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By Canary Media
Last year, Marie Tai needed a better way to keep her condo cool. Her window air-conditioning units were borderline ineffective, even running at full blast. Summers have been getting more intense in Tai’s Boston neighborhood because of a rapidly warming climate, and she had just adopted a 16-year-old cat named Mittens, who was still recovering from being hit by a car.
Tai had already been considering a heat pump, an all-electric appliance that heats and cools spaces and lets homeowners ditch polluting fossil fuels. But three contractors had quoted her prices ranging from about $28,000 to $40,000. Tai, who heads finance and administration at Harvard University’s Project Zero, thought those estimates seemed excessive for her 1,000-square-foot, two-bedroom place. So she had hit pause on the project.
But with Mittens’ well-being front of mind, Tai renewed her heat pump search last spring. Through Facebook, she found an opportunity to participate in a program that aggregates demand, organized by Laminar Collective, a local startup that does research on the tech and coordinates installations.
These heat pump group-buy initiatives let installers purchase equipment in bulk and spend less time chasing leads, accruing savings that they can pass on to customers. Tai, tantalized by Laminar’s menu of low prices for a heat-pump setup, decided to give it a shot.
After a representative from the startup visited her home to check what heat pump size and configuration would fit her needs, Tai signed up for a ductless minisplit system for $20,000 — thousands less than even her lowest initial quote. She then also took advantage of an additional $8,500 state rebate and eight-year financing with 0% interest.
The new equipment has been life-changing, Tai said.
She no longer has to buy fuel oil for heating in the winter, and the heat pump is so efficient that last year she saved roughly $1,300 on her energy bills. In contrast to the old, noisy window ACs, the new system’s wall-mounted, air-filtering indoor units “are so quiet,” she said. Her allergy symptoms have improved. And Mittens is comfortable and doing well, she noted. “I couldn’t be happier.”
Like Tai, homeowners in communities across the U.S. are signing up for an unusual way of buying heat pumps: together. Companies, nonprofits, and local governments are increasingly offering programs that coordinate consumer demand to secure meaningful discounts of around 10% to 20%, which can translate to roughly $3,000 to $6,000 per installation. It’s like a group buying a pack of muffins at Costco rather than each buying a muffin at Starbucks.
The bulk-buy approach is taking off as the Trump administration demolishes electrification incentives. Last year, the Republican-led Congress eliminated a $2,000 federal tax credit for home heat pumps. Late last month, the administration said that it won’t allow home energy-efficiency rebates to be used by people looking to get off gas.
While heat pumps reduce pollution and typically cut owners’ energy bills, they can be a pricey proposition up front. Whole-home installations typically range from $17,000 to $30,000, depending on the property size, insulation, climate, and many other factors, according to electrification advocacy nonprofit Rewiring America.
“Even though homeowners often save significantly over time, the first quotes can bring real sticker shock,” said Cole Merrick, founder and CEO of VoltHub, an online heat-pump installation marketplace.
VoltHub and heat-pump general contractor Vayu organized a California group-buy program this spring to serve the counties of Los Angeles and Orange and the greater San Francisco Bay Area. They’re offering another one this summer.
Most heating, ventilation, and air-conditioning replacements are emergencies, and these jobs will continue to make up the majority of Vayu’s business, said founder and CEO Shreyas Sudhakar. But for households that can hold off on getting a heat pump installed, group buys are ideal, he noted.
The process entails a waiting period, which can be several weeks to about six months, as the slots fill up and the installer determines the final pricing. The installer then confirms individual quotes with customers — who can decide not to move forward without penalty — and schedules the work.
Heat pump group buys come in different forms. They can be organized at the grassroots level, offered by a contractor, or run by a third party that aggregates demand over a limited time window. Through a competitive bidding process, the third party vets qualified installers and chooses one or more to carry out the jobs.
The collective bargaining approach has succeeded in the past. Nonprofit Solar United Neighbors has led similar group buys for rooftop solar since 2007, helping thousands of households net deals on installations.
Now, the organization is partnering with iChoosr, an international company that helps households electrify, in order to get group deals for heat pumps, too. Using iChoosr’s Switch Together platform, people in select areas can sign up to unlock group discounts for the all-electric appliance, as well as solar and batteries. Since 2023, more than 5,100 U.S. homeowners have gotten their solar panels or batteries via iChoosr, which earns a fee from participating vetted installers for jobs they get through the platform, said Fred Wu, a director of community engagement for the company.
iChoosr was already running successful bulk-purchasing programs for heat pumps in the U.K. and the Netherlands, and launched its first offerings in the U.S. last year with Solar United Neighbors. They opened one program in the Colorado Front Range and another in the Washington, D.C., area in July, closed those lists in September, and finished up the installations — for about 90 households — by the end of the year.
On the heels of that success, iChoosr reran group buys in both regions this spring. More than 1,000 households have signed up expressing interest so far.
This year, the company will also launch new programs in the metro areas of Houston and Dallas, Chicagoland, and northern Arizona around Flagstaff, partnering with nonprofits and local governments at no cost to them, Wu said.
For contractors, these bulk-buy initiatives are a boon.
They cut down on the installers’ sales and marketing costs, thanks to word of mouth and publicity from third parties like iChoosr. Home electrification contractor Elephant Energy, which is working with iChoosr to deploy the Colorado heat-pump installations, saves about $300 per project, said CEO and co-founder DR Richardson. Elephant has also run its own community bulk buys across its California, Colorado, and Massachusetts markets, he noted.
Group-buy initiatives smooth out demand by allowing for planned installations when business naturally slumps. Heating, ventilation, and air-conditioning work is highly seasonal, with most people calling an HVAC technician during the first heat wave or cold snap.
“For a lot of businesses, two months will make up 70% to 80% of the revenue for the year,” said Sudhakar of Vayu. “So to be able to have some guaranteed revenue that is on the books and [can] fill downtime is really valuable.”
But heat pump group-buying programs aren’t ubiquitous yet. Wu of iChoosr recommends that homeowners who are interested but not in a rush contact city and county leaders to let them know that they’d like to get a bulk deal going in their area.
“We’re continuously trying to expand the program,” Wu said. “The first thing we need … is a local government that wants to bring this to their constituents.” These partnerships lend credibility and visibility to the group initiatives, since local governments help promote them.
Tai in Boston was grateful to be part of Laminar Collective’s heat-pump bulk buy. It not only helped her save money but also provided her time to get her questions answered without the sales pressure she felt from one-on-one solicitations. “It’s empowering,” she said. After she told her neighbor about her experience, they got their heat pump that way, too.
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