Since the first patented gas furnace created by Alice H Parker in 1919 with a fuel efficiency of 40-50%. Today, gas furnaces have efficiencies reaching 99%.
Commercially available heat pumps were in a work in progress since the early 1900s and have been continuously improved. Modern heat pump systems are reaching efficiencies of up to 400%.

Modern HVAC systems offer full electrification via elimination of gas reliance, utilizing variable-speed compressors (which enhance energy efficiency), leveraging solar and battery systems, and providing greater energy resilience.

Variable speed motors are capable of operating at many different speeds requiring less power demand. Non-variable speed motors (psc) operate at one speed which takes a lot of power to start, where variable speed motors can start at a very low speed; requiring less electricity. This “soft start” pairs well with solar electrification. It is optimal for solar efficacy, minimizes battery strain, and allows smoother integration with limited solar or backup power.

Variable speed compressors are able to have a soft start starter approach on startup and has low energy consumption during ramp or ramping up. Traditional HVAC systems heavily rely on high starting capacitance or permanent split capacitor in order to kick start the split phase compressor that is typically reciprocating or scroll type. These split phase motors require a high amount of current in order for the gears to turn over converting into a high Locked Rotor Amp level or LRA when the thermostat calls for the compressor to kick on.

Historically, solar systems favor soft start motor components and lower LRA. Variable speed HVAC systems can satisfy this low-ramp startup application and does not require 100% capacity on every call. Once the space temp has satisfied, the cruise control ability of variable speed compressors only generate the amount of Btu’s required at that current temperature differential or deadband.

Electrification allows you to heat and cool your home, or office using only electricity; this can be supported by solar and backup batteries if you have them. Being fully electric allows you to no longer rely on gas to heat the home, reducing your carbon footprint to ZERO. Not only does this save you money and save the environment, it provides you independence and self sufficiency.

Properties have succumbed to being heavily dependent on grid-tie technologies. We finally entered a new era and frontier of fully electrifying thermal envelopes with innovative cold climate HVAC compressors. Since these systems are designed to handle the entire heating and cooling portfolio of a property, they are able to satisfy a call all by electricity. Electrification in the HVAC industry is a game changer, as more customers transition to heat pumps to reduce utility costs and drivers where gas, liquid petroleum, and oil pellets are too expensive during heating operations. With optimized highly efficient HVAC systems, retrofitting older and inefficient equipment designs are now capturing high SEER ratings to support massive energy consumption reduction during the summer seasons as well.

Weather impacts both HVAC and solar output. A heat pump’s job is to transfer heat from outside to inside. As the temperature drops, the heat pump will naturally have less heat to transfer into your home. This is when you’ll see efficiencies vary from approximately 400% to 100%. As for solar, the lower the sun exposure the lower the solar electricity production, therefore the higher the demand upon your battery or utility-provided power.
The more sun exposure you have increases the demand for the ac, however the solar system will accommodate that electricity demand from the ac thanks to the sun.

Whether an HVAC system is powered by solar or backed up to grid-tie support, the performance of the heat pump is still fully operable from original design and so long as there has been preventative maintenance upkeep. The heat and cooling capacity, though not contingent on solar power, is affected by outdoor ambient temperature where manufacturers like Trane and Mitsubishi have performed critical procedures where heat pump equipment is tested in the most extreme temperature conditions.

Solar and HVAC designed together afford the opportunity for an array to be sized appropriately for current and future utilization. This takes the guesswork out of building solar design around HVAC equipment specs.

When the design and installation is paired together, the permitting process through an AHJ is much more seamless with a fluid process. Both design criteria allocate electrical work for a baseline workflow for onboarding new projects.

Most commercial HVAC projects require the same permitting process as solar commercial construction with plan spec and design implementation prior to application approval. Residential mechanical HVAC permitting requires much less time than solar and can typically be turned around within one week or even days.

Upon permit approval, the work can be performed and completed on the HVAC side within one week where the full residential solar project turnkey installation can take up to 120 days until permission-to-operate, PTO.

Thermal envelope refers to the amount of BTUs required to heat or cool a given space. It is influenced by factors such as insulation, window glazing, and the overall square footage, all of which determine the effectiveness of the property’s insulative barrier.

Solar alone doesn’t directly improve your property’s thermal envelope. However, modern heat pump systems, which often come with smart thermostats and zoning capabilities, can help optimize indoor comfort and highlight insulation weaknesses. Combined with energy audits, solar and HVAC upgrades can guide envelope improvements for better overall efficiency.

The ability to further improve the thermal efficiency of a property allows for an HVAC system to require less energy to satisfy a demand call due a higher R-value that decreases the amount of heat infiltration into the conditioned space. With modern upgrades and techniques with duct sealing, aerosealing, adding more insulating, replacing windows to decrease glazing, and even upgrading partitions and doors, the amount of Btu’s required to heat a cool space greatly reduces and improves the overall energy efficiency of the property to include solar consumption.

Federal Incentives
IRA Tax Credit: 30% off, up to $2,000 for air-source heat pumps (Form 5695)

Colorado State Incentives
State Tax Credit: $1,500 for Energy Star-certified heat pumps (as of Jan 1, 2024)
Automatic Discount: Must use a registered contractor; no homeowner paperwork

Xcel Energy Rebates
2025 Non-Cold Climate ASHP: $900/ton (starts Jan 1, 2025)
2025 Cold Climate ASHP: $2,250/ton (starts Jan 1, 2025)

Local Rebates
Denver County: 40% of project cost, up to $1,200 (registered contractor required; 2025 funds fully subscribed)
Boulder County: 25% of project cost, up to $300
City of Boulder: Up to $400 for cold climate heat pumps
Town of Erie: Up to $400 for cold climate heat pumps

Rebates can be stacked with additional incentives from energy utility companies to further reduce the barrier to purchase innovative technologies. Customers can benefit from:
Federal rebates through their tax professional during the season.
State and utility rebates can be enjoyed throughout the year.
Note: there are state and federal rebates that have yet to be fully settled science.

Xcel Energy currently has a limited rebate for 2025 and won’t be available next year.
City of Denver heat pump rebate has been fully prescribed for 2025, however, there is a waitlist that may open up again late 2025 on a first come-first serve basis.

There is an additional Colorado Energy Office rebate which is instantly discounted when the heat pump serves the entire property, not partial. Most important is to reach out to one of our salesmen fully familiarized with current rebates and incentives.

A CPA would be required for Federal Tax Credit
A CPA is not required for consultations of Rebates

You can use our Solar and HVAC incentive finder here