Idea to Initiative: How innovative partnerships can help shape market transformation in California
This article was originally published in the 4th quarter 2024 issue of AESP Energy Intel.
The need to accelerate California’s climate action feels increasingly urgent: the summer of 2024 was the hottest on record and recent reports indicate that the state must nearly triple the current reduction rate for greenhouse gas (GHG) emissions to meet 2030 targets. At the same time, new goals – like the call for six million heat pumps to be installed by 2030 – spark the need for innovative solutions that break down long-standing barriers to adopting energy-efficient, emission-reducing technologies and practices.
Chef Kimberly Ayala showcases induction cooking techniques at a Chefluencer event in October 2024.
Recognizing this urgency, the California Public Utilities Commission (CPUC) announced the state’s new Market Transformation Administrator (CalMTA) in January 2023 to support statewide climate and energy efficiency goals. Market transformation is a proven approach that has successfully changed markets for emerging technologies and business practices, resulting in cost-effective energy efficiency, GHG reductions, and other benefits.
CalMTA’s work to rapidly develop some of the first market transformation initiatives (MTIs) for California identified two promising technologies to target: room heat pumps (also known as portable, micro, or window heat pumps), a relatively nascent technology, and induction cooking products, which, while commercially available, face critical barriers to widespread adoption. If approved by the CPUC, these MTIs are estimated to deliver roughly $1 billion in total system benefit (TSB) to California over their 20-year lifecycle.
Pilot projects testing potential interventions that could break down key market barriers provided insights to CalMTA into how strategic partnerships for these MTIs can clear the path toward market change – and reiterate the importance of hands-on experience when seeking to drive adoption of new technologies.
Changing Hearts and Minds About Induction Cooking
For many consumers, stoves aren’t just another appliance: they are the centerpiece of the kitchen and a connection to family, celebration, and tradition. In a market dominated by gas-fueled products (about 70% of the ranges in California are gas), driving households to switch their cooking method presents a significant challenge. Yet the benefits of induction technology warrant attention: from higher efficiency and cooking performance to improved indoor air quality during cooking, these products represent a critical step toward full residential electrification.
To better understand strategies that could raise consumer awareness about induction as a viable alternative to gas cooking, CalMTA partnered on a series of “Chefluencer” events with the Building Decarbonization Coalition (BDC), community organizations, and Copper, a Berkeley-based company whose “Charlie” range is the first 120-volt, battery-equipped induction electric range on the market. The Charlie mitigates the need for electrical upgrades associated with standard 240V induction products, while the inclusion of battery storage enables high cooking performance and the ability to offset energy use away from costly peak timeframes.
BDC’s successful Chefluencer program uses experienced chefs to lead multilingual, culturally relevant cooking demonstrations that allow community members to gain first-hand experience with induction cooking. CalMTA built on the existing event structure at 12 events across California by offering incentives for completing a post-event survey designed to gauge opinions on induction cooking and likelihood of purchasing an induction appliance in the future – feedback that will be used to inform future messaging and intervention strategies. Survey results quickly showed that attendees had more positive opinions of induction cooking technology and expressed a higher likelihood of purchasing an induction cooktop after the events as compared to attitudes before the event.
“After a year of doing demos and events, what’s been the biggest surprise to me is how quickly it’s possible to open people’s minds to induction. Some people come to the demo adamant about how they’ll never give up their gas stove,” said Lisa Pinckney, Copper’s chef and culinary events manager. “When people see Charlie in action, they want to know more.”
Optimizing Room Heat Pumps for the California Market
Heating and cooling represent the largest energy consumption end-uses for homes in California, with more than 50% of households still using gas appliances for heating. Mini-splits and other central heat pump systems can provide efficient, climate-friendly space heating with the added benefit of cooling during hot summer months, but these technologies are often out of reach for households with limited income or tenants with little control over building upgrade decisions.
Manufacturers have recently responded to this technology gap by developing self-contained heat pump products as efficient replacements for window air conditioners that also provide space heating for a single room or modest apartment. Categorized as “room heat pumps” by the U.S. Department of Energy but also known as portable, window, or mini heat pumps, these units eliminate the need for expert installation or electrical panel upgrades and therefore offer a lower upfront cost than other space-conditioning electrification options. Manufacturers tout the purported “self-installation” potential and relative portability of the products as key components of the consumer value proposition.
To understand the market response to this value proposition, CalMTA developed a strategy pilot in partnership with three California-based organizations engaged in helping this technology’s target audience access energy efficiency: the U.S. Green Building Council California, the nonprofit El Concilio of San Mateo County, and Redwood Energy, an all-electric and zero net energy specialty firm. Strategy pilot partners co-developed the scope of work with CalMTA and led participant outreach, leveraging their established and trusted connections with environmental and social justice (ESJ) communities to reach the target audience for this technology. Strategy pilot participants – primarily multifamily tenants with some residents of smaller single-family homes – received a room heat pump to self-install and test, providing feedback to CalMTA about their experience. Special engagement with leading manufacturers helped CalMTA secure units of different makes and models for installation, with the cost of the product reduced through bulk purchasing agreements including “saddlebag” units from Gradient and Midea, conventional window units from Midea, and portable products from Whynter.
A resident of a San Pedro, CA apartment building self-installs a Midea window heat pump unit.
Post-installation surveys and real-world learnings yielded critical findings that informed CalMTA’s future implementation plans. For instance, tracking the actual time and effort required for installation ensures manufacturer messaging manages consumer experiences realistically. In this case, strategy pilot participants most frequently completed their installation in two hours or less and required the assistance of one additional person.
The strategy pilot also found that almost no currently available forms for window-mounted heat pump models – the preferred form factor for customers based on CalMTA’s market research – meet the sizing needs of horizontal sliding or casement windows, which represent a significant portion of California’s affordable housing stock. Sharing these findings with manufacturers to convey that many customers will be left behind, coupled with a planned technology challenge once the MTI is approved for implementation, is expected to spark development of new form factors appropriate for these window types.
“Working with CalMTA has given us a valuable opportunity to gather real-world consumer insights, which have been critical in refining our All-Weather 120V window heat pump,” Sam Lamos, Gradient’s public policy manager, said. “[It has] enabled Gradient to navigate the program and policy landscape while gaining a better understanding of the potential barriers to broad adoption, allowing us to begin reaching new markets.”
Strategic partnerships like those formed through the CalMTA pilots can support California’s market transformation goals and make energy efficiency and decarbonization technologies more accessible to more consumers. Transforming markets requires more than a single organization: by bringing interested parties together and leveraging their respective strengths, we can create lasting change that benefits all Californians for years to come.
Authored by Stacey Hobart, Principal of Stakeholder Engagement & Communications, CalMTA. Stacey has spent her career working to communicate progress and accomplishments in energy efficiency with experience spanning areas of public affairs, marketing and communications, and stakeholder engagement. At CalMTA, she oversees stakeholder engagement and communications for this developing program. Previously, she led marketing and communications at New Buildings Institute, worked as corporate marketing manager at the Northwest Energy Efficiency Alliance (NEEA), and oversaw the American Public Power Association’s research and development program (DEED) in Washington, D.C.