The California Heat Pump Partnership officially released the first large-scale plan developed through a public-private partnership to rapidly scale heat pump adoption in California, with a roadmap to achieve these goals through cross-sector collaboration and strategic partnerships.
This blueprint outlined near-term strategies to address technical, market and policy barriers to heat pump adoption and advance the state’s goal to install six million electric heat pumps by 2030—reducing greenhouse gas emissions from California’s buildings to support the state’s ultimate goal of achieving carbon net neutrality by 2045.
The new blueprint outlined key barriers to widespread heat pump adoption in California and offered a set of targeted strategies to meaningfully impact the heat pump supply chain within the next five years and create the conditions for rapid market adoption. Strategies included:
- Improving the value proposition for heat pumps by supporting long-term, stable incentives, supporting electrification-friendly rates, expanding low-cost appliance financing and targeting high value opportunities for appliance retrofits
- Streamlining sales and installation processes by modernizing local permitting and simplifying incentive programs
- Accelerating market adoption through a coordinated marketing campaign with a two-pronged focus on consumers and contractors and a dedicated “Heat Pump Week” featuring training, promotions and incentives
- Supporting a skilled workforce by launching a comprehensive workforce engagement campaign, expanding training opportunities and increasing contractor support
- Ensuring benefits are accessible to all communities by working to align available funding with the governor’s goal to direct at least half of program funds to low-income and disadvantaged communities
- Improving market visibility by strengthening data collection to track adoption trends and refine policies and programs
"The California Heat Pump Partnership is another successful example of a public-private partnership that drives clean energy technology mainstream,” said California Energy Commission Chair David Hochschild. “With the release of the blueprint, the CAHPP is paving the way for innovation in the heat pump market by aligning government, industry, and consumer interests—ensuring all Californians can benefit from modern, efficient heating and cooling technology."
“This blueprint provides the first clear, coordinated plan between state leaders and major market actors to achieve California's progressive heat pump target,” said Terra Weeks, director for the CAHPP. “Complete with actionable strategies to address a number of current barriers, it is a testament to the partnership’s commitment to rapidly scale the heat pump market across the state.”
In the United States, consumer demand for heat pumps has steadily grown, with installations outpacing those of gas-powered counterparts since 2022. But to keep up with Gov. Newsom’s ambitious heat pump target, California needs to more than triple installations. The state currently has an estimated 1.9 million heat pumps deployed, with fewer than 200,000 heat pump installations per year. Even with the implementation of current policies, codes and incentives, at this rate of adoption California is only on track to install 4 million heat pumps by 2030—falling short of the goal by 2 million units. Large-scale, coordinated efforts like the California Heat Pump Partnership are needed to align funding, planning, and major market players for the clean energy transition.
"The California Heat Pump Partnership is an innovative and inspirational collaborative, which will help to accelerate equitable heat pump adoption throughout the state,” said California Public Utilities Commission President Alice Reynolds. “This blueprint marks an important milestone, highlighting the work ahead and critical strategies targeted toward achievement of the state’s climate goals.”
“This timely blueprint provides clear, actionable strategies to accelerate widespread heat pump adoption in California and serves as a strong example of collaboration between the public and private sectors," said California Air Resources Board Chair Liane Randolph. "By addressing market, policy, and technical barriers, we can make significant strides toward achieving the state’s climate and air quality goals, and help ensure that all Californians can equitably access the benefits of clean, efficient heating and cooling."
This blueprint arrived at an opportune time, as the state was already taking significant steps to facilitate an equitable clean-energy transition. These initiatives include Senate Bill 1221, a first-in-the nation bill that was passed last year to pilot neighborhood-scale building decarbonization, and the Equitable Building Decarbonization Program, a direct-install heat pump and home upgrade program for low-income Californians, for which the state maintained $500 million in the budget. Regional air districts also began to encourage the sale of heat pumps for space and water heating for over roughly 60% of Californians, with Bay Area Air District implementing zero-NOx requirements for residential water heating starting in 2027, and space heating starting in 2029, and the South Coast Air Quality Management District voting on similar rules for residential appliances later this year. The California Air Resources Board is also developing a measure that would promote zero-emission space and water heaters, including heat pumps.
“This blueprint marks a major milestone in accelerating heat pump adoption in California,” said LG Electronics USA Senior Vice President Steve Scarbrough, general manager of LG Air Conditioning Technologies. “The collective efforts of manufacturers, utilities and state agencies will both strengthen the heat pump supply chain and advance the state’s ambitious 2030 heat pump targets. As a leader in electrification, LG looks forward to building momentum and working together to achieve lasting market change.”
“As a global leader in heat pump technology, Fujitsu General America is committed to electrification and decarbonization,“ said Karim Yasin, vice president of product management at Fujitsu. “Our partnership with CAHPP advances this mission by expanding access to clean energy solutions and driving a more sustainable future through innovation and collaboration. CAHPP exemplifies the power of public-private cooperation, uniting key stakeholders to overcome technical, market, and policy barriers. The blueprint, born of this effort, provides a strategic path to accelerating heat pump adoption, supporting California’s climate goals, and setting a national model for sustainability.”
The CAHPP was founded with a shared vision to catalyze a sustainable, decarbonized future and bring together state agencies, major manufacturers, utilities and other market actors to drive a clean energy economy. California has the world’s fifth largest economy, and scaling heat pump adoption in the state acts as a global market signal to drive the clean energy economy.
“The California Heat Pump Partnership (CAHPP) is a powerful example of how public-private collaboration can drive impactful change in the market,” said David Lopes, director of marketing and business strategy at Bosch Home Comfort. “Bosch Home Comfort is proud to play a role in this initiative, which aligns with our commitment to develop high-quality heating, cooling, and hot water solutions for the home. By aiming to provide more options, incentives, and resources for consumers, the blueprint lays an important foundation for driving heat pump adoption and meeting the state's climate targets.”
The CAHPP is set to convene twice more in June and October 2025, advancing efforts to implement the strategies outlined in the report. The partnership will also launch a statewide consumer marketing campaign in the fall through The Switch Is On, an initiative launched by the Building Decarbonization Coalition to educate, inspire and make switching to electric appliances easier for communities, contractors and those who live and work in buildings.
