More Americans are buying heat pumps, an environmentally friendly alternative to furnaces and air-conditioners that can significantly lower monthly energy bills.
But the pace of installations has slowed in the past year, posing an obstacle to the Biden administration’s climate plans.
Rising interest rates and inflation combined with a slow and confusing rollout of federal government incentives for the purchase of heat pumps are largely responsible for the recent drop in sales, energy analysts said.
These headwinds, if they persist, could jeopardize President Biden’s goals of effectively eliminating U.S. emissions of greenhouse gases by 2050.
Those incentives defray only a small portion of the $16,000 an average heat pump installation costs, according to Rewiring America, a nonprofit group that is working to increase the use of cleaner forms of energy.
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