What Is the Measure?
Industrial and large commercial facilities often use significant amounts of energy for process heating, particularly where facilities use combustion-based systems. As building electrification and decarbonization efforts expand, industrial heat pumps, including high-temperature systems, are becoming more common in process-heating applications.
High-temperature heat pumps (HTHPs) are electrically driven systems that provide process heat at temperatures above typical space-conditioning or domestic water-heating applications. Depending on the equipment and application, these systems can support manufacturing, food and beverage production, industrial laundry, cleaning, and low-pressure steam processes.
Unlike conventional heat pumps used for comfort heating or standard water heating, HTHPs are designed around process loads and elevated delivery temperatures. Depending on the technology and application, industrial HTHPs commonly deliver heat at approximately 180°F to 320°F. Many systems are also capable of recovering and reusing heat from industrial processes or cooling systems, helping improve overall energy utilization and reduce waste heat rejection.
When properly integrated, HTHPs can reduce fuel use while supporting electrification goals.
Key Components
While system configurations vary by application, most HTHP systems include the following core components:
- Compressor: Increases the pressure and temperature of the working fluid or refrigerant so heat can be delivered at a higher useful temperature.
- Working Fluid / Refrigerant: Transfers heat through the system between the source and heating load.
- Evaporator / Source-Side Heat Exchanger: Absorbs heat from a lower-temperature source or recoverable heat stream.
- Condenser / Load-Side Heat Exchanger: Transfers upgraded heat to the process load.
- Expansion Device: Reduces the pressure of the working fluid after heat has been delivered, allowing it to return to the evaporator side and repeat the cycle.
- Source and Load Interfaces: Connect the heat pump to the available heat source and the facility heating system.
- Controls: Manage system operation, temperature setpoints, and integration with existing equipment.
How It Works
HTHP systems operate by capturing heat from a lower-temperature source, increasing its temperature, and delivering useful heat to a higher-temperature process load.
In a typical closed-cycle vapor-compression HTHP, heat is collected from a lower-temperature source, such as process waste heat, condenser water, wastewater, exhaust air, ambient air, refrigeration systems, or cooling loops. At the evaporator, the system transfers heat into the working fluid or refrigerant. An electrically driven compressor then increases the refrigerant pressure and temperature so the heat can be delivered at a more useful temperature.
At the load side, the condenser or load-side heat exchanger transfers the upgraded heat to the facility’s process heating system. After releasing heat to the load, the working fluid passes through an expansion device and returns to the evaporator to repeat the cycle.
Control systems manage operation and help coordinate the heat pump with existing heat equipment and heating loads. Overall performance depends heavily on system integration, operating conditions, and how well the heat source and heating load are matched.
When to Consider This Measure
Industrial and commercial facilities with significant thermal loads are often good candidates for HTHPs. These systems are especially worth evaluating where facilities use combustion-based equipment, such as natural gas boilers, to provide hot water or low- to moderate-temperature process heat. Direct-fired process applications should be evaluated separately to confirm that the required temperature and heat-transfer conditions are compatible with available HTHP technologies. New construction, major system upgrades, or end-of-life boiler replacements can provide favorable opportunities for HTHP integration.
HTHPs are most effective where a usable heat source is available. Recoverable heat from facility operations or cooling systems can improve performance by reducing the required temperature lift. Facilities with steady operating schedules and consistent heating demand are typically stronger candidates.
However, if the available heat source already meets the required load temperature, direct heat recovery through a heat exchanger should be evaluated before adding a heat pump. HTHPs are most beneficial when recovered heat must be upgraded to a higher temperature.
In California, HTHPs align with broader trends toward electrification, heat recovery, and reduced on-site combustion in commercial and industrial facilities. These systems may also support longer-term code-readiness and electrification planning efforts.
Equipment Selection Considerations
When selecting HTHP equipment, one of the primary considerations is the required delivery temperature and overall operating conditions. Temperature lift, or the difference between source and delivery temperatures, strongly influences performance. Lower-lift applications typically achieve higher efficiency and more favorable operating economics.
Equipment selection should also consider control requirements and integration with existing heating infrastructure. For steam or higher-temperature applications, additional coordination with existing steam systems may be needed. Systems should be sized to avoid insufficient useful output and excessive cycling. Project teams should review manufacturer performance data at expected operating conditions rather than nominal ratings or idealized COP values.
Selection should also consider working-fluid properties, including environmental impact, toxicity, flammability, and operating pressure. Project teams should evaluate electrical infrastructure, controls integration, and applicable code and safety requirements.
System Configurations
Figure: Example conceptual configuration of a high-temperature heat pump in a food processing facility
The system diagram above shows a representative water-to-water high-temperature heat pump configuration that provides simultaneous process cooling and heating. In this example, the heat pump captures heat from the cooling return loop after it has absorbed heat from production equipment or other facility loads.
This type of configuration is most effective when cooling and heating loads occur at the same time or can be coordinated through buffer tanks or controls. When properly applied, these systems can reduce supplemental heating energy while also offsetting cooling-system heat rejection.
Note: The schematic provided in this guide is conceptual and for illustrative purposes only. Project teams should always consult with a licensed professional to evaluate and design systems appropriate to their specific applications.
Pairing Considerations
HTHPs are most effective when paired with systems that provide consistent heat sources, recoverable waste heat, or simultaneous heating and cooling demands.
Existing boiler or steam systems are also commonly used in hybrid configurations. In these applications, the heat pump may serve baseline heating loads while boilers remain in place for backup operation or higher temperature requirements. Controls and thermal storage can help improve system coordination and overall performance.
Cost Considerations
Upfront costs for HTHP systems vary based on system size, required temperatures, available heat sources, and overall integration complexity. Other factors that can impact upfront costs include whether backup or supplemental heating systems are needed and whether retrofit projects require modifications to existing infrastructure.
Maintenance and operating requirements should also be considered during project planning. These systems may require specialized training or ongoing performance monitoring. Operating costs depend heavily on how the system is applied and whether usable waste heat is available within the facility.
Because costs and savings are highly site-specific, project teams should evaluate both infrastructure needs and potential long-term operational benefits when determining whether a HTHP system is a good fit for the facility.
What Are the Benefits?
- Supports electrification and can reduce on-site greenhouse gas emissions by lowering reliance on fossil fuel-based process heating systems.
- Improves overall site energy efficiency by capturing and reusing available waste heat that would otherwise be rejected.
- Opportunity to lower operating costs depending on site specific characteristics.
- Enables simultaneous heating and cooling in some applications, allowing one system to serve multiple process needs.
- Supports large process loads across a variety of commercial and industrial heating applications.
What Are the Challenges/Constraints?
- Integration with existing hot-water, hydronic, or steam systems may require additional design coordination.
- Upfront costs are typically higher than conventional boiler systems, particularly where retrofit projects require transformer, electrical service, or onsite electrical distribution upgrades.
- Performance depends heavily on heat-source availability, source temperature, required delivery temperature, and overall temperature lift.
- Proper controls are needed to ensure the system is effectively integrated and commissioned.
What Are the Qualifications for CEDA Inducements?
To be eligible, a project must:
- Be located within the service territory of SCE, SoCal Gas, PG&E or SDG&E
- Be enrolled in the CEDA program and meet all standard program participation requirements.
- Implement a qualifying HTHP system and submit the required design and equipment documentation.
- Participate in equipment data collection effort if selected.
Note: Project may be selected by PG&E for a future case study. Measure requirements are subject to change; this guide reflects information available as of June 2026—for the most current measure requirements, contact CEDA@willdan.com.
References:
- Bonneville Power Administration (BPA). (2024). Industrial Heat Pump Market Study. https://www.bpa.gov/-/media/Aep/energy-efficiency/emerging-technologies/202403-industrial-heat-pump-market-study.pdf
- CalNEXT. (2023). Industrial Heat Pump Market Study Final Report. https://calnext.com/wp-content/uploads/2023/12/ET23SWE0036_Industrial-Heat-Pump-Market-Study_Final-Report.pdf
- National Renewable Energy Laboratory (NREL). (2023). High Temperature Heat Pump Model Documentation and Case Studies. NREL/TP-7A40-84560. https://www.nrel.gov/docs/fy23osti/84560.pdf
- Pacific Gas and Electric Company (PG&E). (2025). Assessment of Industrial Heat Pump Applications: Final Project Report. Code Readiness Program. CR24PGE0401.
- Willdan. (2026). CEDA High-Performance Measure: Industrial High Temperature Heat Pump. California Energy Design Assistance Program (CEDA). CEDA High-Performance Measure: Industrial High Temperature Heat Pumps.pdf
