The industry is expected to experience significant progress due to favorable regulatory support in response to the ongoing energy crisis and increasing demand for energy-efficient systems. Governments in the region are actively investing in non-fossil fuel-based heating and cooling systems to reduce reliance on traditional energy sources. For instance, in February 2022, the U.S. EPA launched the ENERGY STAR Home Upgrade Initiative, focused at increasing the adoption of clean energy solutions in the American households. This initiative aims to incentivize the adoption of energy-efficient solutions and promote the use of air-source heat pumps to reduce the overall energy consumption.
The deployment of renewable heating and cooling infrastructure can come with higher operational costs, which may influence consumers to consider more affordable conventional fossil fuel-based heating systems. Despite this, governments and authorities are offering financial incentives such as subsidies and tax rebates to encourage the adoption of energy-efficient systems in residential establishments. For instance, from January 2023, the U.S. government has introduced a new federal tax credit scheme for individuals who install a new air-source heat pump in their residential properties, subject to meeting certain efficiency requirements. Under this scheme, qualifying individuals can receive a tax credit of up to a maximum of USD 2,000 or 30% of the installation cost, whichever is lower.