Heat pump (ducted, outdoor unit + air handler) replacement cost in Birmingham, AL
Installed, 3 ton system
A typical heat pump (3 ton system) costs about $5,550 installed in the Birmingham area, 3% below the national figure, because HVAC technicians here earn a median $23 an hour against $29 nationally.
Prices by size in Birmingham
| Size | Low | Typical | High | National typical |
|---|---|---|---|---|
| 2 ton system | $3,850 | $4,700 | $6,700 | $4,850 |
| 3 ton system | $4,900 | $5,550 | $7,250 | $5,750 |
| 4 ton system | $6,300 | $6,800 | $8,800 | $7,150 |
| 5 ton system | $7,450 | $8,050 | $10,150 | $8,450 |
Local labor: what HVAC technicians earn here
| Hourly wage | Birmingham metro | United States |
|---|---|---|
| 25th percentile | $21 | $23 |
| Median | $23 | $29 |
| 75th percentile | $29 | $37 |
The Birmingham market
Birmingham's Technical Code requires a permit to install, alter, repair, remove, convert or replace plumbing, mechanical and gas systems, with exemptions for repairs or replacements of components with similar equipment. Notably, the code exempts repair of a gas-fired furnace and "repair or replacement of condensing unit," while vent and gas piping work still needs a Gas permit; the Building Official interprets these exemptions. Mechanical jobs get rough-in and final inspections, and gas piping finals include a pressure test. A homeowner may do their own plumbing in a single-family home but still needs a permit and inspections, and larger jobs require a licensed contractor. Fees were not confirmed. DOE puts Jefferson County in mixed-humid zone 3A, and EIA's 2020 survey found 64% of Alabama homes heat with electricity and 39% with a central heat pump.
Birmingham contractors install heat pumps routinely, since they heat a large share of Alabama homes. Alabama's federally funded rebates had no launch date in October 2026. Check Alabama Power's official site for current offers before signing. In a mixed-humid climate the heat pump carries both seasons. Ask how the new unit is sized for summer and winter, and how much backup electric heat it will draw on the coldest nights.
Permits in Birmingham
We couldn't confirm all of Birmingham's rules from official pages. Check with the building department before work starts.
| Permit for this job | Yes for system replacement; exempt for repair of a gas furnace and 'repair or replacement of condensing unit' (per Technical Code exemptions) (source) |
|---|---|
| Fee | Not stated on the city pages we checked |
| Who can pull it | Plumbing: single-family homeowner may do own plumbing (with permit, inspections, fees); jobs of $10,000+ require a licensed contractor; gas and plumbing reference Master Gas Fitter / master plumber. |
| Inspection | Yes |
Rebates in Alabama
HEAR: announced, not open yet. HOMES: announced, not open yet. Source: ADECA Energy Division, checked October 13, 2026.
What these programs cover, and other states
Other systems in Birmingham
Heat pump (ducted, outdoor unit + air handler) cost in other metros
Sources
- Birmingham, AL permit source (water heater permit)
- Birmingham, AL permit source: Links 2024 Technical Code (effective
- Birmingham, AL permit source: FAQ titles only (fees, inspections); answers not
- DOE Building America: Guide to Determining Climate Regions by County
- ADECA: IRA home energy rebates
- EIA RECS 2020: Highlights for space heating fuel in U.S. homes by state
- EIA RECS 2020: Highlights for space heating in U.S. homes by state
- EIA RECS 2020: Highlights for air conditioning in U.S. homes by state
- EIA RECS 2020: Highlights for water heating in U.S. homes by state
- BLS OEWS May 2025, Birmingham, AL (49-9021 HVAC mechanics and installers)
- DOE Residential CAC & Heat Pumps Direct Final Rule TSD (Dec 2016), Table 8.2.30, split heat pump (2015$; 4-ton interpolated)