P3 founded to install 6 million heat pumps in California by 2030

June 13, 2024

California will transition to a carbon-neutral economy by 2045, investing in clean electric alternatives to fossil fuels to create a decarbonized future. The California Heat Pump Partnership (CAHPP) is a public-private partnership (P3) formed to rapidly scale the state’s heat pump market, foster climate resilience and support sustainable building practices.

Gov. Gavin Newsom launched a plan in 2022 to reach a 100% clean energy grid. California aims to cut air pollution by 71%, reduce greenhouse gas emissions by 85% and bring fossil fuel consumption to a tenth of what is currently used.

The plan lays out several key milestones the state aims to achieve, ranging from carbon capturing 100 metric tons of CO2 by 2045 to building 7 million climate-friendly homes by 2035. One of the most notable goals hinges on deploying 6 million heat pumps by 2030. The CAHPP was launched May 29 to advance the governors’ climate objectives.

“As California moves toward a carbon-neutral future, it’s crucial to foster close coordination between state and market leaders to achieve our building decarbonization goals,” California Public Utilities Commission President Alice Reynolds said. “The Heat Pump Partnership is a vital step in supporting California’s transition to clean electric heating and cooling. By aligning key stakeholders in the clean energy transition, we can minimize costs and maximize benefits for all Californians, driving us towards a more sustainable future.”

California has already deployed approximately 1.5 million heat pumps and is slated to install less than 200,000 per year, falling short of its 2030 goal by 3.3 million. The state will have to quadruple heat pump adoption per year by coordinating with the CAHPP to bridge the public and private markets. The CAHPP will play a key role in addressing technical, market and policy barriers and aligning critical state and market leaders.

The CAHPP will deploy a marketing campaign through the Building Decarbonization Coalition – an organization dedicated to eliminating the use of gas appliances in buildings – to help communities and contractors switch to electric appliances. The campaign, called The Switch Is On, aims to educate and provide resources promoting home electrification.

The initiative builds on a 2023 agreement between several of the world’s largest heating and cooling equipment manufacturers to advance the state’s heat pump market.

Photo courtesy of The Switch Is On

Adam Rollins

Adam Rollins brings his expertise as a Researcher and Writer to the Managing Editor role for several of SPI's key publications, including Government Contracting Pipeline, Texas Government Insider, and the latest addition, Government Market News. With a rich background as a freelance Content Specialist, Adam has honed a passion for learning and information gathering, delving into various industries. His research and writing have spanned a range of topics, from artificial intelligence (AI) technology, conservation, and project outsourcing, to managed IT services and software development.

Holding a bachelor's degree in English from Texas State University, Adam's proficiency in message development is complemented by his robust research skills and seasoned writing experience. These attributes make him an invaluable asset to SPI, ensuring the delivery of insightful and impactful content to the company's clientele.

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