Summary

The Minnesota Efficient Technology Accelerator (ETA) is launching an air source heat pump (ASHP) market transformation initiative, focusing on accelerating the adoption of dual fuel, centrally ducted ASHPs. This application type can replace central air conditioners and displace a portion of heating from propane or natural gas furnaces. Market characterization work was needed to identify market barriers, opportunities, and dynamics and successfully launch the initiative. 

This report characterizes the ASHP market and was conducted internally by CEE staff given their in-depth knowledge of and recent research work on ASHPs. The report summarizes key findings from recent contractor interviews conducted by CEE staff (N=18), internal knowledge gleaned from the Minnesota and Midwest ASHP Collaboratives, and applicable insight from literature reviewed, primarily from two key reports: 

  • Investigation of Air Source Heat Pumps as a Replacement of Central Air Conditioning, referred to as the 2022 CEE AC Replacement CARD Study
  • Understanding Market Barriers and Opportunities for Cold Climate Air Source Heat Pumps in Residential Households, referred to as the 2020 Cadmus Cold-Climate ASHP Study
Air Source Heat Pump Market Characterization Report