Carrier Corp. - Experts & Thought Leaders

Carrier Global Corporation, a global pioneer in intelligent climate and energy solutions, today announced a major milestone in the U.S. Department of Energy’s (DOE) Commercial Building HVAC Technology Challenge with the launch of commercial field trials for its next-generation rooftop heat pump technology designed for broad commercial adoption. “After proving our innovation in the lab, we’re thrilled to show how it performs in operating commercial environments. Our engineering and project development teams have created a solution built to perform where it matters most,” said Heidi Gehring, Managing Director, Light Commercial, Carrier. “These field trials are the final step before launching a high-performance product designed to strengthen U.S. commercial buildings.” DOE lab verification testing Carrier’s new 10-14-ton rooftop heat pump unit has been installed at a large national retailer in upstate New York as part of ongoing field trials. The system was the first in its range to complete DOE lab verification testing, setting a performance benchmark for cold-climate commercial rooftop systems by delivering 100% heating capacity at 5°F, more than 70% heating capacity at -10°F and performance that meets or exceeds DOE’s commercial HVAC efficiency thresholds. DOE’s Oak Ridge National Laboratory In addition, Carrier’s 15-ton rooftop unit is undergoing testing at the DOE’s Oak Ridge National Laboratory in Tennessee and is expected to begin field trials at a commercial facility in Pennsylvania in the coming weeks. These trials will be monitored and verified by the National Renewable Energy Laboratory and are expected to conclude in summer 2027. Commercial availability is anticipated in summer 2027. Adoption of advanced HVAC equipment The DOE’s Commercial Building HVAC Technology Challenge is designed to accelerate the adoption of advanced HVAC equipment that lowers energy use and operating costs while supporting grid reliability through lower demand.  The program includes two light commercial product categories — 10-14 tons and 15-25 tons — with Carrier participating in both as part of its broader commitment to innovation and helping customers reach their sustainability and cost-saving goals. Across independent testing conducted by the DOE, Oak Ridge National Laboratory and NREL, Carrier’s rooftop heat pump systems have met or exceeded targets for IVHE, IVHEc and COPs, reinforcing confidence in their readiness for scaled commercial deployment, including strong cold-climate operation.

As Carrier Global Corporation works toward its vision to be the global pioneer in intelligent climate and energy solutions, the company in 2025 leveraged its unique knowledge and expertise to make a positive impact on the planet, people and communities. “Enhancing the lives we live and the world we share is more than just a commitment; it’s a call to action,” said Ashley Barrie, Executive Director, Corporate Social Responsibility, Carrier, adding “United with our employees, we are transforming our purpose into meaningful action – creating lasting change for our communities where Carrier lives and operates.” Sustainable keys for the planet’s greatest environmental challenges In 2025, Carrier launched its “For the Air We Breathe, For the World We Share” program with the Arbor Day Foundation, committing to plant 5 million trees by 2030. The nature-based solutions initiative supports large-scale global reforestation in priority regions and encourages employee participation through volunteer tree plantings, helping to improve air quality, generate oxygen and address extreme heat in communities worldwide. During the first year, just over 1 million trees were planted in the Amazon Rainforest in Brazil, the Cauvery River Basin in India, Kenyan farmland and Monarch Butterfly habitat in Mexico, as well as in other critical global ecosystems. Carrier donated energy-efficient HVAC systems Carrier also diversified its longstanding collaboration with Habitat for Humanity International through a new initiative that provided grants to enhance sustainable construction practices and enable in-person training on resilience strategies for builders. These initiatives are designed to build homes that conserve energy and natural resources, mitigate against natural events, provide healthier indoor air with more ventilation, air filtration and humidity controls, and reduce long-term utility and repair/replacement costs for Habitat homeowners. Carrier donated energy-efficient HVAC systems and Carrier Smart Thermostats, and employee volunteers supported global home builds. skilled and inclusive force to help smart climate and energy keys This year, Carrier expanded its commitment to developing trade technicians of the future through a new collaboration with the TechForce Foundation, providing HVAC program scholarships and free online HVAC training, and establishing an HVAC, Homes & Buildings category within its technician recognition program. This initiative builds on Carrier’s ongoing investments to innovation and skilled jobs, and its previously announced TechVantage Initiative, which aims to hire 1,000 U.S. service technicians and train more than 100,000 across Carrier and its ecosystem. Thriving communities Carrier donated over $2.5 million in indoor air purifiers to help improve air quality for the communities most impacted by the historic wildfires in California. The company also supported hunger relief organizations, such as Feeding America and the European Food Banks Federation, by expanding capacity to rescue more perishable food for its network of food banks. Employees volunteered at food banks across the world, leading up to International Day of Awareness of Food Loss and Waste and beyond. It’s all a part of Carrier’s commitment to shaping a better world for generations to come. One community, one project, one person at a time.

Carrier Global Corporation, a global pioneer in intelligent climate and energy solutions, announced it is the first HVAC original equipment manufacturer to complete the U.S. Department of Energy’s (DOE) Commercial Building HVAC Technology Challenge laboratory validation in the 10–14-ton rooftop heat pump category. The Carrier system met or exceeded all challenge requirements, including heating capacity and energy efficiency test standards — delivering 100% heating capacity at 5°F, exceeding 70% heating capacity at −10°F and meeting or surpassing DOE’s commercial HVAC efficiency thresholds. Benefit from a more efficient system "This milestone is about performance that pays," said Heidi Gehring, Managing Director, Light Commercial, Carrier, adding "Customers can realize lower energy bills with reliable comfort, while utilities benefit from a more efficient system that helps support grid reliability." Heidi Gehring continues, "This achievement reflects the work of our talented engineering and product development teams, who delivered a solution that reduces energy intensity and operating costs while helping strengthen U.S. competitiveness in commercial buildings." key efficiency and performance benchmarks Carrier’s validated rooftop unit exceeded key efficiency and routine benchmarks in independent testing The DOE’s Commercial Building HVAC Technology Challenge is designed to accelerate the adoption of high-performance equipment that reduces energy use and operating costs while supporting grid reliability through lower demand.  Carrier’s validated rooftop unit exceeded key efficiency and performance benchmarks in independent testing conducted by DOE, Oak Ridge National Laboratory, and the National Renewable Energy Laboratory. Carrier’s invention of modern air conditioning "Carrier is proud to be pioneering the way in developing next-generation rooftop units that deliver greater efficiency and reliability," said Heidi Gehring. Heidi Gehring adds, "Innovating to meet the needs of our commercial partners builds on the legacy that began with Willis Carrier’s invention of modern air conditioning and carries forward our tradition as the pioneer in intelligent climate and energy solutions."

Viessmann Climate Solutions (VCS) has combined with Carrier to become the core of Carrier’s newly formed business unit Residential and Light Commercial for European, Middle East and Africa. This business unit is now able to offer brands like Carrier, Toshiba, and Beretta next to the premium brand Viessmann, thus covering additional user segments with differentiated products at various price points. Climate system technology “The climate system technology of Viessmann Climate Solutions and the cooling-focused systems of Carrier combine two core competencies that will be crucial in responding to individual customer needs worldwide,” says Thomas Heim, President, Residential & Light Commercial HVAC for Europe, Middle East, and Africa. “Carrier expands the Viessmann portfolio in the area of air conditioning and enables seamless integration of heating and cooling.” Carrier’s acquisition of Viessmann Climate Solutions There was huge media interest in Carrier’s buy of Viessmann Climate Solutions when it was revealed There was huge media interest in Carrier’s acquisition of Viessmann Climate Solutions when it was announced more than a year ago. In media interviews, Carrier Chairman & CEO David Gitlin; Max Viessmann, CEO and Member of the Executive Board of the Viessmann Group, which owned Viessmann Climate Solutions prior to Carrier’s acquisition; and Heim presented the many advantages the combination would bring. Advantages apply both to the product portfolios, which perfectly complement each other, and to the optimized development of global markets. A year later, the feedback is extremely positive, says Heim. Latest developments in the Viessmann system The sentiment was confirmed by numerous conversations with installers at the ISH 2025 trade fair in March in Frankfurt. “The advantages of this combination between Viessmann Climate Solutions and Carrier are clearly noticeable for everyone involved,” says Heim.   The latest developments were well received by the 100,000 visitors to the booth at ISH, with particular interest in the Viessmann system connecting several products into a solution based on full stack controls platform Viessmann One. Residential and commercial sector customers The alliance meets the needs of residential and commercial sector clients with a multi-brand portfolio Also at ISH, Viessman highlighted the newly created alliance of Viessmann, Carrier, Riello, and Beretta around the theme “Power Play as One Team.” The alliance meets the needs of both residential and commercial sector customers with a multi-brand portfolio of heating, ventilation and cooling solutions for all output ranges and price levels. “Together with Carrier, we are in an even better position to provide solutions that address climate challenges by reducing CO₂ emissions and increasing energy efficiency,” says Heim. Digital tools and ecosystems The expanded product line builds on the strong longstanding collaboration of Viessmann Climate solutions with installation partners. For example, the addition of (light) commercial Carrier heat pumps to the portfolio enables leveraging together existing digital tools and ecosystems with this expanded offering. “This increases the relevance of our ecosystems for both our installers and users,” says Heim. Culture of collaboration The focus from the start has been on creating a culture of collaboration among both teams When integrating companies, it is always about bringing people together and providing a framework that allows them to unlock their full potential, says Heim. Thus, the focus from the beginning has been on creating a culture of collaboration that allows the teams from both companies to contribute their unique talents and strengths. “We are convinced that we have found the right formula and that combining Carrier and Viessmann Climate Solutions will lead to 1 + 1 > 4,” he says. “To get there, our shared purpose and values play an important role in this successful integration.” Carrier product portfolios “Companies can only be successful if they think and act globally and operate in a spirit of co-creation,” says Heim. Combining the Viessmann Climate Solutions and Carrier product portfolios creates added value for all installation partners and users. The increasing complexity of the HVAC industry is contributing to a trend toward company consolidation. “Let's be honest: in the past, you simply installed a gas boiler,” says Heim. PV installation They also offer a design tool on the Internet and even financing with the help of a partner bank Heim added: “Today, it's often about heat pumps, battery storage, photovoltaics, wall boxes and an energy management system that links everything together. It's all extremely complex. That's why we are constantly training our installers and at the same time reducing their workload." "Many of our installers don't want to climb on a roof, which is fine. We then look for facilitating a service provider that adds the PV installation to the holistic offering of our partner company.” They also offer a configuration tool on the Internet and even financing with the help of a partner bank. Climate-neutral by 2050 Data centers will also play a bigger role in the future. For example, a typical office building in Manhattan requires only three cooling units, while a data center they are currently working on requires 140. An AI chip generates seven times more heat than a conventional chip. “This market is huge, and we are determined to play an important role,” says Heim. The building sector produces 40 percent of CO2 emissions in Europe. Therefore, a transformation to renewable energies is necessary to become climate-neutral by 2050. Viessmann products and systems “For us, as a manufacturer, this means that we continue to encourage the building electrification system strongly,” says Heim. Viessmann products and systems offer installers the basis for a sustainable climate solution offering for their users. Almost all areas, from single- and multi-family houses to commercial and industrial buildings and municipal facilities, can be covered by the system portfolio. New hydraulic interface Regardless of the outdoor unit (ODU), the new components always match the indoor unit (IDU) Heim highlights three notable products as part of the Viessmann System Solution. Users can now choose between the high-efficiency, high-comfort Vitocal 250-A and the more economical Vitocal 150-A domestic air source heat pumps. Regardless of the outdoor unit (ODU), the new components always match the indoor unit (IDU). This high level of flexibility pays off for the installers in significantly shorter installation times, and users only pay for what they actually need for their heating system. The new hydraulic interface also saves time during installation. Vitocharge VX3 storage unit The Vitocharge VX3 storage unit is one of the most proven battery storage units in its class. Its maximum storage capacity of 75 kWh (5 modules of 15 kWh each) is particularly suitable for large, detached houses and apartment blocks, as well as for smaller commercial applications such as supermarkets or craft businesses. Following on from the large power classes, the smaller modules can now also be cascaded at 4.6 kVA. Flexible installation options are now available, including corner or horizontal mounting, which allow for optimal adaptation to on-site conditions.

The U.S. Department of Energy (DoE) Commercial Heat Pump Accelerator program is designed to enhance building efficiency and electrification. Running from 2024 through 2027, the program aims to overcome adoption barriers, promote advanced heat pump technologies, and create sustainable solutions for HVAC professionals. Compared with conventional packaged rooftop units (RTUs) with natural gas heating, heat pump RTUs are estimated to reduce greenhouse gas emissions and energy costs by up to 50%. For those in the HVAC industry, this program is an opportunity to boost operational efficiency, align with emerging sustainability standards, and unlock new business. Transforming Commercial HVAC with Heat Pumps Known for their dual heating and cooling abilities, heat pumps save energy compared to conventional HVAC systems The DoE’s program centers on accelerating the adoption of high-efficiency heat pumps for space conditioning and water heating. By working collaboratively with stakeholders—including manufacturers, utilities, and facility managers—the initiative seeks to integrate energy-efficient solutions into commercial buildings nationwide. Known for their dual heating and cooling capabilities, heat pumps save energy compared to conventional HVAC systems. The Accelerator program prioritizes cutting-edge systems to lower energy consumption and operating costs for businesses. As decarbonization becomes a global priority, electrification of HVAC systems is also key. By reducing reliance on fossil fuels, heat pumps contribute to a cleaner energy future. Practical Benefits for Professionals For HVAC professionals, the program provides a framework to explore new markets and enhance service offerings. With the Accelerator program’s emphasis on efficiency, HVAC professionals can help clients reduce energy bills, providing a tangible ROI for heat pump installations. Participants in the program also gain access to technical guidance, best practices, and case studies, fostering skills to implement heat pumps effectively. As building owners seek energy-efficient solutions, HVAC professionals are positioned as experts in heat pump technology in order to gain a competitive edge. Success of the residential challenge The retail program is a growth of an earlier program related to residential technologies The commercial program is an expansion of an earlier program related to residential technologies. Last fall, the U.S. Department of Energy (DOE) announced that eight manufacturers in the Residential Cold Climate Heat Pump Challenge completed rigorous product field testing to demonstrate energy efficiency and improved performance in cold weather. Bosch, Carrier, Daikin, Johnson Controls, Lennox, Midea, Rheem, and Trane Technologies participated in the residential challenge. Cold climate heat pumps (CCHPs) developed as part of the challenge will soon enter commercial production, manufacturers say.  Building upon the success of the residential challenge, DOE is now working with nine heat pump manufacturers to advance rooftop units (RTUs) for commercial buildings through a new technology challenge. Commercial Building Heat Pump Challenge Expanding with the Commercial Building Heat Pump Challenge through its Better Buildings program, DoE is now working with heat pump manufacturers AAON, Addison, Carrier, Daikin, Johnson Controls, Lennox, LG, Rheem, and Trane Technologies to improve the energy efficiency and performance of RTUs in cold weather. The manufacturers will partner with DoE and national laboratories to create prototypes and test product performance and durability. They will then lead field validations with Better Buildings partners, including Amazon, General Motors, Ikea, the Los Angeles Unified School District, Target, Whole Foods, and others. Tackling Challenges in Heat Pump Adoption The DoE program recognizes common challenges HVAC professionals face in promoting commercial heat pump adoption and provides strategic solutions. Cost Barriers: The upfront cost of heat pumps can deter clients. The program encourages collaboration with utilities to offer incentives and financing options, making the transition more affordable. Performance in Cold Climates: Heat pumps have historically underperformed in colder regions. By focusing on technological advancements, the Accelerator addresses performance issues, ensuring systems work efficiently even in extreme weather. Workforce Training: To ensure seamless implementation, the DoE supports workforce development through training programs, thus empowering HVAC professionals to deliver high-quality installations. A Collective Push for Change The Accelerator agenda thrives on alliances, leveraging the expertise of diverse stakeholders The Accelerator program thrives on partnerships, leveraging the expertise of diverse stakeholders. For manufacturers and innovators, the program promotes advanced heat pump technologies that meet the diverse needs of commercial buildings. For utilities and energy providers, there are incentives to encourage adoption and offset initial costs. Building owners and facility managers can benefit from sharing insights and case studies to demonstrate the practical benefits of heat pumps in real-world scenarios. In general, HVAC professionals can benefit by staying connected to these networks, keeping abreast of new technologies and customer-centric solutions. Heat Pumps and a Greener Future Heat pumps align with global efforts to reduce carbon emissions and meet regulatory requirements. For HVAC professionals, this means not only improving the environmental impact of their services but also helping clients achieve compliance with evolving energy codes and standards. The DoE’s Commercial Heat Pump Accelerator program offers HVAC professionals a clear path to embrace innovation, improve energy efficiency, and secure a leadership position in a rapidly changing marketplace. By participating in the program, HVAC experts can drive the industry forward while enhancing their businesses and delivering meaningful value to clients. As the HVAC landscape evolves, those who seize this opportunity will not only adapt but thrive, setting new benchmarks for efficiency and sustainability in the years to come.

The idea of Energy as a Service involves shifting the traditional business model from selling energy as a commodity to providing a comprehensive package of goods and services to address a customer’s energy use and management. Rather than selling energy, the approach encompasses complete stewardship of a company’s energy needs in exchange for a monthly fee. Because 40% or so of a company’s typical energy needs are related to heating and cooling systems, implementing Energy as a Service (EaaS) is tied directly to a company’s HVAC systems. heat pumps and HVAC technologies In the EaaS scenario, an outside company pledges to meet a customer’s energy needs at a discount, say 5%, below what they currently pay. By then strategically seeking to lower the customer’s energy costs by more than 5%, the EaaS company uses the extra margin to pay its own costs and to attain a profit. For example, if a customer’s energy costs can be lowered by 30%, the EaaS company retains 25% every month for the term of the agreement, typically 10 years. Any costs associated with providing the service come out of the 25%. In the EaaS scenario, an outside company pledges to meet a customer’s energy needs at a discount Specifically, working to lower energy costs by that much involves an upfront investment in infrastructure, such as heat pumps and HVAC technologies, to lessen energy consumption. The idea is that the profitability of lowering energy costs will offset even a substantial investment over time. Energy-related infrastructure Briefly stated, that is the business model of Budderfly, which assumes management of a company’s energy infrastructure and becomes the “account holder” with the utility. Once an EaaS contract is signed, Budderfly then invests to upgrade the customer’s energy-related infrastructure, including LED lighting, refrigeration, etc., in addition to HVAC. The goal is to decrease energy usage by 30% or more.  Budderfly typically upgrades the variable frequency drive (VFD) When upgrading the infrastructure, Budderfly “owns” any new infrastructure assets for the term of the EaaS agreement, say 10 years, and amortizes the cost over the timespan. At the end of the term, the assets are turned back over to the customer unless they renew the contract. In the HVAC arena, Budderfly typically upgrades the variable frequency drive (VFD), economizers, and other equipment in a rooftop unit or other machinery when it takes on a new customer. Embraces the EaaS scenario EaaS has a direct incentive to invest in the newest technology to slip the client energy usage “Looking at the opportunity to save 5% of their energy costs, many customers think it seems too good to be true,” says Al Subbloie, President, CEO and Founder at Budderfly. The price of the EaaS contract is based on a two-year review of the customer’s utility bill, which creates a baseline against which the 5% discount is provided. On the consumption side, replacing a rooftop unit with a new Lennox, Carrier, or Trane high-efficiency unit can provide 30 to 40% savings in energy usage. When a customer embraces the EaaS scenario, the EaaS company has an immediate incentive to invest in the newest technology to lower the customer’s energy usage. The more they save on energy, the more they earn in profits. EaaS approach In contrast, in a business model involving energy purchased as a commodity, there is little urgency to upgrade the equipment. That explains why so much equipment currently installed is so out-of-date and energy inefficient, says Subbloie. “We did not expect the infrastructure to be so bad,” he says. “I am sharing something the world is not aware of. As long as cool and hot air are coming out of the vents, no one is looking at the energy impact.” In fact, the EaaS approach is a growing factor in decarbonization. “We are a private capital method to save the world,” says Subbloie. “We are aligning capitalism and putting it to use to save the world (from climate change),” he says. Additional investments by Budderfly Budderfly can make a profit on an EaaS contract if it can achieve 30% savings on total energy costs Subbloie says Budderfly can make a profit on an EaaS contract if it can achieve 30% savings on total energy costs. Of the 30%, Budderfly returns 5% typically to the customer and then spends about 15% on capital improvements, amortized over 10 years. Additional investments by Budderfly include 3 to 4% on technology such as thermostats, metering and controls, and data systems. Other costs are to pay Budderfly’s 300 or so employees.  In the refrigeration realm, which might account for 15 or 20% of energy usage, Budderfly deploys controllers (such as KE2 Therm Solutions and NRM) to smartly regulate the compressor operation in refrigeration units. Door alert monitors and upgraded seals avoid any leakage of cool air. Deploying R-290 (propane) refrigerant systems boosts energy efficiency. EaaS strategy When Budderfly deploys solar systems, the cost becomes just another line on the customer’s bill – there is no purchase agreement or lease involved. Budderfly is transparent with the customer in terms of the money they invest in infrastructure and other costs. In addition to providing the customer with the initial 5% discount, Budderfly also typically shares with the customer half of the proceeds of any energy savings they can achieve above 30%. The EaaS strategy is applicable to a variety of markets, but Budderfly is finding initial success in the quick-service restaurant (QSR) market, where repeatable footprints of individual locations make EaaS calculations predictable and scalable. Probably 80% of their business is in casual dining and QSR installations, including 75 or so well-known restaurant brands; they work with large franchisees who operate multiple brands. top-down relationships Budderfly also has firms in healthcare needs, nursing facilities, office buildings, amenity stores Budderfly is also working to establish “top-down” relationships at the restaurants’ corporate level, which has the ability to impose EaaS as a standard throughout its footprint. “As the climate focus becomes more important, a restaurant brand might say to do it everywhere,” says Subbloie. Hotels and motels are another vertical markets amenable to this approach, and Budderfly also has business in healthcare markets, nursing facilities, office buildings, convenience stores, and other retail. They seek to limit each building’s size to 200,000 square feet or less. Regulated and deregulated rates Budderfly has a team that handles the onboarding of new customers, which involves a short, two-page agreement. Their automated system is connected to 500 utilities, and Budderfly tracks all the regulated and deregulated rates. If rates go up, their billing increases, still based on the 5% reduction that is part of the agreement.  Budderfly benefits from its high-volume acquisition of HVAC equipment at lower prices. “We buy a lot of stuff, we have agreements to buy at volume pricing, and we are constantly negotiating to lower the price,” says Subbloie. “We buy the best of the best to achieve the greatest energy-saving outcome, for obvious reasons. We negotiate prices on the expectation that our volume will make it lucrative (for OEMs).” Subbloie says Budderfly is the largest buyer of roof-top units in the country. Energy-efficient HVAC systems Budderfly’s model enables the facility of the latest and most energy-efficient tools In the scenario of buying energy as a commodity, customers have less incentive to proactively replace their HVAC infrastructure with more efficient models. They also may not have the means to invest in capital improvements to achieve better energy efficiency outcomes. In contrast, Budderfly’s model encourages the installation of the latest and most energy-efficient equipment, and that the equipment is fine-tuned and maintained. By pushing the transition to decarbonization based on an old-fashioned business motive (i.e., profit), Budderfly seeks to jump-start the adoption of more energy-efficient HVAC systems on a large scale. “We have an economic model that is sustainable,” says Subbloie. Investment in AI Budderfly also provides customers with abundant data on their energy usage, including submetering architecture that does 20 to 40 measurements per location.  Each point of energy use reports back every five seconds, providing operational data and suggesting a possible investment in artificial intelligence (AI) to make operations even smarter.