Merino Energy simplifies heat pump installation with new unit

Merino Energy has emerged from stealth to launch the Merino Mono, a single-unit heat pump priced at $3,800, including installation, that aims to reduce installation time and complexity. The launch comes as California faces a steep path to meet its environmental targets. In 2022, the state announced a goal to install 6 million heat pumps by 2030. However, California has installed only about 2.3 million heat pumps so far. To reach the 2030 target, the state would need to average about 2,000 installations per day, a pace that could be difficult to maintain. Mary-Ann Rau, co-founder and CEO of Merino Energy, noted that the industry must take a different approach. She explained that after experiencing high costs while trying to electrify her own home, she realized that if the technology was inaccessible to her, it remained out of reach for most Californians and Americans.

Traditional mini splits—a type of ductless heat pump system—typically require separate indoor heat exchangers and outdoor condensers. According to EnergySage, these systems can take around a day to install and cost around $4,000 to $6,000 per zone. In contrast, the Merino Mono combines the condenser and heat exchanger into a single indoor unit.

The system’s technical specifications include:

• Price: $3,800, including installation.
• Electrical requirement: Plugs into a standard 120-volt outlet, making it less likely to require electrical upgrades.
• Efficiency: A SEER2 rating of 15.2 (Seasonal Energy Efficiency Ratio 2, a rating for HVAC efficiency).

By comparison, a Quilt two-zone system has a SEER2 rating of 25. Because Merino traded some efficiency to miniaturize the system, the Merino Mono may be more suitable for smaller living spaces. Rau, who previously worked at Apple and Quilt, explained that the unit is designed to run on standard household power. “If you can plug in a microwave and it works on that outlet, then the Merino Mono is gonna work on that outlet,” said Rau, the co-founder and CEO of Merino Energy. She also noted that traditional systems require highly expensive labor to install. Additionally, Merino is developing an integration with Oura Rings to adjust room temperatures based on sleep cycles.

To test the system, Merino is currently installing 48 heat pumps at the Civic Center Apartments, a low-income development in Richmond, California. The startup is initially focusing on California, where six installers have signed up across the Bay Area and Los Angeles. Looking ahead, Merino plans to expand its operations to other states, including Hawaii, Oregon, and Washington.

Why it matters

By consolidating heat pump components into a single, easier-to-install unit, Merino Energy is attempting to lower the barrier to residential electrification, particularly for smaller living spaces.