The Biden administration has committed $450 million to promote the adoption of electric heat pumps across New England, aiming for these devices to account for at least 65% of residential heating, cooling, and water heating sales by 2030. This funding is part of a broader initiative, known as the New England Heat Pump Accelerator, which seeks to encourage homeowners to transition from traditional heating methods to more energy-efficient solutions.
The program, which focuses on five of the coldest states in the U.S.—Connecticut, Maine, Massachusetts, New Hampshire, and Rhode Island—intends to subsidize the costs associated with heat pump installation. A significant portion of the funding, approximately $270 million, will be allocated to distributors who will pass on savings to consumers, making these systems more affordable.
Critics of the initiative raise important concerns regarding its feasibility in harsh northeastern winters. Many residents argue that the region’s cold temperatures and high electricity costs make heat pumps less practical. According to a 2024 analysis by the American Gas Association, natural gas heating remains more economical than heat pumps in all of New England. The U.S. Energy Information Administration also forecasts that this winter, heating costs for homes using natural gas will average between $600 and $1,133 for those relying on electricity.
Toby Rice, CEO of EQT Energy, pointed out the disparity in energy costs, noting, “The highest natural gas prices in the world will be paid in Boston and New York City.” This statement highlights the challenges for residents in areas close to natural gas supplies, where prices remain high despite their proximity.
Supporters of heat pumps argue that homeowners currently using expensive heating fuels like oil or propane could benefit financially from switching to heat pumps. According to Rewiring America, the average American household could save $370 annually, while families moving away from oil or propane might save closer to $1,000 each year. Additionally, the International Energy Agency has identified heat pumps as a key component in reducing global emissions, estimating they could cut emissions by half a gigaton by 2030.
Despite these potential savings, the installation costs for heat pumps remain a barrier for many homeowners, typically ranging from $8,000 to $15,000. Furthermore, the American Gas Association notes that most households adopting heat pumps in colder climates still require backup heating systems, which diminishes expected savings and complicates energy management.
In response to these challenges, New England officials are optimistic that enhanced incentives, applied upstream at the distributor level, will encourage the adoption of higher-efficiency heat pump models. James Fowler, senior adviser at the Connecticut Department of Energy & Environmental Protection, described this as a “holistic approach to market transformation,” aiming to align market and climate goals while reducing costs for consumers.
Critics, however, stress that the upfront costs and the ongoing expense of electricity during cold weather remain significant concerns. Ben Lieberman, a senior fellow at the Competitive Enterprise Institute, stated, “The push for electrification doesn’t make sense,” indicating skepticism about the practicality of heat pumps as a universal solution for all homeowners.
As the Biden administration underscores its commitment to green energy solutions, the effectiveness and affordability of heat pumps in New England will be closely monitored. The outcome of this initiative could shape the future of residential heating in the region, affecting both the economy and the environment.
