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an inverter driven heat pump (capable of meeting both heating and cooling needs) is often cost effective in homes with electric furnaces (Nadel 2016). Thus, homes in this market may provide an opportunity to develop scale and capability for cooling focused iASHPs. Conclusion – A Call to Action Most HVAC systems have a useful life between 15 and 20 years. This means that are potentially 50 million opportunities for heat pumps to be installed between now and 2050. At market maturity the iASHP could provide three important benefits: 1) Lower cost per delivered unit of heating. 2) Utility grid management and resiliency benefits provided by the inverter drive, storage, and load shifting 3) Lower total system carbon emissions The technologies needed to achieve these benefits are known and available (inverter- driven, variable speed drives; advanced heat exchangers; and distributed intelligence capabilities) but have not been integrated into the full range of heat pump applications. These technologies remain scattered across many different products and market niches, not at manufacturing economies of scale, and without strong market drivers. Manufacturers will not likely invest in product development without seeing a clear opportunity for future competitive advantage and profit. It is therefore incumbent on other market actors to provide a clear roadmap that outlines future market opportunities by providing: 1. Clear performance metrics and performance targets 2. Rewards for achieving those performance targets 3. Monitoring to make sure that performance in the field is consistent with these targets 4. Support for installer training 5. Support for end-user awareness Achieving this end state begins with coordination of various ongoing efforts across North America. The market transformation effort would benefit from a high level market transformation strategy to which all market actors are committed. This will help drive the product development and manufacturing investments needed to reach the necessary economies of scale and product maturity. ©2018 ACEEE Summer Study on Energy Efficiency in Buildings 1-11

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