“Cold climate heat pumps are a win-win for American families to comfortably heat their homes and businesses while significantly cutting down carbon pollution and lowering their energy costs,” said Secretary of Energy Jennifer M. Granholm. “DOE’s Cold Climate Heat Pump Challenge will mobilize the heating industry to accelerate a safer, cleaner, and greener method for heating American homes and keep families and workers across the country warm during the coldest months.”  

Through continued advancements, cold-climate, electric heat pumps have the potential to save an average U.S. family as much as $500 annually on their utility bills, reducing exposure to volatile fossil fuel prices. Currently, space conditioning and water heating account for over 40% of primary energy consumption in buildings in the United States and are a major source of carbon emissions. Heat pumps, which heat and cool buildings by extracting heat from the air, use electricity as their only-fuel source creating significant opportunities for on-site carbon emissions reductions compared to traditional gas heating appliances.  

Six leading HVAC manufacturers will partner with DOE, Natural Resources Canada, the U. S. Environmental Protection Agency, States, and other efficiency program and utility stakeholders to demonstrate the performance of prototypical products and launch field demonstrations and pilot programs to accelerate adoption. The next generation of cold climate heat pumps developed under this challenge will have:

• Increased performance at cold temperatures
• Increased heating capacity at lower ambient temperatures
• More efficiency across broader range of operating conditions
• Demand flexibility (advanced controls to adjust usage on demand) 

The industry partners announcing their commitments to advance innovation and efficiency of next generation heat pump technology are:

• Carrier (Palm Beach Gardens, FL)
• Daikin (Waller, TX)
• Johnson Controls (Milwaukee, WI)
• Lennox International (Richardson, TX)
• Mitsubishi Electric (Suwanee, GA)
• Trane Technologies (Davidson, NC) 

Throughout the challenge, DOE will host regular workshops with manufacturers, as well as utility and state partners, to coordinate the lab and field-testing activities.  

DOE initially launched the Cold Climate Heat Pump Challenge as part of the Initiative for Better Energy, Emissions, and Equity (E3 Initiative). The E3 Initiative advances the research, development, and national deployment of clean heating and cooling systems that include heat pumps, advanced water heaters, low-to-no global warming potential refrigerants, and smarter HVAC diagnostic tools in residential and commercial buildings.