What do heat pumps do for the home?
Heat pumps use electricity to heat homes, using less energy and saving homeowners money on utility bills. It's been found that the average homeowner could save $370 per year by upgrading to a heat pump. Geothermal systems are a type of heat pump that heats and cools with energy stored from the ground. The consistency of these systems allows them to run 24 hours a day, whatever the weather conditions. The dependability and cost saving features of heat pumps will make them a popular home energy option in the future.
Why are heat pumps the future?
Heat pumps are currently only used in 14% of U.S. homes, but that number is expected to increase. The GeoVision analysis indicates potential for up to 28 million geothermal heat pumps by 2050. If realized, those maximum projections would be like taking 26 million cars off U.S. roads every year.
In 2022, U.S. sales of heat pumps outpaced those of gas furnaces for the first time. The Rewiring America Pace of Progress report lays out a plan on how to get heat pumps in every home by 2050. To reach that goal heat pump sales would need to grow exponentially, showing the important role that contractors have in spreading awareness for these systems.
The financial benefits of the Inflation Reduction Act also prime the heat pump industry for continued growth in the coming years. The legislation has initiated a 30% federal tax credit for geothermal heat pumps, and multiple rebates for heat pumps, heat pump water heaters and heat pump dryers for homeowners who qualify.
How can financing options help adoption?
Financing options allows homeowners to break the large upfront cost of heat pump projects into manageable monthly payments. For the homeowners that qualify, the tax credits from the IRA lend themselves to a re-amortization that can further lower monthly payments.
Contractors can easily add financing options to their sales pitch, which can increase homeowner purchasing power and help them take on bigger projects. For homeowners who may not have the budget for a heat pump upfront, financing options allow them to make the switch within their budget and still benefit from electrification.
Financing applied for and processed through the Mosaic platform is originated by Solar Mosaic LLC or one of its lending/financing partners. Equal Housing Lender