U.S. Homeowners Ranked Government Incentives as Reasons for Considering Installing a Heat Pump, According to Mitsubishi Electric Trane HVAC Survey1
“Reduce Energy Bills” and “Improve Air Quality in My Home” Also Ranked Highly2
SUWANEE, Ga.–(BUSINESS WIRE)–According to a survey of U.S. homeowners conducted by Mitsubishi Electric Trane HVAC US (METUS), 63% of American homeowners have heard of the Inflation Reduction Act (IRA) and 54% ranked government incentives (such as a tax credit or rebate) as one of their top three reasons why they would consider installing a heat pump.
These findings, among others, were uncovered by the METUS 2023 Heat Pumps & Homeowners Index. The survey explored American homeowners’ attitudes toward the IRA and sustainable home upgrades, specifically regarding heat pumps.
Most (83%) survey respondents were concerned about the impact of energy bills on their household budgets.3 Further, 46% responded the cost to cool their homes last summer rose “somewhat” or “much more” than the summer before, and 54% said it cost “somewhat more” or “much more” to heat their home this winter, compared to last winter. Similarly, 49% ranked “reduce energy bills” as one of their top three reasons to consider installing a heat pump.4
According to the survey, 24% of respondents stated their home is already equipped with a heat pump and 69% would consider installing a heat pump in their home. While 28% of homeowners say a concern preventing them from considering a heat pump in their home is the installation cost, 54% of all survey respondents ranked government incentives (such as a tax credit or rebate) as one of their top three reasons why they would consider installing a heat pump.5 “Reduce Energy Bills” and “Improve Air Quality in My Home” also were ranked among the top three reasons by 49% and 36% of survey respondents, respectively.6
The IRA’s Energy Efficient Home Improvement Credit (section 25C) offers a nonrefundable tax credit of 30% of the qualified expenses to install a qualified heat pump that is placed in service on or after January 1, 2023 and before January 1, 2033, up to $2,000 per year.7
“The financial incentives offered through the IRA are anticipated to accelerate the adoption of energy-saving, all-climate heat pumps,” said Mark Kuntz, chief executive officer, Mitsubishi Electric Trane HVAC US. “Our mission is to educate homeowners about the many benefits of all-climate heat pumps versus conventional heating and cooling systems.”
The survey also found more homeowners would be interested in tax credits for installing a heat pump or high-efficiency electric heating, ventilation air conditioning, and/or water heating, than interested in installing solar panels or purchasing a new or used electric vehicle. This benefit is even more appealing for Millennials (born between 1980 and 1993) as 65% cited, among other listed options under the IRA, that tax credits for installing high-efficiency electric heating, ventilation, air conditioning and/or water heating would be of interest to them.
For more information about Mitsubishi Electric products, visit https://bit.ly/47F4EKm.
About the 2023 Heat Pumps and Homeowners Index
The Heat Pumps and Homeowners Index, sponsored by Mitsubishi Electric Trane HVAC US (METUS), polled in June 2023 more than 1,000 American homeowners. Data cited in this index is for informational purposes only. Respondents included all age groups (18 and older), regions and genders. The margin of error for this Index is +/- 3.114%.
About Mitsubishi Electric Trane HVAC US LLC
Formed in May 2018, Mitsubishi Electric Trane HVAC US LLC (METUS) is the exclusive provider of Zoned Comfort Solutions® and leading supplier of Ductless and Ducted Mini-split and Variable Refrigerant Flow (VRF) heat pump and air-conditioning systems in the United States and Latin America.
A joint venture between Trane Technologies plc and Mitsubishi Electric US, Inc., the company provides innovative products, systems and solutions capable of heating and cooling a broad range of applications, from a home to a large commercial building with superior efficiency, comfort and control.
The family of brands supported by METUS includes: Mitsubishi Electric, Trane®/Mitsubishi Electric and American Standard®/Mitsubishi Electric. More information is available at www.metahvac.com.
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| 1 54% of survey respondents ranked “government incentive, such as tax credit or rebate” as their first (18.25%), second (16.97%) or third (18.95%) reason (among ten choices provided) to make them consider installing a heat pump. |
| 2 49% of survey respondents ranked “reduce energy bills” as their first (23.06%), second (13.30%) or third (12.73%) reason (among ten choices provided) to make them consider installing a heat pump; 36% of survey respondents ranked “improve air quality of my home” as their first (11.17%), second (11.74%) or third (13.30%) reason (among ten choices provided) to make them consider installing a heat pump. |
| 3 Survey respondents selected “extremely concerned” (20.08%), “very concerned” (25.95%) or “somewhat concerned” (36.63%) among the five options given. |
| 4 Survey respondents ranked “reduce energy bills” as their first (23.06%), second (13.30%) or third (12.73%) possible reasons (among ten choices provided) which would make them consider installing a heat pump. |
| 5 54% of survey respondents ranked “government incentive, such as tax credit or rebate” as their first (18.25%), second (16.97%) or third (18.95%) reason (among ten choices provided) to make them consider installing a heat pump. |
| 6 49% of survey respondents ranked “reduce energy bills” as their first (23.06%), second (13.30%) or third (12.73%) reason (among ten choices provided) to make them consider installing a heat pump; 36% of survey respondents ranked “improve air quality of my home” as their first (11.17%), second (11.74%) or third (13.30%) reason (among ten choices provided) to make them consider installing a heat pump. |
| 7 See: https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit. Homeowners should consult their tax advisors to determine their eligibility for this credit. |
Contacts
Erica England, Arketi Group
eegland@arketi.com
904-803-8808
Lauren Bovard, Arketi Group
lbovard@arketi.com
678-477-5546
