California Pilot Finds Cost, Not Product Availability, Is Still the Main Barrier to High-Efficiency Commercial Heat Pumps
Space heating and cooling account for 41% of total commercial energy use nationwide, and in California, most of it still runs through gas-fired rooftop units. New research presented at the 2026 ACEEE Summer Study on Energy Efficiency in Buildings, based on two CalNEXT pilot incentive programs, finds that higher efficiency heat pump rooftop units, known as HP RTUs, are increasingly available on the market. The bigger obstacle to adoption is that current incentive levels don’t cover enough of the added cost.