The residential heating, ventilation, and air-conditioning (HVAC) market in the Northeast U.S. has shown signs of transition toward high-performance equipment. The air-source heat pump (ASHP) market has seen marked growth over the past decade. From 2013 to 2021, the region composed of New England states and New York saw a 250 percent increase in ASHP sales. Various market influences have driven this growth, including increased customer and contractor awareness, expansion of energy-efficiency programs, and shifts in state-level policies.
NEEP partnered with regional stakeholders through its regional initiative to develop an updated ASHP market assessment for the Northeast and to explore how best to leverage the region’s existing infrastructure to grow the market. NEEP’s region includes Connecticut, Washington, D.C., Delaware, Massachusetts, Maryland, Maine, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, and West Virginia.
NEEP conducted research and interviews with key regional stakeholders involved with the high-performance HVAC market, including program administrators, manufacturers, distributors, and other subject matter experts. This report focuses on the ASHP market for single-family residences’ partial and whole home space heating applications. We researched promotional program components and activity, the regional heat pump market size, and installed cost data. Unfortunately, no known data source of timely, geographically specific HVAC sales is publicly available. In the absence of current state or regional-level sales data, the research team developed estimated sales for the Northeast region.
This assessment shows that while many barriers to widespread ASHP adoption persist in the Northeast HVAC market, progress is being made and clear opportunities for regional stakeholders remain. Increasing ASHP market penetration is attainable if the region continues to invest in and implement the kinds of market strategies outlined in this report.
NEEP partners with other stakeholders in the region to provide platforms to facilitate this collaborative action across states, program administrators, industry leaders, and other key actors. This assessment can be used as a springboard for enhanced action and partnership.
