CalMTA’s Room Heat Pumps (RHP) Market Transformation Initiative (MTI) aims to accelerate market adoption of room heat pumps to provide efficient heating and cooling in existing small, single-family, and multifamily households.
With a forecasted Total System Benefit (TSB) of $480 million, RHPs offer a significant, cost-effective opportunity to reduce energy demand and associated infrastructure costs, which are a primary driver of electric rates in California. Over time, the initiative will transform the market and lock in energy savings, grid benefits, and greenhouse gas (GHG) reductions to help meet California’s climate goals.
The Room Heat Pumps MTI Plan is based on 18 months of development, research, outreach, and analysis. It was published and submitted to the California Public Energy Commission (CPUC) via an Application on December 20, 2024 following MTAB review in November. The MTI Plan was approved by the CPUC in November 2025 via Decision 25-11-023. Links to the full MTI plan as well as the supporting appendices are listed to the right.
During the proceeding for CalMTA’s application to the CPUC requesting approval for the Room Heat Pumps Initiative, updates were made to the total system benefit and cost-effectiveness forecasts in the MTI Plan. These updates affect values in the linked MTI Plan and appendices to the right. Corrected values were submitted via a formal errata to CalMTA prepared direct testimony, submitted to the CPUC in June, 2025:
Want to learn more about the Room Heat Pumps MTI Plan? Read the FAQs.
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.
The ENERGY STAR® Retail Products Platform (ESRPP) is a national collaborative initiative comprised of ENERGY STAR®, energy efficiency program sponsors and retailers that offers midstream incentives to encourage retailers to stock and promote energy-efficient products. As one of California’s newer sponsors of ESRPP, CalMTA designed the ESRPP Strategy Pilot, to
Q4 2025 Activity Report Webinar CalMTA continued to make substantial progress on market transformation initiative (MTI) development and operational milestones in the 4th quarter of 2025. In this webinar, the CalMTA team shared activities related to market transformation idea development, operations, financial status, and key outcomes including CPUC Decision 25-11-023
This report presents findings from a field study conducted at an Eden Housing apartment complex, Emerson Arms, where the team installed Copper’s “Charlie” model induction range to replace existing gas ranges. The study aimed to gather both quantitative and qualitative data to assess how users adapt to 120-volt (120V) battery-equipped
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 Commercial Buildings Efficiency Accelerator fact sheet describes the opportunity, technology, market transformation strategy and equity considerations for this initiative. Commercial buildings are responsible for 35% of the electricity and 18% of the total energy consumed in the U.S., and the most energy-intensive commercial buildings in California consume between 65%-183%
CalMTA’s Phase II research for the Room Heat Pumps (RHPs) Market Transformation Initiative revealed that nearly half of California’s residential windows are horizontal sliders, while primary bedrooms and living rooms are the most likely locations for RHPs. This creates a challenge: the most efficient RHP designs currently fit only double-hung
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.
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.
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