Heat pump sales in the US are expected to ramp up, as states implement generous financial incentives in the 2022 Inflation Reduction Act. Even with financial support, systems can be complicated and costly to install, requiring new ducts or room-by-room “mini-split” units.
California-based Quilt is launching small ductless heat pumps that can be controlled with smart thermostats.
Energy Impact Partners and Galvanize Climate Solutions led Quilt’s $33 million Series A round. Other investors include Lowercarbon Capital and MCJ Collective, as well as Drew Scott, host of HGTV show Property Brothers.
“As someone who has spent years transforming homes and understanding homeowners’ needs, I’ve been eagerly waiting for a breakthrough like this,” Scott said.
Credits and rebates
Heat pump sales dipped in 2023 because of inflation and interest rates; gas furnace sales saw a steeper drop. Buffering the decline in the US is a $2,000 federal tax credit for individuals buying new heat pumps. State-administered point-of-sale rebate programs, which could offer low- and middle-income households subsidies of up to $8,000 on a new heat pump, are expected to start later this year or next.
Across the pond
In the UK, home energy efficiency company Hometree secured debt from BlackRock to acquire renewable energy and heat pump installers across the country.
The company, whose equity investors include Legal & General and Energy Impact Partners, has already made two acquisitions with the BlackRock capital. Geowarmth in northeast England and Little Green Energy Co. in the southeast have collectively installed 12,500 renewable energy systems.
Hometree’s buying spree comes as the UK rolls out heat pump grants for lower income households. The country is delaying a plan to tax gas boiler manufacturers that don’t sell greener systems, even as the UK falls behind on its target of installing 600,000 home heat pumps by 2028.
