Three MTIs would deliver $1.9 billion in energy savings, grid, and GHG emissions reduction benefits
CalMTA’s efforts to create a statewide portfolio of market transformation initiatives (MTIs) hit a critical milestone on July 7 with the submittal of a second tranche of plans to the California Public Utilities Commission (CPUC) for approval. The three MTIs are poised to advance efficiency, decarbonization, and market innovation delivering $1.9 billion in Total System Benefit (TSB) to Californians. The initiatives target one residential and two commercial technologies including: Residential Heat Pump Water Heating (HPWH), Commercial Rooftop Units (CRTUs), and Commercial Replacement & Attachment Window Solutions (CRAWS). CalMTA is seeking approval to implement these three cost-effective MTIs and administer the expanded market transformation portfolio through 2031.
Each research-informed MTI Plan describes strategic interventions that will remove market-level barriers to accelerate adoption of energy-saving technologies that also support California’s decarbonization, workforce development, and equity goals.
- The Residential Heat Pump Water Heating MTI will engage program partners and market actors as collaborators in aligning HPWH development and promotion with California market needs, targeting high-value submarkets for HPWH installation, and creating a consistent statewide infrastructure to scale-up adoption. Removing persistent market-level barriers and addressing identified gaps will position this MTI to help California meet its ambitious decarbonization goals, contributing to the State’s target of 6 million heat pumps installed by 2030.
- The Commercial Replacement & Attachment Window Solutions MTI seeks to make innovative new products more widely known and accessible as a solution for buildings with inefficient single-pane windows. Because they don’t require full window replacement, window attachments enable an affordable retrofit solution that prioritizes envelope efficiency. These products represent a key efficiency upgrade in the commercial sector, where windows are responsible for HVAC losses of approximately 40% on average – comprising about 12% of a typical building’s overall energy use.
- The Commercial Rooftop Units MTI aims to accelerate adoption of heat pump rooftop units (RTUs) with features that optimize efficiency and performance but are not currently widely available (e.g., connected controls and commissioning) — unlocking new pathways to cost-effective decarbonization in the commercial sector. The technology this MTI seeks to enhance is especially applicable to small businesses like restaurants and strip malls, where over 90% of the floor space is conditioned by single-zone RTUs.
As directed by California’s market transformation framework, the MTI Plans are designed to complement and add value to other energy efficiency programs operating in the State while targeting barriers that are beyond the reach of traditional efficiency programs. The submitted MTIs are all cost-effective, representing a positive return on ratepayer investment: for every dollar spent on combined second tranche of MTIs, approximately $16 in energy system benefits will be delivered (based on TSB value for dollars invested over the initiative lifetime).
The market transformation approach deployed by CalMTA also addresses statewide concerns about affordability. In addition to reducing the upfront cost of beneficial efficient technologies, MTIs reduce the long-run system costs that contribute to higher electrical bills by accelerating adoption of technologies that reduce peak demand and enable load flexibility.
Want to learn more? Connect with Rachel Good at [email protected]
