State of Connecticut

Contact:   Philip Dukes   (860)  827-2832

DEPARTMENT OF PUBLIC UTILITY CONTROL

NEWS RELEASE

October 28, 2009

DPUC Approves Incentives for Technology that Delivers Significant Savings to Electric Heat Customers

Yesterday evening, the Department of Public Utility Control, in a special meeting held at Heritage Village in Southbury, CT, approved a program incentive of $1,000 for the installation of Ductless Split Heat Pumps (Ductless Heat Pumps) for residential customers who presently heat their homes with electric heat.  The Ductless Heat Pump technology was shown in a Connecticut pilot program to lower heat related electricity costs by 30-40%, and produced an estimated annual bill reduction of $423. 

“The Department is very excited to approve this important incentive,” said Lead Commissioner on this matter Vice-Chairman John W. Betkoski, “For far too long, residential customers, such as the residents of Heritage Village, have struggled under the oppressive costs of heating their residences with electricity.  This program incentive finally gives these residential customers a clear solution to lowering their electric heating costs.”

Approximately 175,000 residences across Connecticut were built with electric heat.  In many situations where electric heat is prevalent, such as apartments, attached side-by-side condominiums, cluster housing and other multiple family configurations, conversion to an alternate fuel is severely limited or impossible due to the lack of physical space for the equipment, fuel tank and distribution system.  As a result, consumers who use electricity to heat their homes have had limited opportunities to address a significant part of their electric consumption. 

“There is no single solution to the energy needs of Connecticut.” said Chairman Kevin M. DelGobbo, “With this kind of incentive, the Department wants to provide an opportunity for electric heat customers to avail themselves of and begin to immediately benefit from a technology that can address their escalating heating costs.  By approving this $1,000 incentive toward the cost of installing a Ductless Heat Pump, the message we are sending is loud and clear, ‘there are solutions to lowering your electric heating costs and the state wants to be a partner in making that happen.’  The DPUC is proud to be a partner with other state agencies and participants to implementing part of the Governor Rell’s Energy Vision, which called for providing assistance to energy efficiency projects and creating incentives for energy efficient consumer choices.”

Ductless Heat Pumps do not require ductwork to deliver conditioned air to a home’s living area.  Instead, air handlers mounted to interior walls deliver heating or cooling needs.  Ductless Heat Pumps overcome many existing physical installation barriers and related costs of ductwork, oil tanks and related construction.  As a result, Ductless Heat Pumps provide electric heating customers with an energy efficient electric replacement option.  In addition to energy savings, ductless heat pumps provide a more steady temperature than electric resistance or radiant panels.

“The introduction of a product that is less expensive to install and that is readily available to consumers is a home run for the state and for residential electric heat customers” said Commissioner Anthony J. Palermino, “This incentive will substantially lower the cost of the Ductless Heat Pumps for consumers and provide significant savings to them for many years to come.”

The funding for this incentive is made possible by the Connecticut Energy Efficiency Fund which supported by all electric customers.  

“It is estimated that users of Ductless Heat Pumps can reduce the electricity needed for space heating by 30% to 40%,” said Commissioner Amalia Vazquez Bzdyra.  “This technology represents just one of the myriad ways the Connecticut Energy Efficiency Fund, the Department and our regulated electric and natural gas companies are improving the efficient use of our energy resources.”

Average Ductless Heat Pump systems cost between $4,000-$6,000.  Ductless Heat Pumps qualify additionally qualify for tax credits, which, when combined with this incentive, have payback periods of as low as 3.5 years, depending on total installation cost.

The Pilot: To ensure that ductless heat pumps could deliver their claimed benefits, that the technology was mature and to determine whether this technology would be accepted by consumers, in 2007 the Department directed a study of this technology.  In response to this directive, The Connecticut Energy Efficiency Fund conducted a Pilot Program to test this technology.  96 units were installed across Connecticut with 29 of those being installed at Heritage Village.  The evaluation of that Pilot showed that the technology is mature, well accepted by consumers and provides the potential for substantial energy savings for electric heat customers.  Many Pilot participants have already recommended these systems to their friends and relatives.