Northwest Heat Pump Water Heater Market Progress Evaluation Report #6

The Northwest Energy Efficiency Alliance (NEEA) contracted with NMR Group in early 2021 to conduct its sixth Market Progress Evaluation Report (MPER) for the alliance’s Heat Pump Water Heater (HPWH) program. The findings of this MPER will help inform and refine program interventions in the market. The objectives of the report were to 1) Provide insights into the current barriers for retailers and consumers; 2) Evaluate performance of key Market Progress Indicators, including some that have not recently been measured; and 3) Estimate the HPWH market size for 2019 and 2020.

The report concludes that while the HPWH market appears to be growing, sales are generally occurring in new construction. In fact, about 65% of HPWH installations in 2020 occurred in new construction homes, with the remainder of installations occurring in existing homes. In addition, findings indicate that retailers make up a growing portion of the supply chain, and their influence is likely to increase. Over three-quarters of purchasers who bought HPWHs for emergency replacements did so at retailer stores. Furthermore, awareness among homeowners has doubled since 2016 when they were last surveyed. Based on the report’s findings, more than half of the homeowners surveyed in 2021 are aware of HPWHs (57%). Finally, satisfaction among homeowners with HPWHs is high (89%), with the same percentage indicating they would recommend a HPWH.

This report has been updated with a memorandum at the end of the document as of 05/09/2022.

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