. Licensed contractors apply online; anyone else applies in person, and the owner-occupant self-permit affidavit covers building work only, with separate plumbing and gas/mechanical permits still required. Electricity dominates in Tennessee: EIA's 2020 survey found 60% of homes heat with electricity and 35% with a central heat pump, 86% have central air, and 74% heat water electrically. TVA's EnergyRight program offers equipment rebates through its Quality Contractor Network.
Nashville installers know heat pumps well. TVA's EnergyRight program offers heat pump rebates through members of its Quality Contractor Network. Tennessee's federally funded home energy rebates were not yet available as of October 2026, and TVA is slated to run them once approved. Ask how the system is sized for summer and winter, and how much backup electric heat it uses on the coldest nights.
Permits in Nashville
| Permit for this job | Yes (gas/mechanical trade permit; furnace, AC, package unit each counted as an appliance in the fee schedule) (source) |
|---|---|
| Fee | Plumbing: minimum $75 per permit; hot water heater $43. Gas/mechanical: minimum $75 per permit; hot water heater $21; each residential appliance beyond the first $11; HVAC also charged 'at the rate of thirty-two dollars ($32.00) per one hundred thousand Btuh or fraction thereof'; reinspection $50. |
| Who can pull it | Unclear for homeowners; licensed contractors apply online, others apply in person |
| Inspection | Yes (reinspection fees and inspection requests apply to plumbing and gas/mechanical permits) |
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 $900 via Quality Contractor Network
What these programs cover, and other states
Other systems in Nashville
Heat pump (ducted, outdoor unit + air handler) cost in other metros
Sources
- Nashville, TN permit source (water heater permit)
- Nashville, TN permit source (who can pull)
- Nashville, TN permit source (notable local rule)
- Nashville, TN permit source: Lists Metro Mechanical, Gas and Appliance and Plumbing exam
- TVA EnergyRight: residential rebates
- Tennessee Dept. of Environment and Conservation: IRA home energy rebates
- EIA RECS 2020: Highlights for space heating fuel in U.S. homes by state
- EIA RECS 2020: Highlights for space heating in U.S. homes by state
- EIA RECS 2020: Highlights for air conditioning in U.S. homes by state
- EIA RECS 2020: Highlights for water heating in U.S. homes by state
- BLS OEWS May 2025, Nashville-Davidson--Murfreesboro--Franklin, TN (49-9021 HVAC mechanics and installers)
- DOE Residential CAC & Heat Pumps Direct Final Rule TSD (Dec 2016), Table 8.2.30, split heat pump (2015$; 4-ton interpolated)