Selling the Value of Heat Pump Water Heaters FPO – customize to specific retailer Selling the Value of Heat Pump Water Heaters Helping Your Customers Make the Best Water Heating Decisions

Who Are We? Point of Slide: Intro NEEA and their funding sponsors as sponsors of the training. Narrative: The Northwest Energy Efficiency Alliance (NEEA) is a nonprofit organization using market transformation to maximize energy efficiency and meet future energy needs. NEEA and it’s funders serve Idaho, Montana, Oregon and Washington. Hot Water Solutions is an initiative of NEEA with the end goal to transform the market and make HPWH’s the norm. Until they are the norm, NEEA and it’s funders will continue to support market transformation with trainings like these combined with market outreach. The end goal for most funding utilities is to acquire enough electric savings to avoid the need to build more power plants to satisfy electric load growth while providing exceptional levels of customer service. Energy efficiency itself is considered a power resource and is now the region’s second largest power resource.

Meeting a Customer for the First Time How do you identify a HPWH customer? What HPWH concerns might a customer have? Point of slide: Engage participants in visualizing meeting an ideal HPWH customer and run through what they would say as an exercise to prompt them for the point of the course which is to get a customer to consider and ultimately purchase a HPWH. Narrative: Before we get started with the content, let’s take a moment to visualize a potential professional scenario. To do this, everyone will need to participate. Note to instructor: The goal of this mini-exercise is to get everyone to visualize a situation in which a customer can be guided to become a HPWH customer. Imagine you received a call from a customer who’s water heater just failed If you’re comfortable with it, close your eyes and visualize what the ideal HPWH customer would look like. [Pause for a minute.] When you engage them with questions what would let you know they are ideal? How do you differentiate an HPWH home from an average home? How do you express the value of an HPWH? By the time we are finished with this course you should be able to easily answer each one of these questions. How would you respond?

A Standard Tank vs. HPWH Benefits Point of Slide: Begin to understand the differences between standard and HPWH product Presenter asks them to list out the differences: What’s the benefit of a standard tank? - It’s reliable It’s inexpensive Quiet and low maintenance What’s the benefit of a HPWH? HPWH costs significantly less to operate HPWH has upfront incentives and rebates HPWH has good warrantees- at least 10 yr.; standard electric typically has a 6 year warranty HPWH has few other features to be aware of such as condensate, filter, cold air HPWH has high tech features such as leak detection and can be a Wi-Fi connected Ask folks to consider for later…will customers remember benefits or features of these devices?

Explaining the Technology Features Heat pump technology: Heat is moved from the surrounding air to the water in the tank Borrowing heat allows for a 60% less energy use Point of Slide: Now that we know the differences in technology benefits, how would you explain the features to a customer? The technology is not new, is the same technology in your refrigerator or car air conditioner or home AC. Like all heat pumps they don’t create energy; they move energy 10 yr. warranty minimum Cutting edge technology - Leak detection, Wi fi enabled apps Most have leak protection 10 year warranty

Standard Technology Heat Pump Technology Product Comparisons Standard Technology Heat Pump Technology Point of Slide: Further understanding of how HPWHs work; ways to help customers understand

Explaining the benefits 60% reduction in electric water heating costs Immediate $ savings with incentives Peace of mind through 10 yr. warranty Point of slide: These are the benefits a customer can experience base on a HPWH’s features. Same reliable hot water delivery Avoids water damage through leak detection

FPO – customize to specific retailer The New Standard Benefits: FPO – customize to specific retailer 60% Savings Incentives Point of slide: Benefits of a HPWH and how selling them ties into the values of Home Depot. “This will save you $$ over the next 10 years! Average extra cost of a HPWH is $500, Average hot water kwh is 4,000 at 10 cents it’s $400. You’ll pay for it in 3 years. Note: Focus on the delta of a standard tank vs. a HPWH. Other Benefits: Leak detection “We feel that selling HPWHs aligns with most of your values.” Our Values

Listening for Benefits Point of slide: Summarize the benefits of a HPWH compared to a standard tank, and prepare for final activity.

Finding HPWH Customers Are you a homeowner? Do you have existing electric water heat? Point of slide: Reinforce how to identify a HPWH customer Narrative: These three questions will give you a good idea as to whether a customer is an ideal fit. Other possible questions include: Do you have interest in financing? (Note this question is ideally placed later in the sale process to avoid bringing up money issues up front. Some Homeowners may be leary of sales people and asking about financing might put people off.) Where is your water heater located?

How would you respond? I’m not sure these are Reliable… 10 year warranty The technology is too new… Heat pump technology has been around for over 60 years Point of Slide: facilitate active response around how to respond to customer questions and concerns I’m not sure these are reliable These have 10 year warranties! Gone are the days of unknown manufacturers or home appliance companies making HPWHs. These are made by the folks that already represent 75% of the market. They have the same 1 hr ratings (number of showers in a row) as the previous units. The technology is too new Believe it or not, HPWHs have been around in one form or another since the 70s! This is the same basic technology as DHPs, refrigerators, and car AC units. These manufacturers have been developing models for the marketplace since 2010. I don’t want to run out of hot water Good news, we can help you size the tank to meet your family’s needs. These typically have the same or extremely similar first hour ratings as standard models. More good news, these new units run in heat pump mode when the demand to re-heat is low. When the demand is high, electric resistance heat kicks in. Even for larger families, these devices still produce useful hot water at big savings. I don’t want to run out of hot water… Same delivery as a standard tank

How would you respond? It’s too expensive… 60% savings and incentives I’d simply like the same one I have now… Same yet better I’d like the one that can be installed the fastest… Point of Slide: facilitate active response around how to respond to customer questions and concerns It’s to expensive A heat pump water heater is the smartest choice to get the hot water you need today, and help you save substantially on electric water heating bills for years to come. Financial incentives are available now that can considerably reduce your upfront costs, allowing you to buy the latest efficient technology at a fraction of the retail price when compared to a standard electric water heater. - Expense means both cost today and cost over the life of the unit. Incentives and discounts are available in many utility territories for upfront costs and efficiency gains will actually save you money over the life of the equipment. I’d simply like the same one I have now Heat pump water heaters take advantage of more efficient technology to provide reliable, hot water at less than half the cost of a standard water heater. With a HPWH, you’ll get the same number of showers and water use you had with your previous water heater. New units are direct 1 for 1 replacements for a number of situations, such as cellars, unfinished basements, and garages. These are from the same manufacturers that made your last unit, these are simply the new standard in electric water heating. I’d like the one that can be installed the fastest Great, we have these in our warehouse and our distributor carries them as well. These are no longer fringe or specialty units, in most territories, they are just as available as other units. We can install just as fast most of the time

Contractor vs. Do-It-Yourself (DIY) Is it a complex installation? Is the consumer hesitant to install? Fast Water Heater installation services Contractor Does the customer have confidence and information to install? Provide necessary literature and supplies Point of Slide: Encourage associates to talk with customers about which path they will take and make the appropriate connections DIY

DIY Support Possible supplies: Basement Above grade/garage Small room PVC pipe, primer, glue elbows If flex connect 24 inch flex connect Condensate pump If flex water connect: 24 inch flex connect PVC pipe and elbows, primer, glue Louvered doors Venting Point of Slide: If DIY, help the customer decide what they need for the space they are installing in and locate additional supplies

Home Depot and Rheem HPWHs Rheem HPWH – a product you can feel good about Solid investment with 60% savings on operating costs and upgrade incentives Point of Slide: Summary takeaway - you can feel good about recommending RHEEM HWPH to your customers Offering solid investments is a part of Customer Service pledge Can save over $4,000 it its lifetime Rheem is a solid product with great warranties Leak detection-speak to the safety focused! Interactivity out of the box-Speak to the tech focused! Excellent option for Pro-Install or DIY Home Depot offers all the extras you need for a successful install Rheem History Brothers Richard and Donald Rheem founded Rheem Manufacturing Company in Emeryville, Calif., in 1925. While the company has produced a number of products in its nearly 100 years of operation — including steel shipping containers, household appliances like gas ranges, semi-conductors, musical instruments and more — Rheem today is the only manufacturer in the world that produces heating, cooling, water heating, pool/spa heating and commercial refrigeration products, and it is the largest manufacturer of water heating products in North America. Great for professional install or DIY

Choose sales associate or customer Helping Customers Choose sales associate or customer Customer Your electric water heater broke today and you need a quick replacement; it’s located in your garage. You’ve never heard of a HPWH and you have a concern. Sales associate Point of slide: Practice your interaction with a sales associate Ask: “Imagine there is a person looking at water heaters. Would you be able to approach them today and ask the right questions to see if a HPWH is a good fit? If it is are you comfortable speaking to the value of a HPWH? Think to yourself, what questions would you ask? Are you familiar with ideal HPWH placement? The benefits of purchasing as compared to a standard electric water heater?” The goal of this training is to have you get even more comfortable identifying a HPWH customer and expressing the value of a HPWH. Guide your customer to choose to investigate purchasing a HPWH by addressing their concern and guiding to a contractor or DIY resources.

Benefits and Value - Pocket Guide Concerns It’s too expensive Financial incentives are available now Save up to 60% on your heating bill or up to $200/year Point of Slide: Introduce to reference materials The technology is too new HPWHs have been around since the 70s! This is the same basic technology as DHPs, refrigerators, and car AC units

FPO – customize to specific retailer Resources Rheem Website HotWaterSolutionsNW.org FPO – customize to specific retailer 1-800#? Who does the DIY turn to for more info? Fast? Point of Slide: These are the places to refer back to as you get more familiar with the product or receive customer questions