Extra Funding & Changes to 2024 Heat Pump Incentives
TL/DR –
Maine is set to receive an additional $71.6 million in federal funding through the Inflation Reduction Act, which will be used to implement a new plan for heat pump rebates in 2024. The funds will be allocated by the governor’s energy office and Efficiency Maine, with the aim of reducing barriers for low-income residents who wish to install a heat pump. The initiative comes after Maine achieved its goal of installing 100,000 heat pumps two years ahead of schedule, prompting Governor Janet Mills to set a new target of 175,000 heat pumps by 2027.
Maine to Benefit from $71.6M Federal Funding for Heat Pump Rebates
Maine is set to receive an additional $71.6M in federal funds from the Inflation Reduction Act, which will be used to support a new plan for implementing heat pump rebates in 2024.
In Scarborough, Maine, state leaders are revisiting strategies to allocate The governor’s energy office and Efficiency Maine will collaboratively allocate the $71.6 million funding received from the Inflation Reduction Act, as per the U.S. Department of Energy’s guidelines.
This initiative will also be closely supported by MaineHousing, which has been actively working to minimize barriers for low-income residents who wish to install a heat pump.
MaineHousing Director, Dan Brennan, expressed satisfaction with the current state of affairs and emphasized the need for continuous funding sources to maintain momentum in the industry.
Coming after Maine exceeded its target of 100,000 heat pumps by 2025— two years ahead of schedule, Governor Janet Mills announced a new aim of installing 175,000 heat pumps by 2027.
According to industry leaders at Competitive Energy Services, improved technology coupled with incentives are primary factors driving the increase in heat pump installations for commercial purchasers.
Chief Strategy Officer Eben Perkins noted the flexibility of heat pumps in heating and cooling non-residential buildings as a significant change in the market.
However, Shawn LaPlante, owner of LaPlante Electric, observed a slowdown in the pace of installations after an initial surge in demand.
Given the changes in Efficiency Maine’s eligibility criteria, residents now need to use heat pumps as 80 percent of their heating source to fully utilize the rebates. LaPlante believes the stricter regulations have caused some homeowners to reconsider their heating options.
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