While HPWHs have been available as an energy-efficient alternative to these models for over a decade, they represent less than 1% of the water heaters sold in California. According to contractors and installers, however, small increases are starting to happen.
CalMTA is pursuing a potential market transformation (MT) idea that seeks to align the various statewide efforts currently underway to accelerate market adoption of HPWHs in the single-family and small multifamily property sectors. Barriers to that adoption include low consumer awareness and a low market share, the possible need for electric panel upgrades, and the high percentage of rushed, emergency replacements that leave little time for exploring new options.
Yet HPWHs offer a substantial grid and energy efficiency benefit to California’s housing stock and are a foundational technology for achieving the State’s decarbonization goals. CalMTA seeks to overcome these barriers by organizing and leveraging the substantial number of programs now working to drive adoption of this efficient technology through more than 30 different offerings. These programs along with initiatives from the California Air Resources Board (CARB) provide the right moment for CalMTA to harness market momentum and ensure that future policies will be successfully complied with.
As part of CalMTA’s long-term strategic plan development process for HPWH, leadership from environmental and social justice (ESJ) communities will be integral to addressing the specific barriers and needs of the ESJ communities. As a collective statewide effort, CalMTA and stakeholders will review and align on ESJ community approaches and identify roles and responsibilities collaboratively. Potential work includes identifying resources and collaboration opportunities, identifying available incentives and strategies to establish a low to no cost offering for HPWH in ESJ communities while accounting for possible bill impacts, and leveraging opportunities to build a well-trained workforce that prioritizes creating greater diversity among trade allies, companies, and job placement.
We envision a future where the majority of residential water heaters installed in any given year will be grid-enabled HPWHs by 2035. More immediately, we will work to equitably accelerate the pace of change, reduce market confusion on the direction and tactics of California’s water heater work, and decrease overall costs required to move California’s residential water heating stock to heat pump technology.
This Advancement Plan summarizes available information and essential research activities for the proposed Market Transformation Initiative (MTI) that CalMTA recommends advancing from Phase I: Concept Development into Phase II: Program Development.
The Residential Heat Pump Water Heater market transformation idea is currently in Phase II: Program Development.
The Residential Heat Pump Water Heating fact sheet describes the opportunity, technology, market transformation strategy and equity considerations for this initiative. Residential heat pump water heaters (HPWHs) are two to three times more efficient than conventional gas and electric resistance water heating options. While HPWHs have been available as energy-efficient
This Advancement Plan summarizes available information and essential research activities for the proposed Residential Heat Pumps Water Heating Market Transformation Initiative (MTI). It represents the Phase I stage gate deliverable describing the scope of work for research, testing, and stakeholder engagement that will be needed during Phase II to develop
The California Market Transformation Administrator (CalMTA) develops and manages market transformation initiatives in the state to reduce energy use and reduce greenhouse gas (GHG) emissions.
CalMTA follows a rigorous process for reviewing, scoring, and then developing relevant, timely market transformation initiatives. The process supports market transformation initiative creation from concept to program development to market deployment, as well as the eventual exiting of the market.
We welcome your questions and suggestions.
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CalMTA
Resource Innovations
719 Main Street, Suite A
Half Moon Bay, CA, 94019
(888) 217-0217
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