Growing Prominence Of Renewable Energy Systems To Fuel The Demand For Geothermal Heat Pumps In The U.S.
Growing proclivity towards renewable energy resources, coupled with profound government initiatives has been providing a wider scope for the adoption of geothermal energy solutions in the U.S. over the last few years. According to the U.S. Energy Information Administration statistics, the country is the global leader in the amount of electricity generated from geothermal resources. In 2020, geothermal power plants located across the seven states of the U.S. had generated energy of around 17 billion kilowatt-hours, which represents 0.4% of the total utility-scale electricity generation of the country.
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This offers ample opportunities for the adoption of ground source heat pumps in the country. These pumps are known to be the most energy-efficient, cost-effective, and environment-friendly systems for cooling and heating buildings. They are largely used in office buildings, homes, schools, hospitals, etc. Considering the growing interest in this renewable energy system, U.S. geothermal heat pump market is expected to make big leaps in the coming years. According to a recent report by Global Market Insights, Inc., the market is estimated to record a notable valuation of over USD 2 Billion by 2024.
The positive outlook for the industry is being reflected in the series of efforts made by government organizations as well as domestic companies for encouraging the adoption of geothermal heat pumps. One of such initiatives has recently been reported in the Vermont state. In 2021, Green Mountain Power announced (GMP) partnering with the country’s prominent residential geothermal company- Dandelion Energy. Under this agreement, GMP declared offering an instant rebate of thousands of dollars to the customers purchasing and installing the latter’s qualified geothermal home heating and cooling system. Dandelion has confirmed that it will apply discounts directly to the customer’s purchase price to help them easily shift from fossil fuel to clean energy.
Speaking of the government initiatives, in 2020, the U.S. Department of Energy announced allocating grants of up to USD 28 million, to five projects working towards the promotion of next-generation geothermal energy technologies. These projects will work towards unleashing the full potential of geothermal power as a clean, reliable, and affordable energy source the American businesses and homes.
Such measures are primarily backed by the idea of adopting more cleaner sources of energy that can curb the climate change. As the regulatory scenario about climate change is tightening, various major energy companies have been under the pressure to increase their focus on renewable energy resources. For instance, in 2021, the U.S.-based oil giant Chevron reportedly doubled its funding for geothermal energy by investing in Baseload Capital, a Swedish company involved in heat power and geothermal projects. The increasing investments in this energy resource will strengthen the business space for geothermal heat pumps.
Shifting consumer preferences for sustainable energy resources coupled with government initiatives to encourage their adoption has created enormous demand for geothermal heat pumps in the U.S. Besides, various incentive programs by the market players are also playing a key role in attracting customers towards the ground source heat pumps. These growth rendering elements, in conjunction with rising investments by energy companies into renewable energy sources, is positively influencing the market outlook.
