Heat Pump Water Heater Market Progress Evaluation Report #8

The Northwest Energy Efficiency Alliance (NEEA) contracted with NMR Group, Inc. to conduct the eighth Market Progress Report (MPER) for its Heat Pump Water Heater (HPWH) program. The report finds that the program has contributed greatly to setting the groundwork for ongoing and widespread HPWH adoption.

Between 2021 and 2024, HPWH market share increased from 14.6% to 18.6% of all electric water heater installations, representing a 27% increase. Nearly all this growth (88%) occurred in Washington. Approximately half of single-family homeowners with an electric storage water heater said they were familiar with HPWHs (47%), and awareness levels were statistically similar across the four states in NEEA’s region (Idaho, Montana, Oregon, and Washington).

Additionally, findings show that awareness among installers remains high, with 99% reporting they are familiar with HPWHs. However, only about 30% of those installers regularly recommend them to customers. The report suggests that additional training, especially focused on recent improvements in HPWH technology and manufacturing, could help boost installer confidence and increase recommendation rates. While some installation scenarios can still be challenging, the findings indicate that greater experience and familiarity can help overcome these barriers and support continued market growth.