Why It Matters

Why aren’t consumers embracing heat pumps, and what can drive faster adoption? Despite their efficiency and environmental advantages, heat pumps face several adoption barriers. High upfront costs and limited awareness of heat pump benefits—especially around suitability for different climates—remain major hurdles. Addressing these with targeted incentives, workforce training, and public education campaigns can unlock greater demand, helping both consumers and the environment.

Key Insights

• Only 4% of homeowners have researched the costs and benefits of heat pumps.

• But, 1/2 of consumers express at least some willingness to switch to a heat pump when they know financial incentives are available.

• Consumers learn from their social networks:

  • Consumers are most likely to learn about heat pumps through word of mouth, with 20% hearing about them from friends or family, while only 8% receive information from contractors or installers. These findings highlight the power of network effects, emphasizing the need for a positive customer experience to drive organic recommendations. To leverage this, heat pump companies should encourage satisfied customers to share their experiences and consider referral programs or incentives that amplify word-of-mouth awareness, complementing traditional marketing channels.
  • 72% Households that currently have a heat pump report positive reviews.

• Knowledge gaps are widespread:

  • Only 14% of consumers know about the tax incentives or rebates available for heat pumps.
  • 82% are unaware of the installation costs associated with heat pumps.
  • Just 35% understand that heat pumps can reduce monthly energy bills.
  • Only 43% believe that heat pumps are more energy-efficient than traditional systems.
  • Fewer than half (48%) recognize that heat pumps produce less carbon pollution than a traditional furnace.
  • Just 12% correctly understand that heat pumps can operate effectively in cooler climates, with many seeing no difference from traditional furnaces.

• Knowledge gaps also vary across climate segments, highlighting targeted outreach opportunities for heat pump companies.

  • Climate Doers: These consumers understand that heat pumps produce less carbon pollution, but only 53% recognize their potential for lower monthly energy costs, likely influenced by regional electricity costs.
  • Climate Distressed: Like Climate Doers, they see heat pumps as cleaner and more efficient but are less aware of the monthly savings they offer.
  • Climate Detached: Awareness gaps worsen for this group, with only 32% believing heat pumps lower bills and 42% understanding their higher efficiency.
  • Climate Doubters: This segment is largely unaware of heat pumps’ cost-saving and environmental benefits, with significant misconceptions about efficiency and pollution reduction.
  • Climate Deniers: This group shows the most resistance and least amount of knowledge, with more consumers believing traditional furnaces are both more efficient and lower-cost than heat pumps.

By addressing these misconceptions through segment-specific messaging, heat pump companies can bridge knowledge gaps and better connect with consumers.

Bottom Line

The opportunity in the heat pump market is significant. Northwind Climate’s research indicates that half of all households are at least somewhat receptive to transitioning away from their current heating and cooling systems. To attract these consumers, companies must effectively communicate the benefits of heat pumps and highlight the affordability of their products, detailing costs after rebates and incentives. On the knowledge front, our data also reveals that consumers are largely misinformed about a heat pumps’ ability to operate in cooler climates as well as its upfront installation costs.