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Fact Sheet

Heat Pumps Cut Costs for the Grid and Texas Families

May 14, 2026
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Winter storms in Texas not only dominate the news but also have a large effect on Texas electric grid planning. Electricity demand spikes during winter storms and other periods of cold weather, and these spikes are driven by costly, inefficient electric resistance heating. 

This fact sheet summarizes ACEEE analysis which found that replacing electric resistance furnaces with heat pumps in Texas would reduce peak demand during the coldest days by around 50% in a home, saving up to 12 gigawatts (GW) statewide. This is equivalent to 40 average power plants and more than double the capacity of all the data centers currently operating in Texas. 

The heat pumps would also reduce utility bills, and many are already being built in factories in Texas. Replacing electric resistance with heat pumps is enabled by policies such as building energy codes and expanded utility efficiency programs. 

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