Heat Pump Defense Production Act Program

Federal Agency

Sub-Department

Office of Manufacturing and Energy Supply Chains (MESC)

Purpose

To accelerate the growth of domestic production capability of electric heat pumps by creating new or additional domestic heat pump production capability and/or transition an existing production capability to heat pump production.

Applicant and/or Project Eligibility Requirements

Eligible applicants include institutions of higher education, for-profit and non-profit organizations, state, local governments, and Tribal Nations, and domestic incorporated consortia.

Decarbonization Considerations

Heat pumps transfer heat rather than generate heat, which make it efficient to provide comfortable temperatures for heating and cooling homes and businesses in all climates, especially when homes are well insulated, and can also provide more efficient water heating. Heating and cooling buildings, homes, offices, schools, hospitals, military bases, and other critical facilities drive more than 40% of all U.S. energy consumption. Because heat pumps transfer heat rather than generate heat, this technology efficiently provides comfortable temperatures for heating and cooling homes and businesses in all climates, especially when homes are well insulated, and can also provide more efficient water heating.

Equity Considerations

If a new heat pump production facility is planned, consider training and hiring a local workforce, to ensure the local community can benefit from the economic development opportunity. If an existing non-heat pump manufacturing facility is to transition to a heat pump production plant, consider how to ensure the current employees can benefit from the transition by offering training and employment opportunities for them.

Helpful Tips

This is primarily for manufacturing and workforce development. Eligible projects will: 1) Construct new commercial-scale facilities or expand existing facilities to create new or additional domestic production capability 2) Retool or retrofit existing commercial-scale facilities to transition manufacturing from non-heat pump HVAC systems and/or water heating equipment to produce electric heat pump materials, heat pump components, and heat pump systems  3) Invest in America's clean energy manufacturing workforce by providing good-paying, union jobs

Other Notes

Note: Round 2 additional funding is being made in 2024 exclusively for the following topic areas: Topic Area 3. Residential Heat Pump Production Capability Topic Area 4. Heat Pump Water Heater Production Capability Topic Area 5. All Other Heat Pump and Component Production Capability