Research & Data

The goal of this research was to examine the current commercial HVAC market — particularly around stocking practices, purchasing processes, and leverage points for incentives — to track market progress and better understand how to increase adoption of dual fuel heat pump RTUs and ERVs. This research was also intended to determine market actors’ level of familiarity with each technology and perspectives on barriers, opportunities, and appropriate applications.

While individual findings vary by market actor and technology, the themes summarized highlight patterns observed across the data and provide context for understanding current barriers, opportunities, and leverage points for increasing adoption of dual fuel heat pump RTUs and ERVs in Minnesota.

In Q1, Minnesota’s Efficient Technology Accelerator (ETA) advanced coordinated market support  strategies across portfolios, continuing to build momentum toward statewide market transformation. Through targeted research, partner engagement, and early deployment efforts, ETA is addressing  key market barriers and strengthening the conditions needed for widespread adoption of emerging energy efficient technologies

Minnesota’s Efficient Technology Accelerator (ETA) reached a major program milestone: for the first time since launch, ETA is reporting statewide energy savings, cost-effectiveness, and emissions reductions resulting from its market transformation initiatives. This delivers on the ETA’s statutory objectives and sets ETA on a path to grow into a lasting, cost-effective energy efficiency resource for Minnesota utilities and customers.

This report evaluates the cost impacts and estimates the energy-performance of Minnesota’s proposed residential energy code update, which adopts the 2024 International Energy Conservation Code (IECC) with state-specific amendments. Center for Energy and Environment (CEE), which implements Minnesota’s Efficient Technology Accelerator (ETA) programs, contracted with Slipstream to conduct research to identify and summarize the cost impacts of the recently proposed code.

Building on the progress of the first half of the year, Q3 brought broader market participation, stronger industry partnerships, and tangible results from ongoing pilots. Together, these efforts are accelerating momentum toward lasting transformation in Minnesota’s building and energy landscape.

In Q2, we deepened each of our five key initiatives — Residential Air Source Heat Pumps (ASHPs), High-Performance Windows, Commercial Luminaire-Level Lighting Controls (LLLCs), Next Gen Rooftop Units, and the Minnesota Advanced Energy Codes Partnership — with new milestones, deeper market engagement, and growing partnerships. 

This report provides strategic insight and information on contractor awareness and perceptions, sales insights, thoughts on customer perceptions, business challenges, and resource and training needs.

This report provides strategic insight and information on specifying processes and preferences, experience and familiarity with LLLCs, and resource and training needs.

This report contains strategic insight and information around perspectives and experience with heat pump RTUs, perspectives and experience with ERVs, and resource and training needs.

The ASHP State of the Market Report provides a current and comprehensive view of heat pump market actor perceptions in Minnesota. The report includes valuable data about contractor experience with and opinions on heat pumps, sales insights, challenges and benefits, training needs and resources, customer installation decisions and processes, heat pump impacts, customer satisfaction, and more.