Understanding and comparing European and North American residential heat pump programs: Learning from each other

Peer-reviewed paper 7-009-26

In both Europe and North America there is growing interest in installing heat pumps in order to save energy, reduce carbon emissions and improve comfort. Heat pump sales and market share are growing on both sides of the Atlantic Ocean, spurred by programs and policies. On both continents, efforts mix training, incentives, and policy, sometimes taking a multi-pronged market transformation approach to address barriers. In Europe the incentives come more from governments, in the U.S. they are more from utilities, with Canada in-between. On both continents, incentives are higher or special programs undertaken to aid heat pump purchases by low and moderate-income families. Regulations have been a strong driver in multiple European countries and are starting to be a driver in several North American states and provinces. On both continents, there is a move to improve heat pump economics by reforming rates. Local electric and gas prices have helped drive heat pump economics and market share, as have carbon prices in some countries. Sudden changes in subsidy structures in a few countries created uncertainty that dampened consumer demand. This volatility underscores the importance of stable, multi-year program frameworks, such as have been in place in some of the leading U.S. states. Both continents could benefit by examining some of the details in programs and policies on the other continent, looking for ideas to enrich their heat pump programs and policies, thereby spurring greater heat pump sales and market share for both new construction and existing buildings.