PORTLAND, OR — The Northwest Energy Efficiency Alliance (NEEA), in partnership with the American Council for an Energy-Efficient Economy (ACEEE) and other energy-efficiency organizations, has named Midea the winner of the Hot Water Innovation Prize, a national competition focused on expanding residential heat pump water heater adoption.

The competition challenged manufacturers to develop solutions that overcome installation barriers limiting the use of heat pump water heaters in smaller homes and multifamily residences. Midea's winning split-system heat pump water heater was selected for its ability to fit applications where conventional integrated heat pump water heaters are often too large.

Split-System Design Expands Installation Options

Heat pump water heaters consume significantly less electricity than traditional electric resistance units, but their larger physical dimensions have limited installation opportunities in apartments, condominiums, manufactured housing and homes with restricted mechanical space.

Midea's split-system design separates the compressor from the storage tank, creating a more flexible installation approach for contractors while expanding the number of homes that can accommodate heat pump water heating technology.

"This prize was created to solve a significant market challenge that has kept this highly efficient technology from reaching more homes," said Becca Yates, Executive Director of NEEA. "The innovation recognized today gives families more energy-saving options by making heat pump water heating a practical choice for a wider range of consumers."

Potential Energy Savings Drive Market Interest

Using US Department of Energy data, NEEA estimates the new technology could reduce energy consumption in more than two million homes annually while lowering household energy costs by an average of $240 per year.

The organization estimates that replacing all existing small electric resistance water heaters with split-system heat pump models developed through the competition could generate approximately $5.6 billion in annual utility bill savings, reduce electricity consumption by 35 billion kilowatt-hours annually and avoid roughly 13 million metric tons of carbon dioxide emissions.

For plumbing contractors, compact split-system equipment could expand retrofit opportunities in projects where space limitations have previously prevented heat pump water heater installations.

Competition Moves Toward Commercialization

The Hot Water Innovation Prize brought manufacturers, utilities, testing laboratories and energy-efficiency organizations together early in the product development process to accelerate commercialization.

Manufacturers advanced product concepts from qualification through prototype development before independent laboratory testing and evaluation by a panel of experts representing engineering, water heating technology, contractor installation, building science and utility energy-efficiency programs.

"At Midea, innovation starts with understanding our customers' needs," said Sarah Chinberg, Packaged AC Regulatory Engineer. "We participated in the Hot Water Innovation Prize because we saw an opportunity to bring the benefits of heat pump water heating to more homes. This recognition validates our team’s work to develop a practical solution that delivers savings and flexibility with the performance that our customers expect.”

As the competition winner, Midea will receive $175,000 to support continued product development. NEEA and its partners are now working with utilities and other stakeholders to evaluate demonstration projects and additional market development opportunities.

The Hot Water Innovation Prize is supported by a national coalition of organizations committed to expanding access to efficient water heating that includes ACEEE, Advanced Water Heating Initiative, Bonneville Power Administration, Ecotope, Efficiency Vermont, Midwest Energy Efficiency Alliance, Northeast Energy Efficiency Partnership, New Buildings Institute, South-central Partnership for Energy Efficiency as a Resource, Southwest Energy Efficiency Project, and Vermont Energy Investment Corporation.