Renewables, storage can meet one-third of US industrial heat demand: report

A new analysis from University of California, Berkeley researchers finds that on-site wind and solar, paired with industrial heat pumps and heat storage, could economically supply up to one-third of U.S. industrial heat demand by 2035. The researchers looked at more than 3,000 industrial sites nationwide and found this approach works best in places with expensive natural gas and cheap renewables, including California and parts of the Northeast. Heat pumps came out as the most cost-effective option for lower-temperature processes, while thermal batteries were competitive for higher-temperature ones.

This is industry-level research, not a homeowner program, but it points to the same technology showing up in houses: heat pumps that move heat instead of burning fuel to make it, and batteries that store energy for use later. The report's authors argue these systems are now often on par with fossil fuel costs, and getting cheaper as renewable power prices keep falling.

The study also flagged limits. About 27% of industrial heat demand sits at facilities, often in cities, that don't have enough local wind or solar potential to make this work. Researchers said many industries still aren't aware these options exist. None of this changes rebates or programs available to homeowners, but it's a sign that heat pump and storage technology is gaining ground well beyond the residential market, which could help push prices down and improve the technology further over time.