1. 1 NORTHWEST ENERGY EFFICIENCY ALLIANCE Heat Pump Water Heater Market Transformation Update March 27th 2012Dave Kresta

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

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

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

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

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

7. 7 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

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

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

11. 11 New: Product Tiers Minimum Northern Climate EF Minimum “Northern Climate” Features Minimum supported installation locations Sound levels Tier 1 1.8  ENERGY STAR compliance  Semi-conditioned  Unconditioned dBA < 65 Tier 2 2.0Tier 1 plus:  Minimal use of electric heating elements*  Freeze protection  Exhaust ducting option  Compressor shut- down/notification  10 year Warranty  Condensate Mgmt  Conditioned  Semi-conditioned  Unconditioned dBA < 60 Tier 3 2.4Tier 2 plus:  Intake ducting option  Air Filter Mgmt  Conditioned  Semi-conditioned  Unconditioned dBA < 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.

12. 12 New: Northern Climate Energy Factor Concept: Calculate an Energy Factor (EF NC ) 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 EF NC  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 EF NC value

13. 13 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 2gpm, 5 min off, repeat

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

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17. 17 Extensive lab & field testing to date Lab testing of  AirGenerate 66 gallon (gen 1 and 2)  AirGenerate 50 gallon  AirGenerate (reliability testing)  AO Smith 80 gallon (with prototype ducting kit)  AO Smith 60 gallon  Bosch 3000  Daikin (European inverter-driven)  GE GeoSpring (BPA)  Rheem (BPA)  Steibel-Eltron  SkySea  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

18. 18 Lab Testing Air Generate in a Thermal Chamber

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21. 21 Full range of temperature vs COP testing

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23. 23 A.O Smith Voltex

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25. 25 AO Smith 60 gallon COP vs. Airflow

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27. 27 RTF Provisional Savings Table

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29. 29 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

30. 30 Monitoring Scheme

31. 31 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

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

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

34. 34 Additional Slides

35. 35 Supply Chain Engagement Manufacturers Distributors Contractors  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

36. 36 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