The Time is Now for HVAC Contractors to Install and Repair All-Electric Heat Pumps (2024)

As HVAC solutions have grown rapidly over the last decade, contractors often struggle to keep up with the changing technology.

Modern, all-electric, clean-energy innovations like variable refrigerant flow (VRF) heat pump technology are available to customers as a more energy-efficient option that can reduce carbon footprint.

To be a part of the increasingly popular decarbonization movement, contractors are evolving their businesses to keep up with consumer demand for the latest all-electric HVAC solutions – namely heat pumps.

In New Mexico, the residents in the territory I cover are more familiar with energy electrification and heat pumps than the communities I serve in West Texas. I’ve found that the more progressive the state regarding energy efficiency, the more homeowners want heat pump systems.

This correlation is especially important because legislation, such as the Inflation Reduction Act (IRA), incentivizes homeowners to install clean technology, like heat pumps. Plus, many communities nationwide are eliminating conventional gas-fired HVAC systems, particularly in new construction.

Federal and Local Legislation Promote Heat Pump Solutions

The IRA is a key reason why HVAC contractors are now offering customers all-electric solutions like heat pumps. Low- to moderate-income households can save up to $8,000 by installing a modern, ENERGY STAR^®-rated heat pump solution due to IRA incentives and its home energy rebates program. Among other benefits, eligible homeowners can also receive up to 30% off the total cost, a potential $2,000 saving, for a qualifying home heat pump installation through the IRA’s 25C tax credit, available annually through Dec. 31, 2032.

Following California, several cities and states will ban fossil-fuel-fired HVAC systems and gas-powered water heaters in homes by 2030, meaning HVAC contractors in the Golden State who fail to switch from conventional systems to all-electric heat pump systems could go out of business.

I suggest contractors offer a heat pump solution, like a ductless or a ducted heat pump system. Although around 70% of contractors in my territory offer some kind of heat pump system, it is important that the rest of them are able to educate homeowners on the benefits of heat pumps compared to conventional HVAC systems. We provide options for both ductless and ducted applications via our intelli-HEAT™ Dual Fuel System or air handler systems.

Compared to oil- or fossil fuel-fired HVAC systems, all-electric heat pumps:

• Can reduce electricity use for heating by approximately 65% compared to electric resistance heating such as furnaces and baseboard heaters, according to the U.S. Department of Energy.

• May be as quiet as the sound of rustling leaves.

• Have a much smaller carbon footprint and typically have a smaller physical footprint.

• Can be easier to install than a furnace.

A contractor I know in Las Cruces, N.M. was previously against heat pumps, mostly because he didn’t know much about them. He only installed gas-fired furnaces because he believed they were what his customers wanted.

When he finally installed his first heat pump, he said, “That was much easier than installing a gas furnace. I didn’t need a plumber. I didn’t need an electrician. I didn’t need venting in the roof and other things.”

Due to the ease and efficiency of heat pump installation, the contractor could finish a job quicker and move on to the next customer, often on the same day, making the process less expensive. Greater efficiency leads to greater profits. Plus, the customer loved the new system.

Contractors in many areas of the country aren’t yet sold on heat pumps, usually because they don’t understand the technology or how to properly explain the heat pump process to their customers.

New Mexico Solar Panel Business Owner Sings the Praises of Heat Pumps

That isn’t the case for U.S. veteran Larry Perea, founder and owner of Solar Smart Living, who aims to sell around 20 heat pump systems a week, even though they aren’t his primary business. Larry and his staff of 25 have mastered the art of explaining the benefits of heat pumps, especially ductless systems.

Although Perea’s business is selling and installing solar panels in Santa Teresa, N.M., he said, “To become energy independent, a home must be all-electric and powered by solar. Energy bills for heating and cooling a home are a large expense for homeowners. After researching the best technology to integrate with our solar panel systems, heat pump solutions were the perfect match.”

In fact, Perea’s son purchased a 2,400-square-foot all-electric home with solar panels in 2020, which was built by his father, Larry. The residence contains six mini-split heat pump units that only turn on in each area for heating or cooling when needed. When temperatures reached 91^◦ F during a 24-hour period in May, maximum peak power was close to 5 kilowatts. Night-time consumption was less than two kilowatts.

“Comparatively, a conventional five-ton central unit HVAC system draws more than 5 kilowatts to run all five tons, whether you need to cool two rooms or the whole house,” Perea said.

Get Trained to Install and Repair All-Electric Heat Pump Technology

The best way for owners and HVAC employees to learn about heat pump products is to enroll in training offered by a preferred manufacturer. The training sessions teach HVAC contractors the differences between heat pump technology and conventional, oil- or fossil fuel-burning systems.

Heat pump installation training teaches them about these systems, so they can pass that information on to consumers.

A conventional HVAC system turns on and off, like a car. I tell my training classes, “that’s like backing out of your driveway, pulling out into the street, slamming on the gas pedal to 100 mph, then slamming on the brake and driving like that all day. It’s inefficient.”

Heat pump technology, especially inverter-driven systems, operates like cruise control in a car: When driving at a speed of 75 mph on the highway, the car accelerates when climbing a hill and decelerates when coming down that hill. The car maintains this steady pace rather than using big bursts of energy. This steady-state heat pump air exchange keeps homes comfortable.

Grow Your Company by Offering Heat Pump Solutions

According to data recently released from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI), Americans bought 21% more heat pumps in 2023 than conventional HVAC systems. AHRI also reported that in January 2024, heat pump shipments surpassed gas furnace shipments by more than 15,000 units.

The federal government and local utility companies are offering incentives for the installation of qualifying heat pump systems instead of conventional HVAC systems. Some states and municipalities are phasing conventional HVAC systems out entirely.

As the United States invests more heavily in widespread electrification and decreasing the nation’s carbon footprint, heat pumps will continue to rise in residential popularity.

All-electric heat pumps are one of the most energy-efficient, clean technologies used to heat and cool homes, regardless of their location. Although most HVAC technicians offer to install and repair heat pump systems, many do not.

However, to succeed in the quick-evolving HVAC industry, HVAC business owners and contractors should pick a distributor and enroll in their heat pump-specific training.

All-electric heat pumps have come a long way and are the most energy-efficient means of heating and cooling homes today. Join the heat pump nation. Offer heat pumps to your customer base and watch your business grow.