Arch’s Plan To Revolutionize Heat Pump Installation For HVAC Contractors


Heating and cooling are essential aspects of residential decarbonization, and the next frontier after solar energy. By the end of the decade, 25 states aim to install 15 million heat pumps, with nine of them targeting 90% adoption of this technology for residential heating, cooling, and hot water equipment by 2040. The U.S. plans to add 23,000 technicians by 2032 to meet this goal, but the industry may still face challenges due to the laborious and time-consuming nature of installing HVAC equipment.

Key Takeaway

Arch, a software company, is revolutionizing the HVAC industry by streamlining the process of estimating and installing heat pumps, potentially accelerating their adoption for residential heating and cooling.

Addressing the Challenges

Arch, a software company catering to HVAC installers, has recognized the inefficiencies in the current process. Co-founder and CEO Phil Krinner highlighted that contractors spend three to five hours on a potential customer, with a sales conversion rate of only 20 to 25%. This not only leads to frustration but also results in a significant waste of resources.

Revolutionizing the Industry

Recognizing the potential to reduce emissions by encouraging the transition from fossil fuel heat to heat pumps, Krinner and his team developed an algorithm to help contractors estimate jobs more efficiently. By utilizing publicly available details about a home, such as its square footage and construction date, Arch’s software can suggest an appropriate heat pump capacity within minutes, significantly reducing the quoting process.

Future Plans and Expansion

With a recent $6.2 million seed round from prominent investors, Arch plans to expand geographically and further refine its estimating algorithm. Additionally, the company aims to introduce features such as predicting homeowners’ utility bill savings and creating a marketplace for lenders to offer financing for heat pumps, ultimately driving the adoption of this technology.

Potential Impact

As the market shifts towards encouraging heat pump adoption, Arch’s innovative approach could play a pivotal role in accelerating the transition. By helping contractors find value and profit in heat pumps, the software has the potential to overcome market inertia, similar to how software expedited the adoption of solar energy.

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