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 CRTUs MTI seeks to accelerate adoption of advanced heat pump RTUs with innovative features that optimize efficiency and performance but are not currently widely available – unlocking new pathways to cost-effectivedecarbonization in the commercial sector.
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
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
CalMTA’s Commercial Rooftop Units (CRTUs) Market Transformation Initiative (MTI) aims to accelerate market adoption of high-performance heat pump RTUs with advanced features as an efficient heating and cooling solution for California’s commercial buildings. CRTUs offer a significant, cost-effective opportunity to reduce commercial building energy consumption, increase HVAC system resilience, reduce
This report, conducted by Apex Analytics, presents findings from an organizational review of the California Market Transformation Administrator (CalMTA). The California Public Utilities Commission (CPUC) directed CalMTA to conduct a review at the end of its three-year startup period. CalMTA and CPUC Energy Division selected Apex Analytics to conduct the
The Commercial Replacement and Attachment Window Solutions (CRAWS) MTI Plan aims to increase market share of affordable alternatives to full window replacements through retrofit technologies that improve envelope performance, save energy, and deliver comfort to occupants. The CRAWS MTI supports an “envelope-first” approach that helps building owners maximize the efficiency
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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