New Inflation Reduction Act Funds will Accelerate Heat Pump Production and Result in Major Energy Savings for Families

Earthjustice applauds Biden administration’s actions to lower energy costs for consumers


Geoffrey Nolan, Earthjustice, (202) 740-7030

Today the Biden administration announced a series of actions to accelerate the production and adoption of heat pumps, one of the fastest ways for consumers to eliminate their dependence on fossil fuels and lower their energy bills. The announced $9 billion will go to states and tribes to begin administering home efficiency programs funded by the recently passed Inflation Reduction Act. According to the White House, the rebate program could support energy efficiency upgrades for more than 1.6 million households, including by installing up to 500,000 heat pumps.

The announcement also included a Notice of Intent and Request for Information on the ways the Department of Energy can best utilize $250 million in the Inflation Reduction Act to manufacture more heat pumps in the United States under the Defense Production Act. After the announcement, Earthjustice Associate Legislative Representative Jake Kornack issued the following statement:

“Thanks to today’s announcements by the Biden administration, many families can enter the upcoming winter knowing that help is on the way to lower their long-term energy bills and upgrade their homes with the latest state-of-the-art, climate-friendly appliances. Millions are already using heat pumps to heat and cool their homes, but if we are to meet our climate goals, we will need to rapidly replace the dirty, expensive furnaces that many people still rely on today. Under President Biden’s leadership, the United States is now on track to add 12 million heat pumps by 2030, helping millions of people lower their energy bills and reduce climate pollution while supporting good-paying, American manufacturing jobs. At a time of soaring energy costs, American-made heat pumps will save the average family hundreds of dollars per year and will put us on the path to eliminating fossil fuels in our homes. We urge states to follow the administration’s lead and quickly implement these cost-saving programs.”

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