What is Electrification in HVAC?

By Anne Fonda

In the heating, ventilation, and air conditioning (HVAC) industry, electrification refers to the electrification of heat. HVAC electrification is a global movement in residential, commercial, and industrial applications to move away from air conditioners to provide year-round comfort with heat pumps.

In your home, it means a move toward adopting electric heat pumps and ductless mini-splits as a more AFFORDABLE (and often more comfortable) heating and cooling solution. Heat pumps work to heat and cool your home by extracting heat from the air and transferring it to where it’s needed or not needed, depending on the time of year.

Electrification of heat can also mean helping to reduce your carbon footprint for those with environmental goals. With advanced technology, heat pump systems are the most energy-efficient HVAC systems on the market today.

Industry experts say about 85% of homes in the United States can meet their heating needs with an energy-efficient heat pump system alone, while 15% of Americans live in climates where the winters are too cold for heat pumps to handle the heating 100% of the time.

For those colder areas of the country, a hybrid heating system is a good option to heat your home with electricity most of the time but switching to a natural gas (or propane or oil) furnace for extreme temperatures. Cold climate heat pumps are another option.

Even in colder climates where furnaces can be more necessary, a heat pump can provide considerable comfort benefits. Heat pumps can excel in milder weather, where a larger furnace can tend to short cycle and produce uneven heating from short running cycles.

We all want to save money on our energy bills. When you realize that your HVAC system accounts for 40% or more of your total energy costs, it makes sense to look into an energy-efficient heat pump system.

That’s because the more energy-efficient your heat pump is, the more you can help reduce your energy usage and your energy bills. Two energy efficiency ratings will have the greatest impact on your savings: Seasonal Energy Efficiency Ratio (SEER2) and Heating Seasonal Performance Factor (HSPF2).

Higher SEER2 ratings mean the unit is more efficient at cooling and dehumidifying your home. Higher HSPF2 ratings mean the unit is more efficient at heating.  Variable-speed and multi-speed units are generally the most efficient.

The Inflation Reduction Act of 2022 provides two types of financial incentives to help homeowners pay for a new heat pump system.

Qualifying heat pump systems are eligible for a $2,000 federal tax credit, which you claim when you file your taxes for the year in which the system was installed. The tax credit is available to everyone, no matter where you live, or what your income is.

However, because of a change in the federal budget, this heat pump tax credit is only good for units installed by December 31, 2025. Claiming the tax credit can reduce your tax liability. You can stack the tax credit and heat pump rebates to save more.

There are two heat pump rebate programs – the Home Electrification and Appliance Rebate (HEAR) and Home Energy Rebates (HER).

Under the HEAR program, depending on your income and the state you live in, a qualifying heat pump system could result in up to $8,000 in rebates. The HER program is available to homeowners and renters at any income level and requires that projects reduce your home’s energy usage by at least 20%.

For both programs, these are point-of-sale rebates, meaning the price is reduced by the rebate amount rather than you paying full price for the HVAC unit and receiving a rebate check.

While saving money on your utility bills and improving your comfort may be your top priorities, helping to reduce your carbon footprint at the same time is a win for the planet. According to a U.C. Davis study published in Energy Policy, when you replace a natural gas furnace with an air source heat pump, you can reduce your carbon emissions by 38-53%.

At American Standard, we’re committed to helping homeowners like you reduce your energy consumption and save money on monthly heating and cooling bills with an energy-efficient heat pump system. We invite you to learn more about this technology and if a heat pump system is right for your home.

Our HVAC products are built for durability and energy efficiency. Our products are built to a higher standard, and we hold our dealers to a higher standard as well. With industry-leading support, our expert American Standard dealers are equipped to help you achieve a higher standard of home comfort.

Anne Fonda, Content Writer

A Content Writer with Trane Technologies, Anne Fonda researches topics and writes for Trane® and associated residential HVAC brands. She works in collaboration with Trane Technologies subject matter experts, offering easy-to-understand, informative content on complex topics. Her goal is to help consumers make informed decisions on the products and services they need. 

She has written for HVAC and other service provider websites for over 16 years. Before transitioning to web content writing, Anne had a 14-year stint as an award-winning journalist. She graduated cum laude from the University of Missouri-Columbia School of Journalism. When she’s not working, Anne enjoys playing word games, reading, gardening, spending time with family, and visiting gardens and museums.

Expert review by Josef Hejda, Electrification Commercialization Leader