This project will demonstrate load flexibility of an integrated heat pump capable of providing both domestic hot water heating and space conditioning. The goal is to show that the two most energy intensive services in a residential home, water heating and space conditioning, are capable of load flexibility under California’s forthcoming real-time pricing tariff structures and other demand management standards. Additionally, the project aims to demonstrate that an integrated heat pump along with dynamic pricing programs can save residential customers money, energy and carbon while maintaining suitable indoor environmental conditions. The system also features an AquathermAire hot water tank, a refrigerant to water heat exchanger, enabling load shifting.