This blog is co-authored with Emily Levin, Vermont Energy Investment Corporation
The Northeast states are developing the market for highly efficient electric heat pumps for heating and cooling homes and businesses, enabling significant reductions in greenhouse gas (GHG) emissions from buildings in the region. ONE new exhibition commissioned by the NRDC shows that heat pumps can provide a clean, efficient and affordable option in an area where oil and propane furnaces are widespread.
Fossil fuels burned on-site account for about 30 percent of U.S. emissions from buildings, and that percentage is growing as states get more clean electricity from wind and solar. Electric heat pumps allow buildings to move away from the use of fossil fuels and tap into the growing supply of electricity from renewable sources.
The report released today examines policies and programs in the northeastern states—New England and New York—to identify key factors leading to the success of nascent programs encouraging the use of heat pump technology. Many of the lessons from the North East are relevant to the development of the heat pump market in other regions as well. Key insights include the need to engage and educate heat pump installers and distributors early on, and find ways to estimate both electricity and fossil fuel savings from switching to heat pumps.
Market development for heat pump technology is in its early stages and initiatives in the area are beginning to show results. This study, conducted by Vermont Energy Investment Corporation for NRDC, focuses on ductless heat pumps used for space heating, which represent the most common and fastest growing heat pump technology in the Northeast. Many of the lessons learned and recommendations also apply to other heating technologies such as ducted heat pumps and heat pump water heaters.
What the heck is a heat pump?
heat pumps movement energy to provide heating or cooling. For example, “air source” heat pumps used to heat the home absorb heat from the outside air (even when it's cold outside!) and transfer the heat into the home where it's needed. This is about 2 to 3 times more efficient than generating heat by burning fossil fuels such as oil or natural gas. Heat pumps use the same technology as air conditioners and refrigerators — but in reverse, as we've described before.
When super-efficient heat pumps are powered by renewable electricity generated from the wind and sun, a massive reduction in greenhouse gas emissions from buildings is possible. This chart below from Acadia Center compares emissions from heating technologies in the Northeast. The blue line represents emissions from electric heat pumps with the current generation mix. These emissions decrease as the renewable electricity content increases over time, represented by the green bars.
Early lessons from the northeast
With one of the cleanest electrical grids in the country and the widespread use of oil and propane for home heating, heat pumps provide a cleaner and cheaper alternative. States in the Northeast have developed different policies, programs and mechanisms to encourage efficient heat pump technology. The report reviews these policies, state by state.
Over 25,000 efficient air source heat pumps have been incentivized in the Northeast in just the last reported program year. Overall, the most successful programs combine two factors:
- Direct cooperation with installers and distributors of heat pumps so that the products are available and installers are prepared to offer them to customers, and
- Important incentives (minimum cash incentive of $500 per unit) to attract the attention of installers and distributors and encourage customers to choose them.
In addition, here are some early lessons from existing initiatives:
- Set specific goals and specific funding. While all Northeastern states have policies that encourage building electrification, states that set binding targets for heat pump adoption and create a dedicated funding source have had the most early success.
- value all of benefits. Switching to heat pumps has an energy efficiency advantage, but there are other important benefits such as reduced greenhouse gas emissions as well. States like Rhode Island have found that it makes sense to value benefits such as greenhouse gas reduction and economic growth when evaluating a fuel switch from fossil fuels to electric heat pumps.
- Boost programs quickly with a targeted approach. Early market development requires starting where there are the fewest barriers to adoption. For example, in many areas it makes sense to target heat pumps to 1) Homeowners who currently heat with electric resistance, oil or propane heaters. and 2) New construction and deep building retrofits where heat pumps are installed in conjunction with other energy efficiency measures and solar generation systems, which lowers installation and operating costs.
- Provide contractor and customer training to encourage quality installation and efficient operation. The heat pump installation and how it is used is key to delivering the desired energy and GHG impacts. Several recent assessments from Connecticut, Massachusetts, and Rhode Island found lower-than-expected energy savings because systems are not optimally designed and operated. Educating contractors to select the right heat pump technology for the space, sizing and ensuring quality installation is key. Educating customers about heat pump controls is also important to ensure energy savings.
More details on these and other information from the North East are available at full report. These findings are important and relevant as other regions such as California and the Pacific Northwest are looking at ways to harness this technology to save energy and reduce customer bills, air pollution and greenhouse gas emissions.
