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DECARBONIZING SPACE HEATING WITH AIR SOURCE HEAT PUMPS 6. HEAT PUMP DEPLOYMENT AND POLICIES AROUND THE WORLD This section provides an overview of heat pump deployment and policies in the United States, the European Union (EU), Japan and China. It then provides an overview of policy options for promoting the deployment of ASHPs. 6.1. Heat Pump Deployment Policies in Major Economies United States The US federal government does not offer incentives for deployment of air source heat pumps. Several state governments offer such incentives. The State of California has several programs to promote ASHPs. In September 2018, California passed Assembly Bill 3232, which assesses the policies needed to enable a 40 percent reduction in greenhouse gases below 1990 levels in the building sector by 2030, as well as Senate Bill 1477, which provides $50 million in annual incentives for low-carbon heating alternatives, including heat pumps.42 California’s Building Energy Efficiency Standards were updated in 2019 to level the playing field between gas and electric heating systems by moving away from the gas efficiency baseline in place today.43 In addition, some incentives exist at the local level in California. The Sacramento Municipal Utility Division, for example, offers a $5,000 incentive for all-electric households and nearly $14,000 for retrofits.44 States in the Northeast also offer incentives for ASHP adoption. Connecticut’s 2018 Comprehensive Energy Strategy includes financial incentives for building electrification and partial building use of ASHPs.45 Maine and Massachusetts offer downstream residential and commercial rebates for ductless heat pumps. New York’s heat pump program, which began in 2017, gives a $500 per unit midstream incentive to contractors, contains quality assurance measures, and is administered by the New York State Energy Research and Development Authority and the state’s Clean Energy Fund.46 European Union While market share for heat pumps remains low, the EU has seen accelerated deployment of ASHP installations over the past few years. From 2009 to 2018, yearly heat pump sales in Europe grew nearly 50 percent, from 734,000 to 1.3 million units.47 Much of the groundwork for the rapid growth was laid by policies in the 1980s and 1990s, at a time when consumer awareness was low.48 Several European governments offer direct financial incentives for switching to heat pumps. Sweden has used investment subsidies to cover a portion of the cost of heat pump installation for households transitioning from conventional oil or electric heating. Austria subsidizes installations if the unit achieves a mean seasonal COP of 4.0.49 Some European countries have also implemented nonfinancial measures to encourage innovation and increase heat pump deployments. In the 1970s and 1980s, test facilities 28 | CENTER ON GLOBAL ENERGY POLICY | COLUMBIA SIPAPDF Image | DECARBONIZING SPACE HEATING WITH HEAT PUMPS
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