Residential Heat Pump Water Heating

CalMTA has developed Advancement Plans for six market transformation ideas. These plans describe the research and investigation that would be needed to complete an eventual full Market Transformation Initiative (MTI) Plan to determine a market transformation (MT) theory and scope for future implementation. Below is a summary of the market transformation idea for Residential Heat Pump Water Heating, currently in Phase II: Program Development.

Sector: Residential multi-family, existing, and new construction

Product Definition: 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 10 times 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.   

Preliminary Market Transformation Theory: There are numerous statewide and national efforts targeting this technology. Yet, despite the many programs behind this technology, HPWHs still make up less than 2% of the water heater market despite having been commercially available for nearly 15 years. CalMTA will align existing efforts to create common goals, a strategic approach to market engagement, and cost neutralization, as well as identifying opportunities and processes to coordinate resources across programs to accelerate the pace of HPWH adoption in California.  

This potential MTI would leverage intervention strategies primarily focused on facilitation, coordination, and long-term strategy design. It would focus on increasing adoption of efficient, demand flexible HPWHs in the residential replacement market. Products include both 120-volt and 240-volt options, in sizes ranging from 40 to 80 gallons, and must be ENERGY STAR® qualified with a Uniform Energy Factor (UEF) of 3.3 and a sound rating below 50db. The potential MTI would also support products with connectivity and controls that can manage and optimize electricity demand, minimizing the use of backup electric resistance heating during peak demand periods. Lastly, a future initiative would support sizing and design strategies that ensure the water heater can support energy storage and load shifting without posing a risk to consumers. 

Read the advancement plan

Watch Rick Dunn, Sr. Manager, Emerging Technology, discuss the draft Advancement Plan and Strategy Pilot for the Residential Heat Pump Water Heating Market Transformation Initiative at the Jun. 14, 2024 Market Transformation Advisory Board meeting.

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