Sponsored Content
With energy efficiency taking center stage in both policy and consumer demand, Carrier’s latest innovation—its new air-to-water heat pump system—is arriving at exactly the right moment.
As Matt Vargo, Strategic Product Manager at Carrier, explains, this is more than just another HVAC upgrade. It’s a full-system solution designed to deliver whole-home comfort and performance, while redefining how homeowners and contractors think about heating, cooling, and hot water.
"Hot water is your number-two consumer of energy in the home," Vargo shares. "And it’s often located right next to your HVAC unit. So, we saw an opportunity to integrate these systems and deliver both air comfort and water heating from a single, efficient solution."
According to COGNITION Smart Data, more than 70% of Millennials and Gen Zs say that they will invest in energy efficiency upgrades if those upgrades will lower their cost of homeownership over time.
Carrier’s air-to-water heat pump addresses that priority head-on. "This system is ideal for anyone currently using electric resistance heating. You’re getting major efficiency gains by switching to a heat pump water heater," Vargo explains. Unlike traditional heat pump water heaters that cool the surrounding space as they work, Carrier’s system handles heat transfer outside the home, maintaining consistent indoor temperatures.
Beyond energy savings and year-round performance, the system also makes life easier for installers. "We’ve simplified installation by offering this product as a single kit with everything included: the heat pump, indoor unit, water heater, and tank. All internal systems are pre-sized and ready to go," Vargo says. "It takes a lot of the workload off the contractor."
COGNITION Smart Data shows that builders and contractors are increasingly prioritizing ease of installation and reliability, particularly as labor shortages continue to affect timelines and budgets across the country.
Carrier is also supporting the rollout with comprehensive training. "We’re entering a new era where HVAC isn’t just about refrigerants—it’s about water systems too," Vargo notes. "That’s a shift for many regions of the U.S., so we’ve developed robust training programs and are using our distribution network to educate the field."
The system’s flexibility is one of its standout features. It can connect to hydronic air coils, provide radiant floor heating, operate driveway melting systems, and more. "Because it’s so versatile, training is crucial," Vargo says. "We want contractors to understand how to maximize its capabilities."
Cold climate performance is also a top priority. Carrier is actively participating in the DOE’s Cold Climate Heat Pump Challenge, pushing innovation to deliver 100% heating capacity even in frigid temperatures.
"We’re finding new ways to overcome the limitations of traditional heat pumps," Vargo says. "Systems that can deliver full performance down to 0°F or 5°F are game changers. That opens up the entire U.S. market."
Sustainability is at the core of Carrier’s innovation strategy. "We’re going all-in on electrification, but we’re also thinking about what that means for the grid," Vargo says.
As utilities grapple with peak load challenges—especially during high-demand hours like 4–8 p.m.—Carrier is working on solutions that can help. "We’re designing products that integrate with the grid to enable peak load shifting, while maintaining total comfort for the homeowner."
With forward-thinking systems like their air-to-water heat pump, Carrier is proving that the path to decarbonization doesn’t have to come at the expense of performance, affordability, or user experience.
To learn more, watch the full interview.
Want to learn more about high-performance HVAC, energy efficiency trends, and what matters most to homeowners? Check out Green Builder Media’s latest COGNITION Smart Data insights.