Michigan survey respondents were asked what would reduce HVAC replacement barriers (residential) or what prevents electrification adoption (C&I). Upfront cost leads both segments. After that, residents want performance confidence; businesses want ROI certainty.
Residential: reducing HVAC barriers
#1: Cost
Higher incentives and rebates was the most-cited factor. Financial barriers outweigh technology concerns, environmental skepticism, and contractor availability.
C&I: electrification upgrade barriers
2–3×
Heat pump installations cost 2-3× more than gas furnaces. For older homes, panel upgrades and weatherization widen the gap further.
"Michigan's high electric rates relative to low gas prices make full electrification a less attractive option for most consumers. This confines all-electric new construction to a small segment of high-end, custom builds or heavily subsidized projects."
— Market actor interview, Potential Study Vol. V, p.26. Hybrid heat pump/gas furnace systems are gaining traction as a transitional option that mitigates winter cost concerns.
Sources: Residential barriers — Potential Study Vol. V, Figure 11 (n=259). C&I barriers — Potential Study Vol. V, Figure 13 (n=318). Barrier rankings (ordering) are verified from source text; individual response counts are approximated from chart figures and may vary ±5-10 responses. 2-3× cost — Potential Study Vol. V, market actor interviews, p.26. All from NV5/Slipstream, 2025 Statewide Potential Study, Oct 2025.