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Bringing it Home with ENERGY STAR Quality Installation Mid West Residential Energy Conference Lexington, KY Chandler von Schrader EPA – ENERGY STAR March.

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Presentation on theme: "Bringing it Home with ENERGY STAR Quality Installation Mid West Residential Energy Conference Lexington, KY Chandler von Schrader EPA – ENERGY STAR March."— Presentation transcript:

1 Bringing it Home with ENERGY STAR Quality Installation Mid West Residential Energy Conference Lexington, KY Chandler von Schrader EPA – ENERGY STAR March 13, 2013

2 Objectives Walk out of here understanding that ENERGY STAR will be promoting the value of getting HVAC equipment properly installed. And that you may want to get with the program! 2

3 3 70% Percent of houses in 2030 are here today! And they will all need some work… Windows, HVAC, roofing, DHW system and maybe a new kitchen or bath – all likely home improvements before 2030…. These are point of sales events that will happen – do you think our EE industry should be there?? 3

4 Agenda HVAC energy use and ENERGY STAR Defining Quality Installation – ACCA Standard 5 ENERGY STAR Quality Installation program – new pathways being forged – doors opening Seeking industry comments before setting sail We can do this… it’s for the children! 4

5 Energy Usage Attributable to HVAC 5 ~ 50% of the energy used in homes goes to heating and cooling Average homeowner expenditure to condition home - $1,100 annually ENERGY STAR can help consumers make smart decisions about their home's HVAC system and have a big effect on: Greenhouse gas emissions Utility bills Comfort Peace of mind Equipment durability Indoor Air Quality Energy used to heat and cool residential spaces accounts for 10% of all energy used in the United States

6 6 Heating & Cooling with ENERGY STAR – Not a New Idea…  ENERGY STAR Qualified HVAC Products  Web-based educational homeowner tools  Case studies  Brochures and Guides  HPwES and New Homes  Change the World  HVAC Quality Installation

7 Brand Advantage – Helps You Close the Deal at Good Margins Brand Shorthand: Energy Efficient Credible Environmental Leadership Opportunity = 7

8 OK it has a ES Label, Yet that does not Guarantee Performance 8 Quality installation helps deliver the equipment's full potential.

9 System Replacement – 11,000 a day in 2011 ! Hey fellas – ever heard of ACCA’s QI 5 standard??

10 Rated SEER Typical Installation Correct Flow 0.5 Proper Charge 1.5 Sized Right.75 Airtight Ducts 2.0 Impact of Installation Factors on Heat Pumps & Central A/C Field Adjusted SEER [SEERFA] 10

11 Think Ducts are an Installation Issue?

12 Rated SEER Typical Installation Correct Flow 0.5 Proper Charge 1.5 Sized Right.75 Airtight Ducts 2.0 Impact of Installation Factors on Heat Pumps & Central A/C Field Adjusted SEER [SEERFA] 12

13 Contractor Competency Contributes to Industry Poor Image ~10%. Do a proper job nearly all of the time. ~35%. Know what to do. But are constrained. ~25%. Think doing okay. Often fall short. ~30%. Don’t know, don’t care WHERE DO YOU RANK YOURSELF? HOW DO YOUR CUSTOMERS RATE YOU??? Source: Glenn Hourahan – ACCA

14 So Where are We Today? ACCA has developed / defined a Quality Installation via HVAC QI Specification Standard in 2007 Performance metrics emerging in state and national codes – (title 24 CA) Increased recognition by utilities that quality installation is the key to meeting anticipated savings estimates Higher efficiency equipment (with TXV, ECM motors, two stage systems, etc) are reducing installation related performance penalty Home Performance industry beginning to emerge – with key lead role available for HVAC industry ESNH certification now requires contractor & rater checklist

15 We Still have Room for Improvement Yet many of same issues persist: Little customer demand/understanding for a quality installation Up to 80% system change outs are done on an emergency basis – opportunity to do right is greatly diminished Down economy is keeping price sensitivity / first costs major buying factor Under these conditions, contractors are hard pressed to sell a quality installation – much less one to the full ACCA QI standards Over 11,000 HVAC systems are being installed across the country today…. With possibly over 70% having at least one deficiency: sizing, air flow, charge and bad ducts. Our industry’s dirty little secret.

16 Barriers – Plenty of Blame 16 According to recent California Behavioral Study: Only 39% of contractors were aware of ANSI / ACCA 5 Quality Installation 2/3 of contractors said the primary barrier is a lack of customers who want to pay for it (customer education lacking) HVAC industry services are commoditized, as customers do not understand the value of QI and shop solely on lowest cost most often when equipment catastrophically fails! Without a QI program to apply marketing and teeth, contractors who do correct installations cannot compete with the “one ladder and truck” outfits Perception that newly installed systems perform as sold and advertized (ES labeled equipment clouds issue). No conception that “mileage (read “comfort & performance”) will vary” depending on installation….

17 The ESQI Basics ESQI program will be based on ACCA QI Standard – ANSI approved A comprehensive approach to improving the performance and energy efficiency of home heating and cooling systems, while helping to protect the environment 17

18 ACCA Standard 5 - HVAC QI Purpose This standard details the nationally recognized minimum criteria for the proper installation of HVAC systems in residential and commercial applications Scope This standard applies to HVAC equipment / components being installed in residential and commercial buildings. Ok so far? Shall we go on??? 18

19 ACCA Standard 5 – Core QI 3.0 Design Aspects Ventilation: The contractor shall ensure that ventilation calculations are performed for every HVAC Building Heat Gain/Loss Load Calculations: The contractor shall ensure that heat loss and heat gain load calculations are performed. Proper Equipment Capacity Selection: The contractor shall ensure that all equipment is properly sized and selected prior to being installed. 19

20 ACCA Standard 5 – Core QI 3.0 Design (continued) Geothermal Heat Pump Ground Heat Exchanger: The contractor shall observe design practices for the proper design of the exterior ground heat exchanger. Matched Systems: The contractor shall ensure that all heating and cooling equipment are properly matched systems as identified by industry-recognized certification programs. We still cool? 20

21 ACCA Standard 5 – Core QI Equipment Installation Aspects Airflow (& Water Flow) Through Indoor Heat Exchangers: The contractor shall verify that the airflow through the indoor blower unit (e.g. furnace, fan coil, air handler) is within acceptable CFM ranges. Refrigerant Charge: The contractor shall ensure that the HVAC system has the proper refrigerant charge. So far so good… right? 21

22 ACCA Standard 5 – Core QI 4.0 Equipment Installation Aspects (more) Electrical Requirements: The contractor shall ensure all electrical requirements are met as related to the installed equipment. On-Rate for Fuel-Fired Equipment: The contractor shall ensure the equipment combustion is “on-rate”, for gas-fired or oil-fired equipment, and is at the equipment nameplate value Well of course… 22

23 ACCA Standard 5 – Core QI 4.0 Equipment Installation Aspects (more) Combustion Venting System: The contractor shall ensure proper sizing, design, material selection and assembly of the combustion gas venting system. System Controls: The contractor shall ensure proper selection and functioning for system operational and safety controls. Yawn… of course we do this… 23

24 ACCA Standard 5 – Core QI 5.0 Distribution Aspects Duct Leakage: The contractor shall ensure the ducts are well sealed and that air leakage (CFM) is minimized. Airflow (hydronic) Balance: The contractor shall ensure room airflows meet the design/application requirements. 6.0 System Documentation and Owner Education Aspects OK – ducts and balanced system are needed… 24

25 ACCA Standard 5 – Wrap Up Proper system documentation to the owner: The contractor shall provide records pertaining to the HVAC system installation as well as the operation and maintenance to be performed Owner/Operator Education: The contractor shall inform the customer on how to both operate and maintain the installed equipment and will promote system maintenance to aid in the continuing performance of the installed equipment. Any problems here? This is what customer THINK they are getting…. 25

26 How Do You Install Systems? Just how hard is this standard to implement? How much will it add $$ to a job? QI is supported by the OEMs – following QI will reduce warranty calls and headaches What part is not possible? Is it the Design? – Block loads can be done on iPhones now Is it the duct testing? ACCA looking to modify standard to allow flow hoods QI is the first step toward Home Performance 26

27 Key QI Obstacles for Contractor Contractor Obstacles Contractors are hesitant to participate due to requirements of load calcs, duct testing and reporting Incentive structures not motivating enough for homeowners/contractors (or no program at all) Continued challenges of competing with those outside of program Perception that contractor already does QI installation Fear of verification Additional cost of training and certification Business culture / business systems not a fit What other issues are keeping your business from QI?

28 ENERGY STAR Quality Installation – Core Strategy 28 Primary objective: To leverage the ES educational opportunity to promote the importance and value of getting a quality installation at time of replacement (11,000 x day in 2011) Primary challenge: Use unique ES market position to drive HVAC industry take ownership of system performance so promise of energy savings and comfort can be realized by homeowners

29 ENERGY STAR Quality Install ENERGY STAR Certified Homes Home Performance with ENERGY STAR Relationship between ENERGY STAR Programs Designing solutions Installations/ improvements based on best practices QA hinges on Sponsor requirements, industry best practices Designing solutions Installations/ improvements based on best practices QA hinges on Sponsor requirements, industry best practices Alignment with ACCA 5 Largely aligned contractor participation requirements Similar QA requirements Alignment with ACCA 5 Largely aligned contractor participation requirements Similar QA requirements

30 So Where are We Today? Home Performance industry beginning to emerge – with key lead role available for HVAC industry – which is finally waking up to this opportunity ES Certified Homes V3 now requires accredited HVAC contractors to fill out QI checklists – followed by a Rater’s verification that contractor installed system right ACCA launching RSI program to verify delivery of quality installations NATE’s development of HVAC Verification Rater certification… long overdue 30

31 Current ENERGY STAR Quality Installation Program 31 EPA launched ENERGY STAR HVAC QI program in 2008 Like HPwES, requires utility sponsorship and investment <2,500 QI jobs reported to-date Current change outs in HPwES do not mandate QI Limited adoption, primarily due to: High administrative cost for sponsors (contractor infrastructure development and QA requirements) These high costs result in poor cost effectiveness evaluations Limited national support from EPA on messaging and marketing Current ESQI program is limited by high sponsor costs

32 Proposed Pathways Keep existing sponsors – utilities like Southern California Edison can participate, credential contractors, verify jobs, and offer rebates and the ENERGY STAR certificate Recognize third-party verification organizations –Some (like ACCA’s Residential Service & Installation - RSI) will provide contractor credentialing (license, insurance, technician competency, etc), provide file & field QA and issue 3 rd party QI certificate –Some (RESNET Providers via Raters) may not credential contractors on front end, but would require 100% field verification prior to issuing certificate 32

33 New Opportunities for ENERGY STAR HVAC QI: Multiple Program Models 33 Contractor Infrastructure Quality Assurance Utility Sponsor Model Utility responsible for contractor recruitment, training, tracking, marketing, and reporting Utility responsible for contractor QA burden; but now can outsource activity to another organization (see below) Contractor Credential (H-QUITO) Model H-QUITO recruits qualified contractors to apply for credential; confirms contractors’ QI capabilities/policies. Interested contractors may need to seek additional training on QI process H-QUITO responsible for 100% file review of QI jobs, and >/= 5% site review (NOTE: EPA proposed QA levels to match HPwES requirements) Certified HVAC Rater/Provider Model No pre-qualification of contractor required; any contractor can participate, provided they can deliver QI services. Interested contractors may need to seek additional training on QI process Certified HVAC Rater/Provider performs on-site inspection of 100% of contractor’s QI jobs – confirming the ESQI delivery was met

34 Existing Resources should Help Raise Awareness Consumer Brochure Duct sealing Brochure Tips for Hiring an HVAC contractor Bid Comparison Checklist 34

35 Existing ESQI Resources (continued) Commissioning Report Template Verification Report Template Case Study Template 35

36 Set Your Company Apart After verification, program sponsor can send customers an ENERGY STAR certificate 36

37 Progress and Next Steps 37 Step 1: Review and assess success and limitations of existing ESQI program, solicit feedback on current offering Step 2: Develop and evaluate supplementary/ alternative program models Step 3: Propose draft concept for refreshed ESQI program with multiple stakeholders Step 4: Respond to stakeholder feedback, fine- tune program design, and develop supporting materials Step 5: Soft Launch new ESQI Program in hot markets where contractor capacity is strong Step 6: Monitor program success and refine design as-needed We are here. Your comments are welcomed… so we can get this right in KY!

38 Re-Cap HVAC QI is under recognized by contractors and homeowners alike ESQI will stand on the ACCA QI 5 Standard Contractors (and Raters) are key to success, yet ES can play vital educational / marketing role With new pathways ESQI intends to build a nationally available program that ensures that systems are installed right We are open to you comments and open to industry 38

39 Energy Efficiency – The heese Keeps Moving!! The smart and brave will get that QI cheese!


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