State creates its newest artificial market, increasing supply and decreasing cost
(HARTFORD, CT) – Governor Ned Lamont and the members of Connecticut’s Congressional delegation today announced that the U.S. Environmental Protection Agency (EPA) is awarding a coalition of states known as the New England Heat Pump Accelerator Coalition – which includes Connecticut, Massachusetts, Maine, New Hampshire, and Rhode Island – with a $450 million grant through the Climate Pollution Reduction Grant program to accelerate adoption of affordable electric heat pumps throughout the region.
Cold-climate heat pumps are proven to substantially reduce emissions, provide significant health benefits, and deliver energy savings.
The coalition’s application was led by the State of Connecticut through the Connecticut Department of Energy and Environmental Protection (DEEP). It is estimated that Connecticut’s allocation will be up to $100 million.
More on the federal grant money
Cost, efficiency of heat pumps
Costs for heat pumps are far from simple math. All involve the size, installation, Seasonal Energy Efficiency Ratio (SEER), and the Heating Seasonal Performance Ratio. On top of that, whether your home already has a duct system for heating/cooling and local climate.
If that’s not enough, most local municipalities require a permit for heat pump installation. You’ll need a building permit at minimum, but additional permits may be required if you have to excavate land or go near established pipelines for installation. Permit requirements and fees vary, but you’ll most likely pay somewhere around $100 for the building permit.
Heat Pump Removal
If you already own a heat pump and are installing a new one, you’ll have to pay to remove the old unit. This can cost $200–$400 per hour. These additional fees should be included in your original estimate, so it’s a good idea to ask the HVAC technician what portion of the quote goes toward removal. This will help more accurately compare quotes for heat pump installation.
The road ahead
Like the well-intended EV charging system, the state may find the artificial market imploding with PURA’s decisions and economic realities. The US Energy Information Administration’s (EIA’s) 2020 Residential Energy Consumption Survey estimates that approximately 15% of existing US homes use electric heat pumps as their primary heating source. The heat pump market share has fluctuated in the Northeast but stayed at a share of less than 10%.
More data on the market.
More on heat pump costs from This Old House.
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