Commercial HPWHs

Credit: Blue Fern Productions

Market transformation efforts have focused heavily on developing the residential HPWH market, but there are also many opportunities for commercial buildings to adopt central and light commercial HPWHs. The complexity of commercial buildings requires nuanced sizing, selection and installation. Central HPWHs offer many configuration options, and light commercial HPWHs can provide a simpler alternative.


Types of Central and Commercial HPWHs

Credit: Blue Fern Productions

AWHI Commercial HPWH Resources

  • Report:

    2025 State of the Heat Pump Water Heater Market Report

    NBI’s Advanced Water Heating Initiative (AWHI) has released its annual Heat Pump Water Heaters State of the Market Report. This in-depth report offers an overview of the latest in both commercial and residential heat pump water heater (HPWH) innovation in the U.S. and explores policy, technology and other market forces accelerating adoption across the industry. 

  • Photos:

    HPWH Photo Repository

    Download from a collection of commercial and residential heat pump water images and diagrams.

  • Factsheet:

    Market Assessment for High Temperature Heat Pump Water Heaters

    This fact sheet examines the current landscape of high-temperature heat pump water heater technologies and summarizes available equipment, typical use cases and building types, expected costs, and key barriers to adoption.

  • Case Study:

    Housing Hilltop: A Central Heat Pump Water Heater Model for Affordable Communities

    This case study looks at the the Housing Hilltop project in Tacoma, Washington, demonstrates a Central Heat Pump Water Heater (CHPWH) system to address these challenges and create a sustainable and economical hot water solution for affordable housing communities. Tacoma Housing Authority, which built and owns Housing Hilltop, sought to install CHPWHs to ensure families who have been or are at the risk of being displaced, have an equal access to healthy living spaces while reducing energy cost burden.

  • Factsheet:

    Central Heat Pump Water Heaters (CHPWH) in Affordable Multifamily Housing

    This fact sheet outlines the details of a CHPWH install in the Housing Hilltop project in Tacoma, Washington. It describes the design rationale, system components and capacity, and project timeline. Learn some of the most important actionable takeaways and best practices to maximize efficiency.

  • Factsheet:

    A Brief History of Heat Pump Water Heaters (HPWHs)

    This factsheet outlines the evolution of heat pump water heaters, tracing their roots back to 18th-century thermodynamic discoveries by pioneers like Willem Cullen and Lord Kelvin. With a streamlined graphic, it highlights early innovations, market struggles during the late 20th century, and eventual breakthroughs such as the ENERGY STAR certification in 2009. Steady growth continued through the 2010s, supported by national initiatives like the Advanced Water Heating Initiative (AWHI). By the 2020s, HPWHs became significantly more efficient and began gaining mainstream adoption, driven by updated regulations and improved technology.

  • Report:

    Central Heat Pump Water Heater Market Research (2023-2025)
    System Types, Market Size, and Key Regions

    This report provides an overview of the currently available technologies and product types for central heat pump water heaters (CHPWHs). Analysis highlights crucial components affecting the potential CHPWH market. The first section discusses the various components of CHPWHs and the primary market delivery methods. It also delves into more than a dozen market-ready heat pump products. The second section explores the potential for CHPWH market penetration based on American multifamily housing demographics. The third and final section analyzes regional economics and building stock concerning central water heating systems. (2025)

  • White Paper:

    Increasing Equitable Access to Heat Pump Water Heaters

    This paper aims to share data about current methods and programs to overcome barriers to the adoption of heat pump water heaters in low-to-moderate income households and disadvantaged communities. These barriers include high initial costs, the split incentive between landlords and tenants, technical constraints, workforce challenges, and local policy barriers. The paper outlines opportunities and considerations to help ensure that those who cannot afford HPWHs or have other barriers preventing their installation are not left with the negative impacts of gas-fueled and electric resistance water heaters. The ultimate goal of these programs is to realize long-term energy savings, emissions reductions, and financial benefits for LMI people and across disadvantaged communities. (2024)

  • Resource Guide:

    The Why, What, and How of Successful Heat Pump Water Heater Programs

    Heat Pump Water Heaters (HPWHs) can deliver significant energy savings, substantial cost savings, and dramatic reductions in air pollution. However, Low- to Moderate-Income (LMI) households and members of disadvantaged communities often lack access to the benefits that HPWHs can deliver. Fortunately, some current and emerging programs have found ways to improve the equitable distribution of HPWHs.This guide discusses the need for and the benefits of HPWHs in LMI households and across disadvantaged communities. It also provides a summary of current successful and emerging federal, state, and regional HPWH programs. This guide was released in parallel with the paper “Increasing Equitable Access to Heat Pump Water Heaters” . Contact us to learn how you can get started in your community. (2024)

  • Report:

    Mitsubishi Heat20 Hot Water Load Shift Demonstration and Simulation Analysis at Bayview Towers

    Read this report that culminates several years of collaborative work between BPA, Ecotope, Mitsubishi, SkyCentrics, and Steffes to introduce the first load shift capable commercial HPWH system to the United States, featuring the HEAT2O. The Bayview Tower project retrofitted an aging electric resistance water heating system in an occupied, 100-unit, affordable housing high-rise. The new commercial heat pump water heating system at Bayview Towers marked the first U.S. installation of Mitsubishi's HEAT2O (QAHV) system – the country's first large-capacity CO2 refrigerant-based domestic water heating system. (2023)

  • CHPWH Resources:

    Factsheet: The Best Solutions Come in Easy-to-Use Packages
    Central heat pump water heater (CHPWH) systems can serve the domestic hot water needs of a building in one central plant.

    Case Study: Project Spotlight, Low-Rise Multifamily
    Two Small Planet Supply WaterDrop packaged skid systems now serve a disability and elder care facility, which was previously served by two separate gas water heating plants. To learn more about CHPWHs visit betterbricks.com/solutions/water-heating. (November 2023)

  • Report:

    Central Heat Pump Water Heaters for Multifamily Supply Side Assessment Study

    NEEA contracted with NBI in January 2021 to conduct research and outreach to better understand the current landscape of central heat pump water heater (HPWH) adoption in multifamily buildings. Research objectives included 1) Identifying all primary barriers to central HPWH adoption, 2) Increasing understanding of the value propositions (i.e., drivers) for each market actor in the central HPWH supply chain, and 3) Gathering market actor feedback to understand the most effective pathways to increased market adoption of central HPWHs. Research activities included fielding an online survey targeting specifiers and installers and conducting a series of interviews across the supply chain. (January 9, 2023)

  • Report:

    Increasing Sustainability of Multifamily Buildings with HPWHs

    Utilities and policymakers are increasingly looking to technologies such as electric heat pump water heaters (HPWHs) to help cut carbon and other greenhouse gas (GHG) emissions from buildings while providing other benefits such as grid flexibility. This new report, by NBI and ACEEE, includes a national assessment and analysis of the potential for HPWHs to improve the sustainability of existing multifamily buildings by reducing energy consumption and carbon emissions. (November 2021)

  • Website:

    Betterbricks Central Heat Pump Water Heaters Resource Page

    This website provides information about the benefits of central heat pump water heaters, as well as related resources, news and case studies.

Commercial & Central HPWH Resources

 

This resource repository supports broader use of CHPWHs in multifamily and other buildings. Sort resources by clicking on the column headings. Let us know if you have resources to recommend.

Resource TitleTopicSourceDate
Advanced Water Heating Specification Version 8.1Commercial HPWH A Specification for Residential, Commercial/Multifamily, and Industrial Water Heaters and Heating Systems Northwest Energy Efficiency Alliance (NEEA)2024
Commercial HPWH Qualified Products ListCommercial/Multifamily HPWH SystemsNorthwest Energy Efficiency Alliance (NEEA)2026
Heat Pump & Heat Pump Water Heater Field DatabaseResidential and Commercial HPWHU.S. Department of Energy’s (DOE's) Office of Critical Minerals and Energy Innovation (CMEI)
Central Heat Pump Water Heater Design GuideCentral HPWHEnergy Trust of Oregon2023
Central Heat Pump Water Heating with 3 Case StudiesCentral HPWH Case StudyAmerican Council for an Energy-Efficient Economy (ACEEE)2019
Laars E-Therm Commercial Air-to-Water Natural Refrigerant Heat Pump Water HeaterCommercial HPWH Laars Heating Systems
Central Heat Pump Water Heating Systems for Decarbonizing Multifamily Buildings: Market Assessment, Energy Performance and Cost Impact AnalysisCentral HPWH American Council for an Energy-Efficient Economy (ACEEE)2024
Colmac Cx-Series Heat Pump Water Heating System: Jackson Apartments, Seattle WACase StudyBonneville Power Administration (BPA) 2022
PG&E and SCE HPWH Laboratory Testing and Software Updates for Multifamily ApplicationsMultifamily HPWH ReportEcotope2024
Characterization of Central Heat Pump Water Heating Deployment in the Multifamily MarketCentral HPWH ReportCalNEXT2025
Market Potential for Heat Pump Assisted Hot Water Systems in Foodservice FacilitiesCommercial HPWH ReportCalNEXT2023
Hopeworks Station Case StudyMultifamily HPWH Case StudyBonneville Power Administration (BPA) 2021
Skokomish Tribe Community Center Case StudyCommercial HPWH Case StudyBonneville Power Administration (BPA) 2021
The Hostel: EPHOCA AIO Wall Mounted Heat Pump Case StudyCommercial HPWH Case StudyBonneville Power Administration (BPA) 2023
CO2 Heat Pump Water Heater Study: Hopeworks Station Place, Everett WAMultifamily HPWH Case StudyEcotope2020
Jackson Apartments Case StudyMultifamily HPWH Case StudyBonneville Power Administration (BPA) 2021
Menlo Park: WaterDrop Pre-Manufactured Plug and Play Central Heat Pump Water System Proves Off-Site Construction WorksCentral HPWHSmall Planet Supply2024
Eliminating the Swing Tank and Other Design Considerations in Large-Capacity CO2 Heat Pump Water HeatingCommercial HPWH StudyAmerican Council for an Energy-Efficient Economy (ACEEE)2024
Demonstration and M&V: Commercial Heat Pump Water Heating System using the Mitsubishi HEAT2O in Origin by Steffes Plug-and-Play Package at Bayview Tower, Seattle WACommercial HPWH Case StudyBonneville Power Administration (BPA) 2022
Central HPWH Retrofit Readiness Through Hot Water Distribution System Optimization Focused PilotCentral HPWH Pilot ProjectEnergy Transition Coordinating Council (ETCC)2026
JA14 Central Heat Pump Water Heater SystemsCentral HPWH ComplianceCalifornia Energy Commission2025
JA13 Heat Pump Water Heater Demand Management SystemsCommercial HPWH ComplianceCalifornia Energy Commission2025
Commercial Heat PumpsCommercial HPWH VideoSlipstream 2025
Commercial Heat Pump Water Heating Systems – The Water Heating Solution in Building Electrification Commercial HPWH WebinarBuilding Efficiency for a Sustainable Tomorrow (BEST) Center 2023
Commercial Heat Pump Water Heating with Mitsubishi Heat2OCommercial HPWH WebinarEfficiency Vermont for Trade Partners2022
Water Heater Case Study: Mid-rise multifamily makes a sustainable splashCentral HPWH Case StudyBetterBricks2025
Central Heat Pump Water Heaters Project Spotlight: Low-Rise MultifamilyCentral HPWH Case StudyBetterBricks2023
Industrial and commercial heat pump installation highlightsCommercial HPWH WebinarAustralian Alliance for Energy Productivity2024
Central Heat Pump Water Heaters for Multifamily BuildingsCentral HPWH GuideU.S. Department of Energy’s (DOE's) Office of Critical Minerals and Energy Innovation (CMEI)2024
Distributed Heat Pump Water Heaters for Multifamily BuildingsMultifamily HPWH GuideU.S. Department of Energy’s (DOE's) Office of Critical Minerals and Energy Innovation (CMEI)2024
Heat Pump Water Heater On Demand TrainingOn Demand TrainingHot Water Solutions
Heat Pump Water Heaters in Multifamily New Construction: Design Charrette FindingsCommercial/Multifamily HPWH Systems ReportNorthwest Energy Efficiency Alliance (NEEA)2024
Market Research on Existing Water Heater in Select Commercial Buildings, Final ReportCommercial HPWH ReportNorthwest Energy Efficiency Alliance (NEEA)2025
Commercial and Industrial Pumps Standard EvaluationCommercial HPWH ReportNorthwest Energy Efficiency Alliance (NEEA)2021
ECO2 Heat Pump Water Heater Controller: Feasibility Study & Applications TestingCommercial HPWH StudyBonneville Power Administration (BPA) 2022
Boring but Efficient: Heat Pump Water Heater Opportunities in Commercial BuildingsCommercial HPWH StudyAmerican Council for an Energy-Efficient Economy (ACEEE)2024
Water Heating ResourcesCommercial HPWH ResourcesBonneville Power Administration (BPA)
Industrial Heat PumpsCommercial HPWH WebinarBonneville Power Administration (BPA) 2022
Mitsubishi Heat2O Hot Water Load Shift Demonstration and Simulation Analysis: at Bayview Towers, Seattle, WAMultifamily HPWH ReportBonneville Power Administration (BPA) 2023
Industrial Heat Pump Market StudyCommercial HPWH StudyBonneville Power Administration (BPA) 2024
Consumer Heat Pump Water Heater in Commercial Applications WorkbookCommercial HPWH SpreadsheetNorthwest Power and Conservation Council
Research Strategy for Consumer Heat Pump Water Heaters Installed in Commercial BuildingsCommercial HPWH ReportRegional Technical Forum2020
ENERGY STAR® Version 1.0 Commercial HPWH Draft 1 SpecificationCommercial HPWH Webinar PresentationEnvironmental Protection Agency (EPA)2025
SCE Commercial HPWH PosterCommercial HPWH PosterSouthern California Edison (SCE)
Heat Pump Water Heater Technical Guide for R-2 Occupancy (Low-rise multifamily new construction, three stories and fewer)Multifamily HPWH GuideBetterBuiltNW2020
Commercial Sector Document LibraryCommercial HPWH ResourcesBonneville Power Administration (BPA)
CEE Commercial Water Heating Specifications 2024Commercial HPWH Specification, available for downloadConsortium for Energy Efficiency, Inc. (CEE)2023
CEE Commercial Water Heating Initiative DescriptionCommercial HPWH ReportConsortium for Energy Efficiency, Inc. (CEE)2012
Commercial Heat Pump Water Heaters - Function, Configuration, ApplicationsCommercial HPWH PodcastHVAC TV2024
Commercial Heat Pump Water Heater System Considerations in a NutshellCommercial HPWH WebinarThe Lab at City Light2024
CO2 - The Commercial Heat Pump Super PowerCommercial HPWH PodcastHeat Geek Uninsulated2024