Northwest Heat Pump Water Heater Initiative: Market Progress Evaluation Report #4

In September, NEEA published the fourth Market Progress Evaluation Report (MPER) of its Heat Pump Water Heater (HPWH) program. By reviewing sales and pricing data, and through feedback from distributers, installers and recent purchasers, a third-party evaluator found:

  1. New construction is driving a significant share of HPWH sales – estimated between 70 and 90%. Special agreements between builders and manufacturers play a role in this shift.
  2. Successful tankless water heater manufacturer marketing strategies may offer insight into HPWH adoption and sales tactics, including targeting installers to influence customer purchasing decisions.
  3. HPWH pricing is erratic compared to traditional electric resistance models.
  4. Purchaser satisfaction with HPWH remains very high: 93% of recent purchasers stated they would, or have already, recommended the technology to others.

Additionally, a broad range of installers reported that customers followed their HPWH recommendations 30-50% of the time – quantifying installers’ influence on customer purchasing decisions for the first time. The report concludes that targeting installers will directly impact HPWH sales. Based on these findings, the alliance’s 2019 HPWH program will prioritize deeper engagement with the wholesale supply chain channel to address barriers to installer adoption of this efficient technology.

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