Heat pumps have been around for decades. What’s significant about today’s models?

Four trends in heat pumps ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

TODAY'S NEWS. TOMORROW'S INSIGHTS. A daily newsletter from McKinsey & Company   Edited by Andrew Simon   Senior Editor, Seattle Warming to electric heat pumps In the news • Energy-efficient heating. Buildings can carry a hefty carbon footprint, largely from the use of fossil fuels for heating and cooking. In the US, for example, emissions from buildings contribute about 25% of the country's total emissions. But the world's energy crisis, spurred on by the war in Ukraine, has made shifting to energy-efficient heating systems even more urgent. In the US and around the world, sales of electric heat pumps, which work by pulling heat into buildings from outdoor air, are growing quickly. As some European nations look to alternatives to gas for home heating, demand for heat pumps could further increase. [NYT] • A hot market. Some companies are investing more heavily in heat pumps as climate change continues to take a toll. Recently, a German business said that over the next three years, it would spend $1 billion on heat pumps and other green solutions. The uptick in investment is in part due to more efficient heat pump technology. By some measures, modern heat pump systems are up to four to five times more efficient than gas furnace systems. Chip shortages and a lack of workers that are trained to install heat pumps could potentially slow adoption, but subsidies in certain regions could keep the market for heat pumps humming. [Fortune] Using heat pumps instead of traditional boilers and furnaces could cut global CO2 emissions by 3 gigatons per year. On McKinsey.com • The potential of heat pumps? The net-zero transition calls for the decarbonization of buildings, and electrifying heating systems is one way to reduce emissions. Because of the cost and complexity of converting current systems, electrifying building heat has usually been challenging. But as electric heat pumps have become more efficient and cost-competitive, they have emerged as an increasingly viable solution, find McKinsey partners Blake Houghton, Evan Polymeneas, and colleagues. Heat pumps may be poised for widespread adoption in the decades to come, making up approximately 90% of new heating unit sales by 2050, up from 35% today. • A path to greener heat. Heat pumps aren't a one-size-fits-all solution for every building type. Choosing the right low-carbon heating solution will require that building owners and other leaders assess a building's current system for distributing heat. Buildings with forced air or low-temperature hot water distribution, for instance, tend to be good candidates for heat-pump retrofits, since they don't require high operating temperatures. In other cases, options such as hybrid boiler systems may work best. Explore four trends propelling interest in heat pumps. See our research on heat pumps Was this forwarded to you? Sign up here. Or send us feedback— we'd love to hear from you. Follow our thinking This email contains information about McKinsey's research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007