Residential building electrification is essential for decreasing residential greenhouse gas (GHG) emissions in line with climate targets while improving residents’ health and safety. Highly-efficient electric heat pumps for home heating and cooling (i.e., air-source or ground-source heat pumps [ASHPs or GSHPs]) and water heating (i.e., heat pump water heaters [HPWHs]) are critical solutions to scale since over 95% of in-home GHG emissions come from these end uses. While there are other synergistic solutions — like weatherization, rooftop solar, and induction cooking — this guide focuses on scaling heat pump deployment.

Local governments have a significant opportunity to support residential heat pump deployment as federal and state governments roll out billions of dollars in new heat pump incentives through the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA). Cities and counties can ensure their constituents take full advantage of these incentives by launching an “Electrify” program.  This guide provides local government staff, community-based organizations (CBOs), and other local stakeholders an equitable process for designing and implementing successful Electrify programs with the following five elements:

1. Strong partnerships and clear goals: Electrify programs bring key stakeholders and partners together, especially frontline CBOs, local government, utility companies, and technical entities, to develop a program structure and goals that address the community’s priorities.
2. Contractor engagement: Electrify programs can expand the number of qualified contractors installing and recommending heat pumps by incentivizing their participation in the Electrify program’s — or an existing state or utility electrification program’s — qualified contractor list.
3. Incentives and financing: Electrify programs can reduce heat pump up-front cost barriers by streamlining participation in existing incentive programs, providing additional income-based incentives, offering affordable and accessible financing, and leveraging qualified contractor lists to help residents find the best value project.
4. Community outreach and education: Electrify programs can increase heat pump interest among residents by partnering with trusted messengers — particularly those working in frontline communities — to communicate benefits tailored to audience priorities, providing engaging educational events, and simplifying the installation process.
5. Program implementation: Electrify programs pull all these pieces together with a launch event, ongoing support networks that can include technical advisor and program ambassadors, and ongoing program impact tracking and adjustments.

The guidance and resources provided here stem from RMI’s support of 12 Electrify programs across the United States from 2022 through 2023.

The first step in developing an Electrify program involves building the core team, determining their roles, and setting clear goals. A successful Electrify program convenes a coalition of partners across industry groups, state and local government entities, frontline CBOs, technical advisors, utilities, and other groups. It is much easier to secure buy-in and commitment from partners if they are brought in early so their voice can be integrated into important early program decisions, such as program goals and structure.

Secure Internal and External Buy-in

The program lead, typically a local government sustainability officer or electrification-focused organization, should convene the following local government departments early on to determine their interest in playing a role in the program and ensure alignment. Consider using RMI’s Electrify Program Pitch Deck Template for Key Partners to assist in this outreach.

• City or county mayor/manager: When local government leaders publicly support community programs (such as through mailers or press releases) residents are much more engaged. Consider emphasizing how the program aligns with an existing climate action plan, health and equity goals, or other leadership priorities.
• Communications: The communications department may play a helpful role during the program’s outreach and marketing. Consider confirming department capacity and identifying the program’s intended audience(s), promotion timeline, and available resources.
• Community and/or economic development: The community and/or economic development department may have helpful relationships to explore when conducting outreach to secure program partners. Consider highlighting the community benefits of electrification (as noted in the following section) and request introductions to relevant organizations.
• Permitting: The permitting department may have insight into ASHP and HPWH permit data or process challenges with local rebate programs. Consider identifying the necessary strategies to address an increase in permitting applications and inspections.
• Procurement or legal: The procurement or legal department may help navigate how to structure contracts and mitigate any local government risk in agreements with contractors, technical advisor services, or other entities. Consider reviewing related government programs and potential funding sources.

After securing internal local government buy-in, the lead can identify the core external program partners. The importance of developing meaningful key partnerships early in program design cannot be overstated: trusted partners are essential in bringing in the community perspective, industry experience, technical know-how, and capacity to program teams. Municipalities participating in RMI’s 2022–2023 Electrify cohort launched their programs with two to seven core partners.

The following stakeholders are common partners in an Electrify program:

• Community-Based Organizations: Creating an inclusive and effective program requires meaningful engagement with the CBOs best positioned to represent the community’s voice in designing the program’s goals, structure, and outreach strategies. This is especially true for programs that work to equitably deploy heat pumps in low-income and other frontline communities. For example, the city of Grand Rapids, MI, partnered with Urban Core Collective to integrate community voices into their H.Zero program. Consider using RMI and Emerald Cities Collaborative’s Ecosystem Mapping Process Guide to identify a group capable of representing community voices. This group could include environmental justice nonprofits, community action agencies, neighborhood organizations, or faith-based groups.
• Workforce and supply chain: Reaching out to local heating, ventilation, and air conditioning (HVAC) and plumbing networks can help programs understand local contractors’ experience and barriers with installing heat pumps and participating in related programs. Consider contacting major heat pump manufacturers for training materials and contractor relationships. If the program targets multifamily complexes, consider engaging organized labor groups, such as the International Brotherhood of Electrical Workers (IBEW) and United Association (UA) to understand interest in the program.
• Technical experts: Organizations that have a good understanding of the technical functionality and key considerations installing ASHPs and HPWHs and related upgrades are helpful to lead the program’s workforce and supply chain engagement and act as technical advisors to homeowners during the process. For example, a group of Minnesota cities worked with the Center for Energy and Environment to provide technical support in their Electrify Everything MN program.
• State and regional entities: Programs should coordinate with their state energy office implementing the Home Energy Rebate program to streamline incentives and leverage their list of qualified heat pump contractors. Consider also coordinating with other synergistic program providers, such as a local community action agency implementing the federal Weatherization Assistance Program or regional energy efficiency program, as they can provide helpful program design insights, contractor training materials, and community outreach networks.
• Financial entities: State green banks or local credit unions are helpful to engage early in the process to tee up incentive and financing program design discussions. For example, Montgomery County, MD, collaborated with the Montgomery County Green Bank early on in their program development to understand current financing offerings and inform future offerings.
• Gas and electric utilities: Reach out to the local electric-only, or gas and electric, utility or utilities to understand their interest in collaboration and any available electrification rebates or incentives. Consider leveraging the Cadmus Group’s framework, The Building Electrification Primer for City-Utility Coordination, when conducting this outreach. For example, the city of Longmont, CO’s, municipal electric utility offered heat pump incentives and a qualified service provider list.

When engaging with potential external partners, project organizers should be transparent about the limitations of an Electrify program and the home upgrade barriers it does not address. Properly setting expectations and acknowledging such limitations is a critical means of building trust and involvement over the long term. While Electrify programs can be designed to address some of the contractor, financial, and consumer education barriers to home electrification, as detailed in the following chapters, structural barriers like workforce and supply chain shortages and related home repair needs are typically out of scope.

Define Roles and Responsibilities

After securing internal and external buy-in from key entities making up the Electrify team, it is helpful to determine their specific roles and responsibilities as outlined in the following table.

It is valuable to formalize relationships and roles with external partners in a memorandum of understanding (MOU). These typically include the scope of the role, expected time commitment pre- and post-program launch, financial commitments or compensation, and decision-making power in program design and administration. Consider applying a RACI matrix to each of the steps and sub-steps listed in this guide.

It is particularly important to thoughtfully define an Electrify program’s interaction with frontline communities, whose relationships with government entities may be historically neglected or exploited. Consider using Facilitating Power’s Spectrum of Community Engagement to Ownership to coherently define the relationship you hope to establish with these groups and identify specific opportunities for involving, collaborating with, and deferring power to them in the process of developing and deploying programming.

Perform Initial Research

This section outlines a framework for understanding the community’s current residential building landscape, socio-economic demographics, and the economics of ASHP and HPWH installations. These local factors are important for guiding the development of program goals:

• Residential building and GHG inventory: Determining the total number of residential buildings, GHG emissions, building characteristics (i.e., type, age, and fuel source by end use), and current ASHP and HPWH installations (e.g., leveraging permit or utility rebate data) can provide insights into the current landscape and opportunities and challenges for ASHP and HPWH conversions. Consider leveraging US DOE’s LEAD tool to gather this information.
• Socio-economic demographics: Understanding socio-economic demographics helps inform equity-focused goal setting and provides a baseline for quantifying the program’s socio-economic impact. To inform which communities are most energy burdened and thus in the most need of cost-effective electrification and affordability protections, consider using the US DOE’s LEAD tool to determine low- and moderate-income (LMI) residents’ current average energy burden at the county and census tract level. To inform Electrify program lower-income participation goals, teams can identify current annual low-income participation in other energy-related programs, such as their local WAP, energy assistance, and LIHEAP programs.
• ASHP and HPWH economic, environmental, and health benefits: Understanding the local economic, environmental, and health benefits of ASHPs and HPWHs for different home types (e.g., by current home fuel type) help inform program goal setting based on program priorities. Consider leveraging a calculator like RMI’s Green Upgrade Calculator to estimate these quantitative benefits and validating cost estimates with actual installs or program data. For example, many Electrify programs target electric resistance and delivered fuel (i.e., propane and oil) conversions to heat pumps given large energy bill savings, while others include induction cooktops given their indoor air quality benefits.
• Community and local government priorities: Early community outreach should center on understanding the community’s primary challenges, priorities, and synergies with local government goals. Early guidance sufficient for initial goal setting may be provided by trusted CBO partners or previous community engagement efforts, depending on the anticipated program scope.

Define Program Goals

Setting clear goals can help program organizers and their partners align their priorities and tailor the Electrify program to meet the community’s needs. The goals should inform subsequent program processes, including contractor engagement strategy, financial solutions and partnerships, and the community outreach strategy. Frontline CBO representatives should be centered in the goal-setting process to ensure the program addresses the needs of marginalized residents. The following are initial key questions to inform program goals:

• Home type and ownership: Will the program focus on single-family or multi-family homes? Will the program incorporate regulated affordable housing? Will the program incorporate strategies to encourage renter participation?
• Home upgrades: Will the program focus on deploying ASHPs, GSHPs, HPWHs, and/or other synergistic upgrades? Will the program target replacing specific systems (e.g., air conditioners or electric resistance, propane, or oil heaters) to provide more significant economic benefits?
• Benefits: How will the program prioritize carbon, health, economic, workforce, and/or resilience benefits?
• Equity: How will the program involve, collaborate with, and/or defer power to frontline communities? Will the program target heat pump deployment in these communities? How will the program mitigate unintended consequences like potential increases in energy burden for gas to heat pump conversions?

After understanding the program focus, the next step is to translate goals into specific, measurable, and attainable outcomes to make it easier to track and measure progress and inform improvements to future programs. The following are example goals:

The goal-setting process is iterative and can be informed by new insights and community input. As noted throughout the following program development steps, program staff can revisit the goals as new information and input is received.

As municipalities structure their Electrify programs, a crucial step is identifying and engaging with local contractors. These professionals play a pivotal role as an influential voice to consumers recommending specific home upgrades, quoting cost-competitive systems and brands, and providing quality installation. Understanding the existing contractor landscape, contractor motivations, and pain points, and ensuring trained heat pump contractors can be recognized on a qualified contractor list are key steps to support contractor engagement in the program.

While the following sub-sections of this step assume that the municipality takes a lead role in local contractor coordination for its Electrify program, this role is quickly evolving with the rollout of IRA Home Energy Rebate programs. State energy offices are now expected to take on many of these responsibilities — but exactly what responsibilities are left to municipalities, utilities, and other actors is still evolving and may vary substantially from state to state (see the DOE’s Home Energy Rebates Program Requirements and Application Instructions, especially sections 3.1.4, 3.2.5, 4.1.4, and 4.2.5, for more guidance) on what your state energy office is planning).

Thus, the very first step in this process is engaging the state energy office, utilities, and other local program administrators who may already be performing (or planning to perform) some or all of this work. Failure to coordinate effectively here risks duplicative work and unnecessary complications that can negatively impact both contractor and resident uptake of your Electrify program.

Profile the Existing Contractor Landscape

Next, teams can identify and foster relationships with the following stakeholders to help understand the existing contractor landscape and design a program that meets their needs.

• Manufacturers and distributors: Developing strong relationships with the entire supply chain early is beneficial to develop their buy-in in the program, prepare for any projected product demand increases for equipment stocking, hear motivations and barriers to program participation, coordinate on contractor outreach and training, and solicit ongoing feedback.
• State or regional programs: Some states or regions might have existing networks to identify, train, and develop contractor workforces.
• Trade ally networks: These consist of contractors, suppliers, and service providers who collaborate with utilities and other organizations to promote energy-efficient technologies.
• Local associations: These consist of professional HVAC, plumbing, electrical associations, and unions that maintain databases of certified professionals.

These entities can convey helpful contractor perspectives and data to profile the existing contractor landscape that can be challenging to acquire through direct contractor engagement given their low bandwidth. Teams can inquire about the general number of HVAC, plumbing, and weatherization contractors operating within the locality and the percentage trained in installing heat pumps to inform contractor engagement goals.

It is also helpful to identify existing training programs conducted through state offices, community colleges, or utilities to help train new contractors (e.g., Michigan Saves’ heat pump training series and the Center for Energy and Environment’s contractor training). Since ASHP and HPWH manufacturers provide installation training and have close relationships with distributors and contractors, their trainings are commonly leveraged.

Identify Ways to Incentivize Contractor Participation

Next, it is helpful to understand the motivations and challenges contractors face in their work, both in general and specific to electrification, to create programs that contractors will want to participate in. Local contractors focused on installing gas furnaces and other legacy technologies may see little incentive to change their core business offering and consider incentive programs and associated permits to be onerous and time-consuming. Thus, programs can leverage surveys or roundtable discussions with contractors, distributors, and manufacturers to understand challenges and motivations and effectively incentivize contractors to participate in their program. The following are typical barriers and motivations:

• Common electrification contractor barriers
  • Higher up-front cost and incentive complexity: ASHPs and HPWHs are commonly more expensive than the alternative heating or cooling system or water heater so they can be harder to sell without properly designed incentives. Electrify programs can address this barrier by making the incentives large enough for the ASHP or HPWH to become cheaper than the alternative replacement and simplifying the incentive and permit application process.
  • Negative call backs: Contractors may receive negative call backs due to perceived bill increases and comfort issues. Electrify programs can address these barriers by recommending cost-effective systems using software like RMI’s Green Upgrade Calculator and including high quality training programs for installation best practices.
  • Unfamiliarity: Contractors may have outdated information or myths from older ASHP or HPWH systems, such as incorrectly believing they do not perform well in cold climates. Electrify programs can address this barrier by working with manufacturers and other organizations on providing up-to-date information (e.g., Northeast Energy Efficiency Partnership’s contractor resources) and training.
  • Installation time and emergency replacements: Contractors can be wary of taking on complicated and time-consuming heat pump jobs, which can come at the expense of easier sales or higher profit margin emergency replacements. Electrify programs can address this barrier by focusing on AC to ASHP replacements or electric resistance to heat pump water heaters given their similarity in installation complexity and replacement timing.
• Common electrification contractor motivations
  • High quality leads: Contractors may be motivated by electrification programs that provide high quality leads to increase the effectiveness of their customer intake time. Electrify programs can leverage this motivation by prominently listing a “Find a Qualified Contractor” page on the program website.
  • Higher project revenue/profit margin: Contractors may be motivated by higher project cost for ASHPs and HPWHs than for traditional replacements and the potential for a greater profit margin or revenue. Electrify programs can leverage this motivation by discussing typical heat pump up-front cost data while being careful not to encourage over-inflated quotes.
  • Business growth: Since ASHPs and HPWHs are a growing market, they can be appealing to contractors looking to expand their business. Electrify programs can leverage this motivation by providing information to contractors about heat pump estimated market growth and demonstrating the consumer demand for qualified

Identify or Develop a Qualified Contractor List

Lastly, the Electrify team should identify the process for contractors to be publicly listed on the program’s website to help residents identify those experienced in home electrification. For many programs, this may simply involve leveraging existing qualified contractor lists from other electrification programs, such as the state-implemented Home Electrification and Appliance Rebate program. If an existing contractor list exists, programs can skip the following information.

If an existing contractor list does not exist, the program can develop their own process for a qualified contractor list. The MN ASHP Collaborative’s Preferred Contractor Network, Electrify Cincy’s Designated Contractor Network, Michigan Saves’ Contractor Badge Program, Longmont’s Service Provider List, and Tacoma Public Utilities’ Trade Ally Network are all examples of qualified contractor lists. When soliciting interest from contractors, it is helpful to specify the benefits of participation, such as greater business visibility, growth, and new leads.

The following elements are often included in a qualified contractor form (download RMI’s Qualified Contractor Form template for more details).

• Program Overview: This section lists the Electrification Program partners and goals (e.g., community and technical partners with a joint goal to install 1,000 quality heat pumps by 2025), qualified contractor list details (e.g., purpose, timeline, and designation location), and contractor benefits (e.g., enhanced local visibility, greater number of leads, and increased close rates).
• Contractor Requirements: This section lists the minimum requirements to be considered for designation on the list (e.g., Better Business Bureau rating, annual installations, required trainings and certifications, manual J load calculations) and program requirements to remain on the list after initial designation (e.g., minimum customer response time, minimum annual installation rates, customer satisfaction and reviews, and heat pump performance if monitoring systems (e.g., DOE’s Smart Tools for Efficiency HVAC (STEP) campaign for wireless diagnostics) or third-party inspector organizations are available).
• Contractor Information: This section includes the information the contractor must provide through the form, whether through an online form or submitted document. This typically includes company information (name, point of contact, address, and years in business), services (e.g., service territory, annual equipment installations, and example quotes), certifications and trainings (e.g., NATE or HVAC Excellence certifications and program specific training such as BPI), and customer satisfaction (e.g., referrals or online review ratings).
• Contractor Form Evaluation: This section details who will evaluate the submitted forms, how they will be evaluated (e.g., meeting the specified minimum qualifications), and when the evaluation will occur (e.g., on a rolling basis within one month of submittal, or on specified intervals through the year).

Once the form details are developed, the team can decide the distribution and submission format (e.g., a Request for Qualifications or more informal survey submission). Online forms such as Google or Microsoft forms have the benefit of simplifying the process for both the contractor and evaluators and for real-time updates. Partners identified in the prior step (e.g., trade ally partners, associations, manufacturers and distributors, and relevant programs) can then distribute the form to their networks.

A primary goal of most Electrify programs is to make home electrification affordable. Teams may define this term differently based on who their program targets; high-income residents may be willing to pay more for a system that saves money on utility bills over time, moderate-income residents may desire a zero up-front cost premium and bill savings, and low-income residents may not have disposable income for any up-front cost or appetite for financing while desiring bill savings. Defining the program’s affordability target can help prioritize the program’s type of additional incentive and financing offering. And regardless of whether the program secures funding for additional offerings, all communities can ensure new and existing incentive and financing offerings are streamlined to promote uptake.

This section covers three steps for the core team to integrate into program planning to make ASHPs and HPWHs affordable for all residents:

1. Identify existing incentive offerings,
2. Design additional incentive offerings, and
3. Secure funding for additional incentive offerings.

Identify Existing Incentive Offerings

Electrify teams should first identify existing incentives — rebates, tax credits, financing, and other offerings — offered through federal, state, utility, and other local sources. Consider using tools like Rewiring America’s Home Incentive Calculator or the NODE Collective, in tandem with direct state and utility stakeholder discussions, to compile a list of state and utility incentive programs. Be sure to list the key characteristics of each program including eligible energy measures, system types, and home types; income or tax liability requirements; and any limits on combining with other incentives.

The following federal rebates and tax credits can vary dramatically between single-family and multifamily homes, as well as between market rate and regulated affordable.

• Residential Energy Efficiency Tax Credit (25C) – This tax credit is equal to 30% of the up-front cost of qualified energy efficiency improvements, up to $2,000 for ASHPS and HPWHs and up to $600 per improvement for other qualified improvements (including qualified fossil fuel space and water heaters).
• Home Electrification Rebates Program – This is a federal program that awards grants to state energy offices to implement a rebate program to provide point-of-sale consumer discounts on electrification upgrades, including up to $8,000 on ASHPs, $1,750 on HPWHs, $840 on electric cooking appliances, and $4,000 on panel upgrades, to LMI households.
• Home Efficiency Rebates Program – This is a federal program that awards grants to state energy offices to implement a rebate program to provide point-of-sale consumer discounts on improvements such as weatherization and air-source heat pumps that significantly lower a home’s energy usage. These incentives range from $2,000 to $8,000, depending on income and percent energy reduced. Teams can see their state’s Home Efficiency and Electrification Rebate program status here.

The team should also identify existing financing offerings for residents to access affordable capital for the remaining up-front cost after incentives. Localities may have mission-aligned financial institutions, such as a community development financial institution (CDFI) or credit union, that already offer green home improvement financing offerings that are lower than the market rate. Loans typically fall into secured loans, in which it is secured to an asset as collateral for the borrowed money, and unsecured loans. The two primary types of secured home improvement loans include:

• Home improvement: These include home equity installment loans (HEIL), fixed-term loans based on the equity in the home (i.e., second mortgages), and home equity lines of credit (HELOC), revolving credit lines with a draw period and repayment period (similar to credit cards).
• Home refinancing: These are specific to homeowners looking to refinance their home for better terms, including government-sponsored enterprises such as Fannie Mae’s HomeStyle Energy Mortgage and Freddie Mac’s GreenCHOICE mortgage, both of which allow borrowers to finance up to 15% of their property’s value to pay for home energy upgrades.

If available, a team could leverage tariffed on-bill financing, also known as Inclusive Utility Investment, where residents can work with an approved contractor to receive clean energy improvements, like ASHPs and HPWHs, and pay for the system through their utility bill over time without taking on additional debt.

Design Additional Incentive Offerings

After identifying all existing incentives, the team can determine if additional incentives are needed based on any remaining up-front cost gap, leveraging the up-front cost data gathered in the “Determine Program Goals” section, between the ASHP and HPWH, including electrical upgrades, and the traditional replacement. If additional incentives are prioritized, the team can determine the incentive amount based on a) the up-front cost gap, or b) typical incentive values leveraging resources like ACEEE’s Building Electrification: Programs and Best Practices report.

The team can then design the incentive program’s features and structure. Getting input early and often from relevant stakeholders helps avoid the pitfall of putting something in market that does not work and having to disrupt the program later to make significant overhauls. Consider engaging manufacturers, contractors, property owners and developers, community groups, and advocates by sharing the draft program design and requesting their feedback.

The following is a simplified summary of best practices in ASHP and HPWH rebate program design. See RMI’s forthcoming Best Practice Recommendations for Incentive Programs report for more detail.

• Simplified and coordinated application: The incentive application should be coordinated with complementary incentives via a universal application and common intake portal so that applicants do not have to resubmit application materials or visit multiple program websites. The application should be kept as streamlined as possible with target metrics for time to completion. As IRA programs roll out, municipalities have an opportunity to work with and lobby their state energy offices to simplify and streamline offerings even more aggressively.
• Simplified and coordinated requirements: The incentive’s income and project eligibility should also be coordinated with complementary incentive programs. For each of these components, the requirements and process to determine eligibility should be kept as simple as possible, be flexible and accessible, and minimize the role for contractors to verify customer eligibility. The most successful programs are ones that are nearly “invisible” to a consumer, and do not interfere with the customer sale. Income verification could include enrollment in existing government programs like WAP as a proxy, self-attestation/verification, or census tract location. Project efficiency, sizing, and type requirements should be aligned with existing programs and flexible to let contractors choose what is best for their clients. This area again represents an opportunity for state energy office engagement.
• Midstream incentives and prompt payments: Heat pump program incentives are typically provided “midstream” to the contractor or distributor or “downstream” to the consumer. Research has shown that the instant rebates enabled through midstream incentives increase uptake and enable more equitable program participation. However, since this requires contractors or, even more ideally given their larger balance sheet, distributors to foot the bill while they await incentive payments, they should be reimbursed for the rebates promptly. Midstream programs can also encourage passthrough of all or some of the incentive to consumers by requiring that contractors include the incentive on bid documents or have a set incentive amount that midstream actors must pass on to consumers.
• Prioritize cost-effective retrofits: Incentives are much more likely to take off if they are focused on retrofits that lower energy bills and are easy for contractors to sell. Providing ASHP and HPWH incentives to delivered fuel and electric resistance customers that should experience notable bill savings can create a sustainable market. Similarly, providing hybrid ASHPs incentives focused on central AC replacements in homes with natural gas furnaces can grow the heat pump market while alleviating operating cost and comfort concerns. When prioritizing these more cost-effective retrofit types, teams should ensure that LMI and other marginalized households still receive a majority of the benefits.
• Renter considerations: Incentive programs can also consider incorporating landlords and lower-income renters by developing an agreement to ensure that lower-income residents benefit. For example, King County, WA, provided a Heat Pump Landlord Agreement that enabled property owners renting to income-qualified tenants to receive the free or reduced-cost heat pump, and the renter to pay a lower energy bill, in exchange for agreeing not to raise rent-related costs by more than 5% per year. Programs can also address the split incentive between landlords and renters if available incentives result in heat pumps being less expensive than the traditional replacement and having similar or lower energy bills.

Even if incentives significantly reduce the ASHP or HPWH up-front cost, this cost can still be high enough that many residents will look to finance. Thus, if not already available locally, the program could consider partnering with a mission-aligned financial institution to provide affordable (i.e., low-interest) and accessible (i.e., lowering credit score requirements) financing offerings. Teams can also identify minority-owned or -serving financial institutions (e.g., Black-owned banks) to further increase marginalized residents’ trust in a program and strengthen its community-empowerment impact.

The team can make these offerings possible to residents that struggle to qualify for financing by leveraging funding to create a loan loss reserve (LLR) to partially cover the perceived higher risk. Lenders draw on the LLR to cover a prespecified percentage of losses on loans due to defaults or nonpayment. For example, the Tacoma Public Utility’s residential program partnered with a local financial institution to provide zero interest loans for qualified home upgrade projects to income-qualified residents.

If there is not a viable local financial institution, the local government may consider partnering with a national financial institution like the Clean Energy Credit Union that also offers clean energy and electrification loans that are lower than the market rate.

Secure funding for additional incentive offerings

Once the incentive details are set, the team can use the program installation objectives to determine the total funding goal (e.g., $5,000 LMI incentive x 1,000 LMI installations = $5 million annual funding goal). Ideally, the funding should last multiple years, as heat pump supply chain stakeholders often cite stability as a crucial component of programs to give them time and justification for marketing and other business investments. The following are types of funding opportunities that local governments have leveraged in prior Electrify programs:

• Federal funds: The team can identify federal funding opportunities to apply for using resources like RMI’s America’s Federal Funding Opportunities and Resources for Decarbonization (AFFORD) tool. For example, in 2023, a coalition of nonprofits and local governments in Colorado’s high-altitude climates secured $1.4 million in federal funds through an EECBG grant for their program’s incentives.
• State government funds: The team can seek funds from state budgets or agencies. Engagement with state energy offices can identify potential funding sources. For example, in 2023, the Montana Department of Environmental Quality provided $87,000 for HPWH rebates in the Electrify Bozeman and Electrify Missoula programs.
• Local government funds: The team can seek funds from local or state budgets. For example, in 2023, the city of Ann Arbor secured roughly $7.5 million annually in their city budget for home decarbonization incentives through a voter-approved climate millage.

Given the substantial federal incentives offered through IRA programs, even if programs cannot secure additional funds, they can still implement successful programs by simply leveraging existing incentives and focusing early efforts on the most cost-effective conversions (e.g., air conditioner and delivered fuel or electric resistance heat systems to heat pumps).

One of the most crucial aspects of an electrification program includes a comprehensive strategy to engage with the local community on the benefits and key considerations of heat pumps. While heat pumps are not a new technology, they have historically made up a small percentage of installations in many US markets and have substantially improved their performance over time. So many homeowners may be unfamiliar with, or have an outdated understanding of, heat pumps. This chapter outlines a comprehensive approach to develop a communications campaign to increase awareness and address misconceptions to encourage widespread adoption.

Some municipalities may have the budget to hire a professional communications or marketing firm to support this effort. Others may be able to partner with other groups that can benefit (e.g., local utilities) to secure that funding. But many of the communities in RMI’s Electrify program were able to produce their own education and outreach efforts on limited budgets by following the steps in this guide.

Identify the Outreach Message and Messengers

The first fundamental step to an effective outreach campaign is developing messages that resonate with the intended audience(s), as identified during the campaign goal setting, and that come from trusted sources.

When determining potential themes for the campaign message, it is most effective to begin by understanding the intended audience’s current awareness and attitudes toward ASHPs and HPWHs and their broader needs, concerns, and motivations. For heat pump perceptions, programs can leverage existing electrification surveys, engage local groups that may have conducted their own research (e.g. local utilities or state energy offices), or conduct locally specific focus groups or listening sessions. For broader priorities and needs, CBOs can take the lead on identifying and representing their perspectives. If the program has multiple intended audiences, the core team may need to tailor different messages to address the varying needs and priorities across demographics.

Below are some of the most common themes used in the 12 RMI-supported Electrify programs to consider emphasizing in messaging:

1. Access financial incentives and assistance: Many homeowners are not aware of the significant federal and potentially state, local, or utility rebates and tax credits, and favorable financing options, available. Consider leveraging existing resources, such as Rewiring America’s Home Incentive Calculator, to summarize the total incentives homeowners can access through the program. For example: “There’s never been a better time to electrify your home with up to $X in incentives for air source heat pumps and $Y for heat pump water heaters.”
2. Save money on electric bills: Heat pumps are more energy-efficient than traditional heating systems and may lower energy bills, depending on local energy rates, climate conditions, and technical details. Consider leveraging an online calculator, such as RMI’s Green Upgrade Calculator, to calculate typical economic benefits for different homeowner situations. For example: “Homeowners in [program location] currently using electric resistance or delivered fuel heating systems could save $X per month on average by switching to an electric heat pump.”
3. Increase energy independence: Reliance on fossil fuels for space heating and cooling and water heating inherently ties energy bills to greater price fluctuations from global impacts. Consider emphasizing the decreased dependence on foreign energy sources and greater price stability. For example: “Global events are furthering fossil fuel price volatility — switch to a heat pump today to reduce your reliance on foreign energy sources and have greater stability in energy costs.”
4. Improve health and the environment: Heat pumps for heating and cooling and water heating already release fewer greenhouse gas emissions than traditional equipment today and come without the indoor air pollution concerns of fossil fuel appliances. Consider leveraging an online calculator, such as RMI’s Green Upgrade Calculator, or state-specific resources, such as RMI’s State-Level Building Electrification Factsheets. For example: “Switching to a heat pump for home heating and cooling reduces the pollution from your home by around X% in our state — that means a healthier community for us all.”
5. Simplify the process of “electrifying”: Electrify programs play a helpful role in simplifying the process of electrifying homes. Consider highlighting how the program offers educational resources, customized advice, quality assurance, or guidance on state and federal incentives. For example: “Participating in a [program name] workshop will leave you with a clear roadmap on how to plan for and move forward with home electrification and energy efficient solutions.”

Electrify teams can find inspiration from the heat pump content already produced by leading municipalities and groups like the City of Ann Arbor, MN Air Source Heat Pump Collaborative, Building Decarbonization Coalition’s Switch is On campaign, Michigan Saves, Mass Save, and Efficiency Maine.

Along with developing messaging, it is also important to identify and build a coalition of diverse and trusted community members to promote the program. The following are examples of key messengers:

• Local CBOs: Partnering with local community-based organizations that understand the community dynamics can help communications campaigns more effectively reach marginalized residents through trusted channels. Often the target of scams and predatory lending, low-income communities and communities of color may be more skeptical of heat pump product offerings that sound too good to be true. For example, the City of Grand Rapids teamed up with local partners Urban Core Collective and Elevate for the low-income rebate element of their H.Zero program.
• Heat pump ambassadors: Recruiting volunteers who have installed heat pumps, whether previously or as an early program participant, to act as “heat pump ambassadors” to share their positive firsthand experiences can help humanize and personalize the process. When communicating with communities of color and lower-income residents, it is especially important that these ambassadors are representative of their community. For example, the Electrify Cincy program trained 24 volunteers as community ambassadors, who made over 3,500 touches through email, social media, and in-person events. The Switch Is On also provides free community ambassador training.
• Elected officials: While elected officials, such as a mayor or council member, are typically not as trusted as other messengers, they are important to lend program legitimacy and critical press coverage to expand the program’s reach. Officials can demonstrate support through attending an in-person or virtual event, sending out a signed mailer or email, issuing a press release, or posting on social media. For example, the Electrify Longmont program invited their mayor to speak at their electrification event, which attracted media attention and brought additional resources to the program.

Depending on the diversity of the local community, full-service translation may be needed. This includes translating all outreach materials and providing speakers fluent in the languages of any non-English-speaking target audiences to answer written and verbal questions at campaign events. For example, King County worked in partnership with Spark Northwest and ECOSS to translate its Electrify Program materials into eight different languages based on resident demographics.

Plan the Outreach Strategy

Once the team has aligned on messaging and key messengers, the next step is developing an outreach strategy that aligns well with the intended audience’s preferred communication channels and stays within the program budget. This involves tailoring the outreach methods to meet the intended audience’s preferences.

Many Electrify programs have found the following combination of digital and traditional outreach methods to be effective:

• Plan community workshops and seminars: Programs can host educational workshops and seminars to inform residents about heat pump benefits, key considerations, and the installation process, and to answer any questions. These can be held in community centers, local schools, or even online as webinars. Carefully consider event locations, logistics, and timing to allow for participation from marginalized residents. For example, the Energize Olympia and Electrify Everything MN programs hosted in-person and virtual community workshops, leading to hundreds of residents engaging in their programs.
• Send emails or physical mailers: Email blasts or physical mailers from partner organizations can be an effective technique for reaching the largest number of priority demographics and inspiring confidence in the program. Programs can weigh the advantages and disadvantages of email versus physical mailers based on budget and related mailers (e.g., new community solar programs) to combine efforts. For example, the Electrify Missoula program delivered mailers to residents, driving traffic to their website to increase engagement with their online educational resources.
• Leverage local media: Successful programs often leverage local media to spread the word about the program. First, the team can determine media-worthy events or milestones (e.g., program kickoff). Second, identify relevant media outlets and reporters (e.g., local papers and radio stations) to contact prior to the milestones. Third, draft corresponding key messaging documents, press releases, and media advisories for these events and milestones so that these are ready when needed. For example, a coalition of nonprofits and local governments in Colorado’s high-altitude climates launched several digital and radio campaigns to promote their program.
• Utilize social media: Social media can be a cost-effective marketing tool for Electrify programs. The core team can send a social media kit to partners prior to launch that contains suggested posts, visuals, and key program links. If one of the partner organizations has an established social channel, paid social media optimizing for specific geographies and personal interests can also be a great tool for amplifying messages.
• Canvass neighborhoods: If the core team identified priority neighborhoods, it can be helpful to recruit volunteers for door-to-door canvassing with doorknob hangers, bulletin board canvassing with flyers, or hanging signs in the most visible parts of the community. Members of the core team who live in priority neighborhoods and public agencies can also utilize local groups on apps like Facebook or Nextdoor to jump-start these conversations.
• Be present at community events and spaces: Volunteers can sign up to host information tables at community events or in high-traffic areas to discuss the program and hand out flyers. The core team should work with their partner frontline CBOs to identify events important to their members. Some examples include grocery stores, barber shops, houses of worship, farmers markets, coffee shops, or wherever local residents congregate. The City of Ann Arbor’s electrification program hosted tables at three major community events, including a Home Electrification Expo, which allowed them to engage hundreds of attendees at each event.
• Plan heat pump tours: Residents with an installed ASHP or HPWH can offer interested program participants the opportunity to visit their home, see their installed system, and hear the benefits first-hand. Household tours are great opportunities to foster peer-to-peer discussions. The Electrify Missoula program has hosted two “Electrify Homes Tours” to showcase multiple homes with ASHPs, HPWHs, solar, induction stoves, electric vehicles, and e-bikes.

Develop Outreach Materials and Resources

After identifying the outreach strategy, the next step is developing materials for the identified outreach tactics. The following are key considerations when developing these resources:

• Keep it simple: The content should be designed to educate without overwhelming the reader with technical details. Using simple language, clear explanations, and real-life examples can make complex concepts more accessible.
• Leverage visuals: Diagrams illustrating how heat pumps operate, infographics showing energy savings over time, and before-and-after images of installation projects can make the information more engaging and digestible.
• Make it relatable: Customizing the educational materials to incorporate aspects of local culture, norms, and values can make the information more relatable.

The following are examples of commonly distributed outreach materials in Electrify programs. Consider using RMI’s Electrify Program Outreach Template Library when creating these resources:

• Program overview: This document provides a concise summary of the local heat pump program, highlighting its objectives, benefits, and how residents can participate. Programs may also list the logo of participating contractors.
• Event flyer: This visually engaging announcement is designed to attract attention and provide essential details about an upcoming event related to the heat pump program. Be sure to include date, time, location, and an event description.
• Mailers: These are targeted physical communications sent to a specific geographic audience to inform them about the heat pump program, encourage participation, or provide updates on progress and opportunities.
• Press releases and media advisories: These official statements can be distributed to media outlets to announce newsworthy events, milestones, or developments in the heat pump program.
• Email and social media templates: These email and social media templates can be customized to engage with the community, spread awareness, and drive action online.

Lastly, the team should create the Electrify Program website to serve as the online clearinghouse for information about the communications campaign. Determine if the website will be built in house or leverage customizable Electrify program website templates through entities like Canopy Climate. If creating the website in house, determine who will host the website, either through an existing domain or hosted independently under a unique URL, and who will be responsible for designing and managing website content. Program websites typically include sections on benefits of electrification, qualified contractors, FAQs, events, a progress tracker, and testimonials.

Launching and managing a successful Electrify program requires meticulous planning, coordination, and ongoing management. This chapter outlines the key steps and strategies for effectively launching, providing technical support to, and tracking the impact of an electrification program.

Plan an Official Program Launch

It is helpful for Electrify programs to have a highly visible launch event to build excitement and momentum around the community’s efforts to increase heat pump adoption. While launch events can take different forms, their primary goal is to jumpstart interest from the intended audience and generate sustained community interest through earned media. The following are key considerations when planning the launch event:

• Event location: Launch events can be in-person or virtual. In-person events should take place at a public venue that is accessible, inviting, and recognizable, such as a community center, with adequate seating capacity for at least 100 attendees and located within or near prioritized neighborhoods. Consider having an ASHP or HPWH on site for a demonstration. If virtual, be sure to integrate opportunities for personal interactions and engagement with residents who have already installed heat pumps in smaller breakout groups using a platform like Zoom.
• Event speakers: Having local trusted leaders speak at launch events, such as a mayor, council member, or community leader, can generate excitement from residents and media. Speakers who have already adopted a heat pump and can attest to their own positive experiences can be especially influential.
• Coordinate outreach: It is helpful to leverage multiple communication methods, including social media, email templates for partners and personal networks, physical event flyers, and listings in local papers, community boards, and online event websites like Eventbrite. It can also be helpful to send a media advisory to local reporters at least one week before the event.

Develop Technical Support Systems

Effective consumer technical support systems are integral to the success of Electrify programs. They ensure that participants have access to the necessary knowledge and assistance to confidently transition to heat pump technologies. Many communities implement electrification help desks and deploy heat pump ambassadors as key components of these support systems.

• Electrification help desks: These support centers typically involve a technical entity that the local government contracts with and compensates to provide technical heat pump assistance to community members, usually via an online platform. For example, Montgomery County’s Electrify MC program hired Elysian Energy as their program manager and help desk administrator. These entities should be able to answer any consumer questions through their electrification journey in an easily understandable manner, including initial questions (e.g., Do heat pumps work in my climate?), quote review (e.g., which of these quoted systems should perform the best for my home?), and during operation (e.g., how do I know when my hybrid heat pump’s auxiliary heat is operating?). These help desks should also have a repository of resources, from detailed materials to interactive tools, to respond to an array of consumer inquiries quickly and effectively. Implementing a feedback system through online surveys is also helpful to continuously improve the help desk’s service and evaluate effectiveness.
• Heat pump ambassadors: These ambassadors are volunteers who are excited to share their positive experiences with their own heat pump installation and act as the program’s champions within the community. Recruiting enthusiastic community members who are influential and respected can create a network of peer-to-peer support that resonates more authentically with residents. These ambassadors, once provided with sufficient heat pump training, can actively engage with the community to answer questions, participate in local events, and facilitate home visits to showcase their heat pump and discuss the benefits they have experienced. These ambassadors also offer a helpful mechanism in gathering community feedback to adapt and improve the program to better align with local needs.

Offering the above technical support systems requires coordination between the help desk, ambassadors, contractors, and program administration. Be sure to equip the help desk and ambassadors with a wide range of resources and a relationship with the qualified contractor network.

Track Impact Metrics

Measuring the success of an Electrify program is critical to understand its impact, identify areas for improvement, and justify continued investment. The core team should prioritize tracking key metrics to gauge the effectiveness and impact of the program.

Key metrics may include:

1. Installation rates: Tracking the number of heat pump installations versus program targets through rebates or contractor reported installations can serve as a direct indicator of the program’s reach and acceptance.
2. Demographic impacts: Tracking race and income demographic impacts indirectly through installation addresses and corresponding census tract information, or directly through program or rebate questionnaires, can help to measure equity metrics versus program goals. Programs may also track incentives dispersed by income if available.
3. Energy and emissions savings: Measuring the reduction in energy consumption through utility data or estimating energy and emissions savings through online calculators such as RMI’s Green Upgrade Calculator can help to convey the program’s impact and justify continued investment.
4. Participant satisfaction: Conducting surveys with multiple choice selections and space for testimonials can assess participant satisfaction with the program information, technical support, contractor and installation process, equipment performance, and overall experience.
5. Contractor engagement and satisfaction: Tracking the number of qualified contractors participating in the program over time can convey impacts on broader market transformation. It is also key that programs invest in contractor relationships to ensure they are supported and continue to experience value in their participation.

This data should be analyzed on a regular basis, annually at a minimum, to communicate the program’s impact to the broader community and transformed into actionable insights to continually improve the program. Consider compiling data into reports that can be shared with key stakeholders, including government bodies, funders, and the community, to maintain transparency and support. Issuing an annual press release or hosting a celebratory event to acknowledge the overall program impact can also help to sustain program momentum and community interest.

• Electrify program templates
  • RMI, Electrify Program Pitch Deck Template for Key Partners
  • RMI, Electrify Program Qualified Contractor Form Template
  • RMI, Electrify Program Outreach Playbook
• Other helpful resources
  • RMI and Emerald Cities Collaborative, Ecosystem Mapping Process Guide and Equitable Home Electrification Toolkit
  • Cadmus Group, The Building Electrification Primer for City-Utility Coordination