A report from RMI argues that heat pumps could help reverse recent electricity price trends by increasing demand and making better use of existing grid infrastructure. The report estimates that full deployment of heat pumps across U.S. homes would reduce residential electric rates by about 13% in states that peak in summer.
The analysis points to the period from 1980 to 2000, when electricity demand climbed and prices fell. RMI suggests heat pumps could recreate that dynamic, because higher demand would spread fixed grid costs across more electricity sales and improve utilization of assets such as transmission lines and generation.
Those savings would come from system-level efficiency, not just the efficiency of heat pumps in individual homes. By electrifying heating, utilities can sell more electricity during periods when the grid has spare capacity, a pattern that is especially pronounced in regions with summer peaks. The report highlights this as a key reason the rate-reduction effect is strongest there.