The U.S. Department of Energy (DOE) announced the availability of $63 million to accelerate the growth of domestic manufacturing of residential heat pumps, heat pump water heaters, and other heat pump systems and components. This funding opportunity 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 critical to lowering energy costs for families, reducing the nation’s reliance on fossil fuels, bolstering national security, and tackling the climate crisis.
Heat pumps can efficiently provide heating and cooling and hot water for our homes and buildings. Because heat pumps transfer (rather than generate) heat, this technology efficiently provides comfortable temperatures for heating and cooling homes and businesses in all climates, especially when homes are well-insulated. Electric heat pumps reduce greenhouse gas emissions by up to 50% compared to the most efficient condensing gas boilers today, and this percentage could grow to 75% by 2030. Heat pump water heaters can be 2 to 3 times more energy efficient than conventional electric water heaters. Increased use of electric heat pumps, for heating and cooling (space conditioning) and water heating, will help lower energy costs for more American families and businesses and create healthier indoor spaces.
As the U.S. builds the clean energy economy, developing the workforce to support clean energy technologies will be critical. Recognizing this need, 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.
This program also advances Justice40 Initiative, which sets the goal that 40 percent of the overall benefits of certain Federal climate, clean energy, and other investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.
