What Every HVAC Contractor Needs to Know for a Successful 2025

2025 is a landmark year for a lot of reasons, but for us in the heating and cooling industry, it also comes with a lot of changes. And as HVAC contractors, staying on top of the latest industry news and regulations can not only have a big impact on your business, but it also can make a difference in the community that you serve.

So, what do you need to know to pave the way toward a successful 2025?

We asked our Rheem team experts—here’s what they said.

1. A2L Refrigerant Regulation

The Environmental Protection Agency’s new global warming potential (GWP) limit of 700 for refrigerant used in heating and cooling systems is now in effect as of January 1, 2025.

The rule allows one additional year, until January 1, 2026, for the installation of new air conditioning and heat pump systems manufactured or imported prior to January 1, 2025, and allows three additional years, until January 1, 2028, for the sale of new packaged air conditioning and heat pump products. Components are exempt from rule prohibitions, allowing manufacturers to continue producing R-410A compressors, condensing units, etc. as long as they are intended for servicing of existing systems.

In light of the regulation, all Rheem® HVAC products will transition away from R-410A refrigerant to more sustainable options, such as R-454B. R-454B has a 100-year GWP of 466 and similar chemical and physical properties to R-410A—including similar pressure-temperature profiles, comparable thermodynamics, and correlating material compatibility. Other Rheem equipment such as some of our mini-split heating and cooling systems, will transition to R-32 refrigerant.

2. Tech-Driven Built Environment

AI and controls, smart technology and automation, energy efficiency, and sustainability—the technological advancements of the built environment are driving innovation in the heating and cooling industry at an unprecedented rate. For example, by 2025, it is estimated that more than 70% of new commercial HVAC installations will be part of smart building systems that integrate AI, the internet of things (IoT), and data analytics. And smart and connected HVAC systems are revolutionizing how home and building systems work together, allowing homeowners and building managers the ability to monitor the health and performance of a building from one central dashboard.

For contractors, a highly tech-driven built environment means that it is essential to stay up to date on equipment training. Which brings us to …

3. Emphasis on Workforce Training

Although exciting, these complex technological changes highlight the pressing need for skilled professionals. At Rheem, we continue to emphasize and host training for our partners to keep them up to speed and ready for the future of HVAC.

For contractors, excelling in workforce development means attracting, onboarding, and training individuals without backgrounds in HVAC and helping them thrive in the industry. Contractors must be prepared to offer robust training and a clear value proposition when it comes to culture. Those who invest in new technology and tools will have a leg up over competitors.

4. Indoor Air Quality

Indoor air quality is increasingly seen as an integral marker to occupant health, and the heating and cooling industry plays an important role. With a focus on advanced filtration, ventilation systems, and smart solutions, Rheem’s HVAC equipment is designed to ensure healthier environments at home, at work, and everywhere in between.

5. Heightened Focus on Sustainability

Sustainability continues to be a key market driver for the industry—and consumers, too. In fact, consumers’ heightened focus on environmentally friendly equipment is not just a trend; it’s a new drive in HVAC, says Karen Meyers, vice president of government affairs. Young homeowners are especially focused on sustainability—and they are the future of the home-buying industry.

In fact, 73% of homeowners will pay more for sustainable air and water products. And in commercial buildings, 89% of occupants say sustainability is increasingly important to their strategies.

At the end of the day, the evolution of HVAC means that our industry is always pushing ahead—it’s something we’ve seen firsthand across Rheem’s 100 years in business. Keeping these topics in mind in 2025 will help your business move with it. Visit the Rheem HVAC KnowZone® to stay in the know with upcoming industry changes to prepare your business, technicians, and customers for what’s next.