Addressing HPWH Market Barriers: Expanded Perspective Ben Clarin Sr. Project Manager HPWH Market Transformation Symposium October 22, 2018

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: Size of HPWH to replace existing 30, 40 gal units Deploying Thermal Storage capability Multifamily systems Lack of plumber/installer training and awareness Not on the shelf at Lowe’s or Home Depot Electric Water Heating Markets: Replacement of electric water heaters – cost and availability of “on the truck”; cost to drive availability First Hour Draw RIM test for incentives Measurable and quantifiable DR benefits Emergency replacement “offer” Gas Water Heating Markets: Electricity Infrastructure availability (not enough distribution capacity, 240V availability, panel upgrade costs) Multifamily boiler replacements Natural refrigerants DR is secondary – need to get em’ in first

Learnings from HPWH deployment Grid Integration of Zero Net Energy Communities Open Demand Side Resource Integration Platform IDSM in low income communities

HPWH learnings – community scale System Purchased Cost Net Installed Cost Heat Pump Water Heater $1000 - $200 reduction (eliminate gas venting and piping, run 240V) Gas Tankless $950 Heat Pump water heaters cost neutral to tankless gas water heaters and lower installed cost in new construction kWh impacts of backup electric element vary with manufacturer control algorithms Peak operation based on plumber settings

Addressing Retrofit Challenges – The Cost Stack Electric distribution upgrades Additional Construction Costs Panel Capacity Equipment Cost 10000 4500 2000 400

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 CO2 systems with higher temperature storage Replacing individual with community systems? One-one replacement form factor issue