Addressing HPWH Market Barriers Expanded Perspective Ben Clarin

Addressing HPWH Market Barriers: Expanded Perspective Ben Clarin Sr. Project Manager HPWH Market Transformation Symposium October 22, 2018 © 2016 Electric Power Research Institute, Inc. All rights reserved.

HPWH Market Needs – Compiled challenges § Manufacturers struggling for management approval due to anemic sales § Good products available 10 years on, but only 1% market penetration Common challenges for all markets: 1. Size of HPWH to replace existing 30, 40 gal units 2. Deploying Thermal Storage capability 3. Multifamily systems 4. Lack of plumber/installer training and awareness 5. Not on the shelf at Lowe’s or Home Depot 2 Electric Water Heating Markets: Gas Water Heating 1. Replacement of electric water heaters – cost and availability of “on the truck”; cost to drive availability 2. First Hour Draw 3. RIM test for incentives 4. Measurable and quantifiable DR benefits 5. Emergency replacement “offer” 1. Electricity Infrastructure availability (not enough distribution capacity, 240 V availability, panel upgrade costs) 2. Multifamily boiler replacements 3. Natural refrigerants 4. DR is secondary – need to get em’ in first © 2016 Electric Power Research Institute, Inc. All rights reserved. Markets:

Learnings from HPWH deployment Grid Integration of Zero Net Energy Communities Open Demand Side Resource Integration Platform IDSM in low income communities 3 © 2016 Electric Power Research Institute, Inc. All rights reserved.

HPWH learnings – community scale § Heat Pump water heaters cost neutral to tankless gas water heaters and lower installed cost in new construction § k. Wh impacts of backup electric element vary with manufacturer control algorithms § Peak operation based on plumber settings 4 System Purchased Cost Net Installed Cost Heat Pump Water Heater $1000 Gas Tankless $950 © 2016 Electric Power Research Institute, Inc. All rights reserved. - $200 reduction (eliminate gas venting and piping, run 240 V)

5 Addressing Retrofit Challenges – The Cost Stack Electric distribution upgrades 10000 Additional Construction Costs 4500 Panel Capacity Equipm ent Cost 5 2000 400 © 2016 Electric Power Research Institute, Inc. All rights reserved.

Multifamily HPWH Focus § How do you replace a central boiler system with HPWH? – Largest available unitary HPWH in the market is 120 Gal § Options and Opportunities – Testing “ganged” HPWH – BPA is testing Colmac commercial systems – New construction using HPWH as backup option for gas boiler – Using CO 2 systems with higher temperature storage § Replacing individual with community systems? § One-one replacement form factor issue 6 © 2016 Electric Power Research Institute, Inc. All rights reserved.