California Invests in Cheap Heat Pumps as Federal Subsidies End

As the Trump administration eliminates incentives for energy-efficient appliances, California is joining New York and Boston to spur a market for affordable electric heat pumps and induction stoves to decarbonize housing.

The California Public Utilities Commission has allocated $115 million over six years to generate business for makers of small heat pumps and battery-equipped induction stoves that can be plugged into standard outlets without requiring expensive electrical upgrades.

The project is part of a program approved in 2019 to lower the barriers to the adoption of new energy-efficient technologies, which are often more expensive than their less-efficient counterparts. The program ...