Heat Pumps Outselling Gas Furnaces In America

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There is a good chance you do not wake every morning and read the latest news from the Air Conditioning, Heating, and Refrigeration Institute while enjoying your first cup of coffee. That’s what you have the team at CleanTechnica for. We read stuff like that and then share it with you in easily digestible form. You’re welcome! If you did, you would know that Americans bought 37% more air source heat pumps than the next most popular heating appliance — gas furnaces — during the first 11 months of the year. That’s a 21% increase over 2023.

Canary Media is quick to point out that in many homes, more than one heat pump is required, so that data should be interpreted with that in mind. Typically, a home uses only one furnace. Nevertheless, the trend for heat pumps is up. Russell Unger, the head of decarbonizing buildings at RMI, said, “There’s just been this long term, consistent trend.”

It’s easy to understand why heat pumps are gaining in popularity. In addition to providing heated air in the winter and cool air in the summer, they are far more efficient than conventional heat sources — delivering three to four times more heat per dollar spent than oil- or gas-fired heating equipment or old fashioned electric baseboard heat. They also create far less carbon pollution. How much less depends on the source of electricity in the local area,

The building sector accounts for 35% of US emissions. To decarbonize the economy by 2050, heat pumps need to be 100% of heating system sales, according to Rewiring America. “We’d like it to be faster,” Unger says, but is reassured by the “steady, reliable increases. That feels on-brand for the building industry.” Unger points out that consumers don’t change home heating appliances as frequently as they change cars. Contractors are also apt to move cautiously because they want to be sure that a technology will work for their business model before committing to it.

A medley of factors are causing the sales of heat pumps to grow, according to experts Canary Media spoke to. First, consumers and contractors are gaining more familiarity with the tech and having better experiences, Unger said. Second, advances in heat pump technology have made them well suited for use in some of the coldest climes in the US. In Maine, heat pumps have proven so popular that the state blew past its 2025 installation goal two years ahead of schedule. Certain heat pump models can work in temperatures below -22 degrees Fahrenheit and the performance of low temperature heat pumps keeps getting better.

How To Promote Heat Pumps

Many states and local jurisdictions are promoting heat pumps. In 2023, 25 governors signed on to programs that target the installation of 20 million of them by 2030. Last year, nine states — California, Colorado, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, and Rhode Island — raised the stakes by pledging that heat pumps will make up at least 65% of residential heating and cooling equipment sales by the end of the decade. California’s new energy code also encourages builders to install heat pumps instead of gas heating. In the San Francisco Bay Area, heat pumps will become the de facto choice if new gas furnaces are prohibited as planned starting in 2029.

Federal and local incentives are also helping people afford heat pumps. Installation costs for these systems are on average $17,000 to $30,000, depending on many factors, including local climate and home insulation, per Rewiring America. The Inflation Reduction Act of 2022, the most ambitious climate legislation in history, gave Americans state-distributed home energy rebates of up to $8,000 as well as a $2,000 federal tax credit to defray the costs of getting a heat pump. But how long these incentives might last under the Trump administration is an open question.

What will it take to drive heat pump sales even higher in the US? According to new research from the Ad Council Research Institute and Rewiring America which surveyed 5,000 US households, when presented with the concept of heat pumps, homeowners are familiar with the concept and the majority said they were open to considering and/or replacing fossil fuel appliances with energy efficient electric ones in the future. Price is the most important consideration for homeowners, followed by energy efficiency. Safety and performance are also key factors in the decision-making process.

Price, compatibility with their home’s current setup, and perceptions of poorer performance are the primary barriers to switching to electric. Homeowners are also skeptical of the power grids supporting these efforts, and how the government will implement incentives to support electrification. Environmental benefits were not a key driver of the decision process. Homeowners understand that energy efficiency is tied to creating a sustainable future for the next generation, but it isn’t a powerful motivating factor.

The study found the messaging that homeowners found persuasive when considering whether to switch to heat pumps focused on:

The amount of money electric appliances will save households in the long run.
How electric appliances will improve their home, both in return on investment and in daily living.
What is involved in transitioning their home and/or appliances to electric.
Information about going electric from trusted sources such as utility companies, friends and family, or industry professionals.

“We want homeowners to get excited about going electric, so it’s delightful to see that this research points to some clear pathways for helping do just that,” said Sarah Lazarovic, Rewiring America vice president, communications & creative strategy. “People love their homes and want to make them better, and they’re open to going electric for all kinds of reasons. Which is great, because we know that this is an incredible opportunity for Americans to improve their quality of life while protecting our shared future.”

“This study made it clear that there’s a practical approach to help build confidence among homeowners in going electric, most importantly through providing more education on the process and that can help alleviate barriers and biases,” said Derrick Feldmann, lead researcher and managing director of the Ad Council Research Institute. “Homeowners are open and optimistic about going electric. They simply need more information and resources along with motivation to help them make competent decisions.” The Ad Council and Rewiring America intend to apply these findings to a national, fully integrated communications effort encouraging homeowners to adopt clean energy solutions in their homes.

Corporate Support For Heat Pumps

This just in to the CleanTechnica news hub in the third sub-basement of its palatial global headquarters. According to Bloomberg, some employers in the UK are offering remote workers interest free loans to lower the carbon intensity of their homes by installing heat pumps, solar panels, and storage batteries. Companies commonly offer benefits like medical insurance and gym memberships to keep their employees fit and healthy. As remote working has become normalized, making sure workers are warm and comfortable at home is also a growing concern. In addition, companies are trying to find innovative ways to minimize the broader scope of emissions that are linked to their operations.

And so the message spreads, one home and one employer at a time. There are ways to decarbonize the built environment, and they will gain momentum despite those who want to bury their heads in the sand and pretend global heating is not an issue invented by George Soros. But the key, as it always is with human beings, is cost. Many people could care less about tailpipe emissions, but their ears perk up when they hear they can save money on their transportation costs by driving an electric car. By the same token, for many, lowering the carbon emissions from their home may be an abstract concept, but lowering their energy costs is of vital concern.

The key with heat pumps is to have a plan in place for the switchover before the need to replace the old furnace in the basement arrives. Otherwise, if people wake up cold one morning, they will simply get a new furnace installed within a day or two and lock themselves into more carbon emissions and higher energy bills for the next 20 years or so. Education and prior planning are the keys to making the change to heat pumps happen.