1. Tankless Water Heaters An overview of the advantages, opportunities and key design points of this emerging technology

2. Rheem Manufacturing Company is a Registered Provider with The American Institute of Architects Continuing Education Systems. Credits earned on completion of this program will be reported to CES Records for AIA members. Certificates of Completion for non-AIA members are available on request. This program is registered with the AIA/CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.

3. This presentation is protected by US and International copyright laws. Reproduction, distribution, display and use of the presentation without written permission of the speaker is prohibited. Copyright Materials Rheem Manufacturing Company 2008

4. Learning Objectives Understand the history and growth associated with tankless water heaters, and the forces behind this growth. Understand the advantages of tankless water heaters, and recognize some of their possible shortcomings. Understand that tankless water heaters are not standardized, and how this can play a significant role in design considerations. Understand the basics of various installation options and industry accessories that can aid in that installation. Understand the basic tankless system sizing concept and how it differs from current methods used to size tank hot water systems.

5. Now is the time for Tankless Water Heaters But first…….

6. I’m looking for a color.. Can you take a fresh look at things? …the color of a Yield sign.

8. Tankless Water Heaters It started in the USA with – Edwin Ruud –In 1889 Edwin Rudd was awarded a patent for his design of a tankless water heater. It had a cast iron body with a copper heat exchanger, and his patent was on a gas actuator valve which turned on the burner when a water faucet was opened The American Desire for Storage Tanks –Sometime in the 1920’s the cast iron all copper heat exchanger design became to expensive to produce –During that period America was introduced to a galvanized steel tank and then glass lined tanks in the1940’s –And it’s been that way ever since…until now History of Tankless Water Heaters

9. Tankless Global Perspective Tankless technology –Tankless water heaters are used throughout most of the civilized world except in North America –Leading markets are Japan, China, Australia, Spain & Taiwan World Market –Total World Water Heater Market is $10.8 billion –Gas tankless market is half or $5.4 billion –Electric Storage is $3.2 billion –Gas Storage is $1.7 billion –Electric tankless is $500 million Tankless Water Heaters

10. 2009 Total US Market was 325,000 units –40% growth between 2003-2005 –50% growth in 2004 alone –36% growth in 2006 –30% growth in 2007 –LP currently accounts for 1/3 of market –Will become 10% or more of the gas market before 2015 –Future impact estimated at 30-40% of market –Australian Model: 0 to 30% of market in @7 years US Market Today

11. Why Tankless Tankless Water Heaters

12. 151 lbs 55 lbs. 62 EF. 82 EF 40,000 Btu’s 199,900 Btu’s Tankless Water Heaters Tankless Vs Tank at 90 o Rise 67 gal 1st hour (55 gal electric) 222 GPH 13 Ft 3 2 Ft 3

13. Self-modulating or staged burner provide maximum energy efficiency No standing pilot – Electric spark ignition Temperature rise determines maximum output capacity ((HW outlet) – (CW inlet)) = Temperature rise Btu input automatically increases as demand for hot water increases Only operates when there is a demand for hot water Advanced Technology – Most Models Tankless Water Heaters

14. Why Tankless –Energy Efficient Up to 15% compared to new 80% efficient commercial tank Up to 30% compared to new residential tank units Off unless there is a demand for hot water –Environmentally Friendly Low NOx on most –Precise temperature control Most high end models 2 0 – 5 0 increments –Digital displays Temperature control Diagnostics and maintenance codes

15. Tankless Water Heaters Why Tankless –Installation flexibility Indoor, outdoor and direct vent models Vent horizontally or vertically Possible lower installed costs –Space Saving Install close to end-use Smaller Footprint – easier to zone –Unlimited supply of hot water Primary residential benefit Manifold up to 20 or more units –System Redundancy in manifold If one goes down, the others remain operational

16. Tankless Water Heaters Tankless Water Heaters Are Not Standardized

17. Tankless Water Heaters Market Awareness – Know The Product Compare units at same temperature rise –Not a 45 0 F rise with a 35 0 rise –GAMA rates at 77 0 rise Know the minimum fuel pressure required –Varies from 4” to 6” w.c. natural –8” to 10” w.c. propane Know clearance to combustibles –Varies from ½” to 6” or more on the sides –0” to 2” in rear –Up to 36” to the top and 24” to the front

18. Tankless Water Heaters Market Awareness – Know The Product Know the minimum activation flow –Varies from.4 to.78 GPM Know the high altitude limitations –Does the unit compensate »If yes – how »What are its limits Does the unit offer freeze protection –If yes, what is its low temperature limit »Important, the units are protected but not the pipes

19. Tankless Water Heaters Market Awareness – Know The Product Can the unit detect lime buildup –Single unit –Manifold »Preventive maintenance requirements Is bigger better?Saves space, but »Generally lower efficiency »Possible loss of system redundancy Right product for the job –Tankless may not be the answer

20. What About Electric Tankless? 28 to 55 KW to compete with gas models Home needs additional 120-300 amp supply Communicating with electric utility is critical –Failure to can result in equipment failures Other concerns Can existing infrastructure handle the load Excess power for new homes –Check with utility Best opportunity at this time Commercial applications Tankless Water Heaters

21. Tankless products offer design flexibility Indoor Outdoor Direct Vent

22. Tankless Water Heaters 3 Primary Tankless Designs –Indoor power vent (PV) Primary –Attics, garages & basements with ample combustion air Secondary –Confined spaces without ample combustion air –Outdoor Mounted on wall - with or without pipe skirt Mounted in recessed box –Indoor direct vent (DV) Primary –Indoor confined spaces Secondary –Attics, garages & basements with ample combustion air

23. Tankless Water Heaters Options and Accessories

24. Tankless Water Heaters Optional Pipe Covers For indoor and outdoor models Used for cosmetic purposes Can enhance freeze protection

25. Tankless Water Heaters Recessed Box – Typical Installation

26. Custom Installation – Enhances Aesthetics Tankless Water Heaters

27. Lowers installation labor and long-term maintenance costs Easier to install unit when pipe covers and recessed boxes are used Aids in troubleshooting of units in manifold installations Aids in installation of pressure relief Aids significantly in de-liming if necessary Isolation and de-liming valve kits

28. Tankless Water Heaters For the end-user - not the contractor Change temperature settings Monitors operation of unit Install in a location convenient for the owner Can have up to 3 controls per unit on some brands Contractor should have one in toolbox for troubleshooting Remote Controls

29. Tankless Water Heaters Important Design Considerations

30. Tankless Water Heaters Location is Important The shorter the vent, the more economical the installation Install outside Install on an adjacent outside wall The closer to the fuel supply, the more economical the installation Communicate with the fuel supplier Right meter – right pressure Plan for upgrades System is only as good as the contractor installing it!

31. Gas Supply is Critical Ensure correct pipe size for gas pressure supplied Ensure correct meter set by utility Ensure proper secondary regulators on >2psi systems Post design upgrades –Ensure upgrade is reviewed by all impacted parties Engineer, utility, plumbing contractor, gas contractor, etc. Tankless Water Heaters

32. Venting Category III Appliances Proprietary or Stainless Steel required (Check manufacturers’ specifications) Cannot combine vents B Vent and Galvanized are not acceptable!

33. Tankless Water Heaters Indoor Options Power Vent or Direct Vent units Side Wall Vent Termination Preferred indoor installation Provides lowest indoor installed cost Provide downward slope IAW Mfg spec.

34. Tankless Water Heaters Horizontal Venting to Outside Wall Tankless water heaters are near condensing or condensing, therefore any condensate produced must be handled in accordance with local codes.

35. Vertical Condensate Trap Tankless Water Heaters Vertical Venting – Least Preferred Option

36. Outdoor Installations – Usually lowest cost option Tankless Water Heaters Most units are freeze protected with electrical power However, plumbing is not Insulation of pipes and/or heat tracing may be necessary Pipe covers or recessed boxes can help

37. Tankless Water Heaters Proper Sizing It’s GPM - Not GPH!

38. Important Commercial Sizing Considerations Will a storage tank be required –What is the peak demand GPM flow rates »Watch out for high GPM commercial demands –What is the minimum GPM requirements »Watch our for low flows without recirculation. Can you recirc directly through the tankless system –Will this impact the warranty What is the temperature rise required –Restaurant, nursing home, etc. Right product for the job –Remember, tankless may not be the answer Tankless Water Heaters

39. Important Residential Sizing Considerations What is the most logical GPM usage –Number of showers, shower and appliances, Roman tub fill, etc. –Residential fixture uses approximately 80% hot water What is the temperature rise required –The greater the temperature rise the lower the capacity –Use lowest inlet temperature at peak occupancy/usage –Or, default to January or February inlet water temperature Typical residential fixture uses approximately 80% hot water –Refer to GPM charts furnished by manufacturer –Refer to manufacturer’s sizing program if provided Tankless Water Heaters

40. High Efficiency Tanks Pros – application dependent Large stored volume Longer vent options Lower peak fuel demand Cons No system redundancy Limited hot water supply Design dependent Space Costs

41. High Efficiency Tankless Pros Unlimited hot water Multiple installation options Easier to zone System redundancy Green image & economical Cons – application dependent No stored capacity Peak fuel demand - retrofit Design dependent Space Costs

42. Tankless Water Heaters Applications and Installations

43. Tankless Water Heaters Residential Applications New Construction Large homes Spec homes Multi-family HUD Retrofit Single family Multi-family & HUD Mobile Homes

44. Commercial Applications Tankless Water Heaters

45. Known Commercial Applications Restaurants Schools Churches Laundromats Hotels Multi-family housing Nursing homes Prisons Dormitories Manufacturing ?????

46. Why Foodservice Applications Restaurant benefits –Unlimited hot water –Energy Efficient –System redundancy –Saved space More production space Lower construction costs New Construction and Retrofit Most all major chains have test installations Tankless Water Heaters

47. Motels and Hotels 132 Rooms –100 Studios –32 One-Bedroom Suites –Full Bath, Kitchen and dishwasher in each room Uses 8 units in manifold Tankless Water Heaters

48. Large Applications Removed four 100 gallon 199,000 BTU tanks Replaced with twelve 199,900 Btu outdoor units Utility bill reduced by 60% Expanded facility into old tank location and increased revenue –1 x MIC-180 controller Tankless Water Heaters

49. Typical twelve unit outdoor manifold installation Tankless Water Heaters

50. Summary and Q&A

51. Tankless Water Heaters Fastest growing segment ever within the plumbing industry Consumer driven, whether an individual or corporation Embraced and supported by the natural gas & LP industries Proper design and proper installation are key to success Positions your firm as a leader in this growing industry General Summary - Key Points

52. Tankless Water Heaters What is the normal GPM demand of system Are there any large commercial loads Most logical residential usage What is the temperature rise required Minimum design cold water inlet temperature Maximum design outlet temperature required What are the ratings of the tankless unit GPM output at required temperature rise Product design specifications Pump head requirements Minimum flow activation Summary – Key Design Considerations

53. Tankless Water Heaters What are the fuel requirements? Can the unit operate at the available pressure What are the piping requirements Communicate with the utility What are the venting requirements? Does it require proprietary or Cat III SS vent material Will it require a condensate trap Where will it be installed - indoors or outdoors? Remember.. The shorter the vent the more economical the installation The closer the fuel source the more economical the installation And finally, is tankless the right product for the job? More than likely yes, but……….. Summary - Key Design Considerations

54. Services that may be offered: Application and sizing assistance PC based sizing program Pressure drop and flow rate curves Installation specifications Installation drawings – some engineering approved –Manifold, recirculation, combo-heat, etc. Product training Tankless Water Heaters Communicate With The Manufacturer

55. Circulation System - (No reduction in warranty) Tankless Water Heaters