DOE to award $63M to accelerate growth of heat pumps

Published on February 21, 2024 by Dave Kovaleski

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The U.S. Department of Energy (DOE) is making available $63 million to accelerate the growth of domestic manufacturing of residential heat pumps.

This investment, which stems from the Inflation Reduction Act, builds on a successful first round of $169 million in funding to manufacturers of heat pumps and components in November 2023. Electric heat pumps are viewed as critical to lowering energy costs for families, reducing the nation’s reliance on fossil fuels, bolstering national security, and tackling the climate crisis.

“As part of the Biden-Harris Administration’s commitment to address the climate crisis, these Defense Production Act dollars will further amp up domestic heat pump manufacturing to meet increasing consumer excitement, reduce emissions, and create clean energy jobs across the country,” U.S. Secretary of Energy Jennifer Granholm said. “President Biden’s Investing in America agenda is working—it’s not only making heating and cooling technology more accessible, but it’s also growing high-quality job options for workers in underserved communities and helping supercharge America’s clean energy economy.”

Because heat pumps transfer, rather than generate, heat, they provide comfortable temperatures for heating and cooling homes and businesses in all climates. Electric heat pumps reduce greenhouse gas emissions by up to 50 percent compared to the most efficient condensing gas boilers today, and this percentage could grow to 75 percent by 2030. Further, heat pump water heaters can be 2 to 3 times more energy efficient than conventional electric water heaters. Overall, they will help lower energy costs for more American families and businesses and create healthier indoor spaces.

It should be noted that the projects under the funding opportunity may propose using a portion of funding to develop the workforce needed to meet the facilities’ new or expanded needs.

An information webinar will be held on Feb. 21 at 2:00 pm ET. Concept papers are due on March 15, at 5 p.m. ET, while full applications are due on April 29 at 5 p.m. ET.