A drone shot of a California neighborhood, with potential to benefit from market transformation initiative development

MTI Development

Learn how CalMTA reviews, scores, and develops market transformation initiatives.

Since launching in late 2022, CalMTA has been working to develop a set of potential market transformation initiatives (MTIs) to help achieve California’s climate goals for energy efficiency, decarbonization, workforce development, and equity.

In the 1st quarter of 2024, in collaboration with the Market Transformation Advisory Board (MTAB), we moved forward with the development of six promising market transformation (MT) ideas that have high potential to create market-level change that drives adoption of products and practices that deliver lasting, cost-effective efficiency. Those ideas are currently under development in either Phase I or Phase II of our process.

MTI Development/Deployment Process

MTI Development/Deployment Process showing all three phases and six stages of development, the stage gates, and deliverables at each stage gate.

That process includes a stage gate model, commonly used in product development, applied to MTI strategy and program creation. The three-phase process and end-phase stage gates help manage program risk, maximize the use of resources, and increase transparency in our work. The process supports MTI creation from concept to program development to market deployment, as well as the eventual exiting of the market.

Phase I: Concept Development 

During Phase I, we identify technologies or practices that might be an appropriate MTI. CalMTA vets the opportunity against our criteria and explores available research to fill gaps in knowledge. At the end of Phase I, we prioritize the top ideas and consult with the MTAB to determine which ideas advance. CalMTA has adopted a two-stage scoring and selection method to cull the most viable ideas.

Phase II: Program Development

During Phase II, CalMTA works to confirm market barriers and ensure the potential MTI has viable market leverage points and sound program logic. We develop cost-effectiveness models, and conduct a market characterization study, technology assessment, and in some cases Strategy Pilots to test MT strategies. All of these feed the creation of a full Market Transformation Initiative Plan.

Throughout this phase, there is ongoing consultation with the MTAB on the outcomes and progress being made. At the end of Phase II, we consult with the California Public Utilities Commission (CPUC) for approval of the MTI Plan to move forward to Phase III: Market Deployment.

Phase III: Market Deployment 

During Phase III is when CalMTA resources are fully committed to intervening in the market to drive higher adoption of targeted products or practices and deliver on cost-effective energy efficiency. Currently, no ideas are ready for Phase III. When they are, CalMTA will release RFPs to contract for program delivery.

Monitoring of market progress indicators will tell us whether we are achieving our goals. Market progress evaluations will be conducted to track progress against those indicators and identify opportunities to improve our program design.

Based on the evaluation findings, we will transition the MTI into long-term tracking when we determine that the barriers have been removed or reduced enough that the market will continue to transform without further intervention. We will continue to monitor the MTI’s adoption to report savings and ensure barriers have been sufficiently removed.

Watch the video below for further information on the MTI development process.

Read more about the Ideas currently under development.

Residential Heat Pump Water Heating

All-electric residential heat pump water heaters (HPWHs) employ a compressor-based heating system to extract heat from the air and use it to heat water, making them far more efficient than conventional electric and gas water heaters. They also generate significantly fewer emissions than gas water heaters.    

Nearly all residential HPWH products are “hybrid heat pump” models that also include electric resistance heating elements for backup heating. These heating elements improve recovery times in periods of high demand for hot water, but they draw about 10x the power of the heat pump, so it is important for HPWHs to be sized, installed, and controlled to minimize the use of resistance backup during periods of high demand on the electricity grid.  Learn more.

Commercial Replacement & Attachment Window Solutions

Single-pane replacement (SPR) utilizes the unique properties of vacuum-insulated glass (VIG) to increase uptake and investment in commercial retrofits, especially for buildings with single pane glass. SPR involves the use of ultra-high-performance VIG with a nominal thickness of ¼” to ½” and an insulating R-Value of R-10 to R-15. VIG replaces a ¼” single-pane glass in existing commercial frames and improves thermal performance of the glass by a factor of 5-10x. SPR with VIG provides fuel neutral savings and reduces HVAC load by as much as 40%. The reduced load then provides an easier pathway for commercial building owners to convert from conventional HVAC systems to heat pump systems at reduced electrical load.    

Alternatives to VIG include commercial secondary windows (CSW). CSWs attach to the interior or exterior of the existing window, creating an additional insulating layer and offering options for solar control via low-E films. CSWs improve room comfort less than VIG replacements, but still significantly reduce HVAC load, are a more mature technology, less expensive and, like VIG replacements, can be installed without opening the façade or disrupting occupants. Learn more.

Foodservice Water Heating Systems

Medium-duty electric commercial water heaters with the ability to meet the unique hot water demand, delivery/recovery rate, and water temperature requirements of the foodservice industry offer significant emissions reductions and energy savings relative to the incumbent gas water heating technology used in most commercial kitchens. Opportunities to improve efficiency of electric water heating systems include: 1) integrated multi-function heat pump systems that provide simultaneous space cooling and water heating; and 2) heat recovery systems that capture waste heat from kitchens and dishwashing machines to pre-heat water or reduce overall hot water demand. Learn more.

Room heat pumps

Room heat humps (aka micro heat pumps) are affordable, self-contained consumer products that provide efficient heating and cooling for small spaces. These devices can be self-installed and plugged into standard 110-volt outlets. CalMTA will promote units that can still provide heat when the outdoor air temperature is below 41F, include air filtration, use low GWP refrigerants, and incorporate controls to allow the units to be grid-responsive in the future.  

Efficient Rooftop Units (ERTUs)

Rooftop units (RTUs) are forced-air systems that package the evaporator, condenser coils, fans, and heating components into a single unit to serve a building’s heating, cooling, and ventilation needs. Three main design improvements addressing supply efficiency, heat recovery, and an improved shell can deliver 10–40% energy savings beyond today’s minimum efficiency RTUs. Greater savings and grid benefits can be achieved through the addition of advanced controls strategies.  

Induction Cooking

Induction cooking devices use electromagnetic induction to heat cookware directly. Unlike traditional gas or electric stoves, which heat the burner, and the burner in turn heats the cookware, induction stoves work by directly heating the cooking vessel. They save energy through instant, direct, and efficient heat transfer, and provide precise temperature control. They do not emit noxious gases that contribute to reduced indoor air quality. Induction cooking devices are available on combined stove/oven units, as a cooktop installed in a countertop, or as portable plug-in countertop units. 

Status of ideas in development

In this graphic, you can see the three ideas currently in Phase I, with Advancement Plans in development, and the three ideas currently in Phase II moving toward MTI Plans. Induction Cooking and Room Heat Pumps are scheduled to be submitted for application in November 2024.

This graphic shows how ideas in Phase I are proceeding toward Advancement Plans, and ideas in Phase II are proceeding towards MTI Plan submission

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