A growing energy crisis mixed with global conflict and climate change has brought the need for alternative energy sources. Now, the heat pump, a technology that faded in the 1970s, is seeing a resurgence in U.S. homes.
Around 40% of new U.S. homes will now have a heat pump installed in them, Fortune reported. It may not be a return to the political and energy environment of the 1970s. Still, many are reminded of some of the challenges, and the return of the heat pump is bringing back a classic solution to the returning problem.
As Fortune reported, it was in the 1970s when the country was dealing with the fallout of the Arab-Israeli war in 1973 and then the Iranian revolution in 1979. That caused a big interruption in oil production in the Middle East.
An energy crisis followed and fed into a recession in the West.
In Europe, Russia's invasion of Ukraine and the multitude of sanctions placed on the aggressor has led to Europe seeing skyrocketing energy bills, Goldman Sachs warned. And it's not expected to soften, even into next year.
Fears also abound amid investor uncertainty as the Federal Reserve in the U.S. continues to raise policy rates sparking fears of an impending recession.
President Joe Biden's Inflation Reduction Act has many provisions to not only try to stymie inflation but also try and control climate change.
In the legislation is an offer of $14,000 in tax credits and rebates to make homes more energy efficient.
The benefits can be used for home upgrades like installing heat pumps.
A heat pump can not only produce heat for a home, but it can also cool your home like central air conditioning can. This can keep homeowners from having to install two separate systems.