Federal Heat Pump Grant Program Costs Could Quadruple to $2.7 Billion

The Parliamentary Budget Office (PBO) has reported that a federal grant program aimed at assisting homeowners in converting from oil furnaces to electric heat pumps could potentially reach costs of nearly $2.7 billion, almost four times its initial budget of $750 million. “The PBO estimates that there are up to 244,000 households nationwide that could be eligible for OHPA [Oil to Heat Pump Affordability] program funding,” said a Legislative Costing Note, as first covered by Blacklock’s Reporter. “If all eligible households access the program, we estimate that the OHPA program could have a maximum potential cost of $2.7 billion.” So far, around 10,000 households have reportedly qualified for these heat pump grants. This figure was determined by extrapolating historical participation trends in the program, according to the note titled “Enhancements to the Oil to Heat Pump Affordability Program.”...