Get Ready: Changes Impacting the Water Heater Marketplace George M. Chapman Senior Program Manager Consortium for Energy Efficiency © 2015 Consortium for Energy Efficiency, Inc. All rights reserved.

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. Agenda Water Heaters Are Changing − New Standards and Test Procedure Impacts on Installers − What You Need to Know Impacts on Your Customers − What You Need to Let Your Customers Know Opportunities to Grow Your Business

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. Water Heaters Are Changing Department of Energy (DOE) Minimum Standards New Efficiency Descriptor New Test Procedure

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. New Federal Minimum Standards Department of Energy (DOE) Minimum Standards − Mandates higher Energy Factor (EF) ratings on virtually all residential water heaters. − Impacts gas, electric, oil, and tankless water heaters up to 100 gallons − Applies to products manufactured on and after April 16, 2015 − Mandates the levels, NOT the technology

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. New Federal Minimum Standards Divides storage water heaters into two categories: − Those with capacity up to 55 gallons − Those with capacity over 55 gallons Using current technology, large volume residential models over 55 gallons now likely require: − Fully condensing for certain gas models − An integrated heat pump for electric models

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. New Federal Minimum Standards Gas, Common Sizes Size Category Tankless20–55 Gallons> 55 Gallons Rated Storage Volume N/A Current Standard Standard

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. New Federal Minimum Standards Electric, Common Sizes Size Category 20–55 Gallons> 55 Gallons Rated Storage Volume Current Standard Standard

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. New Efficiency Descriptor Currently, light duty commercial models are measured in Thermal Efficiency (TE) − These are often installed in homes and small businesses − Large models with inputs over 75,100 Btu/hour − The new descriptor will change this rating to an “Uniform Energy Factor” (UEF) which will be used for all residential models; expected July 2015 − To help consumers compare between models

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. New Test Procedure Eliminates gaps in current test procedures Modifies water delivery temperature and draw patterns to reflect conditions as seen in the field Adds new requirements for rating storage volume and first hour rating Modifies the calculation of annual energy consumption −Results in an UEF rating of energy efficiency

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. Impacts of These Changes on Installers 55 Gallons and Under Many models are larger and heavier – May not install easily into the existing space – May take up more room on your truck – May require two people to move and position Product lines have changed, so be on the lookout for new products For gas models – Depending on the technology they may require 120V AC electric

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. Impacts of These Changes on Installers Over 55 Gallons For gas water heaters, this will likely require condensing technology for certain models: – Larger and heavier units than noncondensing models – Bigger flues, and other venting requirements such as exhausting with plastic pipe (PVC, CPVC, ABS) – Blowers, electronic controls, etc. – Need for condensate disposal – Will require 120V AC

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. Impacts of These Changes on Installers Over 55 Gallons For electric water heaters, this will likely require heat pump technology: – Heat pump water heaters may require 1,000 cubic feet of space – Ambient room temperature will affect performance Heat pump will affect surrounding air temperature – Regular maintenance may be required Such as cleaning and changing filters – Higher noise levels due to compressor and blowers – Need for condensate disposal

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. Additional Impacts of These Changes on Installers Additional training on new products for you and your employees Potential code revisions for your area Challenges explaining these changes to customers – Including why a new model may not fit into the same space as a failed unit – Or why a replacement model may require an electric outlet or venting

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. Impacts of These Changes on Customers Potentially higher equipment costs Replacement models that do not fit into existing water heater locations Increased installation costs Additional noise from blowers or heat pumps Potentially decreased humidity from heat pumps Lower energy costs

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. Are You Ready? Questions to Ask Yourself Do I have adequate storage for taller, wider, heavier products? Will my vehicles accommodate these larger products? Will I need more than one person to move or install a unit? Will this be an in-and-out replacement? Will the existing water heater space accommodate a larger product?

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. Are You Ready? More Questions to Ask Yourself What are the venting and condensate needs? Will additional site visits for product maintenance be required following installation? How will higher cost equipment impact my customers? How will higher cost equipment affect wholesaler and contractor budgeting and cash flow?

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. Opportunities to Grow Your Business The skills you’ll need can be applied today when you install a premium ENERGY STAR® Water Heater – Get ahead of the competition by learning about these new technologies today Fewer do-it-yourself amateur installations Take advantage of utility rebates in your area Learn how to explain these changes to customers and promote the benefits of high efficiency equipment

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. Get Ready! Take a training class from your manufacturer to learn the skills you’ll need – And learn about new efficient products Contact your local utility or efficiency program to learn about rebates for high efficiency products – And don’t forget to learn about other great resources for installers Take advantage of the resources at the Coalition for ENERGY STAR Water heaters –

Coalition for ENERGY STAR ® Water Heaters © 2015 Consortium for Energy Efficiency, Inc. All rights reserved. Get Ready! The Coalition for ENERGY STAR Water Heaters can help take your business to the next level: – Find utility rebates in your area – Search for high efficiency equipment that meets ENERGY STAR specifications – How to talk to customers about these changes – Learn the benefits of high efficiency equipment – Give a presentation like this one! All of this and more at: