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

Central HPWHs

Central heat pump water heaters (HPWHs) are high-efficiency systems designed to serve multiple dwelling units or commercial facilities from a centralized location. By using ambient air or waste heat to generate hot water, they significantly reduce energy use and greenhouse gas emissions compared to conventional gas or electric resistance systems. Central HPWHs can be integrated with thermal storage and advanced controls to shift loads off-peak and support grid reliability. These systems are well suited for multifamily, hospitality, healthcare, and institutional buildings. 

Small Commercial

Small commercial heat pump water heaters (HPWHs) include unitary systems up to approximately 120 gallons and split-system configurations designed for light commercial applications such as quick-service restaurants, offices, grocery stores, and small retail buildings. These systems provide an efficient, low-emissions alternative to gas and electric resistance water heating by leveraging heat pump technology in compact, scalable formats. Small commercial HPWHs can be installed in new construction or retrofits and paired with basic or advanced controls to optimize performance and reduce operating costs. 

Packaged Central HPWHs 

Packaged Central heat pump water heaters (HPWHs) are integrated systems that combine heat pump, storage, and control components into a single factory-assembled unit typically on a skid. These systems are designed to simplify installation, reduce on-site commissioning requirements, and improve reliability through standardized configurations. Packaged HPWHs are well suited for multifamily and commercial applications where space, labor, and construction timelines are constrained. By delivering consistent performance and streamlined integration with building systems, packaged HPWHs help lower project risk and reduce energy use. Their modular design also enables scalable deployment and easier compliance with evolving energy codes and utility programs. 

High Temperature Central HPWHs 

High-temperature commercial heat pump water heaters are advanced systems capable of producing hot water above 180°F, enabling applications such as hydronic space heating, industrial process loads, and, in some cases, low-pressure steam generation. These technologies expand the reach of electrification into sectors traditionally dependent on fossil fuel boilers. By leveraging advanced refrigerants and multi-stage compression, high-temperature heat pumps can deliver reliable, efficient performance at elevated temperatures. Although still an emerging market, active field demonstrations across the country are validating system reliability, integration strategies, and cost-effectiveness. As deployment increases, these systems are expected to play a critical role in decarbonizing commercial and industrial thermal energy use.

Credit: Blue Fern Productions

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.

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Resource TitleURLTopicResource TypeNoteRecommend for posting (SH)
2
Commercial HPWH Qualified Products Listhttps://neea.org/resource/commercial-hpwh-qualified-products-list/Commercial/Multifamily HPWH SystemsDocumenty
3
Advanced Water Heating Specification Version 8.1https://neea.org/wp-content/uploads/2025/03/Advanced-Water-Heating-Specification.pdfCommercial HPWHDocumentSpecificationy
4
Commercial/Multifamily HPWH Systems Qualified Products List for Advanced Water Heating Specification Version 8.1https://neea.org/wp-content/uploads/2025/03/commercial-HPWH-qualified-products-list.pdfCommercial HPWHDocumentSpecificationN. This is PDF of resource above
5
UES Measures | Regional Technical Forum https://rtf.nwcouncil.org/measures/Listed in PPT so including this list here, but the measure referenced is in progress so not listed yet.Hold and check back to see if it's complete/ready
6
Heat Pump & Heat Pump Water Heater Field Database https://heatpumpdata.energy.gov/Residential and Commercial HPWHDatabaseN. They only have Residential resources.
7
Central Heat Pump Water Heater Design Guidehttps://www.energytrust.org/wp-content/uploads/2023/04/New-Buildings_Design-Guide-for-Central-Heat-Pump-Water-Heaters.pdfCentral HPWHY but is there a higher level, a page before the PDF?
8
Central Heat Pump Water
Heating with 3 Case Studies
https://www.aceee.org/sites/default/files/pdf/conferences/hwf/2019/5c-oram.pdfDocument
9
Laars E-Therm Commercial Air-to-Water Natural Refrigerant Heat Pump Water Heaterhttps://www.laars.com/images/uploads/products/2188A.pdfCommercial HPWHDocumentProduct sheet
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Central Heat Pump Water Heating Systems for Decarbonizing Multifamily Buildings: Market Assessment, Energy Performance and Cost Impact Analysishttps://www.aceee.org/sites/default/files/proceedings/ssb24/pdfs/Central%20Heat%20Pump%20Water%20Heating%20Systems%20for%20Decarbonizing%20Multifamily%20Buildings.pdfCentral HPWHDocumentMarket Assessment
11
Colmac Cx-Series Heat Pump Water Heating
System: Jackson Apartments, Seattle WA
https://www.bpa.gov/-/media/Aep/energy-efficiency/emerging-technologies/20220222-colmac-cx-mandv-jackson-apts-task17.pdf2022
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FINAL REPORT: PG&E and SCE HPWH Laboratory Testing and Software Updates for Multifamily Applicationshttps://ecotope-publications-database.ecotope.com/2024_032_Final_Report_MF_HPWH_Lab_Testing_V2.pdfMultifamily HPWHDocumentReport
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Characterization of Central Heat Pump Water Heating Deployment in the Multifamily Markethttps://calnext.com/wp-content/uploads/2025/02/ET24SWE0027_Characterization-of-Central-Heat-Pump-Water-Heating-Deployment-in-the-Multifamily-Market_Final-Report.pdfDocumentReport
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Market Potential for Heat Pump Assisted Hot
Water Systems in Foodservice Facilities
https://calnext.com/wp-content/uploads/2023/07/ET22SWE0019_Final_Report.pdfCommercial HPWHDocumentReport
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Hopeworks Station Case Studyhttps://www.bpa.gov/-/media/Aep/energy-efficiency/emerging-technologies/case-study-hopeworks-station-2021.pdfMultifamily HPWHDocumentCase Study
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Skokomish Tribe Community Center Case Studyhttps://www.bpa.gov/-/media/Aep/energy-efficiency/emerging-technologies/case-study-skokomish-tribe-community-center-2021.pdfCommercial HPWHDocumentCase Study
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THE HOSTEL: EPHOCA AIO WALL MOUNTED HEAT PUMP Case Studyhttps://www.bpa.gov/-/media/Aep/energy-efficiency/emerging-technologies/case-study-the-hostel-ephoca-2023.pdfCommercial HPWHDocumentCase Study
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CO2 Heat Pump Water Heater Study: Hopeworks
Station Place, Everett WA
https://ecotope-publications-database.ecotope.com/2020_002_HopeWorksReportFinal_20220720PDF.pdfMultifamily HPWHDocument Case Study
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Jackson Apartments Case Studyhttps://www.bpa.gov/-/media/Aep/energy-efficiency/emerging-technologies/case-study-jackson-apartments-2021.pdfMultifamily HPWHDocumentCase Study
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Menlo Park: WaterDrop Pre-Manufactured Plug and Play Central Heat Pump Water System Proves Off-Site Construction Workshttps://smallplanetsupply.com/menlo-park-waterdrop-pre-manufactured-plug-and-play-central-heat-pump-water-system-proves-off-site-construction-works/Central HPWHBlog post
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Eliminating the Swing Tank and Other Design Considerations in Large-Capacity CO2 Heat Pump Water Heatinghttps://www.aceee.org/sites/default/files/proceedings/ssb24/pdfs/Eliminating%20the%20Swing%20Tank%20and%20Other%20Design%20Considerations%20in%20Large-Capacity%20CO2%20Heat%20Pump%20Water%20Heating.pdfCommercial HPWHDocumentStudy
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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 WAhttps://www.bpa.gov/-/media/Aep/energy-efficiency/emerging-technologies/20220505-mitsubishi-qahv-mv-study-task-3.pdfCommercial HPWHDocumentCase Study
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Central HPWH Retrofit Readiness Through Hot Water Distribution System Optimization Focused Pilothttps://www.etcc-ca.com/reports/central-hpwh-retrofit-readiness-through-hot-water-distribution-system-optimization-focusedCentral HPWHWebsitePilot Project
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JA14 Central Heat Pump Water Heater Systemshttps://www.energy.ca.gov/rules-and-regulations/building-energy-efficiency/manufacturer-certification-building-equipment/ja14Central HPWHWebsiteCompliance
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JA13 Heat Pump Water Heater Demand Management Systemshttps://www.energy.ca.gov/rules-and-regulations/building-energy-efficiency/manufacturer-certification-building-equipment/ja13Commercial HPWHWebsiteCompliance
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Commercial Heat Pumpshttps://www.youtube.com/watch?v=pF2B03kXCmECommercial HPWHVideo
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Commercial Heat Pump Water Heating Systems – The Water Heating Solution in Building Electrification https://www.youtube.com/watch?v=xCCWDlzdZSMCommercial HPWHVideoWebinar
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Commercial Heat Pump Water Heating with Mitsubishi Heat2O https://www.youtube.com/watch?v=s6U16eNlqN4Commercial HPWHVideoWebinar
29
WATER HEATER CASE STUDY: Mid-rise multifamily
makes a sustainable splash
https://betterbricks.com/wp-content/uploads/2025/09/BetterBricks_SplashApartments_Case-Study.pdfCentral HPWHDocumentCase Study
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CENTRAL HEAT PUMP WATER HEATERS Project Spotlight: Low-Rise Multifamilyhttps://betterbricks.com/wp-content/uploads/2025/03/CHPWH-Case-Study.pdfCentral HPWHDocumentCase Study
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Industrial and commercial heat pump installation highlights https://www.youtube.com/watch?v=q_5GZeHFpToCommercial HPWHVideoWebinar
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Central Heat Pump Water Heaters for Multifamily Buildings https://basc.pnnl.gov/resource-guides/central-heat-pump-water-heaters-multifamily-buildings#edit-group-scopeCentral HPWHWebsiteGuide
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Distributed Heat Pump Water Heaters for Multifamily Buildings https://basc.pnnl.gov/resource-guides/distributed-heat-pump-water-heaters-multifamily-buildingsMultifamily HPWHWebsiteGuide
34
Heat Pump Water Heater On Demand Traininghttps://installers.hotwatersolutionsnw.org/training-on-demand/WebsiteOn Demand Training
35
Heat Pump Water Heaters in Multifamily New
Construction: Design Charrette Findings
https://neea.org/wp-content/uploads/2025/03/HPWHs-in-Multifamily-New-Construction-Design-Charrette-Findings.pdfCommercial/Multifamily HPWH SystemsDocumentReport
36
Market Research on Existing Water Heater in
Select Commercial Buildings, Final Report
https://neea.org/wp-content/uploads/2025/03/Market-Research-on-Existing-Water-Heaters-in-Select-Commercial-Buildings_Final-Report.pdfCommercial HPWHDocumentReport
37
Commercial and Industrial Pumps Standard Evaluationhttps://neea.org/wp-content/uploads/2025/03/Commercial-and-Industrial-Pumps-Standard-Evaluation-Report.pdfCommercial HPWHDocumentReport
38
ECO2 Heat Pump Water Heater Controller:
Feasibility Study & Applications Testing
https://www.bpa.gov/-/media/Aep/energy-efficiency/emerging-technologies/20220321-sanco2-controller-feasibility-applications-study-task-16.pdfCommercial HPWHDocumentStudy
39
Boring but Efficient: Heat Pump Water Heater Opportunities in Commercial Buildingshttps://www.aceee.org/sites/default/files/proceedings/ssb24/pdfs/Boring_but_Efficient_HPWH_Opportunities_in_Commercial_Buildings.pdfCommercial HPWHDocumentStudy
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Water Heating Resourceshttps://www.bpa.gov/energy-and-services/conservation/residential/water-heatingCommercial HPWHWebsiteResources
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BPA Webinar: Industrial Heat Pumps https://www.youtube.com/watch?v=rwkL8yw_MqYCommercial HPWHVideoWebinar
42
BPA Mitsubishi Heat2O Hot Water Load Shift Demonstration and Simulation Analysis: at Bayview Towers, Seattle, WAhttps://heatpumpdata.energy.gov/system/files/files/cchp-2025-06/20230829-mitsu-co2chpwh-bayview-towers-report%20%282%29.pdfMultifamily HPWHDocument Report
43
Industrial Heat Pump Market Studyhttps://www.bpa.gov/-/media/Aep/energy-efficiency/emerging-technologies/202403-industrial-heat-pump-market-study.pdfCommercial HPWHDocumentStudy
44
Consumer Heat Pump Water Heater in Commercial Applications Workbookhttps://nwcouncil.app.box.com/v/commhpwh-3-1Commercial HPWHDocumentSpreadsheet
45
Research Strategy for Consumer Heat Pump Water Heaters Installed in Commercial Buildingshttps://nwcouncil.app.box.com/v/ComHPWHReserachStrategy2020Commercial HPWHDocumentReport
46
ENERGY STAR® Version 1.0 Commercial HPWH Draft 1 Specificationhttps://www.energystar.gov/sites/default/files/2025-01/ENERGY%20STAR%20Version%201.0%20Commercial%20Heat%20Pump%20Water%20Heaters%20Draft%201%20Webinar_0.pdfCommercial HPWHDocumentWebinar Presentation
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SCE Commercial HPWH Posterhttps://2019.utilityforum.org/Data/Sites/5/media/posters/sce-commercial-hpwhs.pdfCommercial HPWHDocumentPoster
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Heat Pump Water Heater Technical Guide for R-2 Occupancy (Low-rise multifamily new construction, three stories and fewer)https://betterbuiltnw.com/assets/uploads/resources/WSEC_MF_Tech-BBNW_2020.10.26.pdfMultifamily HPWHDocumentGuide
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BPA Commercial Sector Document Libraryhttps://www.bpa.gov/energy-and-services/conservation/document-libraryCommercial HPWHWebsiteResources
50
CEE Commercial Water Heating Specifications 2024https://cee1.my.site.com/s/resources?id=a0VTR000000PfPlCommercial HPWHDocumentSpecification, available for download
51
CEE Commercial Water Heating Initiative Descriptionhttps://cee1.org/images/pdf/CEE_GasComm_WHInitiative_5Jun2012.pdfCommercial HPWHDocumentReport
52
Exploring Commercial Heat Pump Water Heaters with Nyle Systemshttps://podcasts.apple.com/us/podcast/exploring-commercial-heat-pump-water-heaters-with-nyle/id1569400078?i=1000652895665Commercial HPWHPodcast
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Commercial Heat Pump Water Heaters - Function, Configuration, Applications https://www.youtube.com/watch?v=W2Eug_Z-ZekCommercial HPWHVideoPodcast
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Commercial Heat Pump Water Heater System Considerations in a Nut Shell https://www.youtube.com/watch?v=qmbglYs0AxUCommercial HPWHVideoWebinar
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CO2 - The Commercial Heat Pump Super Power https://www.youtube.com/watch?v=tZnDMgEam9oCommercial HPWHVideoPodcast
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