In the District of Columbia (DC) and beyond, the energy transition is creating new opportunities for HVAC contractors every day. Heat pumps outsold gas furnaces by more than 35% nationwide in 2024, according to data from the Air-Conditioning, Heating, and Refrigeration Institute, and the pipeline of efficiency and electrification projects driven by local utility programs is growing fast. But not all opportunities are obvious, and a new pilot program the DC Sustainable Energy Utility (DCSEU) is proving firsthand that reducing pollution can create new revenue streams.

The DCSEU and Hudson Technologies launched the nation’s first refrigerant recovery and reclamation (RR&R) pilot program led by a utility incentive program, and it’s centered around contractor participation. This focus emphasizes the need for non-energy greenhouse gas (GHG) reduction strategies and aims to build momentum across the HVACR market for a circular refrigerant economy that benefits both contractors and the health of our communities.

Refrigerants like R-410A and R-22, which are found in heat pumps and air conditioners, are powerful greenhouse gases that contribute significantly to climate change when leaked or disposed of improperly. Yet in the U.S., recovery and reclamation rates at the end-of-life phase for outdated equipment remain extremely low. The DCSEU saw this challenge as an overlooked opportunity to reduce GHG emissions in the District, while helping contractors earn more from their equipment replacement visits with minimal added effort.

The RR&R pilot makes that possible. Contractors who enroll in the program and complete free training get paid for every pound of qualifying refrigerant they recover and send to Hudson Technologies, a program partner and U.S. EPA-certified reclaimer. The DCSEU then adds a financial incentive on top of the standard payment offered by the reclaimer to sweeten the deal, with higher payouts for higher purity refrigerants.

-Written By Ben Burdick Managing Director of the District of Columbia Sustainable Energy Utility