The challenge is a multi-year effort by the U.S. Department of Energy (DOE) to accelerate and promote the deployment of heat-pump technologies by supporting innovation and manufacturing.

Heat pumps from Bosch, Daikin, Midea, and Johnson Controls, DOE recently announced, are moving to the next phase of the challenge, which involves installing and monitoring prototypes in cold-climate locations throughout the U.S. and Canada. Lennox International, Carrier, Trane Technologies, and Rheem had already begun field-testing prototype heat pumps as part of the challenge.

The initiative brings together public- and private-sector stakeholders to address technical challenges and market barriers to adopting next-generation cold-climate heat pumps — clean-energy heating and cooling units that can potentially save a household $500 or more a year on utility bills while also slashing harmful carbon emissions, DOE said in a press release. The challenge specifies that the prototypes should deliver 100% heating capacity, without the use of auxiliary heat and with significantly higher efficiencies, at an outdoor temperature of 5°F.

Through the challenge, DOE is working with industry to accelerate widespread commercialization of cold-climate electric heat pumps, which can provide clean heating and cooling for millions of American families and help meet President Joe Biden’s goal of 100% carbon-pollution-free electricity by 2035 and a net-zero-carbon economy by 2050.

“Deploying next-generation technologies like heat pumps is critical to the Biden-Harris administration’s efforts to ensure that Americans have access to more affordable clean heating and cooling options — no matter where they live,” said Secretary of Energy Jennifer M. Granholm in the press release. “By supporting industry advancements, DOE’s Cold-Climate Heat Pump Challenge is helping get cost-effective clean-energy technology into homes across America — keeping families warm during the coldest months and saving them money.”

Heating and cooling buildings, homes, offices, schools, hospitals, military bases, and other buildings account for more than 35% of U.S. energy consumption, driving carbon emissions that fuel climate change, jeopardizing public health, and polluting local ecosystems, DOE said. Heat pumps efficiently provide comfortable temperatures for heating and cooling homes and businesses in all climates, especially when homes are well insulated, and can also provide efficient water heating, DOE said.

Unlike heaters that run on natural gas or heating oil, heat pumps use electricity to extract heat from the air to heat and cool buildings and, when compared to gas boilers, heat pumps reduce on-site greenhouse gas emissions by up to 50%, DOE said.

DOE will continue to work with its partners to develop programs, incentives, education and outreach campaigns that help consumers better understand the benefits of heat pumps, the press release said.

The challenge is part of the Initiative for Better Energy, Emissions, and Equity (E3 Initiative), run by DOE’s Building Technologies Office in the Office of Energy Efficiency and Renewable Energy. DOE is partnering with the U.S. Environmental Protection Agency and Natural Resources Canada on the effort.