Despite record-breaking heat pump sales nationwide, the Midwest’s adoption rate continues to lag behind the rest of the nation.
According to the non-profit Rocky Mountain Institute, 4.2 million heat pumps were sold in the United States from April 2024 to March 2025, vastly outpacing the sale of gas furnaces, which sold 3.1 million units.
The Midwest states, however, have been slower to adopt heat pumps, with experts pointing to a lack of educational awareness as one of the biggest factors.
According to the most recent Heat Pumps and Homeowners Index, a national survey commissioned by Mitsubishi Electric Trane HVAC US LLC (METUS), residents in the Midwest report having the least knowledge about heat pumps of any region, with 60 percent reporting having no in-depth knowledge or having never heard of a heat pump.
Residents in the West were the most knowledgeable, with only 36 percent of residents having little to no awareness.
The discrepancy isn’t surprising. With their more moderate winter climates, heat pumps have traditionally had a bigger market presence in Western states.
While previous generations of heat pumps struggled to keep up with the heating demands of colder climates where outdoor temperatures routinely drop below freezing, today’s modern heat pumps are rewriting that narrative. Many newer heat pumps can not only operate efficiently below 32 degrees, but can drop well into the single digits.
Cold Climate Heat Pumps, specifically designed for the nation’s coldest climates, can operate without the need for auxiliary heat at or below zero degrees, with some models working to -15 degrees or colder.
Given their improved performance, several factors continue to hold back market growth.
According to the METUS survey, many homeowners don’t yet understand the full benefits offered by heat pumps. When asked to list the top advantages of heat pumps, just 55 percent of respondents identified greater energy efficiency, while only 39 percent reported the operational cost savings.
While each home is unique, it’s not uncommon for air-source heat pumps to save 30 percent and for ground-source heat pumps to save 70 percent or more on heat and cooling costs compared to a conventional natural gas or propane furnace and a traditional air conditioner.
In addition to the savings, respondents who’d purchased heat pumps also identified HVAC contractors and federal and state tax incentives as other key factors in their decision.
Specifically, 82 percent of heat pump owners surveyed said their HVAC contractor was “somewhat” or “very influential” in their decision. This is one reason Midland Power works to educate area builders and contractors about the benefits of heat pumps and how they can help reduce wholesale demand costs while saving members money.
“We’ve seen a real growth in the number of heat pumps being installed on our lines over the past decade,” said Caleb McKim, an energy services advisor at Midland Power. “While they’re a bit more costly upfront, the savings quickly pay back that difference.”
Most importantly, according to McKim, when sized and installed correctly, homeowners are pleased with the savings and comfort they provide. He points to the METUS study, which found that 90 percent of respondents who owned a heat pump said they’d recommend them to others.
“I hear that from members all the time,” McKim said. “Once they’ve experienced the benefits of having a heat pump, they generally recommend them to their friends and neighbors.”
In addition to Midland’s efficiency rebates, up to $2,000 in federal tax credits is available for air-source heat pumps, and an uncapped 30 percent federal tax credit is available on ground-source heat pumps installed by the end of the year.