Sworn-in President William Ruto confirms Kenya’s commitment to 100% clean energy by 2030.
How efficient does a heat pump need to be to qualify for the Inflation Reduction Act? This is an interesting question.
The Inflation Reduction Act provides significant incentives of up to $2,000 for Americans who install heat pumps. But just as its “Buy American” rule for EVs now rules out many EVs on the market, especially those made by Hyundai and Kia, the acceptance criteria for heat pumps can be so high that many of the EVs currently available don’t qualify. .
Canary Media reports that some in the industry are concerned that the performance standards set out in the IRA, designed to encourage manufacturers to build more efficient heat pumps, could limit the number of products available to customers who want to take advantage of federal payment incentives. Switching from fossil gas to electric heating. According to Nate Adams, an electrification advocate and chief executive of HVAC 2.0, which makes software for installing HVAC, this could harm the technology and tax incentives aimed at promoting it.
“If there are too many bad experiences, it can really slow things down. Word of mouth marketing is really important in an industry that is still largely organized around a network of local and regional contractors and installers,” he said. â�<“糟糕的评论被阅读了数百次。” â�<“糟糕的评论被阅读了数百次。” “Bad reviews are read hundreds of times.”
《降低通货膨胀法》要求热泵â�<“达到或超过能源效率联盟设定的最高效率等级”，才有资格获得税收抵免。 《降低通货膨胀法》要求热泵â� The Inflation Reduction Act requires heat pumps to “meet or exceed the maximum efficiency rating set by the Energy Efficiency Coalition” to be eligible for tax credits. “Efficiency can be a daunting task,” the group’s website says. “Efficiency is not always visible, after all, starter costs can be high and it’s hard to predict when that will happen. The most important thing is to reduce energy consumption.” and operating costs. Commitment is just one of the features of the product. To address these issues, CEE creates a common benchmark, makes performance visible and verifiable, engages multiple stakeholders, and increases the impact of performance information. CEE’s definition of performance bridges the gap between stakeholders and consumers creates a market orientation”. Those of us who advocate e-mobility know firsthand how difficult it is to educate people about the value of efficiency.
Currently, the maximum efficiency rating of air-fired heat pumps—the heat pumps that heat and cool the air in buildings—in Central and Eastern Europe is much stricter than the rating set by Energy Star, the other major efficiency standard for electrical appliances in the United States. This standard is in accordance with the US Department of Energy. Agency for Energy and Environmental Protection.
In fact, Adams says, less than 10 percent of heat pumps in North America meet the highest Central and Eastern European standards in the general residential district heating category. Most of the others are slightly less efficient, but still quite efficient, and even one of them is more efficient than resistive heating and cleaner than fossil fuel heating systems.
What’s more, these efficient systems typically cost at least $3,000 more than less efficient, more widely used heat pumps, he said. He noted that it would be difficult to sell tax credits for heat pumps to customers if the markup on the price of the relevant equipment was greater than the tax credit itself.
But that could all change after the CEE board meeting this week. At that point, the group is expected to decide on new heating and cooling regulations that will come into effect in 2023, the same year that the tax credit is first offered.
CEE declined to comment on what options it is considering for a new standard. But a Sept. 30 document obtained by Canary Media shows the group is considering changing its current efficiency rating structure to make it simpler, allowing most heat pumps that currently have an ENERGY STAR rating, receive a tax credit.
“These changes in Central and Eastern Europe, if they really happen, will make me very, very happy,” Adams said. â�<“具有合理的效率要求，它开辟了许多我们可以使用的设备。” â�<“具有合理的效率要求，它开辟了许多我们可以使用的设备。” “With reasonable efficiency requirements, there is a lot of equipment that we can use.” These include some devices that perform well in low temperature climates, priced between $4,000 and $5,000. “That’s where the $2,000 tax credit really matters,” Adams said.
Nate Kinsey, senior policy manager at New York-based home energy efficiency startup Sealed, said his firm backs the proposed alliance with ENERGY STAR. According to 2021 data, not only are there more ENERGY STAR-rated heat pumps available—about 39% of heat pumps currently available in the North American market—but also customer awareness of the ENERGY STAR label compared to detailed performance metrics. CEE. “Combining a heat pump tax credit with ENERGY STAR is a rare win-win opportunity,” he said.
But some environmentalists and energy efficiency experts fear that the proposed changes in Central and Eastern Europe will weaken the purported goal of the Inflation Reduction Act, which is to increase efficiency in the US heat pump market.
“We believe the purpose of this is to ensure consumers have access to efficient, high-quality products that meet their heating needs,” said Mark Kresovik, Senior Policy Director of the Energy Efficient Economy Council. â�<“我们的评估是，中东欧应继续推动市场超越，特别是考虑到这些税收抵免的慷慨。” â�<“我们的评估是，中东欧应继续推动市场超越，特别是考虑到这些税收抵免的慷慨。” “Our assessment is that the countries of Central and Eastern Europe should continue to push the market to grow better, especially given the generosity of these tax incentives.”
A CEE representative told Canary Media that the group “received comments from the HVAC industry on these projects.” And shares concerns about product availability, cost-effectiveness, and added value associated with higher performance levels. ”
Sealed’s Kinsey said he understands lowering heat pump efficiency requirements could also set a precedent for lowering fossil fuel equipment requirements. He stressed, however, that it is important to expand the availability and affordability of heat pumps in order to accelerate the wider market adoption of a technology that not only eliminates the use of fossil fuels in buildings, but faster than it replaces it. effectively.
Adams noted that tax credits under the Inflation Reduction Act for electric vehicles are subject to income caps, with more expensive cars and richer customers not being able to receive them. Establishing a tax credit for heat pumps, which only applies to the most expensive products, is moving in the opposite direction. â�<“这就像争辩说，只有买得起特斯拉格子布，才能获得电动汽车税收抵免，”他说。 â�<“这就像争辩说，只有买得起特斯拉格子布，才能获得电动汽车税收抵免，”他说。 “It’s like saying you can only get an electric car tax credit if you can afford a Tesla blanket,” he said.
On the other hand, Kresovik notes that efficiency gains in consumer products ranging from washing machines to light bulbs are largely driven by government standards. Instead of changing those standards to make more existing products eligible for tax breaks and other forms of government incentives, he said, “manufacturers need to meet the growing demand for all the benefits that high-performance products provide.”
Here’s a discussion of which is better – a hybrid, plug-in hybrid, or battery electric vehicle. Should they all be eligible for government benefits? Should more efficient electric vehicles get more incentives? There is no simple answer.
Dana Fisher, director of regulatory strategy for Mitsubishi Electric, said at a webinar hosted by Rewiring America last week that heat pump manufacturers can restructure their equipment designs and manufacturing processes to adapt to changing regulations. But “It takes a lot of work to make these massive changes in the marketplace, and it doesn’t happen in a vacuum,” he said. â�<“这需要持续增长。” â�<“这需要持续增长。” “It requires constant growth.”
Manufacturers also need time to change their product lines. Waiting for these changes can incur huge costs. If stricter energy efficiency standards eventually slow down the widespread adoption of heat pumps due to rising prices, and thereby reduce the impact of the new tax credit, it could seriously slow down the development of technologies considered key to tackling climate change. The International Energy Agency says global heat pump installations need to triple by 2030 to reach zero carbon by 2050. But last year, the number of heat pumps in the US grew by only 15 percent.
To transform the heat pump market in the US, Fisher says it’s important to make the tax credit program as effective as possible. Of all the building electrification incentive structures in the Inflation Reduction Act, “I think the tax credit is really the driving force.”
Unlike the other two major IRA home electrification and efficiency incentive programs, which are capped at about $9 billion, the heat pump tax credit can be used indefinitely for the next 10 years. â�<“在10 年期间，可能会发放数百亿甚至1000 亿美元的税收抵免，具体取决于电气化的发展速度，”Fischer 说。 â�<“在10 年期间，可能会发放数百亿甚至1000 亿美元的税收抵免，具体取决二电气化的发展速”庀，， “Within 10 years, tens of billions or even $100 billion in tax credits could be issued, depending on how fast electrification progresses,” Fisher said.
Canary Media believes that speed is critical. “The more people who take advantage of the heat pump tax credit over the next decade, the better the cuts will be.” Please use the comments section to let us know what you think.
Steve writes about the interface between technology and sustainability from his home in Florida or wherever the Singularity might take him.
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