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Heat pumps are becoming more popular for residential housing with energy prices increasing and the need to reduce use of fossil fuel heating systems.

Andrew Aitchison | In Pictures | Getty Images

Thinking about a home heat pump? New and expanded government incentives, coupled with sharply rising utility costs, make it more compelling.

Especially when used in connection with clean electricity sources like rooftop or community solar, a heat pump — a single electric appliance that can replace a homeowner’s traditional air conditioner and furnace system — can warm and cool a home with less planetary harm. 

These investments are becoming more appealing to consumers, too, given inflation’s heavy hand. A whopping 87% of U.S. homeowners surveyed said they experienced higher prices in at least one household service or utility category over the summer, according to SaveOnEnergy.com. There’s another possible bonus: Incentives being offered through the recently passed Inflation Reduction Act of 2022. 

“These incentives are not only saving you money now and in the long run on your utility bills, but they are putting our economy on track to reduce consumption of fossil fuels that contribute to climate change,” said Miranda Leppla, director of the Environmental Law Clinic at Case Western Reserve University School of Law. “It’s a win-win.”

The use of heat pumps will become more common as governments legislate their adoption. Washington State recently mandated that new homes and apartments be constructed with heat pumps. In July, California Governor Gavin Newsom announced a goal of 3 million climate-ready and climate-friendly homes by 2030 and 7 million by 2035, supplemented by 6 million heat pumps by 2030.

Here are four important things to know about upgrading your home to a heat pump system.

Heat pump cost, savings and efficiency considerations

Heat pumps are appropriate for all climates and are three to five times more energy efficient than traditional heating systems, according to Rewiring America, a nonprofit focused on electrifying homes, businesses and communities.

Rather than generating heat, these devices transfer heat from the cool outdoors into the warm indoors and vice versa during warm weather. Heat pumps rely on electricity instead of natural gas or propane, both of which have a higher carbon emission than renewable electricity such as wind or solar, said Jay S. Golden, director of the Dynamic Sustainability Lab at Syracuse University. 

With installation, heat pumps can range from around $8,000 to $35,000, depending on factors such as the size of the home and heat pump type, according to Rewiring America, but it estimates the savings could amount to hundreds of dollars per year for an average household. What’s more, it’s a long-term play, since heat pumps that most people will consider installing have an average lifespan of 10 to 15 years, according to Rewiring America. 

Electricity costs also tend to be more stable, insulating consumers against gas price volatility, said Joshua Skov, a business and government consultant on sustainability strategy who also serves as an industry mentor and instructor at the University of Oregon. 

“While there’s an upfront cost, millions of homeowners would save money with a heat pump over the life of the device,” he said. “You’ll save even more with the federal government covering a chunk of the upfront cost.” 

Air conditioning is a big contributor to climate change. These companies are trying to change that

Inflation Reduction Act incentives

The Inflation Reduction Act — an expansive climate-protection effort by the federal government — includes multiple incentives to lower the cost of energy-saving property improvements. These incentives significantly exceed what’s available to homeowners today, said Jono Anzalone, a lecturer at the University of Southern Maine and the executive director of The Climate Initiative, which empowers students to tackle climate change.

For low-income households, the Inflation Reduction Act covers 100% of the cost of a heat pump, up to $8,000. For moderate-income households, it covers 50% of your heat pump costs, up to the same dollar limit. Homeowners can use a calculator — such as the one available from Rewiring America — to determine their eligibility. 

If you’re considering multiple green home improvements, keep in mind that the law’s overall threshold for “qualified electrification projects” is up to $14,000 per household. 

Federal tax credits for homeowners

For those who exceed the income threshold for a rebate, there’s the option, starting Jan. 1, to take advantage of the nonbusiness energy property credit, commonly referred to as 25C, said Peter Downing, a principal with Marcum LLP who leads the accounting firm’s tax credits and incentives group.

Homeowners can receive a 30% tax credit for home energy efficiency projects such as heat pumps. In a given year, they can get a credit of up to $2,000 for installing certain equipment such as a heat pump. This credit will expire after 2032, according to the Congressional Research Service.

There can be another tax credit to homeowners who purchase a geothermal heat pump, which is a more expensive, but longer-lasting option on average. Homeowners can receive an uncapped 30% tax credit for a geothermal heating installation, according to Rewiring America, which estimates an average geothermal installation costs about $24,000 and lasts twenty to fifty years. That means the average tax credit for this type of pump will be around $7,200, Rewiring America said. 

The ventilation system of a geothermal heat pump located in front of a residential building.

Picture Alliance | Picture Alliance | Getty Images

Rulemaking is still underway for the Inflation Reduction Act. But it is possible eligible consumers will be allowed to receive both a rebate and a credit, Downing said. But the math is not likely to be as straightforward, based on previous IRS guidance on energy rebates backed by the federal government. Say a consumer is entitled to a 50% rebate for a heat pump that costs $6,000. For purposes of the tax credit, the remaining $3,000 could be eligible for a 30% tax credit, resulting in a possible credit of $900, he said.

State and local financial support

States, municipalities and local utility companies may provide rebates for certain efficient appliances, including heat pumps. “Check with all of them because there are so many different levels of programs, you really need to hunt around,” said Jon Huntley, a senior economist at the Penn Wharton Budget Model who co-authored an analysis of the Inflation Reduction Act’s potential impact on the economy.

Also be sure to check back frequently to see what new state, local and utility-based incentives may be available because programs are often updated, Golden said. Reputable local contractors should also know about locally available rebates, he said.

Many installers have aggressive financing packages to make heat pump installation more feasible, Anzalone said.

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Lucid’s (LCID) midsize EV platform is coming next year, bringing three $50,000 ‘top hats’

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Lucid's (LCID) midsize EV platform is coming next year, bringing three ,000 'top hats'

As Lucid (LCID) ramps up production of its first electric SUV, the Gravity, the EV maker has several new lower-priced models in the works. Lucid confirmed its midsize platform is coming next year, which will spawn at least three new EVs priced at around $50,000.

Lucid has three new midsize EVs coming soon

In early 2023, Lucid’s former CEO, Peter Rawlinson, told investors on an earnings call that the company’s advanced battery, powertrain, and other EV technologies are “pushing the envelope on what’s possible.”

Rawlinson promised the innovations would “drive down the costs for EVs,” paving the path for more affordable models.

In an interview with ABC News later that year, Rawlinson explained that Lucid’s in-house tech will be “the key to unlocking greater efficiency” and ultimately lower prices.

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During the interview, Rawlinson said that Lucid was aiming for a starting price around $50,000, adding that’s “Right in the heart of Tesla Model 3, Model Y territory.”

Fast forward a few years, and Lucid is now preparing to launch its Tesla-rivalling midsize EVs. According to the company’s interim CEO, Marc Winterhoff, Lucid will bring its midsize platform to market in late 2026, with production ramping up the following year.

Lucid-midsize-three-EVs
Lucid Air (left) and Gravity (right) Source: Lucid

Speaking on the Automotive News Daily Drive podcast, Winterhoff confirmed it’s aiming for starting prices around $50,000.

Lucid has “three top hats” in the works, two of which will launch relatively close to each other. The third will follow shortly after.

Lucid-first-midsize-EV-prototypes
Lucid Gravity and Air models (Source: Lucid)

Last year, Lucid told Electrek that the company planned to launch three new EVs on the midsize platform: an electric crossover, sedan, and a third vehicle that has yet to be revealed.

Lucid-three-midsize-EVs
Lucid midsize electric SUV teaser image (Source: Lucid)

We got a sneak peek of the upcoming midsize crossover SUV after Lucid teased it in a blurry photo last September.

Earlier this month, Lucid opened its new Phoenix Hub in Nikola’s former headquarters. The new hub will be home to the first midsize prototypes.

For now, Lucid is focused on ramping up Gravity output. Winterhoff said on the podcast that feedback for the electric SUV has been “phenomenal” so far. He added, “In all of my 25 years of working in the automotive industry, I’ve never seen that positive feedback.”

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Xiaomi YU7 first drive: a $35,000 Ferrari-looking electric SUV with over 400 miles of real range

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Xiaomi YU7 first drive: a ,000 Ferrari-looking electric SUV with over 400 miles of real range

I had the chance to test drive the Xiaomi YU7 ahead of its launch today in China, and I came out of the entire experience both impressed and frustrated.

Let me try to explain why, and also why Western automakers are scared of these new Chinese EVs.

When I was a kid, I remember asking my dad why good-looking vehicles, like exotic supercars, cost so much more than regular cars. In my childish innocence, while I could understand that more performance and higher quality materials cost more, I couldn’t wrap my head around why automakers couldn’t make average performing cars with regular materials but with more aggressive and cooler designs.

My dad tried his best to explain the concept of scarcity and the limitations of different form factors in achieving higher sales volumes, but we ultimately agreed that automakers could technically produce more affordable vehicles with better, more aggressive designs.

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Of course, concepts like manufactured scarcity are complex to understand as a child, but the thought did stick with me that a company could mass-produce great exotic-looking cars for more reasonable prices.

That’s basically what Xiaomi is doing now.

One of Xiaomi’s taglines is “make innovative technology accessible to everyone.” That sounds like corporate talk, but I have to admit that it is living up to it with its electric vehicles. I’m not as familiar with its electronics, but I am hearing it’s a similar situation.

The company is facing criticism for the SU7’s resemblance to the Porsche Taycan, and now the YU7’s similarity to the Ferrari Purosangue is undeniable. However, you can’t tell me there’s no market for an all-electric Purosangue with actually higher performance, better tech, more utility, and for a tenth of the price?

That’s basically what the Xiaomi YU7 is and more.

Ultimately, every great car design is heavily inspired by other vehicles. Xiaomi CEO Lei Jun has been spotted driving the Purosangue, Ferrari’s latest $400,000 performance SUV, and it sounds like he thought: “Wouldn’t be nice if this were all-electric, with Xiaomi tech, and more affordable so hundreds of thousands of people could experience it?”

It turns out that, yes, it would be nice.

Xiaomi YU7 electric SUV Specs

Xiaomi is calling it an “SUV” due to the true meaning of the word: “sport utility vehicle,” but it doesn’t look like your average SUV.

When you lift the air suspension to the max (3″ of travel), it does look like more like one, but most of the time, it looks like a sporty wagon, which I love.

Xiaomi hasn’t been shy about going after the Tesla Model Y with the YU7, which is not a bad target considering it’s the best-selling vehicle in the world. The goal is drawing a lot of comparisons, so here are the dimensions compared with Tesla’s SUV:

Model Wheelbase Length Width* Height Kerb Weight
Xiaomi YU7 3,000 mm (118.1 in) 4,999 mm (196.8 in) 1,996 mm (78.6 in) 1,600 mm (63.0 in) 2,140 – 2,460 kg (4,718 – 5,423 lb)
Tesla Model Y (2025) 2,891 mm (113.8 in) 4,751 mm (187 in) 1,920 mm (75.6 in) 1,624 mm (63.9 in) 1,884 – 1,998 kg (4,154 – 4,404 lb)

As you can see, it is about a foot longer than the Model Y, 3 inches wider, and a little shorter.

It’s also quite a bit heavier, but that’s because it’s equipped with a significantly larger battery pack.

Tesla doesn’t officially disclose the capacity of its battery pack, but in the latest Model Y, they are estimated to be about 62 kWh for the base version and ~80 kWh for the long range version.

As for the YU7, it features a 96 kWh battery pack with LFP cells from BYD in both the standard and Pro versions.

The YU7 Max, the version I tested, is equipped with a 101 kWh battery pack with NMC battery cells from CATL.

The result is that the base YU7 achieves 835 km of range on a single charge, while the Max version achieves 760 km. The base version is equipped with a single RWD motor, making it the most efficient and therefore, the longest range.

Here are all the ranges of the different variants compared to Tesla’s own CLTC range in China:

Variant CLTC Range (km / mi)
Xiaomi YU7 (RWD) 835 km / 519 mi
Xiaomi YU7 Pro (AWD) 770 km / 478 mi
Xiaomi YU7 Max (AWD) 760 km / 472 mi
Tesla Model Y RWD 593 km / 369 mi
Tesla Model Y Long Range AWD 719 km / 447 mi

The CLTC standard is based on the average driving cycle in China, which is more city driving-based than most other markets, and the range would be slightly lower on the WLTP or EPA cycles.

It is a heavy vehicle, but Xiaomi countered that with significant energy capacity. In my experience with the performance electric SUV, you could easily get 500 km of highway driving on a single charge with the Max as long as you don’t go too much over the speed limit.

I looked at the energy stats of the YU7 Max that Xiaomi let me test, and it had consumed 1,113 kWh over 4,868 km:

However, the vehicle had been used as a press car, with people, including myself, driving it quite aggressively up and down mountain roads, mostly in “sport mode,” for the last week.

Even then, it still achieved an efficiency 4.3 km per kWh. I could see the efficiency improve by double digits if driven more normally, with a higher mix of comfort or eco modes, and with the smaller wheels.

But if I only get a few hours with a vehicle, I’m likely to spend most of my time in sports mode.

If you run out of range, charging can be extremely fast with the YU7. Xiaomi claims a 5.2C peak charging capacity, which on the highest capacity chargers will result in charging from 10 to 80% state-of-charge in 21 minutes for the variants with LFP cells (Standard and Pro) and only 12 minutes for the Max, which is powered by NMC cells.

As for the YU7’s power capacity, here are the different motor variants:

Variant Motor Configuration Power Output (kW) Torque (Nm) 0–100 km/h (s) Top Speed (km/h)
YU7 (RWD) Single rear-motor 235 kW 528 Nm 5.88 240
YU7 Pro (AWD) Dual motors (front + rear) 365 kW total 690 Nm 4.27 240
YU7 Max (AWD) Dual motors (220 kW front + 288 kW rear) 508 kW total 866 Nm 3.23 253

Again, I can only discuss the Max version, which was the one available to us during the press test drives ahead of the launch.

Here’s my video that goes into details about the Xiaomi YU7:

Xiaomi YU7 Driving Impression

A little further down, I’ll talk about all the technology, connectivity, and user interface in the YU7. As Xiaomi is known for its consumer electronics, I had high expectations in that regard, and I was confident that they would impress me.

The vehicle aspect is where I had more doubts, but I kept an open mind. After all, Xiaomi didn’t even have a vehicle division 5 years ago, and now they have the best-selling premium sedan in the world’s largest auto market.

As I write this, I haven’t had the chance to test the SU7, but I’m trying to get some time in the vehicle before leaving China. Talking to other journalists who have driven it, I’m told that it is a fun and impressive vehicle to drive, but that Xiaomi has also managed to make significant improvements and refinements with the YU7 in a short period of time.

The YU7 is heavy, but with the Max’s more than 500 kW powertrain, the weight disappears instantly when you need to go. The vehicle feels solid and planted to the road, thanks to its low center of gravity, especially at the lowest suspension setting.

Speaking of the suspension, it features a double wishbone in the front and a 5-link independent setup in the back, paired with standard air suspension, which adds 3 inches of adjustable height. For this price point, it’s hard to beat.

We mostly drove the car up and down mountain roads about 3 hours outside of Beijing. I couldn’t reach anywhere near the car’s 253 km/h (157 mph) top speed, but I was able to experience some cornering and handling, and the suspension’s active dampening was useful.

A documentary crew has been following me on my travels in China, and they attempted to film me in a Land Rover Evoque equipped with a crane camera. However, the SUV kept overheating before reaching the top of the 4-km hill climb, whereas the YU7 managed to complete the climb repeatedly all afternoon without issue.

The battery cooling system would be a bit loud, but you would only hear it from the outside, as the cabin isolation is incredible in this car. Xiaomi used double-paned glass everywhere, complemented by active noise canceling. It is exceptionally quiet, which is a big part of a luxury car experience in my book.

Another thing that I’ve found extremely impressive with the YU7 is the level of customization. Even something as simple as regenerative braking can be customized. You have a low, normal, and custom mode. In the custom mode, you can choose to have regen braking anywhere between 0 and 100%. At 100%, it is pretty much one pedal driving.

You can also customize your own driving mode with a ton of different options, including your power distribution from front to back, making the dual motor Max variant a RWD vehicle if you want:

I suggest watching my video about the YU7 for more details on customizing the driving modes.

The head-up display is also highly customizable. It’s not a typical HUD like augmented reality projecting onto the windshield – something the Xiaomi SU7 is equipped with.

The YU7 is instead equipped with a meter-long display that appears to be mounted deep into the dash. It’s an interesting feature that’s genuinely well-implemented. You can set it up to have your instrument cluster information on the driver side, and the position of the display, which almost appears to be floating between the dash and the windshield, is right at the bottom of your field of vision when driving.

The advantage is that everyone inside the car can actually see, unlike an augmented reality heads-up display. With the level customization, it can be useful to all passengers – although primarily the front passenger.

The high level of customization, both at the software level and at the accessory level, makes me feel like YU7 owners could really tune the vehicle to their liking over time, and your experience would get a lot better over the first few months as you learn more about the car.

At the accessory level, Xiaomi even offers a seamless add-on that snaps at the bottom of the main display to add analog buttons for climate control and a media volume dial.

The seats are perforated, ventilated, and extremely comfortable. Both front seats have massaging functions as standard, and they can lie back into zero-gravity position. Yes, even the driver’s seat.

The level of comfort is pretty impressive for a vehicle in that price range.

There’s also a lot of room in the back seats, which are also reclining, albeit not as much as the front seats, but they still go back to 135 degrees:

From the back seat, you can also access an optional mini fridge that fits under the center console. There are also optional mounting systems for tablets to fit behind each of the front seats.

Since Xiaomi has many smart home devices, YU7 owners can also purchase magnetic customizable buttons that can snap onto the center console or the B pillars and they can link into the Xiaomi app to initiate functions inside your car or your home if you have smart devices.

Honestly, there are too many tech and connectivity features in this car to list them out, but I do go through a lot of them in my video review.

The last piece of tech I’ll discuss is the ADAS system, which it is Xiaomi HAD. Xiaomi has packed the YU7 with an impressive ADAS hardware suite that includes one roof-mounted LiDAR with a 200-metre (660 ft) range, one 4D mmWave radar, 11 cameras, and 12 ultrasonic sensors, and uses an Nvidia DRIVE AGX Thor-U chip capable of 700 TOPS.

Xiaomi is not talking about achieving unsupervised self-driving capabilities with this yet, but it is future-proofing with the extensive hardware suite and this is currently only sold in China, which currently doesn’t allow level 3 and up automated systems in consumer vehicles.

We were able to test the current level 2 capacity, which includes automated lane changes on the highway, traffic-aware cruise control, and lane keeping, to a level similar to what I’ve experienced with Tesla Autopilot.

They even have a feature in beta that lets you see what the lidar sensor sees around the road in real-time.

The ADAS system also provides all the active safety features that you expect from a modern vehicle.

While it’s too early for the YU7 to have a safety rating, the SU7 had the highest overall score for any vehicle tested with the 2024 standards in the C-NCAP safety testing results.

For the YU7, Xiaomi developed its own ultra-strong steel alloy to reinforce several parts of the vehicle:

We won’t know until there’s indepent crash testing, but Xiaomi appears to be confident that the YU7 will perform well in those.

Xiaomi YU7 Pricing and availability

I drove the YU7 almost a week ago now, but we had an embargo until the launch event today, and Xiaomi didn’t want to elaborate on the price until CEO Lei Jun took the stage.

However, we had a fairly good idea based on the SU7 pricing and Xiaomi’s apparent attempt to target Tesla’s Model Y in the Chinese market.

Here’s the Xiaomi YU7 pricing per variant:

  • YU7 Standard: 253,500 RMB (equivalent to $35,300 USD)
  • YU7 Pro: 279,900 RMB (equivalent to $39,000 USD)
  • YU7 Max: 329,900 RMB (equivalent to $46,000 USD)

As for availability, deliveries are starting now. I visited the factory yesterday and I saw hundreds of them coming out of it.

For now, the vehicle is only available in China, but Xiaomi is aiming to expand globally starting in 2027.

Electrek’s Take

As I mentioned at the beginning of this article, this was a frustrating test drive because I came out so impressed with this vehicle that I was frustrated knowing there’s no chance I or my friends in Canada and the US could buy it anytime soon due to ridiculous protectionist measures.

Honestly, I would trade my Model 3 performance in a heartbeat for a YU7, but that’s unlikely to happen anytime soon. I’m so impressed, I’m looking into ways to import it in Canada myself.

The form factor is incredible and works beautifully with the design. It packs 100 kWh of energy capacity, which is unprecedented for a vehicle in that price range.

Then, you have an incredibly fast-charging capability, and the vehicle is loaded with tech and connectivity features, all backed by an exceptionally smooth user interface. It’s a hard deal to pass on.

Finally, you add that it is packaged in a fit and finish that is on par, if not better than, what we have come to expect from premium automakers from the West.

Considering how quickly Xiaomi was able to ramp up production of the SU7 to over 30,000 units per month, and despite this, it still has a wait time of over 30 weeks for delivery, even though it is only sold in China, I wouldn’t be surprised if the YU7 becomes as popular, if not more so.

I think it will put a lot of pressure on other premium midsize SUVs in China, especially the Tesla Model Y.

The Xiaomi YU7 embodies why Western automakers are so concerned about Chinese EVs and have lobbied for tariffs on them. They can’t compete with this. At least, not now.

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Bosch just made its e-bike motors more powerful (among other upgrades)

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Bosch just made its e-bike motors more powerful (among other upgrades)

Bosch eBike Systems, which is Europe’s leading e‑bike drive supplier and powers more than 100 major bike brands, just dropped an impressive suite of upgrades across its Smart System lineup. The stars of the show are enhanced versions of the mid-drive motors in the Cargo Line, Performance Line Speed, Performance Line, and the beefed-up Performance Line SX, all designed to deliver smoother, quieter, and more customizable support.

The highlights? More power, less weight

The Cargo Line of drive systems, intended to provide extra oomph for heavy cargo bikes, now packs up to 100 Nm of torque and 750W of peak power, an upgrade from the previous 85 Nm of torque and 600W peak power rating. It’s also lighter and quieter thanks to gearbox refinements and improved sensors.

Riders can fine-tune their torque or power levels directly in the eBike Flow app, choosing more boost, while accepting trade-offs in battery life and component wear. 

The Performance Line Speed motor group, designed for S-pedelecs (Europe’s version of a Class 3 e-bike in the US) that are legal up to 45 km/h or 28 mph) also jumps to 100 Nm of torque and 750W of peak power, offering up to 400% rider-assist power. Again, Bosch gives riders full control through app-configurable settings. 

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The base Performance Line motors, found in typical city or trekking e‑bikes, retain their improved package but stay at their existing 75 Nm of torque and 600W of peak power, though now come in a lighter 2.8 kg (6.2 lb) unit, which is 400 g (0.9 lb) less than before, making casual riding more natural on a lighter e-bike. 

The Performance Line SX motors, often found on gravel or lightweight urban bikes, receive a free OTA firmware boost later this year. Max torque remains at 60 Nm, but peak power jumps to 600W and 400% assist.

Bosch also introduced a larger capacity PowerTube 540 battery with 540 Wh of capacity, all while maintaining the same form factor and weight. The company combined it with seamless “Touch & Go” sharing, a new digital Battery Lock that bricks the battery to make it useless to thieves, and enhanced app integrations, creating a system that now covers city commuting, cargo hauling, and adventurous e-travel, all with more peace of mind.

Electrek’s Take

I think it’s fair to say that Bosch isn’t just pushing motors – they’re building a full ecosystem that they use to differentiate themselves even further from other drive makers in the market. The Smart System ties together drive units, batteries, displays, the eBike Flow app, and dealer service networks. By shifting key custom features (power output, speed limits, battery lock) to software sliders, Bosch is also now making it easier for brands to offer unique experiences for their e-bikes without big or costly hardware changes, which only makes them even more relevant.

While I don’t think Bosch’s latest drive upgrades reinvent e‑biking, they significantly polish it. More power, more precision, more customization – all while keeping weight low and ride smooth – is pretty much exactly what customers have been asking for. With various riding scenarios such as urban commuters hauling kids, cargo riders climbing hills, and weekend urban warriors, these subtly smarter motors bring real, practical value.

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