Energy Efficiency, Regulation  -  April 20, 2023

DOE Announces $250M for Electric Heat Pump Manufacturing

The U.S. Department of Energy (DOE) announced a $250 million funding opportunity aimed at accelerating electric heat pump manufacturing in America.

This is the first funding opportunity announcement stemming from the DOE’s new authorization to utilize the Defense Production Act (DPA) to increase domestic production of five key clean energy technologies, and the funding is provided by the Inflation Reduction Act.

The DOE is extending applications to manufacturers that are interested in creating new facilities or expanding existing production capacity to efficiently develop more electric heat pump systems, components, and materials in the U.S.

“Electric heat pumps offer a cheaper, more reliable option for heating and cooling that isn’t prone to dramatic price swings and helps to strengthen the nation’s energy independence.,” said U.S. Secretary of Energy Jennifer M. Granholm in a statement. “President Biden authorized DOE to lead this charge knowing that Americans across the country will feel the benefits — from the manufacturing workers leading development and deployment, to the consumers who will benefit from energy savings.”

Heating and cooling buildings, homes, offices, schools, hospitals, military bases, and other critical facilities drive more than 40% of all U.S. energy consumption, according to the DOE.  Because heat pumps transfer heat rather than generate heat, this technology efficiently provides comfortable temperatures for heating and cooling homes and businesses in all climates and can also provide more efficient water heating.

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