New Incentives for Heat Pump Installations Create HVAC Contractor Opportunities
A growing group savings program connects households to local businesses

PERKS OF NEW: An Edge Energy HVAC Technician during a recent heat pump installation, as part of the Switch Together initiative.
Transitioning a home from an aging HVAC unit to a heat pump can offer homeowners benefits beyond efficiency, comfort, energy reduction, and indoor air quality. Cost savings are its hook.
With the help of a heat pump installation savings program launched in Alexandria, Virginia, participants are taking advantage of the opportunity to update their homes — and doing so through local HVAC contractors.
“Installing heat pumps is one of the most impactful ways residents can lower their bills, improve comfort, and improve air quality, all while helping the city achieve our ambitious climate goals,” said Ryan Freed, climate action officer, City of Alexandria.
While reducing monthly energy bills is a big incentive, the cost of installation can be daunting for homeowners. With Switch Together Alexandria, homeowners receive up to a 15% discount on the market price for a standard heat pump installation, according to the city.
The heat pump installation program is part of the city’s overarching, free Eco-City Homes program, helping people “to save money on utilities and have a more sustainable, comfortable, and healthy home.”
Connecting Households And Contractors
Heat pumps were incentivized at the national level under the Biden administration. After the Trump administration halted many of those federal incentives, rebate and incentive programs moved to the state and local level.
Programs such as Switch Together help cities and states fill the federal incentive void in both reaching energy efficiency goals and helping contractors access new customers. Switch Together is facilitated by iChoosr, which works to implement its program, now operating in eight states and counting.
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OUT WITH THE OLD: Recent heat pump replacement installations from Elephant Energy, a Switch Together initiative vetted contractor in the Denver metro area. (Courtesy of Switch Together)
iChoosr then partners with local government partners across the U.S., connecting households and small businesses. The program secures a discounted price for residents by organizing a group purchase from qualified contractors.
Fred Wu, director of community engagement, iChoosr, said, “Our role is to typically work with a combination of government partners. They’ll promote the programming in the area, helping vet the qualified local installers.”
Wu said what they are really doing is “aggregating consumer demand” while trying to deliver a qualified contractor network.
“A lot of the benefit we promote to the contractor network is the ability to meet highly interested, educated households that potentially want to move forward,” he said.
This, he said, drives down the cost of customer acquisition and allows the contractor to focus on the delivery and installation.
“For our contractor network, we look for folks who are interested in educating the customer and moving them along on this technology choice,” Wu said.
The Benefits of Collaboration
While residents benefit from the secured discount, the potential for work that the program creates is an equally important benefit for the program’s vetted contractors.
Colorado counties and cities are also promoting Switch Together programs for residents.
Aydin Mehr, general manager of UniColorado, a locally owned HVAC contractor serving the greater Denver metro and Front Range, said Switch Together runs two campaigns a year targeting heat pump replacements, one in the spring and one in the fall.
Mehr, who has worked through a past heat pump marketing cycle, said, “Participating contractors will get steady work — it is seasonal … In that timeframe, each contractor will get around 80 jobs, which, generally speaking, for the slow season, does help.”
As more communities define energy efficiency goals, executing them tactically has a clearer path with an incentive program.
“Participating in this also helps achieve our goal of 53,000 energy-efficient homes by 2030. Installing a heat pump is also a key part of our Eco-City Homes program, which celebrates the actions residents are taking to save energy and be more sustainable,” Freed said.
The discount for a heat pump in Alexandria translates to about $2,900 in savings from the typical price for a standard heat pump installation, when using a vetted heat pump installer.
Edge Energy participated in an initial pilot program in fall 2025 and is participating in the broader Capital Area rollout for Alexandria. The company is based in Maryland and serves throughout its home state, the Washington, D.C. metro region, and Virginia.
“Overall, we’ve been very happy with the program and the level of homeowner engagement it has generated,” said Simone Mellilo, director of operations.
“One of the biggest benefits is that programs like Switch Together help simplify what can otherwise feel like a very overwhelming process for homeowners,” she said. “Many customers are interested in heat pumps and electrification, but they are often trying to navigate equipment options, cold-climate performance concerns, sizing questions, contractor selection, and a wide range of utility and state incentives all at once.”
Wu said, “What we are queuing up for [households] is a local, qualified, experienced service provider that is going to offer this turnkey installation.”
“The program helps create confidence for homeowners while also helping them take advantage of bulk purchasing opportunities and maximize available rebates and incentives,” said Mellilo.
She said another benefit for contractors as a result of the heat pump program is that homeowners are exploring and pursuing broader energy improvements beyond “the equipment swap.”
“It is encouraging homeowners to think more holistically about comfort, energy use, and long-term home upgrades rather than viewing HVAC equipment as a standalone replacement decision,” she said.
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