Podcast Summary

Service Business Mastery for Skilled Trades: HVAC, Plumbing & Electrical Home Service

Episode: How Dual Fuel Heat Pumps Are Changing the Game for HVAC Contractors
Hosts: Tersh Blissett & Josh Crouch (Skilled Trades Syndicate)
Date: March 4, 2026

Episode Overview

This episode explores how dual fuel heat pumps are reshaping the HVAC landscape for both residential and commercial applications. The discussion dives deep into the technical, financial, and regulatory aspects of these systems, their impact on efficiency and emissions, evolving industry standards, and touches on the integration of automation and AI in HVAC business operations and troubleshooting. The hosts and guests (including senior product managers from Bosch/York) provide rich insights into product development, transitioning refrigerants, digital controls, and the future of brand loyalty in the post-COVID era.

Key Discussion Points

1. Dual Fuel Heat Pumps: Technology and Benefits

• Switching Mechanism:

  • The changeover temperature from heat pump operation to furnace (gas) operation is fully adjustable in the field and via calculation tools.
  • Users can input utility costs, emissions data, and adjust the threshold to suit their preferences for comfort or efficiency.
  • [00:00–01:00]

• Market Rollout and Product Range:

  • Expanded dual fuel offerings for commercial units: 6.5 to 25 tons.
  • Ongoing R&D for simultaneous heating, allowing both heat pump and furnace to operate together for increased comfort and efficiency in colder climates.
  • [05:15–06:28]

• Industry Need & Rebate Programs:

  • Electrification incentives, especially in northern states and Canada, drive demand for dual fuel over pure gas or electric solutions.
  • Dual fuel acts as a bridge until affordable cold climate heat pumps become viable.
  • [06:32–07:37]

• Economic and Installation Factors:

  • Dual fuel systems minimize the need for costly electrical upgrades commonly required for backup electric strip heat, making them a cost-effective solution, particularly where gas lines already exist.
  • Key challenge: Installing new gas lines in all-electric buildings can be a barrier.
  • [08:02–10:14]

Quote – On Customization and Cost Savings:
“A customer gets to decide… what temperature are we going to actually change from heat pump operation to furnace operation? ... You can set that a little bit lower. So that's all adjustable in the field and in our tool, you can set that.” – Guest A [00:00]

2. Regulatory and Technical Challenges

• CVP (Controls Verification Protocol):
  • New federal standards (effective July 2026) require inverters to behave as true inverters, tightly tracking load, rather than staging.
  • This affects compatibility with various air handlers and increases complexity in system design and field troubleshooting.
  • [01:43–04:37]

Quote – On Industry Compliance:
“Someone was wise enough to figure out that many OEMs... the inverter kind of bangs on and bangs off more like a two or three stage machine... The products that were being sampled by AHRI were not in compliance. We see the market need to pair with any air handler. The question is...how do we do that and still comply with CVP?” – Guest B [02:21–04:37]

• Thermostat and Controls Integration:
  • Increasing push toward proprietary communicating thermostats for advanced control and regulatory compliance.
  • Some units can operate with generic thermostats, but higher performance and compliance drive manufacturers toward proprietary solutions.
  • [29:05–35:49]

Quote – On Proprietary Controls:
"We need a proprietary thermostat for controls verification protocol procedure compliance... The cleanest way is to know what the space temperature is and that be communicated directly to the outdoor unit." – Guest B [32:51]

3. Product Expansion & York/Bosch Updates

• New Product Lines:

  • Ongoing expansion of York’s residential (Resi) and commercial portfolio for 2026.
  • Upcoming releases: Variable speed AC (19 SEER), top-tier heat pumps (21 SEER), and cold-climate models. Product transitions to new refrigerants (R454B, R32).
  • Launch of low-profile and manufactured housing-targeted ResPacks (residential package units).
  • [00:35, 17:25–22:27]

• Brand Integration Post-Merger:

  • York and Bosch maintaining full lines for now; future product overlaps will be decided by customer demand.
  • Amusing analogy comparing the integration process to a newly married couple deciding which couch to keep.
  • [22:27–23:30]

Quote – On Brand Integration:
"Step one is you get married and you move everything in together and then you pick out which couch you prefer... we do have those biases and we do have those internal discussions... But customers will speak with their dollars and with their purchase choices." – Guest B [22:35–23:30]

4. Brand Loyalty, Dealer Programs & Supply Chain

• COVID and Refrigerant Transition Impact:

  • Supply chain disruptions led to decreased brand loyalty (“take what you can get” became the norm).
  • Brand loyalty is slowly returning via incentive programs (dealer co-ops, warranty benefits, etc.).
  • [23:30–26:47]

• Dealer Support Tools:

  • The GoTemp Pro app supports installers with startup processes, diagnostics, warranty registration (with added labor warranty).
  • Focus on making business easy and profitable to win back contractor loyalty as the market stabilizes.
  • [27:15–29:05]

5. The Future: Automation, AI, and Connected Systems

• AI in HVAC:
  • Near-future vision: Using AI for contractor support (troubleshooting, predictive maintenance, tech support).
  • AI-powered service apps can prompt techs for the right diagnostics or even predict failures, reducing callbacks and supporting less experienced techs.
  • AI is most exciting when enabling practical automation, not just serving as a buzzword.
  • [40:39–45:52]

Quote – On AI Value:
“Where we're seeing AI and we're roadmaping to use AI is to make life easier for the contractor, particularly around install and around service... you could have a HVAC version of Siri… Please outline my troubleshooting steps and have the app say, these should be your steps. That's the vision and I think we’ll be there sooner rather than later.” – Guest B [40:39]

Quote – On Automation vs. AI:
"You don't want AI, you want automation... AI gets butts in seats and automation is the solution to what they actually want." – Host C [45:10]

• Connected Diagnostics and Predictive Maintenance
  • Commercial solutions leveraging sensors and AI to preemptively flag potential issues (e.g., coil fouling, charge problems).
  • Bluetooth-enabled controllers and mobile apps enhance technician efficiency and remote monitoring.
  • [42:19–43:28, 30:35–32:51]

6. Memorable Moments & Quotes

• Install Disaster Story:
  Hilarious anecdote about a mis-specified “rooftop” unit having no downflow capability, leaving a church with water leaks due to rain—highlighting the importance of product selection and spec clarity.
  [19:19–21:12]

• Training Junior Techs:
  The value of friendly, accessible tech support—"Bill the brash train tech support guy" taught the importance of collecting full diagnostic info before seeking help, likened to the role future AI tools will play.
  [46:44–47:45]

Noteworthy Timestamps

• [00:00] Customizable dual fuel changeover and calculator tools
• [01:43] CVP standards and inverter controls challenge
• [05:15] Commercial dual fuel products, simultaneous heating
• [13:51] Embedded sensors and flexible controls in commercial units
• [17:25] York/Bosch product line expansion
• [22:27] York/Bosch brand integration analogy
• [23:30] Dealer programs, brand loyalty post-COVID
• [27:15] Digital tools and app-based support
• [32:51] Proprietary controls vs. universal thermostats
• [40:39] Roadmap for AI automation and troubleshooting
• [45:10] The automation vs. AI buzzword dilemma
• [46:44] Career-building value of accessible, supportive tech help

Conclusion

This episode delivers a comprehensive, “inside baseball” look at the evolving landscape for HVAC contractors, from dual fuel heat pumps to regulatory compliance, to cutting-edge AI and automation. Listeners gain tactical knowledge for selling, selecting, and servicing next-generation systems while hearing candid, practical insights into business and brand realities in today’s HVAC world.

For those interested in becoming a Bosch or York dealer, visit the show notes for signup links or contact your local distributor.