Berliner Boersenzeitung - Heat pumps are key to home electrification -- but will Americans buy in?

EUR -
AED 4.236804
AFN 75.565453
ALL 93.388548
AMD 421.288328
AOA 1057.902509
ARS 1726.373447
AUD 1.636403
AWG 2.07658
AZN 1.929993
BAM 1.956675
BBD 2.320017
BDT 142.593744
BHD 0.43439
BIF 3442.338825
BMD 1.153656
BND 1.478061
BOB 13.990254
BRL 5.916414
BSD 1.151905
BTN 109.932143
BWP 15.663866
BYN 3.394988
BYR 22611.652061
BZD 2.316716
CAD 1.623626
CDF 2607.261754
CHF 0.932382
CLF 0.02674
CLP 1055.860049
CNY 7.791271
CNH 7.784009
COP 3702.715708
CRC 522.328969
CUC 1.153656
CUP 30.571877
CVE 110.314314
CZK 24.170009
DJF 205.119917
DKK 7.474605
DOP 67.179449
DZD 153.319736
EGP 58.008
ERN 17.304836
ETB 184.729097
FJD 2.552406
FKP 0.857424
GBP 0.857241
GEL 3.011194
GGP 0.857424
GHS 13.495033
GIP 0.857424
GMD 85.370902
GNF 10116.522377
GTQ 8.785928
GYD 241.157804
HKD 9.048485
HNL 30.975855
HRK 7.534758
HTG 150.607326
HUF 360.533526
IDR 20676.971423
ILS 3.459816
IMP 0.857424
INR 109.726384
IQD 1511.865818
IRR 1586420.818241
ISK 141.795588
JEP 0.857424
JMD 182.129839
JOD 0.817945
JPY 181.879019
KES 149.259773
KGS 100.886901
KHR 4663.023877
KMF 493.764206
KRW 1642.817678
KWD 0.356803
KYD 0.959929
KZT 542.652581
LAK 26053.646732
LBP 103152.017797
LKR 386.75289
LRD 207.922948
LSL 18.671935
LTL 3.406445
LVL 0.697835
LYD 7.343
MAD 10.732898
MDL 20.164014
MGA 4972.256159
MKD 61.552516
MMK 2421.872149
MNT 4151.081368
MOP 9.306381
MRU 46.250363
MUR 53.610003
MVR 17.835912
MWK 1997.375571
MXN 19.891736
MYR 4.719588
MZN 73.71562
NAD 18.989689
NGN 1572.386296
NIO 42.388949
NOK 10.997915
NPR 175.890103
NZD 1.964289
OMR 0.443578
PAB 1.151915
PEN 3.904552
PGK 5.102042
PHP 69.977874
PKR 320.543311
PLN 4.295078
PYG 6868.010666
QAR 4.199077
RON 5.251558
RSD 117.361461
RUB 93.01268
RWF 1692.412937
SAR 4.329127
SBD 9.311791
SCR 16.981454
SDG 692.768632
SEK 10.970285
SGD 1.478237
SLE 27.572429
SOS 658.288568
SRD 43.713191
STD 23878.344129
STN 24.510745
SVC 10.079506
SZL 18.971825
THB 38.255804
TJS 10.632053
TMT 4.049332
TND 3.383913
TRY 54.884455
TTD 7.820496
TWD 37.245796
TZS 3054.301208
UAH 51.506879
UGX 4313.928451
USD 1.153656
UYU 46.410948
UZS 13780.417548
VES 870.100121
VND 30303.651557
VUV 137.935702
WST 3.15727
XAF 656.244672
XAG 0.018789
XAU 0.000277
XCD 3.117812
XCG 2.076055
XDR 0.816158
XOF 656.244672
XPF 119.331742
YER 274.973512
ZAR 18.864197
ZMK 10384.289787
ZMW 21.799556
ZWL 371.47667
  • CMSC

    0.0300

    21.79

    +0.14%

  • RYCEF

    0.2000

    20.4

    +0.98%

  • RBGPF

    -1.2500

    69.74

    -1.79%

  • CMSD

    0.0000

    22.02

    0%

  • RIO

    3.1100

    99.01

    +3.14%

  • VOD

    0.0800

    15.69

    +0.51%

  • GSK

    0.0200

    51.53

    +0.04%

  • NGG

    0.5600

    80.42

    +0.7%

  • BCE

    0.2100

    22

    +0.95%

  • RELX

    0.6400

    36.8

    +1.74%

  • JRI

    -0.1000

    12.72

    -0.79%

  • BTI

    -0.4400

    59.12

    -0.74%

  • AZN

    -2.3500

    155.62

    -1.51%

  • BCC

    3.4600

    86.49

    +4%

  • BP

    -1.8200

    42.44

    -4.29%

Heat pumps are key to home electrification -- but will Americans buy in?
Heat pumps are key to home electrification -- but will Americans buy in? / Photo: ANDREW CABALLERO-REYNOLDS - AFP

Heat pumps are key to home electrification -- but will Americans buy in?

On a hot summer day, contractors snake wiring through the basement of a townhouse in southeast Washington to install a heat pump, a key component of the United States' multi-billion dollar push towards greater home electrification.

Text size:

Less sexy than an electric car, more obscure than solar panels, heat pumps are an energy-efficient system for replacing both a heater and air conditioner in one appliance. Heat pump hot water heaters also exist.

And the clunky looking machines are seen as a crucial weapon in the war to maneuver the United States into more climate-friendly habits.

Common in Asia and Europe, the technology has had slow uptake in the United States -- something the White House is hoping to fix as part of a multi-billion-dollar spending and subsidies plan.

Su Balasubramanian, who spoke as contractors drilled in her home below, told AFP she previously "didn't really know much about it," despite being environmentally minded.

In 2023, residences accounted for some 18 percent of energy-related US CO2 emissions, according to the Energy Information Administration (EIA) -- a number that less gas and greater electrification can reduce.

Hoping to spur heat pump uptake, the Inflation Reduction Act, President Joe Biden's 2022 landmark climate bill, provides up to $2,000 in tax credits for those installing either type.

Thousands more IRA dollars in rebates are additionally being rolled out for low- and middle-income households purchasing a heat pump. On top of that, individual states provide their own incentives.

Balasubramanian qualified for Washington's Affordable Home Electrification program, which provided her with total home electrification at no cost.

The 44-year-old social worker is receiving a heat pump air source, heat pump hot water heater, induction stove and a "heavy up" electrical panel amperage upgrade, worth about $27,000.

Balasubramanian said she would "definitely not" have been able to afford the project on her own.

Rather than tackling so much electrification at once, which can be financially prohibitive, advocates recommend electrifying one appliance at a time when it breaks.

Heat pumps can, in many instances, be more affordable than a gas furnace or hot water heater.

In fact, an April report published in the scientific journal Joule estimated that heat pump air systems would be cost effective without subsidies in 59 percent of US households.

"Within the early adopters, those who are very motivated by climate, I think electrification is really taking off," Rebecca Foster, CEO of the energy-focused nonprofit VEIC, told AFP.

But she added, there is still "a lot of work to do to raise awareness."

In Balasubramanian's program, for example, participants are more often "seniors on fixed incomes," Kalen Roach, marketing and communications manager for the DC Sustainable Energy Utility program, told AFP.

"I would say a decent bit of customers do need some convincing," he added.

Full adoption of heat pump air systems in the United States would reduce national greenhouse gas emissions by five to nine percent, according to the April Joule report.

- 'Role to play' -

Heat pumps have outsold gas furnaces in the United States in 2022 and 2023, according to the Air-Conditioning, Heating, and Refrigeration Institute.

A heat pump air system, which is placed outside, uses electricity to transfer heat rather than generate it. During winter, hot air is transferred from outside into a home. During summer, hot air is transferred outdoors.

Southeastern states have had greatest adoption, with South Carolina in the lead at 40 percent penetration as of 2020, according to EIA data.

The key for those states' high uptake is cheap electricity, low gas infrastructure, and the need for air conditioning, Panama Bartholomy, executive director of the Building Decarbonization Coalition nonprofit, told AFP.

Meanwhile some of the greatest heat pump sales are happening in new construction, he said.

Deane Coady, a retired teacher, lives in a leafy, historic district in the town of Brookline, Massachusetts, a state that has only six percent heat pump penetration.

"I am horrified and petrified thinking of the future," she told AFP just before having a heat pump installed in the second unit of her two-unit home.

"I decided to electrify for climate reasons, primarily," she said, adding that the solar panels she already installed will keep the electric bill low.

Last year, more than 267,000 US tax returns were filed claiming a credit for an air system heat pump, and more than 104,000 for a heat pump hot water heater.

Also critical for uptake are informed contractors who encourage heat pumps, but Bartholomy warned there is sometimes "a lot of institutional inertia."

The IRA additionally offers states money to train contractors on electrification.

"Everybody has their role to play," said Balasubramanian, who as a social worker said she believes progress happens when "there's impact at all levels."

(L.Kaufmann--BBZ)