Room Heat Pumps Market Transformation Initiative is the First to Advance to Implementation  

November 21, 2025

The California Public Utilities Commission (CPUC) voted 5-0 today to approve the first market transformation initiatives (MTIs) developed by CalMTA. The cost-effective MTIs feature two technologies that would help further California’s efficiency and decarbonization goals. The technologies include induction cooking products, with attention to 24” 120V models that fit in smaller kitchens, and 120V window heat pumps tailored for California’s climate and buildings. Both represent missing pieces that are vital to electrification of Californian’s single- and multi-family homes.   

The Room Heat Pumps MTI is approved for immediate implementation while the Induction Cooking MTI is conditionally approved and will move to implementation after some redevelopment and submission via a Tier 2 advice letter to the CPUC. The vote was a crucial step in forming a market transformation portfolio for California that makes efficiency technologies more accessible and affordable to consumers.  

As the Decision says, “. . . market transformation strategies in general offer the opportunity to provide customers with more cost-effective energy efficiency actions to help them reduce the cost burden of their energy bills over the long term. An emphasis on emphasizing market transformation initiatives is even more important at a time when customers are facing rising energy costs, because these initiatives have a long-term focus on reducing upfront costs and developing mature markets for the delivery of energy efficiency options to consumers.” (See page 21 of the Decision, linked below.) 

The CalMTA team is grateful to the parties that supported our application, our MTAB members, and all the other stakeholders who lent their voice in support of CalMTA’s efforts to advance California’s efficiency and decarbonization goals through market transformation. More details on next steps to come.  

The Request for Proposals for the Room Heat Pump MTI will be issued in the coming weeks. Sign up for our notices to stay up-to-date: https://calmta.org/subscribe/   

Read the Decision: https://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M586/K910/586910497.PDF 

Background 

Market transformation delivers lasting energy efficiency at scale, but unlike the more transactional approaches of traditional efficiency programs, market transformation takes time. CalMTA’s approach is based on the Northwest Energy Efficiency Alliance’s (NEEA) work over the last two decades — a proven track record of working higher in the supply chain with manufacturers, distributors, and retailers to change the way markets work thus creating lasting change that provides high-value benefits.   

Summary of the Room Heat Pump Initiative 

Summary of the Induction Cooking Initiative (this MTI will be updated per the CPUC’s direction) 

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.

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