An Easier Path To Heat Pumps: Monthly Payments, No Up-Front Cost

Heat pump technology is gaining significant traction in the US as an energy-efficient alternative to traditional gas and oil heating systems, with sales surpassing gas furnaces for the fourth consecutive year in 2025. Startups like Quilt are driving this momentum by introducing advanced heat pump systems that offer superior energy efficiency and occupant-sensitive controls. Quilt’s technology claims to outperform competitors by a substantial margin, being 20% more efficient than industry peers and dramatically more so than conventional heating and cooling solutions. The company has attracted considerable investment, raising $64 million by the end of 2024, which has supported rapid expansion across North America. Beyond technological innovation, Quilt has developed a robust business model centred on partnering with certified contractors who receive specialised training. This approach has enabled the startup to scale quickly, growing its network to over 130 partners across 40 US states and six Canadian provinces within less than two years. The contractor partnership model aligns with broader energy transition initiatives, such as Colorado’s $200 million Power Ahead programme, which aims to remove barriers for both consumers and installers by addressing financial and workforce challenges. Such collaborations are crucial to building consumer confidence and expanding the skilled workforce needed for widespread heat pump adoption. A major breakthrough in making heat pumps more accessible comes from Quilt’s recent partnership with Palmetto, a company experienced in residential solar financing. This collaboration introduces the Palmetto Comfort Plan, which eliminates the traditional upfront cost of heat pump installation by offering a monthly payment scheme that covers installation, maintenance, and warranty. The plan operates on a 10-year lease model, allowing customers to buy out, renew, or upgrade their systems at the end of the term. This financing option mirrors successful solar lease programmes and aims to convert consumer interest into concrete action by lowering the financial barriers associated with switching to heat pumps. Despite these advances, challenges remain, particularly around permitting and regulatory hurdles that can delay installations and increase costs. The Building Decarbonization Coalition has highlighted the complexity of permitting processes in states like California, where hundreds of jurisdictions impose varying fees and requirements, sometimes compounded by homeowners’ association rules. These obstacles contribute to unpredictability in project timelines and costs, posing difficulties for contractors and homeowners alike. Addressing these issues through streamlined permitting and compliance solutions will be essential to sustaining the rapid growth of heat pump adoption across the US.