1. Slide 1 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Energy Savings from Electric Water Heaters in Commercial Applications Danielle Gidding Bonneville Power Administration Ryan Firestone Navigant Consulting June 1, 2010

2. Slide 2 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Purpose Propose energy savings for high efficiency electric water heaters in commercial applications, for both residential and commercial style water heaters. Presentation Outline: Efficiency metrics Residential water heaters methodology and inputs Commercial water heaters methodology and inputs Measure savings and cost effectiveness

3. Slide 3 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 43% (405M sq. ft) of small commercial building space has electric water heating NW Water Heater Presence in Commercial Buildings CBSA, all buildings 20,000 sq. ft. or less Plus 9% (651M sq. ft.) of larger commercial buildings

4. Slide 4 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Water Heater Efficiency Metrics Energy Factor (EF) Used for residential standards EF is the ratio of useful energy output from the water heater to the total amount of energy delivered to the water heater. EF testing procedure: 64 gallons drawn in six equal amounts over 24 hours. Standby Loss Btu/hour or % per hour Standby loss is the energy loss due to heat transfer from tank to ambient environment Tank temperature = 135°F Ambient air temperature = 67.5°F

5. Slide 5 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Energy Efficient Electric Water Heaters Q in = Q recovery + Q standby Where Q in is the energy consumed by the water heater Q recovery is the energy consumed to raise the temperature of the supply water Q standby is the energy consumed to maintain the temperature of the stored water Q recovery = Q out / RE Where Q out is the thermal energy of the hot water used RE is the recovery efficiency RE is fairly constant across all electric water heaters (~98%) Thus, Q recovery is constant across water heaters for the same load. For a given site, Q in (and therefore energy efficiency) is only a function of Q standby

6. Slide 6 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Standby Loss as a Function of Energy Factor Assumes 4.4 kW power rating (average of all residential electric storage units in AHRI Directory) and 0.98 recovery efficiency

7. Slide 7 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Standby Loss as a Function of Energy Factor Standby Loss (Btu/hour) = UxAx(T tank – T ambient ) Where U is the overall heat transfer coefficient (Btu/hour per ft 2 per °F ) A is the heat transfer surface area (ft 2 ) T tank is the temperature of the stored hot water (°F) T ambient is the temperature of the ambient air (°F) UxAx(T tank – T ambient ) can be derived from EF, RE, and rated capacity (P on ) [1] Heat loss is independent of tank size [1] Residential Water Heaters Technical Support Document for the January 17, 2001, Final Rule APPENDIX D-2. WATER HEATER ANALYSIS MODEL (WHAM) http://www1.eere.energy.gov/buildings/appliance_standards/residential/waterheat_0300_r.html

8. Slide 8 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Residential and Commercial Water Heater Definitions Residential [1] 20 to 120 gallons Up to 12 kW 180°F or less Typically 240V or 120V, single phase Commercial Anything not meeting all residential criteria [1] Federal Register, vol. 63, No. 90. Monday, May 11, 1998. 10 CFR Part 430 Energy Conservation Program for Consumer Products: Test Procedure for Water Heaters; Final Rule. Section I, 1.12.1. The Federal Register does not mention the voltage specifications, but manufacturers do market commercial water heaters meeting the first three criteria, but not the fourth.

9. Slide 9 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Current Federal Standards for Residential and Commercial Water Heaters

10. Slide 10 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Residential-type Water Heaters

11. Slide 11 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Current Federal Standards for Residential Water Heaters Energy Factor (EF) EF ≥ 0.97 – (0.00132 x Rated Storage Volume in gallons) Effective January 20, 2004 New standards will be effective April 16, 2015

12. Slide 12 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Residential Energy Savings Savings = StandbyLoss (EF baseline ) – StandbyLoss (EF actual )

13. Slide 13 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Residential In-store Product Distribution Data from Summit Blue in-store cost research in OR and WA in 2008 Each row shows the proportional representation of water heaters of the specified size range, by EF (relative to the Federal minimum), in the dataset

14. Slide 14 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N AHRI/GAMA Directory of Certified Product Performance - Residential Air Conditioning, Heating, and Refrigeration Institute (AHRI) Formerly maintained by Gas Appliance Manufacturers Association (GAMA) Residential Water Heaters: certification status (approved/discontinued) energy source (gas, electric, oil) heater type (storage, instantaneous) first hour rating (GPM) storage volume (gallons) rated power capacity (kW for electric models) recovery efficiency (0.98 for all electric models) Energy Star certified (yes, no) 4258 models, 906 approved electric storage models

15. Slide 15 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Residential AHRI/GAMA Directory Distribution Each row shows the proportional representation of water heaters of the specified size range, by EF (relative to the Federal minimum), in the directory Almost half of registered water heaters are rated at the federal minimum EF

16. Slide 16 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Residential Baseline and Measure Cases Federal standard not an appropriate baseline given the number of products available above the standard Sales and/or saturation data on EF not available Use Summit Blue OR and WA in-store cost research (2008) as estimate of market Data on 146 electric water heaters from big box retail stores Supplement with data from AHRI/GAMA directory for less common sizes (30 gallon and 120 gallon) Baseline - Use average EF based on Summit Blue and AHRI data by size Measure – Select threshold such that the top ~25% of available units qualify as energy efficient Average EF of measure qualifying units is the EF used for savings and incremental cost determination

17. Slide 17 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Residential Baseline and Measure Cases Results from In-store and AHRI data Values in blue indicate a hypothetical case

18. Slide 18 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Residential Baseline and Measure Cases Blended results: In-store, supplemented by AHRI

19. Slide 19 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Residential Costs Data from recent (2008) Navigant Consulting/Summit Blue Consulting field research in WA and OR OLS Regression: Cost = B 0 + B 1 *∆EF + B 2 *Capacity Capacity is the tank volume, in gallons ∆ EF is the difference between the rated and the federal minimum EF On average, a 0.01 increase in EF costs $24.60 Incremental cost (per EF) not correlated to capacity

20. Slide 20 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Lifetime Assume 12 year lifetime

21. Slide 21 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Interaction Factors CBSA – buildings 20,000 sq. ft. or smaller, with electric heating Interaction Factors – 6 th Plan for lighting Conservative estimate because some water heaters are in unconditioned spaces

22. Slide 22 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Load Shapes Electric – Flat 00-24h by 7d Gas (interaction) – CommHEAT

23. Slide 23 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Residential Water Heater Cost Effectiveness

24. Slide 24 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Commercial-type Water Heaters

25. Slide 25 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Current Federal Standards for Commercial Water Heaters Standby Loss (SL) –SL ≤ 0.30 + 27/Vm (%/hr) Where Vm is the measured tank volume (gallons) Standby loss is expressed as the tank thermal energy lost per hour, relative to the ambient temperature. Standby loss typically specified by manufacturers as Btu/hour

26. Slide 26 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Commercial Energy Savings Savings = StandbyLoss baseline - StandbyLoss actual

27. Slide 27 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Commercial AHRI/GAMA Directory of Certified Product Performance Air Conditioning, Heating, and Refrigeration Institute (AHRI) Formerly maintained by Gas Appliance Manufacturers Association (GAMA) Commercial Water Heaters: certification status (approved/discontinued) energy source (gas, electric, oil) heater type (storage, instantaneous) storage volume (gallons) rated power capacity (kW for electric models) Standby Loss (Btu/hr) 1298 models, 81 approved electric storage models

28. Slide 28 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Commercial AHRI/GAMA Directory Distribution Each row shows the proportional representation of water heaters of the specified size range, by Standby Loss (Btu/hr), relative to the federal maximum, in the directory

29. Slide 29 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Commercial Baseline and Measure Cases Use AHRI/GAMA directory data (in-store data not available) Baseline – use average standby loss (Btu/hour) in each size range Measure – select thresholds (Btu/hour) such that ~25% of units in database qualify and use average standby loss of all qualifying units within each size range Thresholds that obtain significant savings only include 15% of units

30. Slide 30 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Commercial Incremental Cost Phone survey with plumbers and plumbing contractors No awareness of commercial electric water heater efficiency For baseline and measure descriptions and standby losses derived from AHRI, back calculate the equivalent EF. Assume same incremental cost as a function of ∆EF as for residential type water heaters.

31. Slide 31 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Commercial Interaction, Lifetime, and Load Shapes Use same values as for residential type water heaters Lifetime: 12 years Interaction: -0.10 kWh per kWh of enduse savings -0.0092 therms per kWh of enduse savings Load Shapes: Electric – Flat 00-24h by 7d Gas (interaction) – CommHEAT

32. Slide 32 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Commercial Cost-Effectiveness

33. Slide 33 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Proposal Approve savings for residential and commercial water heaters in commercial settings