PTC                      

Jurisdictions around the world frequently offer a PTC (Production Tax Credit) to incent the adoption of clean or renewable sources of energy.  This financial compensation to install wind turbines or solar panels, is designed to recognize that conventional fossil fuels have a historic advantage in the energy sector, and an incentive is needed to accelerate the transition to renewables.  PTC rates & conditions vary widely, and reflect local production & consumption patterns.

Most countries are also starting to encourage the uptake of heat pumps which produce thermal space conditioning for buildings (space heating, space cooling, water heating) and provide an alternative to the combustion of oil or gas.  Federal data say the average household in Canada (1,604 ft2 floorspace) consumes 21,307 kWh a year for thermal end uses and 5,049 kWh for lights & appliances.

In terms of carbon pollution, that average household emits 3,627 kg per year, of which 3,148 kg is from thermal applications and 479 kg is from plug load.

A ground source heat pump will produce that 21,307 kWh as dispatchable (no batteries required) thermal renewable energy, but it will require 5,607 kWh (at minimal efficiency) to operate system pumps & compressor.  This means that household would produce 21,307 and consume 10,701 … well beyond the ratio required under the term net zero.

In terms of carbon pollution, a heat pump would eliminate the emission of 3,148 kg each year ... more if the electricity is from low carbon sources.

NetZeroPLUS Canada is calling for the production of thermal renewable energy from a heat pump to be incented with a PTC (Production Thermal Credit) which will encourage the transition off fossil fuel combustion.  A per-unit incentive for verified production would also encourage maximum system efficiency, and avoid the need for price-skewing installation incentives.

If all residential & commercial buildings in Canada had used heat pumps in 2022, total production would have been 547 billion kWh of thermal renewable energy, and they would have reduced carbon pollution by 71 billion kg each year.

Wind & solar are key technologies for the future health of our planet, but so are technologies which can reduce carbon pollution by 2 kg for every ft2 of your home’s floorspace.

 

It is time to implement a PTC for heat pumps.

 

 

NetZeroPLUS Canada is preparing sites to explain the netzeroPLUS concept.  They will be uploaded early in 2026 but here are some early drafts: