HVAC
NEEA works with manufacturers, utilities, and industry partners to accelerate Market Transformation for energy-efficient HVAC technologies.
Transforming the Northwest’s HVAC Market
Heating, ventilation and air conditioning (HVAC) systems are central drivers of energy use in buildings and a target for achieving long-term efficiency goals. NEEA collaborates with market actors to advance innovative, efficient HVAC technologies for both residential and commercial buildings that improve comfort, performance and grid stability across the Northwest.
From early work introducing ductless heat pumps to the region, to ongoing initiatives that improve system design, testing and performance, NEEA’s HVAC programs help ensure energy-efficient solutions are accessible, affordable and reliable for Northwest consumers and businesses. These programs span both residential and commercial sectors and include electric, natural gas and dual-fuel HVAC technologies.
Residential HVAC: Building the Foundation for Transformation
NEEA’s residential HVAC work focuses on accelerating adoption of high-efficiency heat pump technologies that deliver comfort, performance, and energy savings for Northwest homes. By collaborating with manufacturers, utilities, and installers, NEEA helps ensure these solutions are widely available, affordable, and optimized for real-world conditions.
Ductless Heat Pumps
In 2008, NEEA launched a pilot to demonstrate how inverter-driven mini-split heat pumps could effectively replace electric resistance heating in Northwest homes. At that time, market awareness was low. Manufacturers had limited U.S. distribution, installers lacked training, and consumers had little exposure to the technology. Through extensive market collaboration, training and demonstration projects, NEEA and its utility partners built the foundation for today’s robust ductless heat pump market.
By 2021, 96% of regional HVAC contractors reported installing ductless systems. And adoption continues to grow: NEEA’s 2022 Residential Building Stock Assessment found that 12% of Northwest single-family homes now include a mini-split heat pump. This Market Transformation is strongly supported by utilities, with 108 utilities across the Northwest offering rebate and incentive programs that make ductless heat pumps more affordable and accessible for homeowners. This success laid the groundwork for the next generation of Market Transformation efforts focused on more complex HVAC systems.
Advanced Heat Pumps
As heat pumps become the dominant technology for electrically conditioned homes, field studies have shown that installed efficiency often falls short of rated performance due to system design choices, installation practices, control settings and inaccurate ratings. To address this, NEEA’s Advanced Heat Pump program focuses on differentiating the most efficient systems by working with manufacturers and national partners to support more accurate ratings and specifications that differentiate higher-performing systems. Through its leadership in the Advanced Heat Pump Coalition, NEEA is building alignment among its program partners to influence federal standards and product designs that deliver lasting efficiency gains for every residential heat pump installed in the Northwest.
To learn more, visit betterbuiltnw.com and explore detailed resources curated for home builders, manufacturers, and dealers and distributors, designed to support the market in understanding and adopting advanced heat pumps.
Commercial HVAC: Driving Innovation for Large Buildings
NEEA’s commercial HVAC efforts target technologies that improve efficiency, comfort, and indoor air quality in offices, schools, and other large buildings. By working with manufacturers, engineers, and national partners, NEEA helps advance electric, natural gas, and dual-fuel solutions to market that reduce energy use and support grid stability.
Efficient Rooftop Units
Commercial rooftop units (RTUs) are one of the most common HVAC systems in commercial buildings and a major opportunity for energy savings. NEEA’s Efficient RTU program targets upstream and midstream actors to expand availability and affordability of high-performance units.
Current federal standards do not account for features such as heat recovery or improved cabinet insulation, both of which can deliver 10%-40% additional natural gas savings. NEEA collaborates directly with manufacturers to integrate these advanced features into cost-competitive product lines, while developing a voluntary specification and Qualified Products List to guide market differentiation.
The program’s long-term objective is to provide data and market evidence that supports a future federal standard: requiring RTUs that are at least 20% more efficient than the 2020 market average by 2030.
Very High Efficiency DOAS
For commercial buildings, very high efficiency dedicated outdoor air systems (DOAS) represents a next-generation approach to heating, cooling and ventilation. These systems combine best-in-class equipment with key design principles to deliver superior indoor air quality, comfort and energy performance, reducing energy use by an average of 69%.
Because this approach differs significantly from traditional HVAC design, NEEA’s Market Transformation work emphasizes education and collaboration. Through partnerships with ASHRAE, mechanical engineers and manufacturer representatives, the alliance helps build market experience and confidence in this technology.
A major barrier has been the limited availability of qualifying heat recovery ventilators (HRVs). To address this, NEEA works with partner programs nationwide to expand product supply. In just a few years, the Qualified Products List has grown from one manufacturer to nine, offering more than 100 product options across price and size ranges.
View Commercial HVAC Resources
To learn more about efficient RTUs and very high efficiency DOAS, visit betterbricks.com and explore detailed resources for efficient HVAC technologies, curated for commercial building owners and operators.
Natural Gas and Dual-Fuel: Preparing for a Flexible Future
NEEA is exploring technologies that combine electricity and natural gas for flexibility and load management, giving consumers and utilities new tools for efficiency and grid stability while maintaining comfort and affordability. As part of this work, NEEA plays a critical role to ensure that Northwest customers benefit from proven energy-efficient technologies and innovative solutions, regardless of fuel type.
Dual-Fuel HVAC White Paper
One emerging trend in the energy market is the adoption of dual-fuel HVAC systems. When implemented effectively, these systems offer a flexible, resilient solution that can integrate natural gas and electric systems to meet the growing needs of the Northwest’s energy system. They have the potential to reduce electric demand during peak events by flexibly shifting from one fuel source to the other, while also providing consumers with efficient options for comfort and affordability.
Advancing Comfort + Load Management
In partnership with Clark Public Utilities and NW Natural, NEEA is demonstrating a dual-fuel system that uses an innovative controller to enable remote setpoint adjustment and dynamic fuel switching. This approach allows for simultaneous use of both fuels for true flexibility and automated management. Results from this demonstration will be published in 2026 and 2027.
Explore Dual-Fuel HVAC Resources
For more background and technical details, explore NEEA’s Dual-Fuel HVAC White Paper and Dual-Fuel Research Report, which provide in-depth insights into system design, efficiency strategies, and market adoption considerations.
Collective Action for Lasting Market Transformation
Accelerating HVAC Market Transformation requires coordination among manufacturers, utilities, program implementers, and national energy efficiency organizations. The Northwest represents a small portion of the U.S. market, but through collection action, it wields an outsized influence. By aligning specifications, test procedures, and efficiency standards, NEEA and its partners ensure that high-performing, cost-effective technologies reach the market faster and benefit more people.
Looking Ahead: Integration + Innovation
Building on these accomplishments, NEEA is focused on the next frontier: integrating HVAC technologies with lighting controls and other building systems to unlock new levels of energy efficiency and grid flexibility. As outlined in NEEA’s 2026 Operations Plan, the organization’s focus has expanded to include not only advanced heat pumps and dual-fuel systems but also integrated solutions that combine HVAC with lighting and other technologies to enable greater efficiency between systems and potential integrated load flexibility.
Guiding Advancement of High-Performance, Energy-Efficient HVAC Products
NEEA actively collaborates with manufacturers and other market stakeholders to create system requirements, recommendations, and compliant system lists, with the end goal of producing product specifications and qualified product lists (QPLs). These efforts ensure that consumers have access to the most efficient options available on the market.
Currently, these resources are available for the following HVAC products:
Cold Climate DHPs
This document offers guidance on maximizing the performance and longevity of cold climate ductless heat pumps.
Efficient RTUs
This specification provides guidance to manufacturers and market actors to develop and deliver efficient RTUs that reliably deliver heating energy savings.
Very High Efficiency DOAS
This document guides manufacturers, designers, and specifiers on key components of high-efficiency systems.
Advanced Heat Pumps
This document outlines how to identify and properly size this type of heat pump to provide customers with a superior comfort.
Explore Other Markets
Consumer Products
NEEA’s work in the consumer products market ensures that efficient products are widely available for consumers across the Northwest and beyond.
Lighting
NEEA works across the commercial lighting market to ensure that Northwest homes and businesses see the benefits of energy-efficient lighting technologies.
Water Heating
NEEA’s work in the water heating market helps deliver efficient, high-performance solutions tailored for Northwest consumers that enhance everyday comfort.