Five New England states have initiated a $450 million program to install over 500,000 heat pumps in homes, aiming to reduce fossil fuel dependence and emissions. Funded by federal grants from the Inflation Reduction Act, the effort addresses barriers like high costs and cold-weather misconceptions. The initiative marks progress amid federal clean energy challenges.
This week, Connecticut, Maine, Massachusetts, New Hampshire, and Rhode Island unveiled the New England Heat Pump Accelerator, a collaborative push to deploy energy-efficient heat pumps across the region. The $450 million comes from the federal Climate Pollution Reduction Grants program established by President Joe Biden's 2022 Inflation Reduction Act. Organizers aim to install 580,000 residential heat pumps by 2030, cutting carbon emissions by 2.5 million metric tons—equivalent to removing over 540,000 gas-powered vehicles from roads.
New England's heavy reliance on fossil fuels for heating, including widespread use of oil—over half of Maine's homes and higher-than-average rates elsewhere—presents a prime opportunity for change. Barriers include upfront equipment costs, elevated electricity prices, and doubts about heat pumps in cold climates. "There’s not a full awareness that these cold-temperature heat pumps can handle our winters, and do it at a cost that is lower than many of our delivered fuels," said Joseph DeNicola, deputy commissioner of Connecticut’s Department of Energy and Environmental Protection.
The program divides into three hubs. The market hub, with $270 million, offers incentives to distributors, reducing cold-climate air-source heat pump costs by $500 to $700 per unit and heat-pump water heaters by $200 to $300. These apply automatically at purchase, starting February 2026. "It should be very simple for contractors to access this funding," noted Ellen Pfeiffer of Energy Solutions.
The innovation hub allocates $14.5 million per state for pilots targeting low-income households and workforce training, launching in April 2026. A resource hub will centralize information for stakeholders by spring 2026. States like Maine, which met its 100,000-installation goal in 2023 ahead of schedule, and Massachusetts, eyeing 2025 targets, provide momentum. Participants remain eligible for state rebates but not federal ones like Home Efficiency Rebates.
"It’s a big deal," said Katie Dykes, Connecticut’s energy commissioner. "It’s unprecedented to see five states aligning together on a transformational approach." The effort persists despite the Trump administration's moves to dismantle federal climate programs, emphasizing state-led emission reductions and cost savings.