Packaged Propane Refrigeration Market Analysis

California’s aggressive greenhouse gas (GHG) reduction goals and tightening refrigerant regulations are accelerating the need for low-GWP, energy-efficient refrigeration solutions in the commercial food retail and food service sectors. Walk-in coolers and freezers (WICFs) are widely used across these industries and are major drivers of electricity consumption and refrigerant-related emissions. Packaged propane (R290) refrigeration systems offer a promising alternative to traditional hydrofluorocarbon (HFC) systems but remain underutilized in the U.S. due to safety standards, limited product availability, and low market awareness. GWP, energy efficient refrigeration solutions in the commercial food retail and food service sectors. Walkin coolers and freezers (WICFs) are widely used across these industries and are major drivers of electricity consumption and refrigerant related emissions. Packaged propane (R290) refrigeration systems offer a promising alternative to traditional hydrofluorocarbon (HFC) systems but remain underutilized in the U.S. due to safety standards, limited product availability, and low market awareness. This study evaluates the technical performance, market readiness, and cost-effectiveness of packaged R290 refrigeration systems for small-to-medium businesses (SMBs), hard-to-reach (HTR) customers, and disadvantaged communities (DAC) in California. The analysis integrates metered field data, manufacturer specifications, stakeholder interviews, and national program benchmarking to assess energy savings, GHG reductions, and adoption barriers. Metered results from medium and low-temperature installations show average energy reductions of 54% and 38%, respectively, compared to baseline HFC systems, with 20–25% savings even against high efficiency HFC units. With substantially smaller refrigerant charge sizes and ultra low-GWP, packaged propane systems reduce refrigerant-related emissions by more than 99%, translating to an estimated 1.87 metric tons CO₂e avoided per unit annually. At a 5% market penetration, this would represent approximately ~450 metric tons of CO₂e avoided each year in California.290 refrigeration systems for small to medium businesses (SMBs), hard to reach (HTR) customers, and disadvantaged communities (DAC) in California. The analysis integrates metered field data, manufacturer specifications, stakeholder interviews, and national program benchmarking to assess energy savings, GHG reductions, and adoption barriers. Metered results from medium and low temperature installations show average energy reductions of 54% and 38%, respectively, compared to baseline HFC systems, with 20–25% savings even against high efficiency HFC units. low GWP, packaged propane systems reduce refrigerant related emissions by more than 99%, translating to ~1.87 metric tons CO Findings indicate strong decarbonization potential but highlight persistent barriers, including the 150 gram R290 charge limit, limited UL-listed configurations, supply chain constraints, and low contractor familiarity. The study concludes with recommendations to expand field metering, update safety standards, develop deemed TRM measures, establish a Qualified Products List, and launch targeted incentive programs to accelerate equitable adoption of packaged propane refrigeration technologies across California