Five factories across the United States are getting an influx of capital thanks to the U.S. Department of Energy, which is using the Defense Production Act to increase domestic production of key technologies. These technologies, which are part of clean energy initiatives, include heat pumps. Specifically, an $85 million federal grant is going to boost the American production of heat pumps under orders of the Biden administration. This money will generate approximately 500 jobs, including some 220 of those jobs being located in low-income areas.
In addition to economic stimulus, the grant will help protect the United States from extreme weather events, which have become more common in recent years. These new electric heat pumps, many of which will replace aging and less efficient predecessors, will help protect the environment and shelter citizens from extreme heat and cold. Despite the name heat pump, this equipment helps both heat and cool by exchanging different temperatures of air. With increased heat events in the U.S., the new heat pumps will likely spend more of their time keeping people cool.
Heat Pumps Provide More Efficient Heating and Cooling
Fortunately for the environment, heat pumps are more efficient than traditional furnaces because they do not burn any fuel directly. The Inflation Reduction Act of 2022 provides tax incentives for families and businesses that purchase heat pumps, making them increasingly popular. The heat pump industry is currently expanding and is expected to expand significantly more over the next eight to ten years – more than doubling in total value (increasing from an estimated $13.6 billion in 2023 to a predicted $29.6 billion by 2032).
Electric heat pumps are likely to protect consumers from price shocks in oil and natural gas, and the Department of Energy and Environmental Protection Agency estimate that their use can cut greenhouse gas emissions by 50 percent on sites where they are used. Convincing homes and businesses to switch from natural gas heating to more efficient electric heat pumps will significantly cut greenhouse gas emissions, as heating and cooling is thought to make up 35 percent of all energy consumption in the country. And, as severe weather events become more common, this 35 percent is likely to expand.
Increased Manufacturing of Pumps Helps Homes and Schools
In addition to incentivizing homeowners to buy heat pumps, the $85 million investment in increased heat pump manufacturing capacity will benefit Americans who visit government buildings – especially schools – on a regular basis. Federal grants can directly pay for new heat pumps for schools, courthouses, military bases, and other government buildings. For example, the Department of Education’s Office of Elementary and Secondary Education includes School Infrastructure Programs (SIPs) that provide grants to school districts looking to expand. In November 2023, the office released a $47 million batch of funding for new school buildings across the United States.
If the DOE added new heat pumps to the grants, it would make it easier for school districts to afford building construction and maintenance costs. More comfortable schools would pay dividends in educating our future workforce, as students are less likely to skip school on cold or hot days when they know the school building is kept comfortable and safe.
