Estimating Costs

Cost of Installation

The average cost of an installed ductless heating and cooling system with a single indoor heating/cooling zone is between $3,000 and $5,000. Additional heating zones and greater heating capacities will increase the cost of the system. Other factors that will affect the cost of an installed system include manufacturer and model, refrigerant line-set length, difficulty of installation, and contractor rates.

Annual Energy Savings

The Regional Technical Forum’s (RTF) provisionally deemed energy savings estimates that a ductless heating and cooling system in a single-family home with zonal electric heat saves 3,500 kWh annually. Using an average cost/kWh in the Northwest ($0.08), upgrading to a ductless heating and cooling system as a primary heat source can save approximately $280 per year.

Incentives & Rebates

Many utilities in the Northwest offer customers cash rebates as high as $1,500 when upgrading an existing electric resistance heating system to a ductless system. Interest-free financing may also be available. Check with your local utility for details.

To view a listing of utility incentives that may be available in your area, visit: http://goingductless.com/consumer/how-to-go-ductless/utility-incentives

Federal Tax Credits & Additional Incentives:

Tax credits for Consumer Energy Efficiency may be available to taxpayers who purchase a qualified energy-efficient residential ductless heating and cooling system. The credit is worth 10% of the system cost, including labor costs, up to $300. For more information, visit: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index#c3

Montana: The state of Montana’s Energy Conservation Installation Credit provides a tax credit for 25% of the cost of a ductless heating and cooling system with a maximum credit of $500 per individual; up to $1,000 for a married couple filing jointly. For more information, visit:  http://revenue.mt.gov/forindividuals/ind_tax_incentives/energy_related_t...

Oregon: the Oregon Department of Energy has a tax credit available through the Residential Energy Tax Credit (RETC) program. The credit is valued at $50 per half-ton of rated capacity, with a maximum credit of 25% of the system cost, or $400, whichever is less.  For more information, visit:   www.oregon.gov/ENERGY/CONS/RES/tax/HVAC-HP-AC.shtml

A database of State Incentives for Renewables & Efficiency can be found at: http://dsireusa.org/