I think most would agree that it’s been a crazy summer for the HVAC industry so far. What was supposed to mark a new beginning — the first full cooling season installing A2L systems using lower-GWP refrigerants like R-454B and R-32 — has instead been plagued by a shortage of aftermarket R-454B. Add to that the tariff turmoil driving up the cost of HVAC equipment and the lingering uncertainty around Inflation Reduction Act (IRA) rebates and tax credits, and it’s clear that contractors have been anything but content this summer.
The transition to lower-GWP refrigerants got off to a rocky start — despite years of planning, the supply of R-454B fell well short of expectations. Some contractors reported waiting weeks — or even months –for enough refrigerant to complete installations. In fact, one contractor recently told me that his company managed to buy one cylinder of R-454B earlier this summer, which they used to top off residential installations. He said he kept the cylinder in his locked office behind his desk, with a camera focused on it at all times to ensure it didn’t go missing.
Several factors contributed to the industry being seemingly caught off guard, including a shortage of R-454B cylinders and an unexpected surge in demand for R-410A units starting in the second half of 2024. With R-410A equipment largely unavailable in 2025, demand for R-454B systems spiked earlier than anticipated. And yet, this is the same industry that has spent years urging contractors to prepare for the refrigerant transition by investing in A2L training, purchasing new tools, and educating customers about the benefits of lower-GWP systems. Many contractors did just that, only to find that they either couldn’t get their hands on a cylinder of R-454B or that it was prohibitively expensive.
To their credit, many equipment manufacturers increased the pre-charged amount of R-454B in their ducted split systems from the standard 15-foot line set to 30 feet on most units. But that still doesn’t solve the problem of thousands of systems sitting in warehouses, waiting for aftermarket R-454B to top them off.
Even if the refrigerant were readily available, contractors would still face some economic headwinds, given the on-again, off-again tariffs on components and systems imported from overseas. Equipment prices keep rising, while customers, already squeezed by inflation and high interest rates, are becoming more reluctant to invest in replacements or upgrades. Contractors are caught in the middle, trying to preserve margin, maintain customer trust, and keep projects moving.
Adding to the frustration is the lingering uncertainty around the Inflation Reduction Act (IRA) rebates and tax credits, which the Trump administration vowed to repeal. While these incentives were billed as a game-changer for homeowners and contractors alike, the reality has been murky. Many states have been slow to finalize their rebate programs, and contractors are left trying to explain benefits that are either unavailable or undefined.
What we do know is that as part of the One Big Beautiful Bill signed into law in July 2025, Congress eliminated the Section 25C and 25D residential energy tax credits for improvements made after December 31, 2025. That means homeowners only have until the end of this year to claim up to $2,000 for qualifying heat pump installations.
As for the IRA’s rebate programs — Home Efficiency Rebates (HER or HOMES) and the Home Electrification and Appliance Rebates (HEAR) — they’re managed by individual states and territories and are not affected by the One Big Beautiful Bill. That said, rollout has varied widely, with some states already offering thousands of dollars in rebates for heat pump installations, while others are either finalizing their programs or pausing them entirely amid uncertainty over federal funding (check your state’s energy office to see if these rebates are available in your area).
If there’s a silver lining, it’s that this “summer of discontent” likely won’t last much longer. Manufacturers suggest that more stable supplies of R-454B are on the horizon, and with the pressure of the cooling season easing, winter could offer a much-needed window to catch up and regroup. Tariff impacts will likely persist, but some OEMs are reevaluating sourcing strategies and streamlining product lines to help ease the burden on contractors. And while some tax credits are set to expire, at least the timeline is now clearer, giving contractors a better chance to plan around what’s still available.
It’s been a tough summer, but it’s also a wake-up call. Without better coordination among policymakers, manufacturers, distributors, and contractors, the next refrigerant transition or regulatory action could be even more chaotic — and harder to recover from.