Market Transformation Portfolio
NEEA creates the market conditions needed to accelerate and sustain the adoption of emerging energy efficiency products, services and practices over the long term.
A Disciplined Approach to Getting Results
The Northwest Energy Efficiency Alliance (NEEA) is an alliance of more than 140 utilities and energy efficiency organizations working on behalf of more than 14.5 million energy consumers to increase the adoption of energy-efficient products, services and practices. NEEA leverages the collective market power of the region and its nearly 30 years of Market Transformation experience to create lasting market change to ensure businesses and consumers have the solutions they need.
To do this, NEEA manages a diversified portfolio of Market Transformation initiatives. For each initiative, NEEA identifies market barriers or opportunities and works with decision-makers throughout the supply chain to address them. This work gives Northwest customers better access to efficient and affordable products. It also provides market actors with opportunities for skills training and job creation or new business models.
NEEA’s Current Portfolio of Market Transformation Programs
NEEA’s programs work to strategically intervene in the market to remove barriers to adoption, delivering permanent market change and verified energy savings.
Advanced Heat Pumps
The Advanced Heat Pump program works to accelerate the adoption of high-efficiency, variable-speed heat pumps across the Northwest by influencing manufacturer practices and market standards.
The program promotes advanced product features and ratings that improve overall system performance, enhance load flexibility, and reduce reliance on installation practices. Through collaboration with manufacturers and industry partners, the program supports innovations that deliver better cold-climate capability, minimize supplemental heating, and enable connected commissioning.
These efforts aim to increase regional energy savings and peak demand reductions while ensuring heat pump technology continues to evolve to meet consumer and grid needs.
Dual-Fuel Residential HVAC
The Dual-Fuel Residential HVAC program seeks to transform the market by advancing highly efficient systems that pair electric heat pumps with gas furnaces and integrate grid-enabled controls. These systems can dynamically switch between fuels to optimize performance, reduce energy waste, and provide critical grid flexibility during peak demand.
The program focuses on overcoming barriers to adoption by collaborating with manufacturers, distributors, utilities, and contractors to promote optimally designed and installed systems. It also supports the development of specifications and ratings for dual-fuel systems with advanced controls, enabling the market to incorporate these solutions into future codes and standards.
Through these efforts, the program aims to make efficient, grid-responsive dual-fuel systems the standard solution. This will deliver energy savings, cost benefits, and year-round comfort for Northwest consumers while supporting a more flexible and resilient energy grid.
Heat Pump Water Heaters (HPWH)
Since 2011, NEEA has worked to transform the water heating market by addressing key barriers to the adoption of HPWHs for emergency and planned replacements in single-family homes.
The program collaborates nationally and regionally to promote product innovation, improve performance standards, and increase consumer and contractor awareness. By working upstream with manufacturers, supporting supply chain training, and shaping specifications and test procedures, the program helps ensure HPWH technology meets varying consumer needs, including those across cold climates and challenging installation conditions.
Retail Product Portfolio (RPP)
The Retail Product Portfolio (RPP) program partners with utilities and national retailers through the ENERGY STAR® Retail Products Platform (ESRPP) to increase the availability and sales of energy-efficient consumer products.
More than 300 retail locations throughout the Northwest participate in the program. Participating retail locations receive incentives to preferentially purchase, stock, and promote higher efficiency appliances and electronics, sending a clear signal to manufacturers about market demand. Through these partnerships, the program gains access to full-category sales data, enabling insights that help identify the most promising efficiency opportunities.
RPP works to transform the retail efficiency landscape by driving adoption of products that deliver energy savings and consumer value, while collaborating nationally to advance product innovation and strengthen retail engagement.
Advanced Commercial Water Heating
The Advanced Commercial Water Heating program works to accelerate the development and market availability of high-efficiency commercial water heating systems, with a focus on commercial gas heat pumps and other advanced configurations for commercial and multifamily buildings. These technologies have the potential to significantly reduce energy consumption while providing reliable hot water.
The program is working to overcome barriers such as design complexity, high first costs, and low market awareness through product testing, performance validation, and manufacturer engagements. It is also working with building owners and the supply chain to provide guidance on design and installation practices. Through these efforts, the program aims to position gas heat pumps and dual-fuel solutions as viable, efficient options for commercial water heating that deliver energy savings and cost benefits.
Efficient Fans
The Efficient Fans program is working to improve the efficiency of commercial and industrial fan systems, which are used in applications like exhaust systems, air-handling units, and industrial process equipment. While fans are common, efficiency is often overlooked when these systems are selected and installed.The program is partnering with manufacturers, representatives, and specifiers to increase awareness of the Fan Energy Index (FEI), a performance metric that helps identify efficient fan options. It is also working to make efficient fans easier to select and purchase by influencing design tools and educating the market on the benefits of higher-efficiency systems. Through these efforts, the program aims to make efficient fans the standard choice, reducing energy waste and improving performance across the Northwest.
Efficient Rooftop Units (RTU)
The Efficient RTU program is working to improve the efficiency of packaged rooftop HVAC systems, which provide heating, cooling, and ventilation for low-rise commercial buildings. These units are widely used and condition about 35% of gas-heated commercial floor space in the Northwest, making them an important target for energy savings.The program is partnering with manufacturers, distributors, and contractors to increase the availability of RTUs with advanced efficiency features, such as better insulation and heat recovery. It is also working to raise awareness among market actors and develop specifications that help differentiate efficient units from standard models. If successful, these efforts will make efficient RTUs the norm in the market, reducing energy waste, lowering operating costs, and setting the stage for future improvements to the efficiency of RTUs.
Extended Motor Products (XMP) – Pumps
The Extended Motor Products (XMP) Pumps program is working to improve the efficiency of pumps and circulators used in commercial, industrial, agricultural, and municipal water systems. These pumps are everywhere, from moving clean water in buildings to supporting large-scale operations, and new technologies like smart pumps offer big opportunities for energy savings.The program is partnering with manufacturers, trade associations, and market representatives to raise awareness of smart pump technology and the Energy Rating (ER) label, which helps buyers identify efficient products. It is also working to validate performance, share case studies, and influence design tools so that efficient pumps become easier to select and install.If successful, these efforts will make high-efficiency pumps and smart pump technology the standard choice, reducing energy waste, lowering costs, and paving the way for future improvements in pump performance across the market.
High-Performance HVAC
This program is focusing on Very High Efficiency Dedicated Outside Air Systems (DOAS), which separate heating and cooling from the ventilation, resulting in more comfortable buildings that are more affordable to heat and cool.
These systems save energy in new and existing small and medium commercial buildings while providing better indoor air quality and greater occupant comfort.
Luminaire Level Lighting Controls (LLLC)
The LLLC program is working to make LLLC systems standard practice in commercial buildings across the Northwest. LLLC combines LED lighting with built-in sensors and controls, creating a system that is energy-efficient, easy to install, and provides a high-quality lighting experience for building occupants.The program is partnering with manufacturers, specifiers, and industry organizations to increase awareness of LLLC value, provide training, and address misconceptions about the technology. It is also working to integrate LLLC into energy codes and strengthen national partnerships to amplify adoption. If successful, these efforts will make LLLC the go-to choice for commercial lighting projects, delivering significant energy savings and creating smarter, more adaptable lighting solutions for building owners and occupants.
Specially Funded Projects:
In addition to NEEA’s energy efficiency Market Transformation programs, a handful of opportunities for specially funded projects were identified in the 2025 – 2029 Business Plan. These opportunities are funded outside of NEEA’s Core Business Plan by a subset of regional funders and other stakeholders that wish to pursue them. Currently, NEEA has three specially funded programs: End-Use Load Research, Commercial Whole Buildings, and End-Use Load Flexibility. Learn more about NEEA’s work in these areas below.
Northwest End-Use Load Research Project
Comprised of two studies – the Home Energy Metering Study and Commercial Energy Metering Study – and funded by regional electric utilities and government agencies, NEEA’s End-Use Load Research (EULR) project was initiated in 2017. The project aims to support the region’s understanding of electricity use, and how changes in electric appliances, heating and cooling systems, water heating, and newer electricity uses like LED lighting and electric vehicles are impacting load growth.
Commercial Whole Building Project
The Commercial Whole Building Project is creating a regional, market-based approach for utilities and efficiency programs to offer meaningful support to building owners to undertake deep energy retrofits, while creating a pipeline of efficiency projects. The project seeks to motivate the commercial building sector in a way that is widely accessible, scalable, and affordable for owners and occupants.
End-Use Load Flexibility Project
With this project, NEEA seeks to catalyze innovation and Market Transformation towards a more flexible and reliable energy system. The project is focused on improving the efficiency, connectivity, and controllability of end-use devices by leveraging NEEA’s Market Transformation expertise.
The Benefits of Market Collaboration
Explore how NEEA’s work in various markets is driving energy efficiency and creating lasting change.
Lighting
NEEA works across the commercial lighting market to ensure that Northwest homes and businesses see the benefits of energy-efficient lighting technologies.
Consumer Products
NEEA’s work in the consumer products market ensures that efficient products are widely available for consumers across the Northwest and beyond.
Water Heating
NEEA’s work in the water heating market helps deliver efficient, high-performance solutions tailored for Northwest consumers that enhance everyday comfort.
Transforming the Energy Efficiency Marketplace
The alliance represents the market power of the Northwest’s more than 14.5 million consumers, working to build trust and credibility with regional and national entities.
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Success Stories
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