Editing Heat pump (section)

==Government incentives==
Financial incentives aim to protect consumers from high fossil gas costs and to reduce [[greenhouse gas emissions]],<ref>{{Cite web |title=Heat Pumps |url=https://www.iea.org/energy-system/buildings/heat-pumps |access-date=2023-09-17 |website=IEA |archive-date=2023-09-17 |archive-url=https://web.archive.org/web/20230917022539/https://www.iea.org/energy-system/buildings/heat-pumps |url-status=live }}</ref> and are currently available in more than 30 countries around the world, covering more than 70% of global heating demand in 2021.<ref name=ieareport />

===Australia===
Food processors, brewers, petfood producers and other industrial energy users are exploring whether it is feasible to use renewable energy to produce industrial-grade heat. Process heating accounts for the largest share of onsite energy use in Australian manufacturing, with lower-temperature operations like food production particularly well-suited to transition to renewables.

To help producers understand how they could benefit from making the switch, the Australian Renewable Energy Agency (ARENA) provided funding to the Australian Alliance for Energy Productivity (A2EP) to undertake pre-feasibility studies at a range of sites around Australia, with the most promising locations advancing to full feasibility studies.<ref>{{Cite web|url=https://arena.gov.au/blog/electrifying-industrial-processes-with-heat-pumps/|title=Electrifying industrial processes with heat pumps.|date=22 March 2022|access-date=2022-08-09|archive-date=2022-08-08|archive-url=https://web.archive.org/web/20220808190958/https://arena.gov.au/blog/electrifying-industrial-processes-with-heat-pumps/|url-status=live}}</ref>

In an effort to incentivize energy efficiency and reduce environmental impact, the Australian states of Victoria, New South Wales, and Queensland have implemented rebate programs targeting the upgrade of existing hot water systems. These programs specifically encourage the transition from traditional gas or electric systems to heat pump based systems.<ref>{{Cite web |last=Department of Energy, Environment and Climate Action |first=Victoria Government (Australia) |date=2023-10-11 |title=Hot water systems for businesses |url=https://www.energy.vic.gov.au/businesses/victorian-energy-upgrades-businesses/hot-water-systems |work=Victoria Government |language=en-AU}}</ref><ref>{{Cite web |last=Department of Energy, Environment and Climate Action (Australia) |first=Victoria Government |date=2023-09-23 |title=Hot water systems for households |url=https://www.energy.vic.gov.au/households/victorian-energy-upgrades-for-households/hot-water-systems |work=Victoria Government |language=en-AU}}</ref><ref>{{Cite web |last=New South Wales Climate and Energy Action |first=New South Wales Government (Australia) |date=2023-12-08 |title=Upgrade your hot water system |url=https://www.energy.nsw.gov.au/households/rebates-grants-and-schemes/household-energy-saving-upgrades/upgrade-your-hot-water |work=NSW Government |language=en-AU}}</ref><ref>{{Cite web |last=Australian Government |first=Queensland |date=2023-10-05 |title=Queensland Business Energy Saving and Transformation Rebates |url=https://www.business.qld.gov.au/running-business/energy-business/energy-efficiency-rebate |work=Queensland Government |language=en-AU}}</ref><ref>{{Cite web |last=Time To Save |date=2023-11-21 |title=Hot Water Rebates in Australia: A Detailed Guide For Businesses |url=https://www.timetosave.com.au/hot-water-rebates-in-australia/ |work=Timetosave |language=en-AU}}</ref>

===Canada===
In 2022, the Canada Greener Homes Grant<ref>{{Cite web|url=https://www.nrcan.gc.ca/energy-efficiency/homes/canada-greener-homes-grant/23441|title=Canada Greener Homes Grant|date=17 March 2021|access-date=2022-01-17|archive-date=2022-01-17|archive-url=https://web.archive.org/web/20220117215119/https://www.nrcan.gc.ca/energy-efficiency/homes/canada-greener-homes-grant/23441|url-status=live}}</ref> provides up to $5000 for upgrades (including certain heat pumps), and $600 for energy efficiency evaluations.

=== China ===
Purchase subsidies in rural areas in the 2010s reduced burning coal for heating, which had been causing ill health.<ref>{{Cite web |title=Coal fired boiler replacement in Beijing rural area |url=https://hpa.ehpa.org/coal-fired-boiler-replacement-in-beijing-rural-area-2/ |access-date=2023-09-14 |archive-date=2023-03-24 |archive-url=https://web.archive.org/web/20230324214156/https://hpa.ehpa.org/coal-fired-boiler-replacement-in-beijing-rural-area-2/ |url-status=live }}</ref>

In the 2024 report by the [[International Energy Agency]] (IEA) titled "The Future of Heat Pumps in China," it is highlighted that China, as the world's largest market for heat pumps in buildings, plays a critical role in the global industry. The country accounts for over one-quarter of global sales, with a 12% increase in 2023 alone, despite a global sales dip of 3% the same year.<ref name=":0">{{Cite web |title=Executive summary – The Future of Heat Pumps in China – Analysis |url=https://www.iea.org/reports/the-future-of-heat-pumps-in-china/executive-summary |access-date=2024-04-12 |website=IEA |language=en-GB}}</ref>

Heat pumps are now used in approximately 8% of all heating equipment sales for buildings in China as of 2022, and they are increasingly becoming the norm in central and southern regions for both heating and cooling. Despite their higher upfront costs and relatively low awareness, heat pumps are favored for their energy efficiency, consuming three to five times less energy than electric heaters or fossil fuel-based solutions. Currently, decentralized heat pumps installed in Chinese buildings represent a quarter of the global installed capacity, with a total capacity exceeding 250 GW, which covers around 4% of the heating needs in buildings.<ref name=":0" />

Under the Announced Pledges Scenario (APS), which aligns with China's carbon neutrality goals, the capacity is expected to reach 1,400 GW by 2050, meeting 25% of heating needs. This scenario would require an installation of about 100 GW of heat pumps annually until 2050. Furthermore, the heat pump sector in China employs over 300,000 people, with employment numbers expected to double by 2050, underscoring the importance of vocational training for industry growth. This robust development in the heat pump market is set to play a significant role in reducing direct emissions in buildings by 30% and cutting PM2.5 emissions from residential heating by nearly 80% by 2030.<ref name=":0" /><ref>IEA (2024), The Future of Heat Pumps in China, IEA, Paris <nowiki>https://www.iea.org/reports/the-future-of-heat-pumps-in-china</nowiki>, Licence: CC BY 4.0</ref>

===European Union===
To speed up the deployment rate of heat pumps, the European Commission launched the Heat Pump Accelerator Platform in November 2024.<ref>{{cite web| url=https://energy.ec.europa.eu/topics/energy-efficiency/heat-pumps/heat-pump-accelerator-platform_en | title= The Heat Pump Accelerator Platform| date=2024|access-date=2024-11-27|website= European Commission}}</ref> It will encourage industry experts, policymakers, and stakeholders to collaborate, share best practices and ideas, and jointly discuss measures that promote sustainable heating solutions.<ref>{{cite web| url=https://energy.ec.europa.eu/topics/energy-efficiency/heat-pumps_en | title= Heat pumps| date=2024|access-date=2024-11-27|website= European Commission}}</ref>

===United Kingdom===

Until 2027 fixed heat pumps have no Value Added Tax (VAT).<ref>{{Cite web |date=2024-01-31 |title=Energy-saving materials and heating equipment (VAT Notice 708/6) |url=https://www.gov.uk/guidance/vat-on-energy-saving-materials-and-heating-equipment-notice-7086 |access-date=2025-01-19 |website=GOV.UK |language=en}}</ref> {{As of|2022}} the installation cost of a heat pump is more than a gas boiler, but with the "Boiler Upgrade Scheme"<ref>{{Cite web |title=Apply for the Boiler Upgrade Scheme |url=https://www.gov.uk/apply-boiler-upgrade-scheme |access-date=2023-09-14 |archive-date=2023-09-19 |archive-url=https://web.archive.org/web/20230919162720/https://www.gov.uk/apply-boiler-upgrade-scheme |url-status=live }}</ref> government grant and assuming electricity/gas costs remain similar their lifetime costs would be similar on average.<ref>{{Cite web |title=BBC Radio 4 – Sliced Bread, Air Source Heat Pumps |url=https://www.bbc.co.uk/programmes/m0016pvn |url-status=live |archive-url=https://web.archive.org/web/20220430081415/https://www.bbc.co.uk/programmes/m0016pvn |archive-date=2022-04-30 |access-date=2022-04-30 |website=BBC |language=en-GB}}</ref> However lifetime cost relative to a gas boiler varies considerably depending on several factors, such as the quality of the heat pump installation and the tariff used.<ref>{{Cite web |last=Lawrence |first=Karen |date=2024-05-03 |title=Air source heat pump costs and savings |url=https://www.which.co.uk/reviews/ground-and-air-source-heat-pumps/article/ground-and-air-source-heat-pumps/air-source-heat-pump-costs-and-savings-akySY6N5Y6Dd |access-date=2024-06-07 |website=Which? |language=en}}</ref> In 2024 England was criticised for still allowing new homes to be built with gas boilers, unlike some other counties where this is banned.<ref>{{Cite web |title=Clean Heat without the Hot Air: British and Dutch lessons and challenges |url=https://ukerc.ac.uk/news/clean-heat-without-the-hot-air-british-and-dutch-lessons-and-challenges/ |access-date=2024-06-07 |website=UKERC |language=en}}</ref>

===United States===
{{Further|Environmental policy of the Joe Biden administration|Climate change in the United States}}{{Update|part=section|date=January 2025|reason=talks about 2023 in future tense}}
The High-efficiency Electric Home Rebate Program was created in 2022 to award grants to State energy offices and Indian Tribes in order to establish state-wide high-efficiency electric-home rebates. Effective immediately, American households are eligible for a tax credit to cover the costs of buying and installing a heat pump, up to $2,000. Starting in 2023, low- and moderate-level income households will be eligible for a heat-pump rebate of up to $8,000.<ref>{{cite web |author=Shao |first=Elena |title=H. R. 5376 – Inflation Reduction Act of 2022 |url=https://www.congress.gov/bill/117th-congress/house-bill/5376/text |url-status=live |archive-url=https://web.archive.org/web/20221117004205/https://www.congress.gov/bill/117th-congress/house-bill/5376/text |archive-date=17 November 2022 |access-date=17 November 2022 |website=Congress.gov |date=16 August 2022 |publisher=U.S. Congress}}</ref>

In 2022, more heat pumps were sold in the United States than natural gas furnaces.<ref>{{cite news |url=https://www.nytimes.com/interactive/2023/02/22/climate/heat-pumps-extreme-cold.html |title=As Heat Pumps Go Mainstream, a Big Question: Can They Handle Real Cold? |date=February 22, 2023 |newspaper=[[The New York Times]] |access-date=April 11, 2023 |archive-date=April 11, 2023 |archive-url=https://web.archive.org/web/20230411162035/https://www.nytimes.com/interactive/2023/02/22/climate/heat-pumps-extreme-cold.html |url-status=live }}</ref>

In November 2023 Biden's administration allocated 169 million dollars from the [[Inflation Reduction Act]] to speed up production of heat pumps. It used the Defense Production Act to do so, in a stated bid to advance national security.<ref>{{cite news |last1=Frazin |first1=Rachel |date=17 November 2023 |title=Biden administration uses wartime authority to bolster energy efficient manufacturing |agency=The Hill |url=https://thehill.com/policy/energy-environment/4315744-biden-admin-wartime-authority-bolster-energy-efficient-manufacturing/ |access-date=29 November 2023}}</ref>