Heat Pumps Now Available With Zero Down Payment

Switching to energy-efficient heating just became as simple as signing up for a streaming service.

Heat pump startup Quilt announced a partnership with energy company Palmetto this week that removes the biggest obstacle homeowners face: the upfront installation cost. Instead of paying thousands at once, customers can now spread everything into one monthly payment that covers installation, maintenance, annual service, and warranty.

The timing couldn't be better. Heat pumps outsold gas furnaces for the fourth straight year in 2025, according to the Building Decarbonization Coalition. Last September, they even outsold traditional air conditioners for the first time in a single month.

Heat pumps work like reversible air conditioners, providing both heating and cooling while running entirely on electricity. That means no gas bills and significantly lower energy costs compared to conventional systems.

For years, cold weather limited where heat pumps could work effectively. That changed after manufacturers participated in a federally funded program during the Biden administration to improve cold climate performance. The results opened vast new regions of the country to the technology and sent sales soaring.

Quilt adds its own innovations to the mix. The company's room-by-room system detects occupancy and adjusts accordingly, delivering 20% better efficiency than competing heat pumps. Compared to traditional systems, it runs 80% more efficiently for cooling and 400% more efficiently for heating.

The startup launched just two years ago in 2024 and quickly raised $64 million in funding. By December 2025, Quilt had signed up about 60 certified installation partners across 16 states and five Canadian provinces. Today, that network has more than doubled to 130 partners covering 40 states and six provinces.

The partner model solves another common problem for homeowners: finding reliable contractors. Quilt provides certification and workforce training to its installation partners, ensuring quality and building consumer confidence.

The Ripple Effect

The monthly payment plan mirrors how Palmetto revolutionized residential solar adoption. The company manages the complex process of solar installation from sales through permitting, using automated systems that cut costs dramatically. Now they're applying that expertise to home heating and cooling.

Under the Palmetto Comfort Plan, customers sign a 10-year lease. When it expires, they can buy the system outright, renew at a lower monthly rate, or start fresh with brand new equipment. The approach transforms a major home improvement expense into a manageable ongoing cost.

The financing breakthrough addresses what Quilt CEO Paul Lambert calls the action gap. "Great products don't help if homeowners can't afford the switch," Lambert explained. "One monthly plan covers everything, so the decision to upgrade your home is finally an easy one."

Beyond financing, the industry still faces challenges including complicated permitting processes that vary wildly by jurisdiction. But each barrier that falls brings America closer to cleaner, more efficient home energy that saves money while helping the planet.

Making the switch to better technology just got easier for millions of homeowners.