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The Performance Playbook: A policy strategy for scaling heat pump adoption with happy consumers and utilities.

Number: 1127

Author(s) : FRANK A., KINSEY N.

Summary

Across the country, states and utilities are implementing programs to accelerate the market adoption of heat pumps to meet energy and climate goals. Through case studies of leading heat pump rebate and incentive programs, including California’s Technology and Equipment for Clean Heating initiative, the City of Denver’s Climate Action Rebates, and New York State’s Clean Heat program, Sealed explores each program’s unique market animation strategies and their impact on consumer adoption of heat pumps. These programs attempt to utilize “tried and true” market animation strategies that largely rely on financial incentives for consumers, but they have all caused a market “sugar crash” when program funding is exhausted. Market strategies based solely on large consumer rebates make achieving the adoption of heat pumps difficult, if not impossible, at the speed and scale required to reduce greenhouse gas emissions from commercial and residential buildings.
But while program sugar crashes are a well known phenomenon, little work has been done to quantify the effect and compare the impact across geographies and program designs. This paper takes a first step to track the speed and scale of sugar crash program spending, and offers solutions to the problem. Specifically, a “Performance Playbook” is proposed that seeks to address this sugar crash problem. Only market-aligned strategies that maximize scarce ratepayer funds can accelerate the consumer adoption of heat pumps and provide utilities with valuable grid services. At its core, the Performance Playbook is built uponthe principles that heat pump incentive programs should be:
● Easily accessible for both consumers and market actors,
● Flexible to adapt to evolving market conditions and long-term policy goals, and
● Performance-based to ensure market actors complete high-quality installations.

Available documents

Format PDF

Pages: 9 p.

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Details

  • Original title: The Performance Playbook: A policy strategy for scaling heat pump adoption with happy consumers and utilities.
  • Record ID : 30033563
  • Languages: English
  • Subject: Figures, economy
  • Source: 14th IEA Heat Pump Conference 2023, Chicago, Illinois.
  • Publication date: 2023/05

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