The Building Decarbonization Coalition’s (BDC) annual Wrapped report takes a data-driven look at some of the biggest electrification stories of 2025. Here’s a snapshot of some of the highlights for the HVAC industry. 

Up 12% — Gas Utilities on the Rise 

Electricity costs are up across much of the country, but they’re still trailing behind gas. According to the report, gas is up twice as much as electricity, and outpacing inflation by almost 400%. Gas infrastructure is also proving itself to be an expensive endeavor, as the report notes that gas charges on a utility are for more than just gas — it’s also for the aging infrastructure. 

“The cost of these new pipelines is passed on to households in the form of higher energy bills that will be paid for decades to come,” the report states. “In fact, on average, 66% of our gas utility bills go toward infrastructure projects like pipeline replacements. What this looks like is an annual bill of $21 billion that households are collectively paying for gas infrastructure, and by 2050, we’ll have spent $1.4 trillion on a system that is declining.” 

93% of New Capacity 

The electrification movement is gaining an important ally — more capacity from the grid.  

“In 2025, we saw the supply side invest in new clean energy projects that will affordably power the grid,” the report states. “Nearly 93% of new capacity came from renewables such as solar, battery storage, and wind. This incredible boom contrasts greatly with the turn of the century, when clean technologies made up less than 5% of new capacity.” 

90% Referral Rate 

Heat pumps now account for an enormous amount of new sales, and in 2025, the U.S. surpassed China to become the number one market in the world for the technology. As the report notes, a lot of that success comes from happy customers.

“It’s no wonder that households love heat pumps, or why 90% of heat pump owners would recommend them to a friend. Heat pumps are three to four times more efficient than gas furnaces, which reduces energy use and lowers monthly utility bills,” the report states. “The rise of the heat pump market shows how households are choosing highly efficient, affordable heating and cooling options. This year, heat pumps once again outsold gas furnaces, a trend that’s occurred three straight years in a row. Encouragingly, heat pump sales are also closing the gap on air conditioning systems.” 

80% of Households Can Save 

According to the New York Times, about 80% of American households could save on energy bills by switching to heat pumps.  

“Households with heat pumps benefit their neighbors by helping to subsidize more costs related to grid infrastructure,” the report states. “Creating specialized electric rates takes this into account and lowers the costs of operating a heat pump. A 2025 study found that heat pump customers switching to electrified heating rates could lower their energy bill by $240 annually on average.” 

1-in-4 States 

Thermal Energy Networks (TEN) are gaining in popularity, with around 25% of states passing legislation related to TENs. 

“One in four states has now passed legislation related to thermal energy networks — whether it advances studies of TENs, unlocks new avenues for financing, or all-out requires regulated utilities to pilot TENs. In addition, TENs remain eligible for federal tax credits, despite rollbacks on other clean energy technologies, the report states. “And twenty-six utility-led TENs pilots are currently advancing through eight states: Colorado, Maryland, Massachusetts, Minnesota, New Jersey, New York, Washington, and Illinois. These pilots join the many non-utility-led TENs already under construction or operational in cities and campuses nationwide.” 

30% Increase in Interest in HVAC  

Also fueling the electrification movement is the technicians the technology depends on.  

“Student enrollment in two-year HVACR associate degree programs jumped nearly 30%, with about 25,000 enrolled students, compared to last year. Plumbing enrollment at two-year colleges rose over 20%,” the report states. “Our future HVAC technicians, plumbers, and pipefitters will be essential to installing and maintaining heat pumps for homes and businesses, and realizing the clean energy transition.”