Minnesota’s Efficient Technology Accelerator (ETA) has released a comprehensive report on homeowner and HVAC contractors’ perceptions of the state’s growing air source heat pump market. Heat pumps provide both heating and cooling. They are highly energy efficient and can increase a home’s comfort while often reducing heating bills and carbon emissions. One cost-effective way to use this technology is to fully replace a home’s air conditioner with a heat pump for summer cooling and combine with a furnace for winter heating. Substantial utility rebates help make the technology more affordable. 

Download ASHP State of the Market Report (2025)

The new 76-page ETA report explores survey insights gained from HVAC contractors, contractor trainees, recent heat pump purchasers, and Minnesota’s general homeowner population, as well as on-the-ground information from local heat pump distributors. Findings shed light on current customer and field perceptions, demonstrating how this market is evolving while providing insights to inform the Minnesota Air Source Heat Pump (ASHP) Collaborative, a technology-centered initiative of ETA. 

ETA’s data and analysis reveal contractor opinions, sales insights, training needs, customer satisfaction, energy impacts, and more. Investigators conclude that informed customers and contractors alike largely view heat pumps favorably; lingering skepticism tends to fade as hands-on experience goes up. 

“Heat pump availability is improving, customer satisfaction is high, contractors have more experience, and rebates are lowering final costs — all helping to drive sales,” explains Emily McPherson, director of market transformation deployment. As detailed in the report, additional conclusions include: 

  • After installation, customers with heat pumps feel satisfied and comfortable. Many customers also report savings on their energy bills.
  • Contractors play a central role in customer decision-making. And contractors trained through the MN ASHP Collaborative are more likely to help homeowners learn about and ultimately install a heat pump.
  • Cost remains a key factor for customers in making HVAC decisions, but savings and incentives are motivating. Efficiency and comfort were also noted as key benefits by customers.
  • Most homeowners still have low awareness of ASHPs. To spread the word, energy providers, contractors, friends, and family are all trusted messengers.
  • Utilities are key influencers in the heat pump market. Customers and contractors turn to energy utilities for information and critically important rebates.

“This customer base seems to be growing and shifting,” said Maddie Hansen-Connell, senior manager of market transformation evaluation. “We see that heat pumps are now appealing to more mainstream customers who are interested in benefits such as reliability as well as cost and comfort. Whether you’re a tech head who really cares about your HVAC system, or just someone who wants to be comfortable at home without even thinking about your system, it’s increasingly clear that heat pumps offer something for everyone.”

Market insights on other promising technologies

In addition to the comprehensive ASHP State of the Market Report, ETA has also released briefer, focused “market insights” reports related to three other initiatives in the Efficient Technology Accelerator’s portfolio:

  • High-efficiency windows. This report details contractor views on emerging residential windows technologies, including high-efficiency triple-pane windows.
  • Luminaire-level lighting controls (LLLCs). This report provides a snapshot of lighting designer insights in the LLLC market.
  • Next Gen RTUs. This report provides a snapshot of insights from commercial HVAC contractors around these technologies and the RTU market.

About Minnesota’s Efficient Technology Accelerator

Minnesota’s Efficient Technology Accelerator is a statewide market transformation program that accelerates deployment and reduces the cost of emerging and innovative efficient technologies, bringing lower energy bills and environmental benefits to all Minnesotans. ETA is delivered by Center for Energy and Environment, administered by the Minnesota Department of Commerce, Division of Energy Resources, and funded by energy utilities. 

About CEE

Center for Energy and Environment seeks a healthy, carbon-neutral economy that works for all people. A 501(c)(3) clean energy nonprofit with nearly 40 years' experience in energy efficiency, we align our strategies behind technical research, program development and implementation, community engagement, policy advocacy, and project financing. Working across homes, businesses, and communities, CEE discovers and deploys the most effective energy solutions to improve the environment and strengthen the economy for everyone.

Media contact 

Tim Hanrahan, 612-244-2419, thanrahan@mncee.org

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