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Next-gen HVACs expected to outsell gas furnaces despite disappearing incentives: 'A market shift ... was already underway'

"It's nudging the industry."

"It’s nudging the industry."

Photo Credit: iStock

Heating and cooling your home is one of the biggest drivers of household energy bills, often accounting for nearly half of monthly costs. But a new wave of heat pump technology is set to help families lower those bills and cut down on pollution at the same time. 

According to the Rocky Mountain Institute, heat pumps have been outselling gas furnaces since 2021, and that momentum isn't slowing down, per a recent article in Facilities Dive. Even as federal incentives start to phase out under the One Big Beautiful Bill Act, experts say adoption will continue growing thanks to systems that are easier to put in and better for the environment.

Per Facilities Dive, the expected decline in federal support hasn't stopped the trend — heat pumps are still projected to outsell gas furnaces in the years ahead. The shift reflects growing demand for affordable systems, signaling that the market was already moving in this direction before the policy change.  

As Dave Rames, a senior product manager with heat pump manufacturer Midea, put it in an email to Facilities Dive, "the biggest misconception with OBBBA is that it's pulling the rug out from under heat pumps. … It's nudging the industry to accelerate a market shift that was already underway: one focused on affordability, ease of installation, and retrofit readiness."

Trusted brands like Mitsubishi Electric are helping to drive this growth by offering efficient systems that work in almost any climate. Their mini-split models provide both heating and cooling in one unit, outperforming traditional HVAC in energy efficiency and giving homeowners several financial advantages like long-term savings and rebates. 

"States like New York (NYSERDA), Massachusetts (Mass Save), California (TECH Clean California), Vermont (Efficiency Vermont) and Oregon (Energy Trust) still offer rebates that can exceed $10,000 per system," Rames noted, per Facilities Dive. "Many utilities also provide custom rebates for commercial-scale installations, especially in electrification or demand-response programs." 

Heat pumps use less energy than gas furnaces, which translates to lower bills and less harmful pollution released into the air. With federal tax credits set to expire at the end of this year, acting sooner rather than later could mean thousands of dollars in savings. 

Finding the right installer can feel complicated, but Mitsubishi Electric makes it easier by connecting homeowners with trained professionals through its trusted network. These experts help ensure that each system is tailored to the home, giving families confidence in their investment and peace of mind for years to come. 

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Find the best HVAC solution to heat and cool your home more efficiently

Mitsubishi Electric’s efficient heating and cooling HVAC solutions can help you stay comfortable no matter the weather or region. You can even regulate temperatures in each room with individually controlled all-electric heat pump systems.

With an energy-efficient, all-climate system from Mitsubishi, you can reduce the amount of energy needed to heat and cool your home, receive up to $2,000 in tax credits, and get peace of mind knowing you’re choosing rigorously tested, high-quality products.

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