Heat Pump Water Heater Market Transformation Update March

Heat Pump Water Heater Market Transformation Update March 27 th 2012 NORTHWEST ENERGY EFFICIENCY ALLIANCE Dave Kresta

Agenda Opportunity/Vision/Roadmap Barriers/Strategies Northern Climate Spec Update Lab and Field Testing/ RTF 2

Heat Pump Water Heater Opportunity § Largest savings measure in 6 th PP: 492 a. MW § ~60% NW homes have electric water heaters, ~200, 000 replaced every year § ~1800 kwh/year savings potential per unit 3

Initiative Vision Customer savings and satisfaction Widespread adoption, Manufacturer support Federal Standards 4

Initiative Status & Roadmap We are here Want to be here Codes & Standards 2020 Fed standard – 40 gallon+ tanks Large scale, voluntary programs 2015 2014 2013 2012 5 Federal standard takes effect for large tanks Federal standards process starts for 2020 Full initiative launch Provisional UES, Field studies, several qualified products, Northern Climate Spec II, regional collaboration groups established, market test Not to scale

Barriers § Products not ideal for Northern climates § High incremental costs § Supply-chain engagement § Challenging buying experience § Federal test procedures and ratings 6

Key Strategies Right product: Northern Climate Spec; prove NW opportunity to mfgs. Lower costs: Move beyond “niche” product, incentives, explore financing/ leasing options Supply-chain engagement: Upstream incentives, training Buying experience: Consumer and retail education, regional messaging Federal standards: Drive adoption, influence test procedures and rating systems 7

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Northern Climate Specification WHY? Provide guidance to manufacturers; product framework for utility programs WHAT? Climate-sensitive ratings; features for reliable savings, customer comfort HOW? Tiered product qualification, test procedures. 9

Overview of Content and Updates Scope: Integrated units only, split-systems in future § Energy Star compliance § NE W Product Tiering § Northern Climate Energy Factor § Northern Climate Delivery Rating § Updated §Sound NE W levels Freeze Protection § Warranty/Service § Compressor shut-down/notification § Updated§Ducting Condensate Management Air filters: maintenance/notification § NE W 10 Minimal electric element usage §

New: Product Tiers 11 Minimum Northern Climate EF Minimum “Northern Climate” Features Minimum supported installation locations Sound levels Tier 1 1. 8 ENERGY STAR compliance Semi-conditioned Unconditioned d. BA < 65 Tier 2 2. 0 Tier 1 plus: Minimal use of electric heating elements* Freeze protection Exhaust ducting option Compressor shutdown/notification 10 year Warranty Condensate Mgmt Conditioned Semi-conditioned Unconditioned d. BA < 60 Tier 3 2. 4 Tier 2 plus: Intake ducting option Air Filter Mgmt Conditioned Semi-conditioned Unconditioned d. BA < 55 *In default operating mode, units shall make minimal use of electric resistance heating elements in order to maximize energy savings potential. During the first draw of the standard DOE First Hour Rating Test, the electric resistance heating element shall not be turned on until at least 66% of the tank’s measured water volume has been withdrawn. Measured volume is defined as the amount of water the unit under test actually stores and not the rated tank volume.

New: Northern Climate Energy Factor Concept: Calculate an Energy Factor (EFNC) representative of performance for equipment installed in unconditioned, house buffer spaces (e. g. garages and unheated basements) in northern climates. Process: Leverage existing EF DOE test (at 67°F) with additional measurement and calculations to determine EFNC § Conduct additional EF test at 50°F ambient, 50°F inlet § Determine compressor “shut-off” temp, tank UA, and EF with resistance element § Use weighted distribution of temperature bins § Calculate single EFNC value 12

New: Northern Climate Delivery Rating Concept: Rate units on ability to deliver hot water in cool ambient conditions while maintaining high efficiency operation in the default operating mode. Reported in how many showers the water heater can give until the outlet temperature gets too cold or the efficiency drops significantly (resistance element turns on). Will not be used to determine Northern Climate Spec compliance, but rather a sizing aid for consumers Draw profile: 8 mins at 2 gpm, 5 min off, repeat 13

Qualification Process Product Assessment worksheet available NEEA will manage “Qualified Products” list NEEA will continue lab testing through 2012 www. neea. org/northernclimatespec 14

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Extensive lab & field testing to date Lab testing of § Air. Generate 66 gallon (gen 1 and 2) § Air. Generate 50 gallon § Air. Generate (reliability testing) § AO Smith 80 gallon (with prototype ducting kit) § AO Smith 60 gallon § Bosch 3000 § Daikin (European inverter-driven) § GE Geo. Spring (BPA) § Rheem (BPA) § Steibel-Eltron § Sky. Sea 17 § Field testing § BPA/EPRI study (40 sites in NW, 160 nation-wide) § NEEA 30 -unit tier 2 study (2013 completion) § RTF Savings validation study (under development) § Unique testing § § § Low temperature Ducting # of Showers Freeze Compressor cut-off Reliability/Failure

Lab Testing 18 Air Generate in a Thermal Chamber

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Full range of temperature vs COP testing 21

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A. O Smith Voltex 23

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AO Smith 60 gallon COP vs. Airflow 25

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RTF Provisional Savings Table 27

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NEEA Field testing overview Complement to BPA/EPRI field study: focus on tier 2 (Air Generate) in field performance and satisfaction Will complement a complete savings validation and evaluation plan being developed in an RTF sub-committee 30 units installed with full metering package • 15 ducted installations (conditioned spaces) • Puget Sound, Portland, and Central Oregon • 15 units installed by 12/31, all units installed by 2/28 29

Monitoring Scheme 30

Conclusion: Regional Collaboration Consistent messaging to manufacturers, supply-chain, and consumers Sharing of best practices, lessons learned Careful attention to consumer satisfaction and savings Support Federal standards process HPWH Collaboration Teams established: • Technical • Program • Evaluation 31

Save the DATE! Regional HPWH Collaboration Workshop II June 20/21 in Portland 32

Thank you Dave Kresta, dkresta@neea. org (503) 688 -5459 33 NORTHWEST ENERGY EFFICIENCY ALLIANCE

Additional Slides 34

Supply Chain Engagement Manufacturers Distributors Contractors 35 Influence product development Coordinate training, marketing, and strategic events Collaborative training, marketing, and events Encourage stocking and support via up-stream incentive offerings Quality control through training, best practices, inspections Encourage installations via mid-stream incentives

Consumer Buying Experience § Product positioning statement and consumer messaging development § Retail point-of-purchase materials and support § Contractor and homeowner education § Homeowner Education Guide § Best Practices Installation Guide § Case studies 36