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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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Elon Musk’s Tesla launches bid to supply electricity to British households

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Elon Musk's Tesla launches bid to supply electricity to British households

A photo shows the logo on US electric carmaker Tesla’s European headquarters in Amsterdam on May 2, 2025.

Ramon Van Flymen | Afp | Getty Images

Elon Musk’s electric vehicle manufacturer and energy company Tesla is preparing to supply electricity to British households and businesses.

The Texas-based company formally submitted its request for an electricity license to the British energy regulator Ofgem at the end of last month, according to a notice on the watchdog’s website.

If approved, the move could pave the way for Tesla to compete with the big firms that dominate the U.K. energy market from as soon as next year.

The application, first reported by the Sunday Telegraph, came from Tesla Energy Ventures and was signed by Andrew Payne, who runs the firm’s European energy operations.

Tesla, which is best known as one of the world’s leading EV manufacturers, also develops solar energy generation systems and battery energy storage products.

Musk’s company already has an electricity supplier in Texas, called Tesla Electric. The service, which was launched in 2022, allows customers to optimize energy consumption and pays them for selling excess energy back to the grid.

Tesla’s push for a license to supply electricity to British households comes as the company endures a protracted European sales slump.

Data published last week by the U.K.’s Society of Motor Manufacturers and Traders (SMMT) showed Tesla’s new car sales dropped by nearly 60% to 987 units last month, down from 2,462 a year ago.

In Germany, meanwhile, Tesla car sales fell to 1,110 units in July, down 55.1% from the same month in 2024.

The latest sales figures underscored some of the challenges facing the company, which continues to face stiff competition, particularly from Chinese EV manufacturers, and reputational damage from Musk’s incendiary rhetoric and relationship with U.S. President Donald Trump’s administration.

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Volvo EX30 ducks 147% tariff threat with Ghent production switch

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Volvo EX30 ducks 147% tariff threat with Ghent production switch

In a move that helps the brand duck protectionist anti-Chinese tariffs, Volvo Cars has switched production of its award-winning EX30 models destined for US roads from its Zhangjiakou plant in China to the Ghent facility in Belgium.

Volvo EX30 production began in the company’s Ghent factory back in April, but those first cars were earmarked for the Swedish domestic and European export markets, but that move wasn’t primarily motivated by avoiding tariffs. As Electrive reports, the company seemed happy enough to continue importing its small electric crossover from China and accepting the new 28.8% tariffs (up from 10%), but the wait times to get the vehicles shipped in from China was imply too long.

In 2024, Swedish and German buyers had to wait up to eight months for their EX30 in some cases, according to Volvo Cars’ European boss, Arek Nowinski, per Automotive News. Once production in Ghent is fully up to speed, however, wait times should be cut to about 90 days. Those wait times, and the price hike associated with the tariffs, have hurt sales of the originally Chinese-made Volvo EV. In 2024, for example, the EX30 ranked third in European EV sales, but slipped out of the top 10 first half of 2025.

“The car is now being built in Europe, which means faster delivery times,” Volvo Cars CEO Hakan Samuelsson to Automotive News. “We should return to the sales and market share figures for the EX30 that we had before the introduction of tariffs.”

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Coming to Staying in America


Volvo-EX30-top-selling-EV
Volvo EX30; via Volvo Cars.

The EX30’s switch to Ghent is good news for American fans of the compact, lickety-quick Volvo EV. Now that it’s no longer exclusively made in China, Volvo has decided to give it a stay of execution as it revamps its US product lineup to better align with market trends (read: SUVs) and the changing political landscape (read: tariffs and inflation).

The reason? The Made in China version of the EX30 would virtually unsellable in the US due to the implementation of 147% tariffs on vehicles imported from China. Vehicles imported from Europe, meanwhile, carry just 15% tariffs, keeping the EX30 in a competitive price bracket.

Expect to see both Ghent and South Carolina play an increasingly large role in Volvo’s US product mix – at least for the next three-odd years.

SOURCE | IMAGES: Volvo Cars, Automotive News, via Electrive.


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BYD is coming with a ridiculous 3,000 hp electric supercar

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BYD is coming with a ridiculous 3,000 hp electric supercar

New filings have revealed that BYD is about to release a ridiculous 3,000 hp electric supercar: the Yangwang U9 Track Edition.

BYD already shocked the world when it launched the Yangwang U9, its first all-electric supercar.

It featured four advanced electric motors with a combined power of nearly 1,300 horsepower. The U9 can accelerate from 0 to 62 mph (0 to 100 km/h) in just 2.36 seconds.

With a motor at each wheel and a highly advanced electric-air suspension, the U9 can turn on itself and even jump over potholes.

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But that was only the beginning.

Based on a new filing with the Ministry of Industry and Information Technology (MIIT), BYD is preparing to launch a new ‘Track Edition’ of the Yangwang U9:

When an automaker releases a “track” version of a car, it typically primarily features body changes for better aerodynamic performance, adding downforce, and it will also often feature bigger brakes.

The Yangwang U9 ‘Track Edition’ appears to feature all that… and much more.

The filing reveals that BYD updated the motors at each wheel to a new 555 kW motor. That’s a higher-performing motor than in most performance electric vehicles. The U9 Track Edition has four of them for a total of 2,220 kW (3,019 hp).

I would have thought that this was a typo if it wasn’t for the insane electric vehicles coming out of China these days.

Here are a few pictures from the MIIT filing:

There are a lot of performance specs that are not included in the MIIT filing. Therefore, it will be interesting to see when the vehicle is fully unveiled and BYD reveals what kind of performance it can achieve with 3,000 hp packed in 4 electric motors.

Here are a few other features mentioned in the filing:

Standard features:

  • 20-inch wheels with 325/35 R20 tyres
  • Carbon-fibre roof
  • Large fixed carbon-fibre rear wing
  • Rear diffuser with adjustable blades for aerodynamic optimisation

Optional aerodynamic parts:

  • Standard or enhanced carbon-fibre front splitter
  • Electric rear wing

Electrek’s Take

How are they going to keep that thing from flying away? Seriously.

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