Heating, ventilation, and air conditioning (HVAC) systems account for almost half of all energy consumption by buildings, and air conditioning use is only expected to increase as climate change leads to hotter and hotter summers. Air Source Heat Pumps (ASHPs) are energy-efficient HVAC systems that can cool and heat homes or businesses with up to four times the efficiency of conventional HVACs and, when paired with a renewable energy-powered grid, produce no greenhouse gas emissions.  

However, despite the technology’s performance and potential to generate savings for customers, uptake has been slow. The E&E Lab is partnering with the New York State Energy Research and Development Authority (NYSERDA) to conduct a randomized control trial examining the impact of the cost of ASHPs on uptake.  

NYSERDA will offer to subsidize the cost of an ASHP for moderate-income households throughout the state, with different, randomly selected, groups of households receiving higher or lower value subsidies. The results will shed light on both whether such subsidies can be effective and what levels of subsidy are the most cost-efficient for encouraging adoption of ASHPs. These findings will help both NYSERDA and other energy policymakers determine how to incorporate energy efficiency technology into efforts to cost-effectively decarbonize buildings.