Whether in commercial office spaces, retail establishments, or cozy homes, HVAC technology impacts our daily lives in ways we often take for granted.
Every year in the United States, approximately three million heating and cooling systems are replaced, resulting in a staggering $14 billion expenditure on HVAC services and repairs.
Given that heating and cooling collectively contribute to nearly half of a typical home’s energy consumption, investing in energy efficient HVAC systems is essential to saving money and ensuring long-term environmental health.
Let’s take a look at sustainable HVAC technologies. Hopefully, we can see a future in which comfort doesn’t come at the expense of our planet.
What Is HVAC and Why Is Energy Efficiency Important?
HVAC refers to heating, ventilation, and air conditioning. An HVAC system is made up of several components that work together to regulate the temperature and ventilation in both residential and commercial spaces.
HVAC systems play a pivotal role in our daily lives, ensuring comfort and maintaining indoor air quality. These systems provide warmth during cold weather by distributing heated air while also cooling indoor spaces during hot summers by removing excess heat and humidity.
Energy efficiency in commercial buildings may not only provide a hospitable work environment but could also be imperative to the facility’s successful operational needs. Additionally, it is becoming increasingly important to companies and their stakeholders to decrease their carbon footprint while striving for net zero greenhouse gas emissions and becoming carbon neutral.
HVAC energy consumption, unfortunately, has a severe global impact. For instance, HVAC equipment accounts for 40% of energy usage in commercial buildings, and energy used by residential homes creates twice as much greenhouse gas emissions
Energy efficiency is crucial in HVAC systems because it directly impacts cost savings and environmental sustainability. Efficient systems consume less energy, leading to reduced utility bills for homeowners and businesses.
Additionally, lower energy consumption translates to fewer greenhouse gas emissions, helping maintain a healthy planet.
Watch this video from the Sustainability Education Academy explaining the importance of knowing more about HVAC and it’s relation to energy usage.
HVAC System Types
A diverse array of HVAC system types exists to cater to various needs and spaces. Let’s explore these HVAC variants:
Split system
This system is ‘split’ between two main units (one for cooling and one for heating), which is most common among HVAC systems.
Hybrid system
As an advanced version of the Split System, the Hybrid System’s main difference is improved energy efficiency. It is equipped with a hybrid electric heater system.
Ductless system
Consists of an outside air conditioner for cooling as well as a heat pump for cooling and heating. The ductless system is suitable for homes where conventional systems of ducts can’t be used.
Packaged system
A packaged HVAC system offers high-quality heating and cooling combined into one unit. This system is usually used in homes without basements and often installed outdoors.
Key Eco-friendly HVAC Technologies
Solar-Powered HVAC Systems
These systems utilize solar panels to harness renewable energy from the sun, reducing reliance on fossil fuels. They are energy efficient, cutting down on energy costs and carbon emissions. However, their effectiveness can be limited in areas with less sunlight, and the initial installation cost can be high.
Geothermal Heating and Cooling Systems
Geothermal technology leverages the earth’s stable underground temperature to heat and cool buildings. This system is highly energy efficient, reducing energy consumption significantly. While the upfront installation cost can be high, the long-term savings in energy costs make it a viable option.
Air Source Heat Pumps
Heat pumps are a versatile, energy-efficient alternative to traditional air conditioning and heating systems. They operate by transferring heat between the inside and outside of a building. When heating, they extract heat from the outside air, even in cold temperatures, and when cooling, they do the reverse. This energy-efficient technology can significantly reduce energy costs.
Smart Thermostats and Automation
Smart thermostats optimize HVAC system operation, reducing unnecessary energy consumption. This feature allows for more precise control over heating and cooling, adapting to your schedule and preferences, and can be controlled remotely for enhanced convenience.
How to measure energy efficiency in HVAC systems
Understanding energy efficiency metrics can help you make informed decisions when choosing an HVAC solution for your company or home needs. Let’s explore how energy efficiency is measured in HVAC systems:
Energy Efficiency Ratio (EER)
- EER is the measure of the efficiency of an air conditioner at peak temperatures.
- We calculate this by dividing the cooling output (in Btu’s) by the unit’s power consumption (in Watts) at a specific temperature (usually around 95°F).
- A higher EER indicates a more efficient system.
- The typical HVAC system EER rating ranges from 13 to 23.
Seasonal Energy Efficiency Ratio (EER)
- SEER stands for Seasonal Energy Efficiency Ratio. It measures a cooling system’s efficiency by evaluating its cooling output in relation to the electricity it consumes over a specific period, typically a season.
- Most air conditioning units have SEER ratings ranging from 14 to 22.
Coefficient of Performance (COP):
- COP is commonly used for heat pumps and refrigeration systems.
- It represents the ratio of useful heating or cooling output (in Btu’s) to the electrical energy input (in Watts).
- A COP greater than 1 indicates that the system produces more energy (heat or cooling) than it consumes.
- As an example, a heat pump with a COP of 4 provides four times more heat energy than the electricity it uses1.
Correct Unit Sizing:
- Properly sizing an HVAC system is crucial for energy efficiency.
- Oversized units waste energy and cycle on and off frequently, while undersized units struggle to maintain comfort.
- Correct sizing considers factors like insulation, climate, and building layout.
- Annual Fuel Efficiency Ratio (AFUE):
AFUE applies to furnaces and boilers.
- It measures the efficiency of converting fuel (such as natural gas or oil) into usable heat.
- A higher AFUE percentage indicates better efficiency. For example, an AFUE of 90% means 90% of the fuel’s energy is converted into heat.
ENERGY STAR® Qualified Products:
- ENERGY STAR® is a program developed by the US Environmental Protection Agency (EPA) and the US Department of Energy.
- Its goal is to promote energy efficiency and minimize greenhouse gas emissions.
- ENERGY STAR® rated Products are appliances, electronics, and other devices that meet strict energy efficiency guidelines set by the program.
Remember that the right choice depends on specific needs, budget, and climate considerations. Watch this video from Goodman Airconditioning & Heating to learn more.
Now, let’s meet the key players driving energy efficiency and remarkable innovation in HVAC technology:
12 Most Energy Efficient HVAC Companies in 2025
First Hydrogen
First Hydrogen specializes in the development of advanced electrolysis systems for green hydrogen production. Their technology focuses on improving efficiency and scalability while reducing costs associated with electrolysis.
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Plug Power
Plug Power is a company that specializes in offering hydrogen fuel cell solutions. Many different ways in which material handling equipment can be utilized, such as stationary power systems and transportation vehicles. Their ProGen fuel cell engines offer high efficiency and reliability, enabling customers to reduce operating costs and carbon emissions.
Plug Power also provides comprehensive hydrogen infrastructure solutions, including electrolyzers, hydrogen storage systems, and fueling stations. With a proven track record in the hydrogen industry, Plug Power is committed to driving the widespread adoption of clean hydrogen technology.
They invest heavily in research and development to enhance fuel cell performance, increase system efficiency, and lower production costs, making hydrogen-powered solutions more accessible and cost-effective for customers worldwide.
H2Pro
H2Pro is an Israeli startup company founded in 2019 by leading hydrogen experts from the Technion (Israel Institute of Technology)
H2Pro is developing a novel water electrolysis technology called “E-TAC” (Electrochemical, Thermally Activated Chemical) to enable wide-scale adoption of sustainable hydrogen fuel at lower costs.
The key innovation is generating oxygen and hydrogen separately using electrodes, eliminating the need for a sequestration membrane, a major cost factor in conventional water electrolysis.
H2Pro has received backing from prominent investors, including Microsoft co-founder Bill Gates, Hong Kong entrepreneur Li Ka-shing, Hyundai, and ArcelorMittal.
The company plans to conduct a demonstration experiment of 200 kg/day green hydrogen production in Israel during 2023, in collaboration with Israeli petrochemical and renewable energy companies.
H2Pro aims to produce around 10 tons/day of green hydrogen commercially in Europe and the Middle East.
FuelCell Energy
FuelCell Energy is a leading provider of fuel cell solutions for clean power generation and hydrogen production. Their solid oxide electrolysis systems enable efficient and cost-effective hydrogen production from renewable energy sources such as wind and solar.
FuelCell Energy also offers stationary fuel cell systems for distributed power generation, providing reliable and resilient electricity for various applications. With a focus on sustainability and reliability, FuelCell Energy is advancing the adoption of hydrogen as a clean energy solution.
They are continuously conducting research and development activities to enhance the performance of their electrolyzers, improve the efficiency of their systems, and integrate renewable energy sources to reduce carbon emissions and decrease dependence on fossil fuels.
EverWind Fuels
EverWind Fuels is a leading independent developer of green hydrogen and ammonia in North America, headquartered in Halifax, Nova Scotia.
The company focuses on producing green energy by developing large-scale hydrogen and ammonia production facilities, leveraging renewable energy sources such as wind and solar power.
EverWind aims to convert existing fuel storage facilities into production sites for green hydrogen and ammonia, primarily targeting the export market, particularly Germany.
They have signed memoranda of understanding with German utilities for the potential offtake of up to one million tonnes of ammonia annually, although no final contracts have been established yet.
Octopus Hydrogen
Octopus Hydrogen is a subsidiary of Octopus Energy, founded in 2021, that focuses on the production and application of green hydrogen.
The company is part of a broader initiative to decarbonize various sectors, particularly heavy transportation, which is responsible for a significant portion of carbon emissions.
Octopus Hydrogen aims to leverage green hydrogen as a cleaner alternative to conventional fuels in industries such as logistics, aviation, and shipping, where battery technology may not be sufficient.
Hyzon
Hyzon Motors is an American automotive company based in Bolingbrook, Illinois that develops and manufactures hydrogen fuel cell systems and supplies zero-emission heavy-duty fuel cell electric vehicles.
The company was founded in 2020 as a spin-off of Singapore-based Horizon Fuel Cell Technologies.
Hyzon builds high-performance hydrogen fuel cell systems that provide zero-emission power for the most demanding jobs, such as heavy-duty trucking, power generation, energy storage, mining, construction, rail, marine, and airport ecosystems.
The company has a global footprint with offices in North America, Europe, Australia, and Asia
NEOM Green Hydrogen Company
Neom Green Hydrogen Company is a joint venture between Air Products, ACWA Power, and Neom, dedicated to developing green hydrogen projects in Saudi Arabia. They aim to leverage the abundant renewable energy resources in the region to produce low-cost green hydrogen at scale.
Neom Green Hydrogen Company aims to build extensive electrolysis plants that will run on solar and wind energy. This will help in fulfilling the Kingdom’s goal of transforming into a worldwide center for the production and export of eco-friendly hydrogen.
With a focus on sustainability and economic development, Neom Green Hydrogen Company is driving the growth of the green hydrogen industry in the Middle East.
Their collaborative approach brings together expertise from leading companies in the fields of hydrogen production, renewable energy, and infrastructure development to accelerate the transition to a sustainable energy future in Saudi Arabia and beyond.
AMEA Power
AMEA Power is a rapidly expanding renewable energy company headquartered in Dubai, specializing in the development, ownership, and operation of renewable energy projects.
Founded in 2016, it has established a significant presence in Africa and the Middle East, with a clean energy pipeline exceeding 6 gigawatts (GW) across 20 countries.
AMEA Power plans to invest approximately $15 billion in green hydrogen projects across Africa. This includes the development of three large-scale electrolyser projects, each with a capacity of 1 GW, in Mauritania, Djibouti, and Egypt.
These projects are expected to be operational by 2028, with a strong focus on utilizing renewable energy sources such as solar and wind for hydrogen production.
This commitment is reflected in their adherence to Environmental, Social, and Governance (ESG) principles, aiming for a balance between short-term and long-term positive impacts in the regions where they operate.
Bloom Energy
Bloom Energy is a company that specializes in developing solid oxide fuel cell technology to generate clean Power and produce hydrogen. Their fuel cell systems are designed to efficiently convert renewable biogas or natural gas into electricity and hydrogen while keeping emissions to a minimum.
Bloom Energy also offers electrolysis systems for on-site hydrogen production using renewable energy sources. With a focus on reliability and scalability, Bloom Energy is driving the adoption of hydrogen as a clean energy solution for various applications, including grid stability, backup power, and transportation.
Their research and development efforts focus on improving fuel cell efficiency, increasing system reliability, and reducing production costs to make hydrogen-powered solutions more accessible and cost-effective for customers worldwide.
Nel Hydrogen
Nel Hydrogen is a global leader in electrolysis technology for hydrogen production. They offer a range of electrolyzers that enable efficient and cost-effective hydrogen production from renewable energy sources such as wind and solar.
Nel Hydrogen’s electrolysis systems are scalable and modular, making them suitable for various applications, from industrial processes to fueling stations for hydrogen-powered vehicles. With a focus on innovation and sustainability, Nel Hydrogen is at the forefront of advancing the hydrogen economy and accelerating the transition to a carbon-neutral energy future.
Their research and development initiatives focus on improving electrolyzer efficiency, increasing system reliability, and reducing production costs to make green hydrogen competitive with conventional fossil fuels.
In Summary
These top HVAC brands stand out as leaders in the ever-evolving landscape of environmental comfort and energy efficiency. Whether with cutting-edge technology, superior performance, or environmental responsibility, these companies are creating comfortable living and working spaces while minimizing energy consumption.
Their efforts, combined with other approaches, such as eco-building strategies, could bring about significant positive change in the future.
When considering a new HVAC systems it's important to consider you specific needs, budget and space. Be sure to take note of the systems energy efficiency rating as this will guarantee that whatever you choose, you are sure to save money and minimise your environmental impact. Furnaces tend to last 15 to 20 years, and air conditioning units and heat pumps have a life expectancy of 10 to 12 years. Replacing commercial HVAC equipment before it fails entirely can save you time and money. It's also important to stay up to date with the latest energy-saving technology features for all the reasons we have already listed. If your HVAC installation is 10 years or older, this may be the time to look at updating your system. Proactive care and attention can ensure that you system functions at peak efficiency for as long as possible. For example, consistent maintenance is crucial. Simple tasks like changing air filters regularly, scheduling annual or seasonal tune-ups, and cleaning outside components can significantly prolong your system’s useful life. Also, keep in mind that continuous operation can strain components, so be sure to set you thermostat to auto mode where possible or switch the system off when not needed to conserve energy and promote longevity.Frequently Asked Questions
How do I choose a new HVAC system?
When should an HVAC system be replaced?
How can I increase the life and efficiency of our HVAC system?
References
Straits Research – Global Energy Efficient HVAC Systems Market Insights
ENERGY STAR® GOV – Energy Efficient Products
Grand View Research – U.S. HVAC Systems Market Size, Share & Trends Analysis Report
Department of Energy – Heating, Ventilation, and Air Conditioning (HVAC)