Project Experts
Anais Laperle Projet Lead
Jane Wilson Senior Market Research Expert
Sanaa Essiaghi Market Research Expert
Understanding Quebec’s Efficient Heat Pump Market
- Client
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Year
2024-2025
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Region
- North America (USA-Canada)
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Service
- Market Insights
- Portfolio Planning and Design
- Program Evaluation
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Countries
Canada
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Provinces
Quebec
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Sector
- Utilities
As Quebec looks to accelerate its energy transition, heat pumps have emerged as a key technology to reduce electricity consumption for residential heating. To achieve ambitious energy savings targets, Hydro-Québec needed a detailed understanding of the rapidly evolving heat pump market of the province. Econoler was commissioned to provide actionable insights that would optimize the Hydro-Québec financial assistance program, maximize participation, and support the province’s broader energy efficiency goals.
Residential Heat Pumps in Québec: Market Context
In 2021, Hydro-Québec began offering financial assistance for residential heat pumps, marking a critical step toward reducing energy use. This project represented the first comprehensive assessment of the efficient heat pump market since financial assistance for heat pumps became available through Hydro-Québec. Hydro-Québec retained Econoler to gather accurate, reliable market intelligence to inform program design and support energy savings targets. The heat pump measure is central to Hydro-Québec’s residential energy efficiency strategy and represents the bulk of expected residential sector savings.
Quebec’s residential heating sector is heavily reliant on electricity, with most households using electric baseboards. In a region where temperatures can reach -25°C (-13°F), cold-climate heat pumps must operate efficiently under challenging conditions. Hydro-Québec’s 2035 Action Plan targets 21 TWh of energy savings from efficiency measures, placing heat pumps at the center of the province’s strategy to reduce electricity demand.
Mandate
Econoler’s mandate was to independently evaluate and characterize the heat pump market in Quebec from 2021 to 2024
Independent Market Assessment for Hydro-Québec to Guide Program Design
The assignment aimed to understand heat pump adoption levels, identify drivers and barriers to installation, assess market capabilities, and recommend improvements to Hydro-Québec’s offerings. The client needed evidence-based insights that support the design and implementation of an impactful energy efficiency program.
Key responsibilities included:
- Understanding adoption levels, barriers, and opportunities for growth
- Assessing market size, capabilities and readiness
- Providing Hydro-Québec with recommendations to optimize program design and maximize energy savings
Comprehensive Research and Data-Driven Analysis
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To meet Hydro-Québec’s objectives, Econoler carried out a multi-pronged data collection and analysis approach:
- Stakeholder Interviews: Discussions with Hydro-Québec staff overseeing program delivery.
- Participant Surveys: Online survey of program participants to understand heat pump usage patterns, satisfaction, and drivers of adoption.
- Market Actor Engagement: Surveys and interviews with heat pump distributors, installers, and builders to assess heat pump market penetration, trends, and barriers.
- Expert Validation: In-depth interviews with industry experts to corroborate findings.
- Program Data Analysis: Comprehensive review of Hydro-Québec’s heat pump installation database, analyzing technical characteristics, efficiency levels, and residential deployment.
Unlocking Value for Hydro-Québec and Quebec Residents
Key Benefits of this project included:
- Optimized Program Operations: Market insights enable Hydro-Québec to improve program delivery and participation.
- Informed Planning: Residual potential analysis guides future efforts and energy savings projections.
- Market Intelligence: Detailed understanding of the market supports engagement with distributors, installers, and other stakeholders.
- Enhanced Customer Experience: Quebec residents benefit from better program design and improved offerings.
- Business Opportunities: Installers and distributors gain from a growing market stimulated by an effective program.
Building the Future of Heat Pump Programs in Quebec
Hydro-Québec is using the results to refine its heat pump offerings, prioritize outreach, and guide program implementation over the next program years.
This assessment establishes a baseline for future market monitoring and evaluation, ensuring Hydro-Québec can adapt its program to evolving market conditions, maximize energy savings, and support Quebec’s 2035 Action Plan. Econoler’s work strengthens data-driven decision-making and ensures continued growth in the residential heat pump market.