Carrier, the century-old inventor of the air conditioner, is moving on to the home heat pump
Heat pumps are becoming more popular for residential housing with energy prices increasing and the need to reduce use of fossil fuel heating systems.
Andrew Aitchison | In Pictures | Getty Images
In case you haven’t noticed, heat pumps are hot. Although these devices, which use electricity to generate both air conditioning and heat, have been around for decades, the latest models are much more efficient and cost-effective alternatives to conventional fossil-fuel furnaces and air conditioners.
But there are other reasons why heat pumps are fast becoming popular with homeowners. The federal government, as well as an increasing number of states, are offering consumers attractive tax credits and rebates for buying and installing heat pump systems as a way to reduce climate-warming greenhouse gas emissions and propel the transition to renewable energy.
All of this is transforming Carrier Global, the nearly 100-year-old manufacturer whose founder, Willis Carrier, invented air conditioning. Over the past year, the Palm Beach Gardens, Florida-based company has been repositioning itself to capitalize on the fast-growing market for heat pumps and other sustainable heating, ventilating and air conditioning (HVAC) technologies.
“We all know that sustainability is a megatrend,” Carrier Global Chairman and CEO David Gitlin told a group of investors in February. “HVAC has to have a critical seat at the table.”
After being spun off from United Technologies — its parent since 1979 — in 2020, and then divesting several non-HVAC businesses, Carrier made its biggest bet yet on the heat pump boom when it acquired Germany’s Viessmann Climate Solutions for roughly $13 billion last April. In addition to proprietary heat pump technology, Viessmann offers renewable energy capabilities and home battery storage, as well as smart home system controls and applications that can be integrated to drive energy efficiency.
“HVAC is at an inflection point right now, with a tremendous shift toward electrification, going from fossil fuel-burning boilers and furnaces to heat pumps,” said Hakan Yilmaz, Carrier’s chief technology and sustainability officer. “In addition, the cooling side of HVAC is expected to triple by 2050, because 2.8 billion people live in hot climate zones and only about 8% have access to HVAC today,” he said. The massive scale and massive consumption of the energy resiliency issue, Yilmaz says, puts the HVAC industry in a position to capitalize.
Heat pumps have a history dating back to 1850s
The thermodynamic science behind heat pumps was developed in the 1850s, when the first ones were invented, and they’ve been used in homes since the 1960s. Heat pumps use electricity to transfer heat from a cool space to a warm space, making the cool space cooler and the warm space warmer. Many of today’s models are three to five times more efficient than fossil-fuel furnaces, and work well even in extremely cold and hot weather.
The most common type is the air-source heat pump system, comprising an outdoor unit — which resembles a conventional central AC device — and an indoor unit that hooks up to either a blower that circulates warm or cool air through ducts and vents or to one or more ductless mini-splits installed in rooms throughout a house.
14 February 2024, Saxony, Leipzig: Michael Kretschmer (r, CDU), Minister President of Saxony, talks to Viessmann employee Sebastian Kowalski about a heat pump at the Haus-Garten-Freizeit trade fair. Kretschmer takes part in the East Trade Policy Forum.
Picture Alliance | Picture Alliance | Getty Images
Compared to a gas boiler, heat pumps reduce GHG emissions by 20% when operating on fossil fuel-generated electricity and as much as 80% when operating on cleaner electricity, according to the International Energy Agency. Residential and commercial buildings account for 30% of global energy consumption and produce 26% of energy-related GHG emissions, per the IEA.
In 2023, air-source heat pumps outsold fossil-fuel furnaces for the second year in a row, according to AHRI, the trade association representing HVAC manufacturers. Rewiring America, a nonprofit advocate for mass-scale electrification, estimates that currently, 16% of U.S. homes use heat pumps for heating and cooling. In September, the U.S. Climate Alliance, a bipartisan coalition of 25 governors, agreed to collectively reach 20 million heat pump installations by 2030, with the aim of ensuring at least 40% of benefits flow to disadvantaged communities.
In the U.S., so far cold states are leading the way
Although heat pumps have become popular for air conditioning in southern states, Maine has the highest rate of adoption, installing 100,000 units in households two years ahead of schedule and aiming to hook up another 175,000 by 2027. That dispels the notion, often promulgated by the oil and gas industry and utilities, that heat pumps don’t work well in below-freezing temperatures, thus requiring a fossil-fuel furnace as backup.
“That’s old news,” said Tobie Stanger, senior home and appliances writer for Consumer Reports. “There are new heat pumps designed for cold weather that allow them to go to five degrees effectively,” she said, adding that they’re widely used in Nordic and European countries. A Consumer Reports analysis of the efficacy of heat pumps in cold climates found that “even amid bone-chilling cold” they use far less energy than other types of heating systems. According to Dave Lis, director of technology market transformation at Northeast Energy Efficiency Partnerships (NEEP), air-source heat pumps can work as a home’s main heating system in almost any climate.
Carrier sells 10 different heat pumps, with various energy capacities and price points, and plans to add models made by Viessmann, which already has a presence in the U.S. market. But beyond the company’s sustainable energy technology and product portfolio, “one of the reasons we acquired Viessmann was because of its experience in training dealers and installers and helping customers understand the benefits of its products,” said Milena Oliveira, Carrier’s chief marketing and communications officer.
Leveraging that knowledge, Carrier is providing its nationwide network of around 2,100 authorized dealers training and education programs, as well as advertising and promotional support, not only regarding heat pumps but also ancillary products, such as smart thermostats and energy storage batteries. “Home energy management is a huge component that we want to capitalize on,” Oliveira said, as dealers “shift their mindsets from selling products to selling solutions and components.”
Mark Prodan, the operations manager of M&M Plumbing and Heating, a Carrier dealership in the northern Michigan town of Indian River, said that M&M’s heat pump business grew by nearly 35% last year. “This year it will probably be up another 40% to 50%,” he said.
Prodan said that he typically has to educate customers about the energy efficiency and cost-effectiveness of heat pumps, as well as their environmental benefits. “There’s a general feeling that people want to go with a little bit cleaner energy, but once you educate them on what heat pumps can do, they’re usually very receptive,” he said.
Carrier on-site and remote training of M&M’s sales and service staff have helped, Prodan said. “They have a website with knowledge-based videos, calculators that show customers their cost savings and an app for our service guys that can scan a bar code to pull up information and manuals.”
Getting tax credits and rebates while they last
Between now and the end of 2032, homeowners can get a 30% federal tax credit for the purchase and installation of Energy Star-certified air-source heat pumps — from Carrier and other brands — up to $2,000 annually. That includes any related insulation, ducting, mini-splits and electricity upgrades.
Many states and local utilities offer additional financial incentives, some tied to income levels. Connecticut, for instance, offers a rebate of up to $15,000 for qualifying heat pumps; New York State issues rebates through utility companies that can amount to between $8,000 and $12,000; Maine offers between $4,000 and $8,000. The Energy Star website features a “rebate finder” for obtaining information by zip code.
The cost of installing a heat pump system — depending on the brand, size, where you live and complexity of the job — can be upward of $20,000. Consumer Reports member surveys found that the overall median price paid for the purchase and installation of a ducted heat pump between 2018 and 2023 was $8,348. Mini-splits can range from $2,000 to $6,000 per unit, plus installation.
Besides rebates and tax credits, heat pumps can generate savings by eliminating the cost of fossil fuels, even when factoring in the price of electricity. Rewiring America calculated that homeowners switching from inefficient HVAC systems that run on fuel oil, propane or traditional electric resistance (like baseboard heat or electric furnaces) can save around $1,000 per year.
For 2023, Carrier reported sales of $22.1 billion, up 8% from $20.4 billion in 2022. Its guidance for 2024 projected sales growing to $26.5 billion. The stock is up 30% over the past year, though it is stalled in 2024.
Loading chart…
“This is a big year for us as a company,” Gitlin said in a recent call with analysts. “We will start realizing the tremendous benefits from the combination of Viessmann and as a sustainability-focused, higher growth, pure-play company.”
“When I see companies making big changes to their [product] portfolio and divestitures, that puts a premium on management knowhow and capability,” said Deane Dray of RBC Capital Markets. “I like how they’re doing it,” he said. “The heat pump [focus] does not just make economic sense, but the impact on its carbon footprint is a good part of the story as well.”
Carrier is targeting net-zero GHG emissions in its own operations by 2030 and across its value chain by 2050. The recent stock retreat, Dray says, doesn’t concern him and over the longer term, he anticipates higher margins, more services and more aftermarket revenues. “It’s all lining up nicely,” he said.
Tesla CEO Elon Musk said the company will remove “safety monitors” from the passenger seats of Tesla’s Robotaxi vehicles in “about three weeks,” which would mean we’d see completely driverless Teslas in the Austin area potentially by the end of the year – if that timeline sticks.
Tesla has been working on a system that would allow vehicles to drive themselves, which has been in “beta” release for over a decade now. It calls this system “Full Self-Driving,” despite the fact that the system does not currently drive itself.
That has not stopped Musk from consistently promising more and more of the system, despite its stagnating capabilities. Over the course of the last decade, Musk has consistently promised driverless vehicles within the coming year, with deadlines consistently passing by without achieving that goal.
One of those promises has been the creation of a driverless taxi network, which Tesla used to call “Tesla Network” and is now calling “Robotaxi.” The idea originally came with the promise that owners could use their cars to make money by running them as taxis, but that hasn’t panned out.
Tesla did roll out its own version of a taxi network, though, in Austin, in June of this year. While it’s done a few cool things, the cars each have a “safety monitor” in the passenger seat who can take control at any time, which means the cars aren’t truly “driverless” since there is an operator, they’ve just been moved to the passenger seat.
In the time since Robotaxi’s rollout, it’s made quite a few mistakes and had a high crash rate. But Tesla also delivered one fully unoccupied vehicle from the factory to a local buyer, which was a cool (and, as yet, still unique) stunt.
Throughout the year, Musk has claimed loudly that the system would improve rapidly, stating that by the end of the year Robotaxis would be available to half of the US population (they are not) and that Tesla’s fleet would grow by more than 10x by the end of the year (it has not).
But now we have another bold prediction from Musk, stating that the safety monitors will be out of a job by the end of the year.
During a videoconference at a hackathon event for xAI, one of Musk’s other companies (which he is trying to get Tesla shareholders to bail out), Musk was asked a question about the barriers to unsupervised full self-driving. Musk answered:
Unsupervised is pretty much solved at this point. There will be Tesla Robotaxis operating in Austin with no one in them, not even anyone in the passenger seat, in about three weeks. I think it’s pretty much a solved problem, we’re just going through validation right now.
The “three weeks” timeline is familiar to longtime Tesla followers. Over the years, Musk has often promised fixes or software updates in “two weeks,” and they often take longer than that.
Three weeks is a lot closer than the “next year” promise that we’ve heard so many times for full autonomy, but given its proximity to the oft-inaccurate two-week timeline, we’re not sure these vehicles will actually be ready in time for New Year’s Eve celebrations.
Nevertheless, it’s a closer timeline than Musk has usually given, so there may be truly driverless Teslas operating sometime soon™.
Also, reading the statement more closely, it sounds like they won’t necessarily remove safety operators from every vehicle, but some vehicles. This could be similar to the singular driverless vehicle delivery that Tesla did – a PR stunt, rather than a full rollout. We’ll have to wait and see.
Tesla’s main competitor in the robotaxi space is Waymo, which has been operating truly driverless vehicles for several years now. The company has also been operating autonomous, driverless vehicles in Austin since March of this year.
Musk went on to talk about future improvements to Tesla’s software and hardware in his answer.
The company is currently on hardware previously deemed HW4, though to cash in on the AI stock market bubble, it now refers to that system as AI4. He said that AI5 will be 10-40 times better than HW4 and go into volume production in 2027, with AI6 coming soon after.
Musk’s mention of future hardware improvements neglects one important aspect of these improvements, which is that for every hardware improvement Tesla puts into its fleet, the more vehicles it will have to upgrade later.
Tesla long promised that its vehicles had all the hardware for self-driving, which means it’s going to have to upgrade a lot of cars – and there are court cases around the world seeking to force the company to do so. Together, these lawsuits and other potential challenges could mean billions of dollars in liabilities for the company.
Musk then closed his statements by claiming that “our” goal is to “to understand the meaning of life and… propagate consciousness out to the stars,” which is not Tesla’s goal. Tesla’s actual goal is to accelerate the transition to sustainable energy. He may have been referring to xAI’s goal, but given the answer was about Tesla, perhaps he was confused (or perhaps he doesn’t care about Tesla anymore, and isn’t a good CEO for the company as a result…)
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
VW’s retro-tastic minivan hasn’t been the sales success the company might have wanted, and a lot of that has to do with the van’s sky high price tag. Now, VW is asking: will a $10,000 discount be enough to create some buzz for the ID.Buzz?
Volkswagen is offering $7,500 in Retail Customer Bonus cash this month – up from the $2,500 the company offered its Black Friday customers – that, along with an additional $2,500 unadvertised dealer cash incentive that CarsDirect is reporting absolutely, definitely exists, adds up to a stout $10,000 total discount on the all-electric VW ID.Buzz … and that’s before you start haggling with your dealer over the MSRP.
It’s a lot
As much as I like the the Volkswagen ID.Buzz, its starting MSRP around $61,545 (incl. destination) puts it at nearly twice what you’d probably expect a minivan to cost if the last time you shopped for one was at a Dodge store. Still, that hefty price tag is some $20,000 higher than the baseline Toyota Sienna hybrid or Honda Odyssey.
That 50% higher price is a lot to swallow even if you do buy into the nostalgia. Still, the ID.Buzz is capable enough, and with ~230 miles of range and 282 hp on offer from its battery/electric motor combo – plus Supercharger access – it’s at least able to keep up with the minivan competition.
So, while that $10,000 discount isn’t going to turn the ID.Buzz into the second coming of the affordable, family-hauling Caravan, it does bring VW’s electric people-mover a little closer to earth. In fact, with a $50K price tag, it’s right in line with the average transaction price of a new vehicles. So, if nothing else, that reduced price could finally gives electric minivan buyers something to buzz about (I tried so hard to work that in, you guys).
If you’ve been shopping for a family-hauler and dig the retro vibe over something like the (excellent) Kia EV9, click through the link below and set up a test drive at your local VW dealer.
SOURCE: CarsDirect; images via VW.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
Peterbilt has jumped into the MD truck ring with the launch three new medium-duty electric trucks that deliver zero-emissions power, ultra-fast 350 kW charging, and proven, versatile platforms for delivery, utility service, and vocational upfitting.
The new Peterbilt 536EV, 537EV, and 548EV medium-duty trucks slot into the same versatile medium-duty segments the company’s fleets already know, but swap diesel power for latest PACCAR ePowertrain, with up to 605 hp and 1,850 lb-ft of torque available at 0 rpm. That big motor draws power from a variety of LFP battery packs and be fitted with ePTO options rated for either 25 kW (two-battery option) or 150 kW (three-battery option), making them suitable for that can be sized for daily delivery routes, urban utility work, and municipal fleets looking to cut both emissions and maintenance costs.
What’s more, the new Peterbilt’s flexible architecture allows for integration with existing PACCAR suspension bits to make 4×2 and 6×4 configurations, and any wheelbase of 163 inches or longer, and up to 82,000 lbs. gross combined weight ratings possible.
“[The new trucks are] optimized for the demands of the medium duty segment, the next generation of Peterbilt electric vehicles deliver excellent efficiency, rapid charging and versatile configurations elevating customer productivity across a wide range of applications,” said Erik Johnson, Peterbilt assistant general manager, Sales & Marketing.
In addition to all those goodies, the PACCAR EV tech continues to be top-notch, with the previously-mentioned 350 kW charging, regenerative braking, and industry-leading ergonomics.
Peterbilt’s new MDEVs ship with a blue accented crown and grille for a distinctive exterior look, as well as EV-exclusive panels on the side of the hood. The interior design features laser-etched trim panels on the EV-exclusive Magneto Gray interior, just in case the driver in the quiet, smooth, and stink-free cabin forgets they’re in an electric truck.
Electrek’s Take
Ignore the headlines. The death of the commercial EV market simply hasn’t happened, and won’t happen any time soon.
If you believe the engineers and analysts at MAN Trucks and Orange EV (and, you should), an EV like this can pay for itself in reduced fuel and maintenance costs even without incentives, then you should already know what I’m about to say: the future of trucking is 100% electric.
SOURCE | IMAGES: PACCAR.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
-
Sports2 years agoStory injured on diving stop, exits Red Sox game
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports3 years agoButton battles heat exhaustion in NASCAR debut
-
Sports3 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment3 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment1 year agoHere are the best electric bikes you can buy at every price level in October 2024