Get Ahead of the Clean Energy Transition with Heat Pumps

Author: Dan Thomsen, Founder and President of Building Doctors 

As an HVAC contractor with 15 years of experience helping homeowners stay comfortable year-round, I’ve watched this industry transform—and I can confidently say that highly efficient electric heat pumps are the future of home heating and cooling. Heat pumps have outsold gas furnaces since 2021, and are often cheaper to install than gas furnaces since there’s no need for gas lines or venting without combustion involved. Meanwhile, utilities are creating new incentive programs and manufacturers are scaling up the supply chain. State policy and regulations are also driving widespread adoption, with California building codes now requiring new construction to be all-electric. South Coast air regulators are voting on healthy air standards for residential gas furnaces and water heaters to begin gradually increasing sales of zero-emission appliances starting in 2027. There’s no doubt about it: the clean energy transition is here, and it’s happening fast.

For contractors, this shift is an opportunity. By embracing heat pump technology now, and making installations easier and more accessible, we can get ahead of the curve to support our customers and our businesses. Many in the industry are used to installing gas furnaces, but as demand continues to skyrocket and new clean energy programs roll out, our workforce must be ready to install and service these heat pump systems efficiently and confidently. The market is moving, and those who resist change will risk being left behind.

Heat pumps are by far the best product on the market. Not only are they 3-4 times more efficient than gas appliances, but they also provide both heating and cooling in one system. Heat pumps are also the safest option for homeowners, since they work by moving heat instead of creating it so that we’re no longer burning fossil fuels inside the home. That’s why 80% of all residential power connection requests received by major California utilities for new homes in 2023 were all-electric.

Best of all, this transition is getting easier and more affordable for both homeowners and contractors thanks to a growing stack of incentives. Programs like the upcoming Go Zero Rebate Program in the greater Los Angeles region can offer residents up to $4,000 in rebates to upgrade to modern heat pumps. When stacked with additional state incentives and federal tax credits, this means that many homeowners can make the switch for less upfront cost than a gas system and have money left on the table—with lower utility bills in the future. Helping homeowners take advantage of these programs and the best long-term system for their needs isn't just good service, it’s also good business.

The South Coast Air Quality Management has found that the proposed healthy air standards will allow for annual average savings of up to $250 million due to lower energy bills—real savings that go to residents after they install heat pump technologies. As contractors, showing our support for these regulations is about promoting cleaner, more efficient heating solutions, but it’s also about positioning ourselves for the future of our industry.

Contractors have always adapted to industry changes, and heat pumps are our next step. Those of us who invest in training now will be leading the market tomorrow. Let’s lead the charge, invest in training, and build a safer, more efficient future together.