HVAC

Heat Pumps and High-Efficiency Ducts: Rebates + Incentives 2025

date posted

04/03/25

read time

6 Mins

The diagram showcases an advanced duct sealing process, identifying key components: the sealing machine, sealant connectors, and a computer interface monitoring the procedure. It clearly labels areas of sealing such as elbows, boots, and chambers. For maximum efficiency, registers are sealed off using foam plugs.

The heat pump market isn’t heating up—it’s already on fire.

From record-breaking sales to stacked tax incentives, energy-efficient HVAC systems are becoming the norm, not the niche.

But here’s the catch: if you’re not pairing your heat pump installs with properly sealed ducts and educating your customers, you’re leaving money (and homeowner satisfaction) on the table.

In a powerhouse conversation on the Plumbing & HVAC Hustle Podcast, Tracy Martin and Jared Scott from Aeroseal broke down the five most important things contractors need to know to stay competitive—and profitable—as heat pumps surge in popularity.

These insights come from working with over 1,000 contractors across North America, and they’re loaded with actionable takeaways for smart HVAC businesses.

Become an Aeroseal Dealer: aeroseal.com

1. Heat Pumps + Duct Sealing = More Incentives, Easier Sales

Federal tax credits under the Inflation Reduction Act (IRA) have made energy upgrades irresistible for homeowners. Contractors can now bundle heat pumps with duct sealing and unlock up to $3,200 in tax credits for their customers.

“There are incentives available for both services, and they can be combined,” said Tracy Martin, Program Director at Aeroseal. “The homeowner could save up to $3,200 in a filing year.”

That breaks down to:

  • $2,000 for qualifying heat pump systems
  • $1,200 for duct sealing (30% of the service price)

“Think of this like a coupon you don’t have to fund,” said Jared Scott. “The homeowner gets the benefit—you don’t have to eat any of the cost.”

When you layer in long-term utility savings, the ROI becomes even more compelling. Offering both services together doesn’t just help your customers—it increases your close rates and average ticket size.

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💡 Stat Check: U.S. heat pump sales grew by 25% year-over-year in 2023—outpacing gas furnace sales for the first time ever.

2. Stop Callbacks Before They Happen—By Setting Expectations

The biggest reason contractors hesitate to sell heat pumps in colder climates? Callbacks.

“Homeowners go to the register because they don’t feel as warm,” said Jared Scott. “They feel a much cooler temperature coming out—around maybe 78 to 79 degrees—and they’ll pick up the phone and call the contractor that installed it.”

Heat pumps don’t deliver that blast of hot air like gas furnaces. The fan runs longer, the air is milder, and the warmth is more gradual. If you don’t prep the customer for this difference, they’re going to think something’s broken.

“If it’s still under warranty, that’s a service call the contractor may not get paid for,” Scott added. “So explanation goes a long way.”

Pairing the heat pump with duct sealing also helps by improving airflow, delivery, and comfort throughout the house—reducing the number of “this room’s always cold” complaints.

3. System Sizing Is Still Killing Efficiency

Oversizing HVAC systems remains one of the most persistent—and costly—mistakes contractors make. Homeowners think bigger means better. But contractors know that’s not how it works.

“What you’re giving your customer is something that is efficiently being inefficient,” said Jared Scott.

Short cycling, higher energy bills, and poor humidity control are all symptoms of oversized systems. And in regions where heat pumps are still gaining traction (like the North), this problem becomes more pronounced.

“Even if it’s a high-efficiency piece of equipment, if it’s oversized, it will kick on and off more throughout the day,” said Scott. “That means it won’t remove as much humidity—and that goes straight into a comfort feel.”

In some cases, oversized AC systems even create condensation issues on metal ducts and registers, leading to mold risks.

💡 Stat Check: Improper system sizing can reduce HVAC efficiency by 20–30% and increase homeowner complaints by 15%
(Source: National Renewable Energy Laboratory)

Contractors who want to set themselves apart should take a “whole home” approach, and that means addressing airflow—not just installing the box.

4. Duct Leakage Is Widespread—and It’s Tanking Your Installs

Most HVAC systems in North America are losing serious performance before the air even reaches the room.

“About 95% of homes have duct leakage,” said Tracy Martin. “And most ducts leak between 25 and 40%.”

Those numbers aren’t exaggerations—they’re based on real field testing. Aeroseal’s internal tech runs pre- and post-seal tests that prove it. And when a system is leaking 20% of its air, even a 20 SEER heat pump won’t perform as advertised.

“A 20 SEER system with 20% leakage delivers like a 13.9 SEER system,” said Scott. “But when you seal the ductwork, you can bring it up to 19.4 SEER.”

So the homeowner gets what they paid for—and the contractor avoids a mismatch between performance and expectations.

“Those SEER ratings assume perfectly sealed ductwork,” added Martin. “And that’s just never the case unless it’s been Aerosealed.”

5. Efficiency Is the Future—And the Market Is Already Moving

If you think energy efficiency is a passing trend, you’re already behind.

“Homeowners are getting younger,” said Tracy Martin. “That demographic cares about energy efficiency and sustainability. They want to know they’re buying something that’s good for the earth.”

That demand is driving a fundamental shift in HVAC sales. High-end contractors are using tools like duct sealing to differentiate themselves and justify premium pricing.

“You get to sell your product as the highest quality thing for the ductwork,” said podcast host Tim Brown, “and the efficiency rating is the highest quality thing—whereas, frankly, if there are all these holes, it might not be accurate.”

💡 Stat Check: 68% of millennial homebuyers say energy efficiency is a “very important” factor when choosing HVAC systems. (NAR, 2023)

The Aeroseal Advantage

Aeroseal offers a hands-on, structured onboarding process—including training in a fully staged home in Dayton, Ohio. That’s just the beginning.

“We can’t be successful unless our network is successful,” said Martin. “We have account managers who support dealers and offer ongoing sales enablement.”

The software is also a key differentiator. It shows real-time results from the duct sealing—so homeowners can see before and after leakage in a visual report.

“It plots the starting point and the end point,” said Jared Scott. “So even if the homeowner never sees the sealant, they’ll know exactly what was accomplished.”

Sell Whole-System Efficiency

As homeowners get smarter, incentives grow, and expectations rise, the best contractors aren’t just selling boxes—they’re selling whole-system efficiency.

“Contractors shouldn’t assume homeowners only want the lowest price,” said Scott. “They just want to get what they paid for—and they’re willing to spend more if they know they’re getting quality.”

If you’re ready to position yourself as a top-tier HVAC provider and offer customers real, measurable energy savings, it’s time to take a serious look at duct efficiency.

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