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Current Market Transformation Efforts Market transformation for iASHPs is not relegated to just utilities, DOE and a few manufacturers who are investing in new technologies. There are many activities currently underway that are laying a foundation to transform the market. Table 2 presents several organizations actively working on this and the key barriers they are addressing. Table 2 – Active ASHP Market Transformation Efforts Technology Research & Region/Organization Development Test Procedures and Metrics Installer Training Consumer Education / Awareness Cost Reduction or Increased Policy/ Financing Production Admin Rules Canada (EnerCAN, CSA) X X X X X US DOE X X Cities (CNCA7) X NGOs (ACEEE, NRDC) EPRI X X California (CEC, CPUC) X X X NEEP and Partners X X X X NEEA and Partners X X X X The efforts identified in Table 2, are not well coordinated and in particular lack the large market drivers that enable manufacturers to invest in sufficient production scale and product development and refinement. This suggests that leveraging niche market opportunities where scale and product maturity can be increased is most likely to succeed with minimal investment. Example niche market opportunities with particularly strong potential include: 1) The replacement of electric resistance heating in moderate climates, with replacement of electric furnaces a particularly attractive opportunity. 2) Conversion of central air conditioners to iASHPs. 3) Displacement of oil/propane heating systems, particularly in homes lacking central air conditioning. 4) Efficient new buildings where money can be saved by not installing gas service. The moderate climates of the Pacific Northwest provide a unique market opportunity for iASHP advancement for three reasons. First, climate in this region is not severe enough to prevent current inverter-driven mini-split heat pumps from providing near 100% displacement of space heating. Second, electricity rates are at or below national average rates. Third, the regional electrical grid is increasingly constrained by capacity and could benefit from the demand response capabilities of a more “alonetic”8 technology (Eustis 2016). This provides an opportunity to develop scale and manufacturing capacity for a cold climate-focused iASHP. Homes in much of the Southeastern United States have central air conditioning systems, often with electric resistance heating. Much of the time the system operates in cooling with little need for heating. This market can be a unique opportunity to upgrade the central cooling systems to a central iASHPs when the equipment needs replacement. The additional cost of conversion to 7 Carbon Neutral Cities Alliance 8 a term coined by Conrad Eustic (Portland General Electric) used describe an electric device capable of beneficially support operation of the electric utility grid. 1-10 ©2018 ACEEE Summer Study on Energy Efficiency in BuildingsPDF Image | Lync Diagram
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