The Significance of Heat Pump Installation
Heating and cooling systems play a crucial role in residential decarbonization efforts, following solar energy. As part of this initiative, 25 states aim to install 15 million heat pumps by the end of the decade, with nine states targeting 90% adoption of heat pump technology in residential heating, cooling, and hot water systems by 2040. To meet this ambitious goal, the U.S. plans to add 23,000 technicians by 2032. However, the labor-intensive nature of heating, ventilation, and air-conditioning (HVAC) equipment installation poses challenges, especially regarding automation.
Addressing Industry Challenges: The Role of Arch
Arch, a software company specializing in HVAC installations, aims to streamline the quoting process for HVAC contractors. Recognizing the laborious and time-consuming nature of HVAC installation, particularly for heat pumps, Arch seeks to enhance efficiency and resource utilization in the industry.
Phil Krinner’s Journey: From Solar to Heat Pumps
Inspired by the opportunity to reduce carbon emissions through heat pump adoption, Phil Krinner, co-founder and CEO of Arch, transitioned from the solar industry to focus on HVAC installations. Krinner identified a gap in the market: while heat pump technology was available, contractors lacked the necessary data and tools to promote its widespread adoption effectively.
The Development of Arch’s Software Solution
Krinner and his team embarked on a mission to revolutionize the HVAC industry by developing an algorithm to expedite the quoting process for heat pump installations. By leveraging publicly available home data, Arch’s software can swiftly estimate the appropriate heat pump capacity for a given property, significantly reducing the time required for quoting.
Leveraging Technology for Market Expansion
Securing pre-seed funding and a recent $6.2 million seed round, Arch plans to expand its geographic footprint and enhance its software capabilities further. With a focus on the Northeast region initially, where oil heating is prevalent due to spotty natural gas infrastructure, Arch aims to accelerate heat pump adoption by demonstrating its cost-effectiveness and competitive ROI.
Future Outlook: Overcoming Market Inertia
As heat pump adoption gains momentum, Arch is poised to play a pivotal role in overcoming market inertia and driving industry transformation. By providing contractors with valuable tools and insights, Arch aims to facilitate the transition from traditional oil and gas furnaces to energy-efficient heat pumps, contributing to broader decarbonization efforts in the residential sector.
