This document constitutes the second market progress evaluation report (MPER) of the Northwest Energy Efficiency Alliance’s (NEEA) Northwest Ductless Heat Pump Pilot Project, which ran from October 2008 to December 2009. This MPER reports on the pilot project’s accomplishments and is part of comprehensive research underway on DHP technical performance and market acceptance. Since the conclusion of pilot project, NEEA has undertaken a region-wide market transformation initiative for ductless heat pumps. The first MPER for that initiative is expected in Q4 of 2011.