The US government commits 250 million dollars to domestic heat pump production



Under the Inflationary Reduction Act (IRA), U.S. officials are providing new funds to build a clean energy economy, create new manufacturing jobs and help families save money on their energy bills.

As part of the Biden administration’s Investing in America program, the US Department of Energy (DoE) has announced a $250 million federal funding opportunity to encourage domestic heat pump manufacturing in the US. This Funding Opportunity is the first announced since President Joe Biden invoked the Defense Production Act (DPA) in the summer of 2022, authorizing the DoE to increase domestic production of five key clean energy technologies, including electric heat pumps.

The IRA administers new funding that will be used to build a clean energy economy, create new manufacturing jobs and help families save money on their energy bills. The increased use of heat pumps for heating and cooling will lower energy costs for more American families and businesses while creating healthier indoor spaces with American clean energy technologies.

“Electric heat pumps provide a cheaper and more reliable option for heating and cooling that is not subject to dramatic price fluctuations and helps strengthen the nation’s energy independence,” said US Energy Secretary Jennifer Granholm.

More than 40% of all US energy is used to heat and cool buildings, homes, offices, government and municipal facilities. Heat pumps transfer heat rather than producing heat, so they can be used in all climates without relying on home heating oil, gas or other fuel sources. One downside of heat pumps has been their poor performance in cold climates. To advance the technology, the DoE launched the Cold Climate Heat Pump Challenge. Rheem recently announced an air source heat pump that passed the Heat Pump Challenge and provides uninterrupted heating in -22.9F ambient conditions.

DoE is accepting applications from manufacturers interested in establishing new facilities in the United States or expanding existing production capacity to develop additional electric heat pump systems, components and materials. The department is looking for projects that:

  • Build new commercial-scale facilities or expand existing facilities to create new or increase domestic production capacity
  • Retrofit or retrofit existing commercial facilities to transition from non-heat pump HVAC systems and/or water heating equipment to produce electric heat pump materials, heat pump components and heat pump systems
  • Invest in the clean energy manufacturing workforce by providing good-paying unions

Concept papers required by all applicants must be submitted no later than 5/19/2023 at 5:00 PM (ET). Complete applications must be submitted no later than August 1, 2023 at 5:00 PM (ET).

DOE’s Office of Manufacturing and Energy Supply Chains (MESC) manages DPA heat pump operations. To learn more about MESC’s mission to strengthen and secure domestic production and energy supply chains to modernize energy infrastructure and support a clean and just energy transition, click here.

David is a passionate writer and researcher who specializes in solar energy. He has a strong background in engineering and environmental science, which gives him a deep understanding of the science behind solar power and its benefits. David writes about the latest developments in solar technology and provides practical advice for homeowners and businesses who are interested in switching to solar.

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