High Efficiency Gas Water Heater Research

In the spring of 2024, NEEA contracted with ILLUME Advising to improve understanding of the current residential gas water heater market, identify purchase motivators for people with high-efficiency gas equipment, and see if and where there is a market for a commercialized gas heat pump water heater (GHPWH). NEEA hypothesized that there was potential to utilize the existing condensing gas storage water heater market (CGSWH) as a bridge for early GHPWH adoption by converting sales that would have been a condensing water heater into a gas heat pump water heater. Key research objectives included:

• Understanding consumer purchasing behavior and attitudes that resulted in the purchase and installation of these highly efficient condensing gas units in homes
• Exploring the path-to-purchase of this product
• Identifying key barriers or challenges consumers experienced in the purchase of this product

The researchers used a mixed methodology of web enabled surveys and focus groups. Through this work, NEEA found that the residential CGSWH market is smaller than initially expected and it is unclear whether there are enough homeowners who purchased a CGSWH to serve as a proxy product for a GHPWH. Accordingly, this research pivoted to explore whether there are other gas water heater owners who might act as a bridge for a GHPWH product. Learnings suggest that consumers are unlikely to opt for gas heat pump water heaters in the foreseeable future. However, some current gas water heater owners may be interested in one dependent on their dedication to gas and their technology acceptance, or their willingness to adopt new technologies.