New England states launch $450M plan to boost heat pump adoption

Five of the six New England states recently launched an effort to give a big boost to heat pump adoption.

The New England Heat Pump Accelerator, a collaboration between Connecticut, Maine, Massachusetts, New Hampshire, and Rhode Island, is funded by the federal Climate Pollution Reduction Grants program. The program consists of a combination of financial incentives, educational outreach, and workforce development.

New England depends largely on fossil-fuel heating, with natural gas, propane, and heating oil in wide use. Heat pumps face barriers in the region, including the upfront cost of equipment high electric rates, and misconceptions about heat pumps’ ability to work in cold weather.

The accelerator is intended to speed adoption by supporting installation of about 580,000 residential heat pumps. The largest portion of money, some $270 million, will go to the “market hub,” through which distributors will receive incentives for selling heat pumps. 

Distributors will keep a small percentage for themselves and pass most of the savings on to contractors buying the equipment who will pass the lower price on to customers.