Nine States Sign Agreement to Promote Heat Pump Sales and Decarbonize Residential Buildings

The recent agreement signed by nine states, including California, Colorado, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, and Rhode Island, marks a significant step towards promoting heat pump sales and decarbonizing residential buildings. This memorandum of understanding (MOU) sets a collective target for heat pumps to make up 65 percent of residential heating, cooling, and water heating equipment sales by 2030, and 90 percent by 2040.

Heat pumps are more energy-efficient alternatives to traditional heating and cooling systems, and they can feasibly run on renewable energy sources like wind and solar once there is more clean energy coursing through power grids. The MOU is not legally binding, but it does plant a flag and set a strong shared target among states, indicating their collective move in this direction.

The agreement comes at a crucial time when national climate policies are hanging in the balance during upcoming presidential elections. State-led efforts become more crucial as the fossil fuel industry fiercely opposes bans on new gas hookups, which have disrupted the value chains and dragged gas stoves into the nation’s culture wars.

Buildings are a significant source of pollution, accounting for more than a third of energy-related greenhouse gas emissions globally. Fossil fuel combustion in buildings also produces more smog-forming nitrogen oxide (NOx) emissions than power plants do in the US. Fossil-fueled heating equipment across the nine states that have joined the MOU creates more than 138,000 tons of NOx and 6,000 tons of fine particulate matter pollution each year.

The MOU aims to develop an “action plan” to support widespread electrification of residential buildings, essentially creating zero-emission buildings. State and local governments have had to pivot in response to the fossil fuel industry’s opposition to bans on new gas hookups.

Heat pumps and building electrification are gaining momentum as the future for healthier homes and a thriving green economy. Maryland Secretary of Environment, Serena McIlwain, tells The Verge, “Heat pumps and building electrification is really the future for healthier homes and a thriving green economy.”

The industry also supports this effort, with companies including Schneider Electric, Siemens, Ikea, eBay, and two of the biggest HVAC manufacturers, Trane and Carrier, signing a letter of support for the MOU. The letter states, “Climate change poses a significant risk to our long-term economic success, impacts the health and livelihood of our communities, and disrupts the value chains on which we rely.”

The MOU also aims to direct at least 40 percent of new investments in efficiency and electrification upgrades for residential buildings to low-income households and disadvantaged communities. This move will help reduce climate-related health and safety risks and make heat pumps more accessible to those who need them the most.

The agreement is not the only effort to make heat pumps more attractive to developers. President Joe Biden invoked the Defense Production Act in 2022 to boost domestic production of heat pumps and other clean energy technologies. Residential heat pumps surpassed gas furnace sales for the first time in 2022, making up 53 percent of sales. In 2023, New York City started rolling out heat pumps in public housing buildings as part of a $263 million plan to get heat pumps to renters, starting with low-income residents.

The MOU announced today similarly states that the states “will strive to direct” at least 40 percent of new investments in efficiency and electrification upgrades for residential buildings to low-income households and disadvantaged communities. This move will help reduce climate-related health and safety risks and make heat pumps more accessible to those who need them the most.

In conclusion, the agreement signed by nine states to promote heat pump sales and decarbonize residential buildings is a significant step towards reducing greenhouse gas emissions and improving air quality. The MOU sets a strong shared target for heat pumps to make up a significant portion of residential heating, cooling, and water heating equipment sales by 2030 and 2040. The industry also supports this effort, and the states are working to make heat pumps more accessible to low-income households and disadvantaged communities. This collective effort will help reduce climate-related health and safety risks and create a healthier and more sustainable future for all.