This Market Characterization Report is an output of the Phase II research for the Residential Heat Pump Water Heating (HPWH) Market Transformation Advancement Plan, finalized in September 2024. The plan outlined a high-level research approach that focused on investigating the target market, barriers, and opportunities with the goal of supporting the development of the California Market Transformation Administrator (CalMTA) Residential HPWH Market Transformation Initiative (MTI) Plan.
This report examines the California market for residential HPWHs, with a focus on key barriers to and opportunities for achieving the envisioned impacts of the MTI. This report focuses specifically on residential unitary HPWHs (in which the heat pump is integrated into the water heater tank) and split system HPWHs (in which the heat pump is separate from the tank) that serve only one household.