While the installation of heat pumps may seem to be slowing due to inflation and rising interest rates, coupled with a confusing rollout of federal funding, they are expected to pick up speed this year.
Rebate programs associated with the Inflation Reduction Act for the purchase of high-efficiency HVAC equipment are finally picking up steam, after a near year and a half since the IRA was signed into law.
Heat pumps from Bosch, Daikin, Midea, and Johnson Controls 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.
The final rule from the U.S. Department of Energy, issued recently, requires newly manufactured indoor residential gas furnaces to be at least 95% efficient starting in December 2028, meaning furnaces made after then will have to be condensing models.
The selected projects, which have not been finalized, would be the first awards coming out of DOE’s use of the Defense Production Act (DPA) to increase domestic production of five clean energy technologies, including electric heat pumps.
The latest rule will require every mobile home gas furnace — and every new residential, non-weatherized gas furnace — to have a minimum annual fuel utilization efficiency (or AFUE) of 95% starting in late 2028.