Biden-Harris Administration Announces $250 Million to Accelerate Electric Heat Pump Manufacturing Across America

WASHINGTON, D.C. —  As part of President Biden’s Investing in America the U.S. Department of Energy (DOE), today announced a $250 million funding opportunity to accelerate electric heat pump manufacturing in America. This is the first funding opportunity announcement stemming from DOE’s new authorization, invoked by President Biden last summer, to utilize the Defense Production Act (DPA) to increase domestic production of five key clean energy technologies, including electric heat pumps. This funding, provided by the Inflation Reduction Act, will be used to building a clean energy economy, creating good-paying manufacturing jobs, and helping families save money on their energy bills. Increased use of electric heat pumps, for heating and cooling, will help lower energy costs for more American families and businesses and create healthier indoor spaces through American-made clean energy technologies.  

“Electric heat pumps offer a cheaper, more reliable option for heating and cooling that isn’t prone to dramatic price swings and helps to strengthen the nation’s energy independence.,” said U.S. Secretary of Energy Jennifer M. Granholm. “President Biden authorized DOE to lead this charge knowing that Americans across the country will feel the benefits — from the manufacturing workers leading development and deployment, to the consumers who will benefits from energy savings.” 

Heating and cooling buildings, homes, offices, schools, hospitals, military bases, and other critical facilities drive more than 40% of all U.S. energy consumption.  Because heat pumps transfer heat rather than generate heat, this technology efficiently provides comfortable temperatures for heating and cooling homes and businesses in all climates, especially when homes are well insulated, and can also provide more efficient water heating. DOE is extending applications to manufacturers that are interested in creating new facilities or expanding existing production capacity to efficiently develop more electric heat pump systems, components, and materials in the United States. DOE is seeking projects that will:  

  • Construct new commercial-scale facilities or expand existing facilities to create new or additional domestic production capability  
  • Retool or retrofit existing commercial-scale facilities to transition manufacturing from non-heat pump HVAC systems and/or water heating equipment to produce electric heat pump materials, heat pump components, and heat pump systems  
  • Invest in America’s clean energy manufacturing workforce by providing good-paying, union jobs 

As the U.S. builds the clean energy economy, developing the workforce to support clean energy technologies will be critical.  Recognizing this need, the projects under the funding opportunity may propose using a portion of funding to develop the workforce needed to meet the facilities new or expanded needs. 

Concept papers, which are required for all applicants, are due on May 19, 2023, at 5 p.m. ET. Full applications are due on August 1, 2023, at 5 p.m. ET.   

DOE’s Office of Manufacturing and Energy Supply Chains (MESC) manages the DPA heat pump activities. Learn more about the MESC mission to strengthen and secure manufacturing and energy supply chains needed to modernize the nation’s energy infrastructure and support a clean and equitable energy transition. 

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