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How legislation influences the heat pump market

Heat pumps are becoming more popular as a heating and cooling solution as policies are proposed or implemented that encourage electric use, ban natural gas use, or penalize natural gas use.

Decarbonization legislation policies are becoming more prominent in locations that are prioritizing electricity generated from renewable and low carbon sources and are expected to grow in the future.  

Emissions from electricity production vary significantly in the US with some regions having access to zero-carbon resources for electricity while others rely heavily on fossil fuels like coal. The state of Washington, for example, uses hydropower for most of its electricity generation therefore electrification is very beneficial in this location. In regions with electricity primarily generated from fossil fuels, the conversion of HVAC systems to electric from natural gas is environmentally counterproductive unless implementing heat pumps.   

Although natural gas is not currently outlawed in many locations, the discussion and exploration of such rules have certainly gained traction as seen in the graphics below with some policies taking effect as soon as 2026 in new construction.  


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