Understanding and Addressing Key Market Barriers
As of 2024, ENERGY STAR data shows 198 active HPWH programs in the US, with an average incentive of $510 per unit, including eight programs with incentives of $900 or more per HPWH, reflecting widespread recognition of the high intrinsic value of HPWHs. Yet of the nearly 200 programs, just a handful have successfully led to significantly higher HPWH installations. These programs have a few features in common:
- They recognize the unique aspect of the water heating market and the challenge of disrupting longstanding purchase decisions and installation practices;
- They understand that traditional online/mail-in rebate programs, no matter how generous, don’t get traction, so they invest in instant markdowns at the point of purchase (PoP).
- They invest in consumer awareness of the incentives and savings from efficiency;
- They consistently engage the supply chain, including plumbers, distributors, and manufacturers, and recognize that they each play a role in effective market design and implementation.