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Climate change has the odd effect of making many of us inordinately excited about appliances we never used to care about. Suddenly, all the background machines, which have up to now been unconsciously powering our lives, have taken on outsized importance. Some of them have the potential to provide the essential services we depend on while, at the same time, not destroying our planet like the fossil fuel powered machines of the 19th and 20th centuries.

Ductless heat pumps are a prime example. In the past, many of us used gas furnaces and boilers to heat our homes and burned fuels that emitted copious amounts of CO2 in the process. Now, with the magical heat pump, we have access to efficient electric technologies for heating and cooling that can be powered entirely by renewable energy, and thus be carbon neutral.

Photo courtesy of The Heat Pump Store

Brief History and Growth of Ductless Heat Pumps

Ductless heat pumps (DHPs) were developed in Japan after World War 2. They were invented and perfected on an island that doesn’t have easy access to fossil fuels, and so they are the ideal heating/cooling system for our modern world given they don’t rely on combustion and are also incredibly efficient.

They condition 90% of Japanese homes, and worldwide their usage is growing like crazy, with an expected doubling of heat pump sales in the next five years. In the UK, sales are projected to increase 20 fold, and in the US, some areas are seeing sales growth north of 40% every year.

My family has used ductless heat pumps for our heating and cooling since 2012 when we bought our house. The gas furnace that came with our house was old, and we made the decision to replace it with new ductless heat pumps. (A major perk is that mounting the units on the wall saved valuable floor space in the garage, formerly dedicated to the gas furnace, which we converted into an apartment). We had seen them used in Europe and figured, even 9 years ago when the electrification movement was in its infancy, that heating with efficient electricity would allow us to reduce our carbon emissions with the solar panels we planned to install on our roof. 

Photo from Joe Wachunas

What is Ductless?

But what is a Ductless Heat Pump (a.k.a. mini-split)? Basically, it is a heating/cooling system that is different from a traditional furnace in several ways:

1. DHPs don’t have air ducts. Rather than forcing hot air through potentially leaky ducts, ductless systems place an indoor device on a wall and an outdoor unit (similar to a typical AC unit) which provides heating and cooling. This means no air escapes through leaky ducts, creating more efficient conditioning. 

Indoor unit. Photo Courtesy of The Heat Pump Store.

2. DHPs don’t burn things. Ductless heat pumps use electricity to provide heating and cooling. Electricity is rapidly moving towards being fully renewable and thus will soon produce zero emissions (the Biden administration set a goal of 2035 for example).

3. DHPs are like refrigerators in reverse. Instead of burning fuel, ductless heat pumps create heating and cooling through refrigeration. This means they capture heat from outside (even when it’s cold) and move it into your house, and vice versa for cooling. It’s pretty magical. The refrigerants used by DHPs can be potent greenhouse gases themselves, but luckily the world is moving quickly to using better, more environmentally friendly refrigerants (check out this website for a new type of refrigerant called R32).

Refrigerant lines from ductless heat pumps. Photo courtesy of The Heat Pump Store.

4. DHPs are incredibly efficient. This is because a) no air leaks through ducts b) they heat the room they are in (rather than the whole house), c) moving heat is vastly more efficient than creating it, and d) they use inverter systems (see below). As a result, they typically use three times less energy than old electric resistance heaters and six times less than gas. 

Demystifying a couple DHP terms 

Speaking of efficiency, let’s demystify a couple of terms associated with ductless heat pumps.

SEER — SEER is a number that measures how well a technology provides cooling. The higher the number, the more efficient the unit. Most new air conditioners have a SEER between 13 and 21, but ductless can often see a SEER over 30, which gives you an idea of how efficient they are. If you’re in a warm climate, SEER is especially important.

HSPF — HSPF stands for Heating Season Performance Factor and complements the SEER rating in that it measures how efficiently a heat pump heats a space. The minimum required HSPF rating in the US is 7.7. An 8.5 score is considered good, and over 10 is excellent. If you’re in a cooler climate, where the predominant energy use is for heating, HSPF is most important.

Example of SEER and HSPF ratings

I interviewed Tim Sharp, from the Heat Pump Store here in Oregon, which has installed thousands of ductless heat pumps over the last decade. He said that you’ll want your DHP to be most efficient in heating if you’re in a cold climate, and cooling if you’re in a warm climate. People in the northern US should probably focus on HSPF, while in the southern US, people should focus on SEER. Tim also said that investing in a DHP with higher scores will be more expensive up front, but the additional cost usually pays for itself over time through energy savings.

Ductless Heat Pumps in Cold weather

I also learned from Tim that DHPs were originally developed to provide only cooling (like a refrigerator), yet they have “constantly gotten better for heating purposes in almost every environment.” If you’re in a cold climate, you probably want to think about the “extended capacity” models, which are able to provide more heating. According to Tim, they don’t cost significantly more and offer more BTUs per hour output. Read more on how to use heat pumps in cold climates here

Ductless vs. Ducted

If you have existing ductwork in a space, you may consider a different approach when transitioning to heat pumps.  Not all heat pumps are ductless. You can get central heat pumps that work with a typical central AC system, and provide heating that blows that hot air through ducts. These central heat pumps are not much more expensive than central air conditioning, and many people think that swapping out every central AC system for a ducted heat pump is an important strategy to quickly get us off natural gas and reduce carbon emissions.

Ductless, on the other hand, is a no-brainer when you’re adding heating or cooling to a room without any ductwork. And DHPs also offer greater efficiency as well as economic and environmental advantages over a central ducted heating system. In addition to the efficiencies mentioned above, ductless heat pumps use inverter technology, which means they run at variable speeds. Tim from the Heat Pump Store compares this to starting your car at a red light. Inverters slowly rev the engine when starting and stopping, while typical central AC systems gun it and brake hard, meaning they are much less efficient. All DHPs use inverter technology, while virtually all conventional (ducted) heat pumps don’t, meaning DHPs are much more efficient. 

My family chose ductless heat pumps in our house, rather than a whole house heat pump, even though we had existing ductwork from our old gas furnace because of the increased efficiency. 

Photo courtesy of The Heat Pump Store

Humidity and air quality

Though ductless heat pumps help to dehumidify a room, it is not their primary purpose. In places with humidity problems, a separate dehumidifier may still be necessary. Similarly, DHPs have built in air filters, but can’t generally filter air to the extent that ducted systems do with high rated MERV filters. Tim from The Heat Pump Store said that air filtering is considered a separate system, from heating/cooling, in places where heat pumps are most prevalent, and people typically buy another device for air filtration. 

Brands

There are four leading brands of ductless heat pumps: Mitsubishi, Fujitsu, LG, and Daikin. Most of the top brands are Japanese, given they first developed the technology. This NY Times article has some solid reviews on each of these four brands.

Choosing a contractor

Finding a good installer is important. Many contractors may try to talk you out of electric heating and cooling (and into gas). Plus, you’ll want someone to help you correctly size a system for your needs. That means someone with lots of experience in ductless heat pump systems as well as a good reputation and reviews. Getting three bids is always a solid strategy. One pro tip is to look on a manufacturer’s page for contractors in your area that are certified to install their product.

Photo Courtesy of The Heat Pump Store

Cost and Aesthetics

As Tim told me in our interview, ductless heat pumps aren’t a panacea. Any technology has its downsides. As my wife points out, the indoor equipment that sits high on your wall takes up space and isn’t the most beautiful thing in the world. Ductless Heat Pumps can also be expensive. A system with a single indoor unit can run $3,000–$5,000, but if you’re putting multiple “heads” throughout your house, costs can quickly go over $10,000. 

Yet, for me, after 9 years of heating and cooling our house with ductless heat pumps, and with the climate emergency we find ourselves in, any drawbacks to ductless heat pumps are vastly outweighed by their immense benefits. Heat pumps are the heating and cooling technology for this era of climate change, and ductless heat pumps are the most efficient versions of this technology. They allow us to get off fossil fuels and efficiently heat and cool, in any climate, with clean electricity.

Learn more and do a deep dive into Ductless Heat Pumps with Tim from the Heat Pump Store in a recent webinar I hosted with Electrify Now, and let us know about your thoughts and experiences with ductless heat pumps in the comments below!

Photo courtesy of The Heat Pump Store

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Fintechs like Block and PayPal are battling like never before to be your all-in-one online bank

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Fintechs like Block and PayPal are battling like never before to be your all-in-one online bank

Jack Dorsey, co-founder of Twitter Inc., speaks during the Bitcoin 2021 conference in Miami, Florida, U.S., on Friday, June 4, 2021.

Eva Marie Uzcategui | Bloomberg | Getty Images

Jack Dorsey’s Block got started as Square, offering small businesses a simple way to accept payments via smartphone. Affirm began as an online lender, giving consumers more affordable credit options for retail purchases. PayPal upended finance more than 25 years ago by letting businesses accept online payments.

The three fintechs, which were each launched by tech luminaries in different eras of Silicon Valley history, are increasingly converging as they seek to become virtual all-in-one banks. In their latest earnings reports this month, their lofty ambitions became more clear than ever.

Block was the last of the three to report, and the high-level numbers were troubling. Earnings and revenue missed estimates, sending the stock down 18%, its steepest drop in five years. But to hear Dorsey discuss the results, Block is successfully implementing a strategy of offering consumers the ability to pay businesses by smartphone, send money to friends through Cash App, and access credit and debit services while also getting more ways to invest in bitcoin.

In 2024, we expanded Square from a payments tool into a full commerce platform, enhanced Cash App’s financial services offerings, and restructured our organization,” Dorsey said on Block’s earnings call on Thursday after the bell.

Block and an expanding roster of fintech rivals have all come to see that their moats aren’t strong enough in their core markets to keep the competition away, and that the path to growth is through a diverse set of financial services traditionally offered by banks. They’re playing to an audience of digital-first consumers who either didn’t grow up using a brick-and-mortar bank or realized at an early age that they had no need to ever set foot in a physical branch, or to meet with a loan officer or customer service rep.

“Longer term, we see a significant opportunity to grow actives, particularly among that digital-native audience like Millennial and Gen Z,” Block CFO Amrita Ahuja said on the earnings call.

Block shares drop after reporting earnings and revenue miss

As part of its expansion, Block has encroached on Affirm’s turf, with an increasing focus on buy now, pay later (BNPL) offerings that it picked up in its $29 billion purchase of Afterpay, which closed in early 2022. Block’s market share in BNPL increased by one point to 19%, while Affirm held its position at 17%, according to a recent report from Mizuho. Both companies are outperforming Klarna in BNPL, the report said.

Block’s BNPL play is now tied into Cash App, with an integration activated this week that gives users another way to make purchases through a single app. With Cash App monthly active users stagnating at 57 million for the last few quarters, the company is focused on engagement rather than rapid user acquisition.

“We think that there is significant opportunity for growth longer term, but there are some deliberate decisions we’ve made as part of our banker-based strategy in the near term” that have kept user numbers from increasing, Ahuja said. “This is a part of our continuous enhancements to drive healthy customer engagement as we bank our base.”

Compared to Block, Wall Street had a very different reaction to Affirm’s earnings earlier this month, pushing the stock up 22% after the company’s results sailed past estimates.

Affirm founder and CEO Max Levchin, who was previously a co-founder of PayPal, built his company with the promise of giving consumers lower-cost and easy-to-tap intstallment loans for purchases like electronics, jewelry and travel.

The BNPL battlefront

Watch CNBC's full interview with PayPal CEO Alex Chriss

Under the leadership of CEO Alex Chriss, who took over the company in September 2023, PayPal is in the midst of a turnaround that involves working to better monetize products like Braintree and Venmo and joining the world of physical commerce with a debit card inside its mobile app.

Investors responded positively in 2024, pushing the stock up almost 40% after a brutal few years. But the stock dropped 13% after its earnings report, even as profit and revenue were better than expected. PayPal’s total payment volume for the quarter hit $437.8 billion, slightly below projections, while transaction margins rose to 47% from 45.8% — a sign of improving profitability.

One of Chriss’ big pushes is to get more out of Venmo, which has long been a popular way for friends to pay each other but hasn’t been a big hit with businesses. Venmo’s total payment volume in the quarter rose 10% year-over-year, with increased adoption at DoorDash, Starbucks, and Ticketmaster.

PayPal is also promoting Venmo’s debit card and “Pay With Venmo,” which saw 30% and 20% monthly active growth in 2024, respectively. The company is introducing new services to improve merchant retention, including its Fastlane one-click checkout feature, designed to compete with Apple Pay and Shopify’s Shop Pay.

Last year, the company launched PayPal Everywhere, a cashback-driven initiative designed to boost engagement within its mobile app. Chriss said on the earnings call that it’s “driving significant increases in debit card adoption and opening new categories of spend.”

As with virtually all financial services products, the new offerings from Block, Affirm and PayPal are designed to produce growth but not at the expense of profit. Banks operate at low margins, in large part because there’s so much competition for lower-priced loans and better cash-back options. There’s also all the costs associated with underwriting and compliance.

That’s the environment in which fintechs have to operate, though without the costs of running a network of physical branches.

Levchin talks about helping customers spend less, not more. And Block acknowledges the need for hefty investments to reach the company’s desired outcome.

“This is a part of our continuous enhancements to drive healthy customer engagement as we bank our base,” Ahuja said. “We’ve made investments in critical areas like compliance, support and risk. And as we’ve done that, we’ve progressed more of our actives through our identity verification process, which in turn, unlocks greater access to those actives to our full suite of financial tools.”

WATCH: CNBC’s full interview with PayPal CEO Alex Chriss

Watch CNBC's full interview with PayPal CEO Alex Chriss

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Trump to shut down all 8,000 EV charging ports at federal govt buildings

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Trump to shut down all 8,000 EV charging ports at federal govt buildings

The Trump administration is shutting down EV chargers at all federal government buildings and is also expected to sell off the General Services Administration‘s (GSA) newly bought EVs.

GSA, which manages all federal government-owned buildings, also operates the federal buildings’ EV chargers. Federally owned EVs and federal employee-owned personal EVs are charged on those 8,000 charging ports.

The Verge reports it’s been told by a source that plans will be officially announced internally next week, and it’s seen an email that GSA has already sent to regional offices about the plans:

“As GSA has worked to align with the current administration, we have received direction that all GSA-owned charging stations are not mission-critical.”

The GSA is working on the timing of canceling current network contracts that keep the EV chargers operational. Once those contracts are canceled, the stations will be taken out of service and “turned off at the breaker,” the email reads. Other chargers will be turned off starting next week.

“Neither Government Owned Vehicles nor Privately Owned Vehicles will be able to charge at these charging stations once they’re out of service.” 

Colorado Public Radio first reported yesterday that it had seen the email that was sent to the Denver Federal Center, which has 22 EV charging stations at 11 locations.

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The Trump/Elon Musk administration has taken the GSA’s fleet electrification webpage offline entirely. (An archived version is available here.)

The Verge‘s source also said that the GSA will offload the EVs it bought during the Biden administration, although it’s unknown whether they’ll be sold or stored.

Read more: Trump just canceled the federal NEVI EV charger program


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Hackers steal $1.5 billion from exchange Bybit in biggest-ever crypto heist

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Hackers steal .5 billion from exchange Bybit in biggest-ever crypto heist

Ben Zhou, chief executive officer of ByBit, during the Token2049 conference in Singapore, on Thursday, Sept. 14, 2023. 

Joseph Nair | Bloomberg | Getty Images

Bybit, a major cryptocurrency exchange, has been hacked to the tune of $1.5 billion in digital assets, in what’s estimated to be the largest crypto heist in history.

The attack compromised Bybit’s cold wallet, an offline storage system designed for security. The stolen funds, primarily in ether, were quickly transferred across multiple wallets and liquidated through various platforms.

“Please rest assured that all other cold wallets are secure,” Ben Zhou, CEO of Bybit, posted on X. “All withdrawals are NORMAL.”

Blockchain analysis firms, including Elliptic and Arkham Intelligence, traced the stolen crypto as it was moved to various accounts and swiftly offloaded. The hack far surpasses previous thefts in the sector, according to Elliptic. That includes the $611 million stolen from Poly Network in 2021 and the $570 million drained from Binance in 2022.

Analysts at Elliptic later linked the attack to North Korea’s Lazarus Group, a state-sponsored hacking collective notorious for siphoning billions of dollars from the cryptocurrency industry. The group is known for exploiting security vulnerabilities to finance North Korea’s regime, often using sophisticated laundering methods to obscure the flow of funds.

“We’ve labelled the thief’s addresses in our software, to help to prevent these funds from being cashed-out through any other exchanges,” said Tom Robinson, chief scientist at Elliptic, in an email.

The breach immediately triggered a rush of withdrawals from Bybit as users feared potential insolvency. Zhou said outflows had stabilized. To reassure customers, he announced that Bybit had secured a bridge loan from undisclosed partners to cover any unrecoverable losses and maintain operations.

The Lazarus Group’s history of targeting crypto platforms dates back to 2017, when the group infiltrated four South Korean exchanges and stole $200 million worth of bitcoin. As law enforcement agencies and crypto tracking firms work to trace the stolen assets, industry experts warn that large-scale thefts remain a fundamental risk.

“The more difficult we make it to benefit from crimes such as this, the less frequently they will take place,” Elliptic’s Robinson wrote in a post.

WATCH: Crypto stocks plunge

Crypto stocks plunge despite SEC dropping suit against Coinbase

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