It may sound crazy, but for many Americans, nearly half their monthly utility bill goes to just two things: paying for home heating and paying for home cooling. In fact, an HVAC system uses more energy than any other setup in a typical home.
And while energy prices are rising due to factors beyond our control — like extreme weather events, a growing number of power-hungry data centers, aging grid infrastructure, and the thorn in everyone's side … inflation — we do still have ways to lower our bills. And one of the most effective individual solutions is by picking the best technology that can keep our homes comfortable and running efficiently.
That's why the clean energy company Palmetto created the Comfort Plan, which is designed to give homeowners reliable climate control in their homes without the high upfront cost of installing a new, uber-efficient system like a heat pump (which heats and cools your home, despite the name).
So instead of shelling out tens of thousands of dollars for a brand-new system — and instead of paying utility companies variable and often increasing bills every month — Comfort Plan users pay a monthly fixed rate for their HVAC usage and equipment, while benefiting from consistent energy savings and increased comfort. This is the second innovative "subscription" offering from Palmetto, which has already seen success with its solar leasing program that has helped nearly 72,000 families so far get solar panels without the upfront costs.
The reduced-cost model for the Comfort Plan is similar: "In general, shifting to a heat pump can save you around 30-50% versus a more inefficient system," Machias Schoen, who runs operations for Palmetto's Comfort Plan, told The Cool Down. That means if you have a bulky gas boiler or even an older electric heater, you could be leaving money on the table.
We sat down with Schoen to learn more about how the Comfort Plan can help homeowners stay cozy in the winter and cool in the summer without massive installation prices, maintenance costs, or utility bills stacking up — all while helping reduce the sort of pollution caused by less modern options such as oil- or gas-burning furnaces.
How does the Comfort Plan work?
After entering your home address into Palmetto's website, the Palmetto team will send you an instant quote straight to your email. You'll also have the option to schedule an appointment with an HVAC adviser right then and there, to chat about pricing and review options.
One of the cool things about the Comfort Plan is that Palmetto designs the HVAC system specifically for your home, and Schoen explained to us that the team uses multiple top-tier brands, so you have choice in which type of heat pump you'll get.
When you're ready to proceed, there's a short approval process (note that applying for the Comfort Plan doesn't impact your credit score), after which you'll be ready for installation to begin with a trusted local contractor.
While all this is happening, you're not shelling out a dime. With the subscription option, installation and ongoing maintenance are handled for you. Once the heat pump is installed, you'll just pay Palmetto a monthly fee (subscription payments are as low as $99/month) while benefiting from lower energy costs via the high-efficiency system.
This is a pretty unique program, and it almost seems too good to be true. The Cool Down asked Schoen for his honest opinion: Is there a catch?
"No catch," he said. It's "just a different [business] model. We own the system and support the maintenance and service, and customers enjoy the benefits of the system — hot air, cold air, and increased efficiency."
Bonus: Incentives are still passed along to homeowners
In addition to federal incentives that, unfortunately, end in 2025, there are plenty of regional rebates and credits that people installing high-efficiency heat pumps can take advantage of in 2026 and beyond.
And while the Comfort Plan subscription means users lease the system instead of owning it, Schoen told The Cool Down that "customers and contractors can access the same incentives they normally would receive locally. Today, these are not considered in our financing, so they can be discounted from the total price or processed in parallel as a payment to the customer at a later date."
Who does the actual installation and maintenance?
Schoen explained that Palmetto has around 200 HVAC contractors around the country, and "we partner with all sizes of contractors from smaller local groups to national entities," he said.
Because the contractor network is so vast, the Comfort Plan is available in every state as well as Puerto Rico. Schoen also mentioned that when it comes to customer trust, "we ensure all partners have proper licensure, certifications, and insurance." The team also vets contractors via the Better Business Bureau and even review sites before adding one to its network of partners.
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Lower energy bills 💰 What happens if something goes wrong?
Stuff happens with all types of appliances, and that includes HVAC units malfunctioning or breaking at some point. C'est la vie.
What's interesting about the Comfort Plan is that even though the appliance may need repairs at some point, the user doesn't have to make any additional payments. The subscription plan actually includes free maintenance for the entire lifetime of the lease — and that includes regularly scheduled service to keep the unit running smoothly, as well as repairs when a problem arises.
How long does the subscription plan last?
Comfort Plans are set for 10 or 12 years, depending on your contract. During that time, you'll pay an agreed-upon rate each month, rather than being beholden to inflation or the fluctuations of energy prices in your region. For example, in Virginia, electricity prices are estimated to increase by as much as 50% in the next 15 years thanks to an influx of data centers, according to Cardinal News.
We also asked Schoen what happens if a customer wants to end their subscription early. He explained that in that case, they can either transfer the agreement to a new owner (for example if they're selling their home), prepay the remaining lease amount at a discounted rate (while keeping the benefits like annual maintenance and parts protection), or they can buy out the system in full (in which case they own the unit outright).
Vision for the future
Heat pumps are a highly effective way to reduce planet-warming pollution, because they run more efficiently and often on renewable, clean energy sources like wind and solar — up to 100% solar if your home also has its own panels, of course. So the more people who install heat pumps in their homes, the more we can help cool off our planet.
That's a guiding principle for the entire Palmetto company, in fact. Palmetto Vice President Nathan Healy recently told The Cool Down: "Our guiding North Star is democratizing clean energy and making clean energy accessible for all." That includes heat pumps, solar panels, and even home backup batteries now.
Plus, beyond the environmental benefits, Schoen envisions that the Comfort Plan team will "expand to additional home system technologies and continue to focus on improving not just accessibility [and] great financing options, but heavily investing in the in-service experience for both our partners and consumers."
A first step? "System-level diagnostics to ensure we're diagnosing issues before our customers feel any discomfort." From there, we'll have to wait and see what surprises are in store.
Editor's note: Palmetto recently acquired The Cool Down as part of its mission to promote clean energy, but this coverage was conducted independently in the same manner as other feature articles through TCD's established standards.
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