Heat Pump Water Heater Installation cost: Knoxville vs New South Memphis (2026)
Budget-wise, heat pump water heater installation in Knoxville ($3,300) runs 3% less than in New South Memphis ($3,400), a roughly $100 spread.
Knoxville TN
Lower costTypically around $3,300
New South Memphis TN
Typically around $3,400
Knoxville vs New South Memphis: full breakdown
| Factor | Knoxville | New South Memphis |
|---|---|---|
| Typical 2026 cost | $3,300 | $3,400 |
| Estimated range | $2,300–$4,300 | $2,350–$4,400 |
| Labor index (vs US) | ×0.95 | ×0.96 |
| Climate zone | Mixed | Mixed |
| Climate factor | ×1 | ×1 |
| Local permit | $125 | $150 |
| Labor share | $1,800 | $1,850 |
| Materials/equipment | $1,500 | $1,550 |
Localized 2026 planning estimates — not quotes. Each city adjusts the national heat pump water heater installation range for local labor, climate and permits.
How much should this gap actually matter?
At 3%, this gap is small enough that it's usually swallowed by normal quote-to-quote variation for heat pump water heater installation — focus on the contractor, not the city.
Heat pump water heater installation by type: Knoxville vs New South Memphis
Each heat pump water heater installation option, priced separately for both metros — the same local labor, climate and permit adjustments applied per city, so you can compare like for like.
| Type | Knoxville | New South Memphis |
|---|---|---|
| 40–50 gallon | $2,300–$3,750 | $2,350–$3,800 |
| 65–66 gallon | $2,800–$4,100 | $2,850–$4,200 |
| 80 gallon | $3,250–$4,800 | $3,300–$4,850 |
Heat pump water heater installation numbers here are 2026 planning ranges, adjusted per city — useful for budgeting, not a substitute for an actual quote.
Heat pump water heater installation by tank capacity: Knoxville vs New South Memphis
Hybrid heat pump water heaters use a storage tank, so they're sized in gallons by household — but because they recover heat efficiently, a 50-gallon hybrid often serves a home that needed a 65–80 gallon electric tank.
| Size | Knoxville | New South Memphis |
|---|---|---|
| 40 gal (1–2 people) | $2,100–$3,550 | $2,150–$3,600 |
| 50 gal (2–4 people) | $2,300–$3,950 | $2,350–$4,000 |
| 65 gal (4–5 people) | $2,700–$4,100 | $2,750–$4,200 |
| 80 gal (5+ people) | $3,000–$4,300 | $3,050–$4,400 |
These are 2026 planning figures for heat pump water heater installation, localized to each city — not formal quotes.
What water heaters pros earn in each metro
Since labor accounts for around 55% of what a heat pump water heater installation job costs, it's the biggest lever behind any price gap between cities. What you're seeing below is actual BLS metro wage data for skilled installers — not a guess.
No BLS metro wage series for Knoxville; we use Tennessee regional price parity instead.
Memphis metro · about 7% below the US average installer wage.
Source: U.S. Bureau of Labor Statistics, OEWS metro wages for HVAC installers (used as a trade-labor index).
Cheapest time for heat pump water heater installation in either city
Wait for a winter failure and you're paying rush rates on a unit already past 10 years, when the cold incoming water finally does it in. Replace it on your own schedule in spring or fall and you avoid that premium entirely.
Tank or tankless — and what should you budget?
The format choice drives both upfront cost and lifetime value. How our editors think about it.
The tankless case
Going tankless means paying more at install — often for a resized gas line or a dedicated electrical circuit — in exchange for hot water that never runs dry and a unit that outlives two conventional tanks. Dropping the standby loss of a constantly reheated reservoir trims the monthly bill on top of that. It fits a full house that isn't selling anytime soon.
The heat-pump case
For the lowest running cost of the three, the heat-pump water heater wins outright, and where utilities offer incentives the rebates behind it are the richest available. You pay for that advantage up front, and the unit needs the right home — a warm, well-ventilated area with real clearance. Wedge it into a tight closet and the savings disappear.
The simple-swap case
A matching tank replacement skips every costly upgrade that comes with changing formats. Same footprint, same connections, same vent, so labor stays low and the crew is usually gone by midday. It's the obvious answer when the budget is thin and the old setup was never the problem.
Match the format to your household and how long you'll stay. Tank for tight budgets, tankless for endless hot water, heat-pump for the lowest running cost and biggest rebates.
Knoxville vs New South Memphis
Is heat pump water heater installation cheaper in Knoxville or New South Memphis?
Yes — New South Memphis costs more. Expect around $3,400 for heat pump water heater installation there against $3,300 in Knoxville, about $100 (3%) apart in 2026.
Why does heat pump water heater installation cost more in New South Memphis than Knoxville?
The main driver is local labor rates: New South Memphis's labor index is 0.96 versus 0.95 in Knoxville. Climate zone (mixed vs mixed) and permit fees also shift the total.
How much is heat pump water heater installation in Knoxville, TN?
In Knoxville, heat pump water heater installation typically runs $2,300–$4,300 in 2026, with most homeowners paying around $3,300.
When is the cheapest time to buy heat pump water heater installation — and does it differ by city?
No, the seasonal pattern is the same in Knoxville and New South Memphis: book during Spring and early fall for about 5–10% in savings. Deep winter (failure season) is the priciest stretch in both cities, mostly due to emergency replacements.
Should I choose where to live based on heat pump water heater installation cost?
Not really — the $100 gap is one-time, and smart timing and tighter quotes in New South Memphis can shrink it. Factors that compound over time, like energy prices and home condition, deserve more weight than a single upfront difference.
Compare heat pump water heater installation in other cities
Updated June 2026 · By Serhat Özçelik