U.S. DEPARTMENT OF ENERGY
Biden- Harris Administration Announces Nearly $85 Million to Accelerate Domestic Heat Pump Manufacturing

"Extreme weather events are harming our grid and serving as a primary driver of higher electricity bills, underscoring the need to increase access to energy efficient technologies," said U.S. Secretary of Energy Jennifer M. Granholm. "The Biden-Harris Administration's Investing in America agenda is manufacturing hundreds of thousands of energy-saving heat pumps here in the USA, helping American households and businesses keep money in their pockets all while strengthening our national security and creating good-paying jobs." 

"Under President Biden and Vice President Harris's leadership, the United States is supercharging U.S. clean energy manufacturing, which is creating good-paying jobs, lowering families' energy costs, and helping tackle the climate crisis, all while boosting our nation's energy security," said White House National Climate Advisor Ali Zaidi. "As communities across the country continue to face down the impacts of climate-fueled extreme weather events, investing in American-made heat pump manufacturing will help keep families safe and comfortable in their homes, schools, and businesses and cut their energy costs. Today's investments, levering the authorities in the Defense Production Act, harness the power of American innovation to jumpstart critical clean energy manufacturing capacity and to protect our families, our economy, and our planet."

The DPA investments being announced today would increase American manufacturing of heat pump technologies, which provide efficient space heating and cooling and water heating for homes, schools, and commercial and industrial uses. The awards will also increase the number of compressors produced on U.S. soil, which are typically manufactured overseas in Europe and Asia, making it easier for domestic manufacturers to use these key components in American-made heat pumps. Together these investments will allow for U.S. manufacturing of an additional 155,000 residential heat pumps, 440,000 residential heat pump water heaters, 2,000 school heat pumps, and 20,000 large heat pump compressors each year.

Today's DPA manufacturing investments complement the direct consumer savings that the Biden-Harris Administration is providing, with the Investing in America agenda making homeowners now eligible for up to a 30% federal tax credit on the total cost of buying and installing a heat pump, and providing states with funding for home energy rebate programs.

Heating and cooling buildings, homes, offices, schools, hospitals, military bases, and other critical facilities drive more than 35% of all U.S. energy consumption and contribute more than one third of greenhouse gas emissions. Heat pumps can efficiently provide heating and cooling and hot water for homes and businesses, 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 two-to-three times more energy efficient than conventional electric water heaters, and on average, heat pumps can save homeowners between $300 to $1,500 annually depending on the current sources for heating and cooling. Additional savings are currently available through the Inflation Reduction Act Energy Efficient Tax Credit 25C tax credits to help consumers afford heat pumps. To learn more about savings and how heat pumps work, visit Pump Up Your Savings with Heat Pumps.