Cost Benefit Model Analysis for Heat Pump Water Heaters

NEEA contracted with Larson Energy Research to conduct a third-party review of specific aspects of its 2022 Heat Pump Water Heater (HPWH) Benefit Cost Model. Key activities included:

  • Reviewing and validating extrapolation methodologies used to estimate manufacturer shipments.
  • Assessing NEEA estimates for HPWH market share in single-family new construction.
  • Reviewing and validating the modeling assumption underlying the removal of Tiers 1 and 2 measures for future years.

The report recommends an alternative method for extrapolation of sales that requires fewer assumptions. It also recommends several updates to assumptions in support of assessing HPWH market share in single-family new construction.

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