PNNL

Water heating is the second largest energy end use in the U.S. residential sector, accounting for approximately 17% of U.S. residential energy consumption. Heat pump water heaters (HPWH) consume 60% less energy than conventional electric-resistance water heaters. However, HPWHs presently make up just 1% of all electric water heaters sold in the residential sector. If market penetration doesn’t increase, there is a possibility that major water heater manufacturers will decrease investment in their HPWH product lines and eventually discontinue their HPWH models. Both market barriers and technology limitations have prevented market adoption in the past. However, through cooperation between manufacturers and the energy efficiency community, technological barriers have decreased in importance. The U.S. Department of Energy (DOE), in partnership with National Laboratories, industry, and the energy efficiency community, is undertaking a national initiative with the intent to increase U.S. market penetration of HPWHs. This paper will serve as an important historical reference on HPWH commercialization and market transformation efforts in the U.S., as well as provide a detailed analysis of market opportunities and offer next steps via DOE’s national initiative.