The project includes feasibility and design studies followed by demonstration of a large central reverse cycle chiller (RCC) or heat pump water heaters for energy efficient production of domestic hot water in multifamily residential projects. Feasibility and design studies were completed in 2010. The first installation was completed in November 2012; a second installation was completed in the Spring 2013. The next phase of the project will include measurement and verification of energy savings. The project will conclude with a final report of lessons learned and recommendations for future applications of this technology. This project will look to answer the following research question: quantify the energy savings using a large heat pump water heater (or called RCC) vs. electric resistance domestic hot water in a multifamily (MF) application to prove the concept, and understand technical challenges and whether this is a good technology for multifamily sector.