MT Planning

Residential Heat Pump Water Heating MTI Plan

March 17, 2026

CalMTA’s Residential Heat Pump Water Heating (HPWH) Market Transformation Initiative (MTI) aims to accelerate market adoption of heat pump water heaters in the single-family and small multifamily property sectors.

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.

This draft MTI Plan is based on more than two years of development, research, outreach, and analysis. Links to the supporting appendices are listed to the right. Additional appendices and the full plan will be available soon. CalMTA will submit this the full plan and appendices to the California Public Utilities Commission (CPUC) via an Application in spring 2026 following public comment and review by the Market Transformation Advisory Board (MTAB) in April.

Want to learn more about the Residential Heat Pump Water Heating MTI Plan? Read the FAQs. 

Appendix A: Logic Model Packet

This appendix includes the MTI’s full Logic Model. The Logic Model is a systematic and visual way of presenting CalMTA’s understanding of the interventions necessary to remove barriers, expected outcomes of those interventions, and a pathway to the desired end state. Access the FAQ here.

This appendix will detail the inputs, sources and methods used to develop the market forecasting, Total System Benefit (TSB), and cost-effectiveness model for this MTI.

This appendix will present the findings on the technology research conducted in Phase II and on behalf of the MTI. 

This appendix includes the baseline assumptions and a thorough assessment of the market state, supply chain, market actors, and other programs that support the MTI. Access the FAQ here.

This appendix will describe how CalMTA will communicate and collaborate with key market actors and program stakeholders. 

This appendix will describe the plan to track the progress and assess the impact of the MTI over time. 

This appendix will document the potential risks and obstacles to the MTI and CalMTA plans to mitigate the risks.

This appendix will detail the budget requirements for the MTI.

This appendix will contain feedback on the MTI Plan from the Market Transformation Advisory Board.

Related Resources

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 seeks to help meet California’s energy efficiency and decarbonization goals by accelerating adoption of energy-efficient products and practices through market transformation. Market transformation is a proven strategic process of intervening in a market to create lasting change.
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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.

The Market Transformation Advisory Board (MTAB) provides expertise and unbiased, non-binding recommendations on CalMTA’s market transformation initiatives. Register here for an upcoming advisory board meeting.

Learn more about CalMTA’s planning and research on energy efficient technologies and our work to build California’s market transformation portfolio, and access quarterly and annual progress reports.

Want to learn more? Join our mailing list to stay informed about upcoming meetings and events, RFI and RFP announcements, and more.  

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