The U.S. Department of Energy (DOE) has launched a new ENERGY STAR® program for residential water heaters. The program, which goes into effect Jan. 1, 2009, will cover gas-fired storage, gas-fired tankless, heat pump and solar water heaters. The ENERGY STAR program for gas-fired storage water heaters will take effect in two phases. For the first 19 months of the program, these water heaters must achieve an Energy Factor of .62 to qualify for the ENERGY STAR label, but on Sept. 1, 2010, the program changes to require an Energy Factor of 0.67 to qualify. To carry the ENERGY STAR label, equipment manufacturers must have third-party verification of the product’s energy factor rating. The large majority of water heater manufacturers do this already through AHRI. Certified equipment and efficiency ratings are listed in AHRI’s Directory of Certified Product Performance. From this directory, consumers and water heater installers can print certificates of certified product performance that can be used to obtain rebates from some utility companies and municipalities.
AHRI Trends asked Eric Lannes, vice president and general manager, Bradford White Corp., and chairman of the AHRI Water Heater product section, what these changes will mean for the future.
Question: Why did AHRI work with DOE on this program? How much energy will be saved as a result?
Water heating was the only major residential energy end-use that ENERGY STAR did not address. Heating water accounts for between 13 percent and 17 percent of residential energy consumption on a national level. On Feb. 5, 2007, DOE announced the schedule for establishing ENERGY STAR criteria for residential water heaters. There was a comment period on draft criteria followed by a stakeholder meeting in May 2007. DOE released revised criteria in July 2007, and after an additional comment period, the final criteria were released on April 2, 2008.
ENERGY STAR is a critical driver of technology in the market, and the addition of a program for water heaters will result in significant energy savings for both consumers and the nation as a whole. Using the DOE test procedure for calculations, a 50-gallon, gas-fired storage water heater with a 0.65 Energy Factor would consume an estimated 230 therms per year. This is a savings of 12 percent, or 31 therms, in comparison to the typical conventional gas-fired storage water heater. Using the national average price for natural gas, the annual energy cost savings equates to $43.
Question: What will the main benefits be to consumers?
Consumers will be able to more easily identify higher-efficiency water heaters by looking and asking for water heaters that have the ENERGY STAR label. This will provide consumers a choice through a recognized program not currently available.
Question: How will the changes impact manufacturers?
Many, if not all, U.S. manufacturers currently produce some new ENERGY STAR criteria-compliant models. This program will provide manufacturers opportunities to expand their product offerings to meet or exceed the new program.
Question: What will the changes mean for contractors?
Installation contractors will now have products they can offer along with other appliances currently in ENERGY STAR programs. If the water heater is the only appliance to be replaced, then the contractor can\ provide the consumer a recognized choice along with the benefits.
Question: How will this program change water heaters stocked by distributors, plumbers and big-box chains?
ENERGY STAR can serve as a catalyst for consumer demand. Consumers recognize the ENERGY STAR label as delivering the same or better performance as conventional products, while using less energy and therefore saving money. Distributors and bigbox chains will be able to stock and offer more of the higher-efficiency water heaters based on their customers’ requirements or requests.
Question: What type of marketing benefits will result from this program?
This is difficult to answer, as different locales may be limited to select types of products. The U.S. has many markets that may be limited to certain fuel sources, thus limiting the model availability.
Question: Why were electric resistance storage, electric resistance instantaneous water heaters and oil-fired storage water heaters excluded? Might they be included in the future?
After some consideration, these water heaters were excluded by DOE. The Department evaluated the inclusion of electric resistance technologies and determined that, while there may be slight initial savings to be attained, there are few, if any, technological improvements possible to warrant the long-term qualification of electric resistance water heaters in the program. We were disappointed with this decision, and we believe DOE should have promoted the program with a fuel- and technology-neutral approach. In addition, other appliances with ENERGY STAR labels include oil and electricity as fuel/energy sources. AHRI will continue to work with DOE to include these products in the future.
Question: Why did DOE include warranty requirements, when warranty requirements are not required in other appliance programs?
DOE’s position was that warranty requirements would ensure customer satisfaction. AHRI opposed this requirement; however, the opposition was not accepted by DOE.
Question: Particular requirements for Southern California and the Bay area (and others, if they adopt similar requirements) that require ultra-low NOx products and residential storage water heaters that are Flammable Vapor Ignition-Resistant (FVIR) could mean that ENERGY STAR- qualifying replacement heaters may no longer be available in these geographic regions after the Sept. 1, 2010 , ENERGY STAR criteria are phased in. Please explain the ramifications.
As stated in the question above, specific local requirements may force products to be excluded or to be limited in availability. This happens today with requirements such as ultra-low NOx mandates. The phase-in criterion in the program provides manufacturers time to develop technology to satisfy the demand. The FVIR requirement is applicable to automatic storage-tank type water heaters with inputs of 75,000 BTUH or less listed in the safety standard for products installed in the U.S. and Canada. If a manufacturer has a demand for an ENERGY STAR-compliant product after the Sept. 1, 2010, date, then it will be FVIR-compliant per the appropriate standard.
Question: Closing thoughts?
AHRI and its member companies work extremely hard to provide technological capabilities and desires to DOE and other interested parties. This ENERGY STAR program certainly does not completely address what the experts suggested, but does provide consumers with options they may not currently be aware of. AHRI will continue to provide assistance to DOE in an effort to recognize all technologies available, but it is up to the political structure to listen and react appropriately