Merino Energy launches $3,800 heat pump

A San Francisco startup is launching a heat pump that costs $3,800 — one-hour installation included. 

What’s happening: Merino Energy last week announced ‘Merino Mono,’ a wall-mounted heat pump that can plug into a 120-volt outlet and be installed in an hour, news outlet Heatmap first reported.  

• “[W]e redesigned the heat pump around the installation,” the company’s website explains. “We iterated until we had a solution that is installed in under an hour, runs on a standard outlet, and integrates into your home as a modern artifact.”

The big picture: California, Merino’s initial market, in 2022 set a target of installing six million heat pumps by 2030, but has only installed about 2.3 million so far. To hit its goal, it would need to average around 2,000 installations per day over the next five years, according to TechCrunch. 

Go deeper: Merino Energy was founded by CEO Mary-Ann Rau, an engineer who previously worked on AirPods for Apple, and then at heat pump startup Quilt. 

• Rau had tried to have a heat pump installed in her home, but was shocked when she received quotes for over $35,000, Heatmap noted.
• She enlisted Brad Hall, who had designed the Square point-of-sale system and worked for Gradient, a maker of window heat pumps, as the company’s Chief Product Officer.
• He helped her design a heat pump that houses all of its components in a single indoor unit and exchanges heat with the outdoors through two small holes drilled through the wall behind it. It can integrate with Apple HomeKit, Google Home is built in, and an integration with Oura Ring is being developed. 

State of play: Merino so far has six dedicated installers based in California. 

• Rau told Heatmap that contractors “will make twice as much per hour on each job” installing Merino heat pumps — compared to traditional mini-splits — due to time savings. 
• While the company is currently focused on California, it has plans to expand into other states, including Hawaii, Oregon, and Washington. 

Yes, but: The Merino Mono is designed specifically for small spaces — 350 square feet — and moderate climates.