1. Retrofit to Green Water Heating
Propane from Electric
The Department of Energy estimates that approximately 20 percent of a home’s energy costs are spent heating hot water. This course will describe how installing a gas-fueled tankless water heater can reduce energy costs by more than 60 percent a year. The course will describe retrofit guidelines for gas-fueled tankless water heaters, how to assess a homeowner’s budget for tankless installations, and examine jobsite challenges including how piping and venting will run throughout the home. The course will also look at how tankless water heaters free up space in the home, as well as tactics for selling and installing tankless water heaters.
Propane water heaters are a smart energy decision, delivering superior comfort, savings and they are an environmentally friendly option. According to the U.S. Department of Energy, water heaters are the second largest energy user in the home – 20 percent of a home’s annual energy cost is spent heating water. You can help homebuilders and homeowners save a lot of money – while also saving energy and enhancing the value of homes – by working with them to understand why propane is the right energy choice for water heaters.

2. AIA: Health, Safety and Welfare
This course qualifies for Health, Safety and Welfare credit.
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. 2

3. Copyright Notice
This presentation is protected by United States and International copyright laws. Reproduction and distribution of the presentation without written permission of the sponsor is prohibited. © 2008 Propane Education and Research Council.
In addition, the following organizations have contributed to this course and are referenced throughout the presentation as appropriate. 3

4. Course Objectives
Identify multiple energy options for water heating, including propane.
Identify the benefits of using propane for water heating instead of other energy options.
Explain the impact of fossil fuels and electricity on the greenhouse gas effect.
Provide propane availability and installation options.
Describe different propane applications for propane water heating.
Identify water heating retrofit opportunities.
Describe considerations when installing a tankless water heater.
At the end of the course you will be able to
Identify multiple energy options for water heating, including propane.
Identify the benefits of using propane for water heating instead of other energy options.
Explain the impact of fossil fuels and electricity on the greenhouse gas effect.
Provide propane availability and installation options.
Describe different propane applications for propane water heating.
Identify water heating retrofit opportunities.
Describe considerations when installing a tankless water heater. 4

5. Propane: The Fuel of Choice for Water Heaters
Consumers have many energy options when they build their homes. In this module we will discuss some of the more popular options in the United States today. These choices include electricity, natural gas, and geothermal and solar energy. Then we will focus on the benefits of propane as a cost-effective, reliable, safe and environmentally friendly energy solution.
There is a generous supply of propane in the United States. In this module we will discuss how and where this propane can be obtained, as well as the different ways it can be stored for use by the homeowner. Propane storage for residential use can be done for a whole neighborhood, as well as a single homeowner.

6. Module Objectives
Identify different energy options available to consumers.
Provide benefits for using propane.
Describe where propane comes from.
•Identify retail propane services.
•Distinguish between community tank and individual tank systems.
Upon completion of this module you will be able to
Identify different energy options available to consumers.
Provide benefits for using propane.
Describe where propane comes from.
•Identify retail propane services.
•Distinguish between community tank and individual tank systems. 6

7. Other Available Energy Options
Electric
Natural Gas
Fuel Oil
Propane as a Backup for
Solar Heating
Geothermal Heating 7

8. Electricity Power Source for Over 120 Years
Distributed through the Grid
Primarily Generated with Coal in U.S.
Contributes to
Acid Rain
Global Warming
Air Pollution
38% of All Country’s GHG Emissions
Grid Criticized for
Outdated Equipment
Poor Performance
Fewer Workers
For more than 120 years, electricity has been generated as a power source for human consumption. Originally, power plants were run using wood. Now, electricity is produced using coal, nuclear, natural gas, hydroelectric, and petroleum power, with a small amount from solar energy, tidal harnesses, wind generators, and geothermal sources.
According to the Department of Energy, more than half of the electricity generated in the United States is produced by burning coal. In these fossil fuel power plants the chemical energy stored in the coal is converted into thermal energy, mechanical energy and, finally, electrical energy. This energy is distributed using the U.S. electrical grid through the plants geographic service area. The production of electricity from fossil fuels contributes to acid rain, global warming, and air pollution, with electricity generation being responsible for 38 percent of USA carbon dioxide emissions.
The U.S. electrical grid has been criticized in recent years for its age and performance during heat-related blackouts and storms. Critics have cited that utilities need to upgrade old transformers, circuit breakers, and power lines in an industry with fewer power utility workers and a grid contending with increased electricity demand from central air conditioning systems, multiple computers, big screen televisions, and the many other electricity powered consumer appliances.
A little later in this course we will make a direct comparison of electric and propane water heating. 8

9. Natural Gas Primarily Methane Clean Burning Fossil Fuel
Characteristics are Similar to Propane
Only Available in Population Dense Areas
Difficult to Transport and Store
Pipelines Expensive to Expand
Uses in Residential Homes Include
Space Heating
Water Heating
Cooking
Clothes Drying
Stand-by Power
Natural gas is a gaseous fossil fuel consisting primarily of methane. It is found in oil fields and natural gas fields, and in coal beds.Natural gas burns cleaner than many other fossil fuels, such as oil and coal, and produces less greenhouse gas per unit of energy released. For an equivalent amount of heat, burning natural gas produces about 30% less carbon dioxide than burning petroleum and about 45% less than burning coal. Propane gas shares very similar characteristics.
The major difficulty in the use of natural gas is transportation and storage because of its low density. The network of natural gas pipelines is limited to high density population areas and is often difficult and always expensive to expand.
Where available, natural gas is supplied to homes and it is used for such purposes as cooking, clothes drying, water heating, central heating and cooling. Home or other building heating equipment may include boilers, furnaces, and water heaters. The picture displays the vastness of the construction of a natural gas pipeline. 9

10. Propane as a Backup
Solar Water Heaters Extract All the Energy the Sun Can Provide
Propane Backup Used
High Load Demands
Sun not Shining
Geothermal Water Heaters Draw Heat from the Ground
Propane Backup Used Frequently
Achieve Optimum Water Temperature
Either Combined with Propane Optimizes
Efficiency
Operating Reliability
Solar energy is the technology of obtaining usable energy from the light of the sun. It is used to generate electricity, to heat water for potable use, and for heating purposes. Although there is an abundance of sunlight available for energy use, with present technologies solar electricity is expensive compared to grid electricity. Additionally, solar power is dependent on daylight and climate. In these conditions solar energy can be supplemented by more dependable forms of energy such as propane.
Geothermal heat pumps draw heat from the ground during the winter and from the indoor air during the summer. When the geothermal heat pump runs frequently during the summer, it can heat all of your water. During the fall, winter, and spring, when the heat pump isn't producing as much excess heat, you'll need to rely on a propane storage or demand water heater to heat the water.
Illustration provided by Heat Transfer Products, Inc.
Used with permission. 10

11. Propane Benefits
Safety
Reliability
Value
Cleanliness 11

12. For more information about propane safety, see www.propanesafety.com.
Safety Features
Will not Ignite unless source is 920 degrees F.
Non-toxic
Not Harmful to Soil or Ground Water
Odorant Added to Identify Leaks
Industry’s Highest Priority
Remarkable Safety Record
Codes and Regulations Developed
Internally
NFPA
Safety is the propane industry’s highest priority and as a result, propane has quite a remarkable safety record. Stringent codes and regulations have been developed internally and through the National Fire Protection Association (NFPA). Statistics compiled by the NFPA indicate that the safest way to heat is with gas. For more information about propane safety, see
Propane has built-in safety properties.
Propane will not ignite when combined with air unless the source of ignition reaches 920｡ F.
Propane gas is nontoxic and produces minimal emissions. Propane is not harmful to soil or ground water.
Propane has an odorant added to identify leaks.
For more information about propane safety, see 12

13. Safety: NFPA Standards
NFPA 58: Liquefied Petroleum Gas Code
Adopted in All 50 States
Safety Requirements
Highway Transportation
LP-Gas System
Design
Construction
Installation
Operation
More information about the standards can be obtained at
Although the propane industry itself follows stringent guidelines, the National Fire Protection Association (NFPA) publishes the NFPA 58: Liquefied Petroleum Gas Code. It is a code for propane adopted in all 50 states and widely referenced around the globe. This publication is the most trusted source for safety requirements concerning highway transportation of propane and the design, construction, installation, and operation of all LP-Gas systems whether they are for community tanks or single-residential tanks.
More information about the standards can be obtained at 13

14. Reliability Desirable when Natural Gas not Available
Natural Gas Appliances can be Easily Converted to Propane
Fuel for Stand-by Generators
Generators Automatically Start when Electricity Fails
Fuel Supply Kept on Site
Independent From
Regional Pipeline Interruptions
Electric Grid Interruptions
Propane is a very reliable fuel source and a desirable source of energy when natural gas is not available. Moreover, a poll of home builders conducted in 2006 by the National Association of Home Builders found that 34% of poll participants used underground propane tanks in 2005 for locations that either had partial or no access to natural gas. Most gas burning appliances and heating equipment are manufactured to use either propane or natural gas or can be converted from one type of gas to the other. Additionally, propane can serve as a fuel source for stand-by power generators. A stand-by generator can turn on automatically whenever electricity fails and power all propane and electric appliances temporarily. This is especially important for the 9 million households of hurricane-prone states. A 2006 survey found 48% of adult residents of these states anticipated losing electric service for at least 24 hours at some point that year. 14

15. Value Immediate Heat Warm and Even Heat
High Efficiency Propane Appliances Available
Rebates and Tax Incentives Available
Short Energy Savings Pay-back Period
Long Term Energy Savings
Over time, propane can cost half as much per BTU as electricity, according to the U.S. Department of Energy. Propane burns hotter and more evenly than many other fuels. Propane appliances have a shorter energy savings payback period. This is the time it takes for an appliance to pay for itself via energy savings. For example, upfront costs of high-efficiency propane heating systems are quickly recovered through reduced annual energy bills. Also, tankless water heaters eliminate the cost of the energy lost from maintaining the temperature of water in traditional tank type water heaters.
We will talk about the value of propane in great detail in a later learning module. 15

16. Cleanliness Environmentally Friendly Clean Burning Non-Toxic
Leaves No Residuals
Contributes to Lowering of Greenhouse Gasses (GHG)
Propane has long been recognized as an environmentally friendly energy. It is clean burning, non-toxic, and does not leave residuals. Per pound of fuel consumed, propane emits less than half as much carbon dioxide as coal and almost no sulfur dioxide. Therefore, the use of propane over coal generated electricity contributes to the lowering of Greenhouse Gasses (GHG). With the predominant GHG being Carbon Dioxide, GHG emissions left from fuel use are sometimes referred to as a “Carbon Footprint.” We’ll take a much closer look at the effects of propane and electricity on our carbon footprint in just a few minutes. 16

17. Where Propane Comes From
Abundant Supply in United States
95% Produced in No. America
By-product of Oil Refining and Natural Gas Processing
Large Infrastructure already in place
As described previously, propane is a very reliable fuel with the majority of what we use being produced domestically. Over 95% of the propane used in the United States is produced in North America. Propane is one of the many by-products of oil refining and natural gas processing. And with the largest storage capacity in the world, the United States propane supply is abundant. Pipelines, processing facilities, refueling stations, distribution centers and storage facilities already exist across the country, making large capital investments in infrastructure unnecessary. 17

18. Retail Propane Distribution
Residential & Commercial Services
Service and Filling of Existing Tanks
Service of Energy Systems
Portable Cylinder, Refill, Exchange, and Repair
Cylinder Exchange Program
Tank Installation
For more information go to
Propane retailers are trained professionals located all over the country and provide propane service wherever there is a need. Go to and the “Find a Propane Retailer” section and type in the zip code of your project location to find a propane retailer servicing that area. Many propane retailers also provide a wide range of related products and services. Some of the services related to water heating are listed here.
Residential Services
Service and refilling of existing propane tanks and/or propane home energy systems.
Commercial Services
Service and refilling of existing propane tanks and/or propane commercial energy systems.
Cylinder, refill, exchange, and repair
Service and repair of portable propane gas cylinders (i.e., grill tanks)
Cylinder exchange program
Exchange empty portable propane gas cylinders for new tanks (i.e., grill tanks)
Tank installation
Delivery and connection of tanks and/or propane energy systems
Above Ground
Underground
Community 18

19. Residential Propane Storage
Community Tanks
Individual Tanks
Underground
Above-Ground
Mounded 19

20. Community Propane Storage
Large Tanks Serve Entire Communities
Usage Tracked for Each Home
No Tank Refilling by Homeowner
Serves All Residential Propane Applications, for Example
Water Heating
Indoor/Outdoor Cooking
Stand-by Generator
As an alternative to natural gas and electric, some communities are being developed with propane tanks scaled to serve entire communities. For example, an upscale Florida housing community is currently being developed with a residential propane distribution system that will service the 548 planned homes. In this community, the developer has provided the easements for the tanks to be buried and the necessary infrastructure for the local utility. Tank volume and fuel usage will be tracked remotely for each home with a solar-powered telemetry unit to bill each resident on their actual usage. Each home will be equipped with 7 to 12 piped connections to fuel their indoor and outdoor appliances so residents will be able to take advantage of energy efficient tankless water heaters, commercial cooking appliances, and outdoor cooking without ever having to refill a propane cylinder. Additionally, each home will have a stand-by generator. This is important to maintain livability during the extended electricity outages that can occur during active hurricane seasons by the gulf coast and southern Atlantic state residents (2007, BPN: Butane Propane News). 20

21. Individual, Single-Family Tanks
Underground Tank
Does Not Affect Landscaping
Environmentally Friendly
Above Ground Tank
Sits on Foundation
Painted a Light Color
Landscape Options Available
Mounded Tank
Buried at Shallow Depth
Covered with Fill Soil
Raises above Soil Grade
If a homeowner’s community does not offer a community propane tank system, single-family residential homeowners can have an underground propane tank installed, as this is a growing trend. Installing the tank underground allows the owner to utilize propane for indoor and outdoor applications while not affecting the home’s landscape. All that is visible above ground is a small dome for refilling, testing, and servicing. Most importantly, tanks can be buried because propane is environmentally friendly. As such, they are not subject to the Environmental Protection Agency’s underground storage tank regulations.
There may be times when installing an underground tank is not preferred or is not possible. In these cases, the propane tank can be installed either above ground or mounded. An above ground tank sits on top of the ground on a concrete or other approved foundation. The tank is typically painted a light color to reflect heat and control the pressure inside. There are many landscape options to accommodate an above ground tank so that it blends in with its surroundings. A mounded tank is a possible compromise for a homeowner that has landscaping requirements but digging for an underground tank is not an option. A mounded tank is buried at a very shallow depth of ground and covered with fill soil, forming a raised mound about the existing soil grade. 21

22. Water Heating: Propane v. Electric
As energy costs rise, homeowners and homebuilders are carefully examining their home energy choices. They want to save money, but they want to be smart about the approach they take. In most instances, consumers are careful to make sure that any energy decision they make doesn’t affect their personal comfort.
Propane water heaters are a smart energy decision, delivering superior comfort, savings and they are an environmentally friendly option. According to the U.S. Department of Energy, water heaters are the second largest energy user in the home – 20 percent of a home’s annual energy cost is spent heating water.
Virtually unlimited amounts of domestic hot water can be supplied through properly-sized propane water heaters. These include standard tank-type water heaters, as well as increasingly popular tankless water heaters.

23. Module Objectives •List the different propane water heating options.
•Explain how different water heaters work.
•Compare and contrast operational functions of electric and propane water heaters.
Upon completion of this module you will be able to
•List the different propane water heating options.
•Explain how different water heaters work.
•Compare and contrast operational functions of electric and propane water heaters. 23

24. Standard Storage Tank Water Heaters
Most Popular Type of Water Heater
Least Expensive to Buy
Most Expensive to Operate
Gallon Tanks Available
70% of Tank Volume Available for Use
Standby Heat Loss
Conventional storage water heaters remain the most popular type of water heating system for the home.
A single-family storage water heater offers a reservoir from 20 to 80 gallons of hot water. It operates by releasing hot water from the top of the tank when you turn on the hot water tap. To replace that hot water, cold water enters the bottom of the tank, ensuring that the tank is always full.
However, you can expect to use only approximately 70% of the tank’s volume; i.e., a 50-gallon tank should provide approximately 35 gallons of hot water.
Additionally, the lowest-priced storage water heater may be the most expensive to operate and maintain over its lifetime. While an oversized unit may be alluring, it carries a higher purchase price and increased energy costs due to higher standby energy losses.
Because water is constantly heated in the tank, energy can be wasted even when a hot water tap isn't running. This is called standby heat loss. Only tankless water heaters avoid standby heat losses.
Information about Standard Storage Tank Water Heaters provided by the U.S. Department of Energy, Energy Efficiency and Renewable Energy.

25. Standard Storage Tank Water Heaters: How They Work
Electric
Use 1 or 2 Electric Heating Elements
One Thermostat per Element
Propane
Uses Gas Burner Instead of Heating Element
Utilizes Same
Connections
Space
Venting
As Natural Gas
At least 50 Gallon per Hour Water Recovery
Conventional storage water heater fuel sources include natural gas, propane, fuel oil, and electricity. We’ll be focusing specifically on electricity and propane today.
Electric water heaters have one or two electric elements, each with its own thermostat. With two electric elements, a standby element at the bottom of the tank maintains the minimum thermostat setting while the upper demand element provides hot water recovery when demand heightens.
Natural gas and propane water heaters basically operate the same. A gas burner under the tank heats the water. A thermostat opens the gas valve as the water temperature falls. The valve closes when the temperature rises to the thermostat's setpoint.
Information about Standard Storage Tank Water Heaters provided by the U.S. Department of Energy, Energy Efficiency and Renewable Energy.

26. Tankless Water Heaters
On-Demand Water Heating
Lower Energy Bills
Eliminates Heating Stored Water
Space Savers
20 Year Life-Span
Easily Installed
Propane tankless water heaters are an environmentally friendly option for builders and homeowners. They can lower household energy bills, are incredible space savers, and supply endless hot water. This is especially important as home buyers are demanding larger and more luxurious bathrooms.
A major benefit of tankless water heaters is that, unlike tank water heaters, it doesn’t use additional energy to keep the stored water heated; therefore, it’s not constantly operating. Tankless water heaters can reduce energy costs by more than 50% by heating water instantly to the desired temperature eliminating stand-by loss. For example, most propane tankless systems distribute between 5 and 10 gallons of hot water per minute so the homeowners can be assured of a continuous supply of hot water.
Additionally, there is no stored water. Scale build-up and rust may possibly accumulate in a standard tank water heater, reheating water that may have collected deposits or bacteria. In a tankless system, the water is always fresh and clean, with no threat of tank leakage.
The life-span of a tankless water heater can last for 20 years, more than double the life span of a traditional tank water heater.
A tankless water heater is easy to install, can be wall-mounted either inside or outside the home, and frees up the square feet of floor space used by tank water heaters.

27. How Tankless Propane Water Heaters Work
A hot water tap is opened.
The water enters the heater.
A sensor detects the water flow.
The computer automatically ignites the burner.
The water circulates through a coil.
The heat exchanger instantly heats the water at the designated temperature.
When the hot water tap is turned off, the unit shuts down automatically.
A hot water tap is opened.
The water enters the heater.
A water flow sensor detects the water flow.The computer automatically ignites the burner.
The water circulates through the heat exchanger (coil).
The heat exchanger instantly heats the water at the designated temperature (this takes only 5 seconds).
The heater can provide you with endless hot water continuously.
When the hot water tap is turned off, the unit shuts down automatically.
Information about How Tankless Propane Water Heaters Work is provided by Takagi, Inc.
Used with permission.

28. Tankless Water Heater Flow Rates
Depends on Temperature of Incoming Water
Determined by Calculating Necessary Temperature Rise
Heater to fixture time can be Shortened by Installing Heater near Fixture
The flow rate of a tankless water heater depends upon the temperature of the incoming water. In general, the warmer the incoming water temperature is, the more flow you will get from a tankless water heater. This flow rate can be simply determined by calculating the temperature rise. The temperature rise is basically how much you need to heat the water to reach the desired temperature setting. For example, if you set the heater's temperature to 105oF and your area's ground water temperature is 60oF, the difference is 45oF in temperature rise. It is always recommended that you choose a residential tankless water heater based on the colder seasons so that you will get the peak demand you need for hot water.
Additionally, tankless water heaters installation requirements are more flexible than a storage tank water heater, therefore it can be located closer to fixtures and appliances requiring hot water which in turn saves on water consumption.
Tankless Water Heater Flow Rates and Line Graph provided by Noritz America.
Used with permission.

29. Energy Factor (EF) Recovery Efficiency Standby Losses Cycling Losses
The energy factor (EF) indicates a water heater's overall energy efficiency based on the amount of hot water produced per unit of fuel consumed over a typical day. This includes the following:
Recovery efficiency – how efficiently the heat from the energy source is transferred to the water.
Standby losses – the percentage of heat loss per hour from the stored water compared to the heat content of the water (water heaters with storage tanks).
Cycling losses – the loss of heat as the water circulates through a water heater tank, and/or inlet and outlet pipes.
The higher the energy factor, the more efficient the water heater.

30. First-Hour Rating
Energy required to return water to its set temperature
Volume of water produced under worst conditions
The first hour rating is the amount of hot water in gallons the heater can supply per hour (starting with a tank full of hot water). It depends on the tank capacity, source of heat (burner or element), and the size of the burner or element.
The EnergyGuide Label lists the first hour rating in the top left corner as "Capacity (first hour rating)." The Federal Trade Commission requires an EnergyGuide Label on all new standard storage tank water heaters.
The First-Hour rating tracks how much energy is required to return a standing volume of water to its set temperature once hot water is drawn from a water heater. This rating also tells the homeowner or builder how much volume of hot water the product can be expected to produce per use under worst case conditions such as colder incoming water temperatures that may be experienced during winter months.
Let’s take a look at closer look at some specific propane and electric water heating energy use data. This table is an analysis of the water heater’s “first- hour rating” which we defined in the previous learning module. This rating is key to understanding how an energy source can impact annual fuel costs for a home.
(Review the table with the class.)
[1] Energy Guide values provided by the U.S. Department of Energy based on an estimated use of 2,000 gallons of hot water per month by a family of four. 30

31. Electric and Propane Water Heater Comparison
Here is a summary of the differences between electric and propane water heaters. We will be talking about some of these items in more detail in a later learning module.

32. Propane Water Heaters: Good for the Homeowner, Good for the Planet
Propane is a cost-effective, reliable, safe and environmentally friendly energy solution. In terms of environmental cleanliness, the greenhouse gas (GHG) footprint of propane is relatively small compared to other fuels in terms of total emissions and emissions per unit of energy consumed.

33. Module Objectives
Describe Consumer Propane Water Heating Investment Returns
Define Climate Change
Describe the Impact of Greenhouse Gasses on Climate Change
Differentiate between Onsite and Offsite Emissions
Evaluate the Contributions of Water Heating toward Climate Change
Upon completion of this module you will be able to
Describe Consumer Propane Water Heating Investment Returns
Define Climate Change
Describe the Impact of Greenhouse Gasses on Climate Change
Differentiate between Onsite and Offsite Emissions
Evaluate the Contributions of Water Heating toward Climate Change 33 33

34. Propane Water Heater Potential
Total Potential = 15,500,000 UNITS
Retrofitting homes to propane water heaters during renovation projects has long term benefit to the environment as explained later in this module. Also, extra value is created for the homeowner with the increased efficiency.
There is a total of 15.5 million water heater units that can potentially be retrofitted to propane water heaters based on U.S. census data from areas with known propane use. Here’s how that 15.5 Million breaks down.
4.2 Million Current Customers with Propane water heaters can potentially be using tankless or more efficient propane water heaters.
5.2 Million Current Customers have propane in their homes but currently have an electric water heater and could potentially be heating water with propane.
6 Million Potential Customers have no propane in their home and currently could be heating water using a propane water heater.
And there are 100,000 newly built rural homes that could be using propane water heaters. 34

35. Water Heaters as a Gateway Appliance in Renovation Projects
Other Appliances with Retrofit Potential
Kitchen Cooktops and Ovens
Dryers
Outdoor Living Spaces
Grills
Patio Heaters and Fire Pits
Outdoor Lighting
Fireplaces
Standby Generators
Renovation work, such as aging in place projects, offers the opportunity to utilize a whole systems approach, assessing energy needs and adding propane where it brings extra benefits to the homeowner and the environment. Once homeowners decide to retrofit their home to a propane water heater, they are more likely to convert or add other propane appliances in their home to make further gains of efficiency, comfort, and reliability.
Other Appliances with Retrofit Potential are
Kitchen Cooktops and Ovens
Dryers
Outdoor Living Spaces
Grills
Patio Heaters and Fire Pits
Outdoor Lighting
Fireplaces
Standby Generators 35

36. Propane Tankless Water Heater: Return on Investment (ROI)
Lifecycle ROI
Installation and Replacement Savings
Energy Savings
Space Savings
Let’s look at how propane water heaters are good for homeowners.
With today’s tankless water heaters delivering performance rates that meet and exceed conventional tank water heaters, the primary barrier toward consideration is price. Tankless water heaters can cost two to three times more than electric tank water heaters. The challenge for installers and builders is to help homeowners understand the lifecycle benefit of a tankless water heater and how it offsets start-up costs – tankless water heaters are much less expensive to own over their lifetime.
There are several different kinds of returns on investment that can be realized by a homeowner with a propane tankless water heater purchase. These returns include the lifecycle benefits of long-term installation and replacement savings, energy savings, and space savings. 36

37. ROI: Installation and Replacement Savings
The Department of Energy estimates that approximately 20 percent of a home’s energy costs are spent heating water. A standard 50-gallon electric tank water heater replaced with a propane tankless water heater can reduce annual energy costs by more than 60 percent, or $274 annually.
For example, assuming a tankless water heater installation costs $3,000 compared to $1,000 for a conventional electric water heater, a homeowner needs to first understand equipment replacement timeframes. Tankless water heaters last twice as long as a conventional water heater – an average of 20 years as compared to ten. Factoring in the necessary replacement cost for a conventional water heater means that a tankless water heater only costs $1,000 more to install − and that’s before you factor in the significant energy savings. 37 37

38. ROI: Energy-Use Savings
To expand on this same example, that remaining $1,000 difference can be offset in as little as four years when you consider the energy savings.
A 50-gallon conventional electric tank water heater has an energy cost of $450 per year (again, from Energy Guide values based on an estimated use of 2,000 gallons of hot water per month by a family of four) compared to $176 per year for a propane tankless water heater. This represents an average annual savings of $274 per year, which means a customer would break even within four years. 38 38

39. ROI: Space Savings
Homeowners and builders must consider the space savings benefit tankless water heaters provide. Tankless water heaters free-up usable floor space in a home. A standard 50-gallon tank water heater takes up nine-square-feet of valuable floor space. A home that has a value of $200 per square foot would gain $1,800 in usable space by installing a tankless water heater instead of a tank-type water heater. 39 39

40. Rebate Programs
Many states offer rebates for propane water heaters. This map displays states that offer homeowner rebates as of November Details about each program can be obtained from that state’s propane association.
Check your local state association to find out about any local rebates and incentives in your area. 40

41. Federal Tax Credits
Historically, the United States has offered a federal tax credit for homeowners that have installed high-efficiency propane furnaces and boilers and high-efficiency propane water heaters. These credits ranged from $150 to $300 depending on the equipment installed. Since legislation is constantly changing, please visit and your tax professional for the latest information regarding Federal Tax Credits.
Please visit and your tax professional for the latest information regarding Federal Tax Credits. 41 41

42. The Three Environmental R’s
Reduce
Durable
Long-Lasting
Reuse
Repair
Replacement Parts
Recycle
Components made of recyclable materials
It is estimated that 7.3 million traditional tank-based water heaters are disposed into landfills each year in the United States. Keys to preventing the production of waste is to practice the 3Rs: Reduce, Reuse and Recycle. At the simplest level, tankless water heaters are good for the environment because they practice the 3 “r”s.
Reduce
The most effective way to decrease waste is to prevent it in the first place. Purchasing durable, long lasting products is a means of waste prevention. With a tankless water heater you can rest assured that you will be getting an extremely durable unit. The average tank water heater has a lifespan of 8-10 years, but a tankless water heater can last 2-3 times longer.
Reuse
Reusing a product may actually be more beneficial than recycling, because it doesn't require any reprocessing before it can be used again. Most tankless water heater parts are replaceable, so you won't have to worry about replacing the entire unit if there's a malfunction. Just repair the damaged part and your unit is as good as new. With a tank water heater you're more than likely going to have to replace the whole thing.
Recycle
Recycling turns materials that would otherwise turn to waste, into valuable resources. The main components of most tankless water heaters are recyclable, so there will be a significant decrease in waste materials from these types of units.
Waste Reduction Concept and Information provided by Noritz America.
Used with permission.

43. Greenhouse Gas Effect & Climate Change
Now we’ll shift focus on how propane water heating is good for the planet.
Let’s start out by describing what climate change is and how it is affected by greenhouse gas emissions.
Greenhouse gases keep the earth at a comfortable temperature, allowing most of the energy from the sun to pass through the atmosphere and warm the earth while blocking much of the outward radiation from the earth. However, increasing concentrations of greenhouse gases in the atmosphere are cause for concern. Rather than maintaining equilibrium, high concentrations of greenhouse gases are now affecting the global climate system, leading to climate change. 43

44. Propane’s Effect on Climate Change
Propane is not a direct greenhouse gas when released into the air. Propane vapor is unstable in the atmosphere—it is chemically reactive and commonly removed by natural oxidation in the presence of sunlight or knocked down by precipitation. It is also removed from the atmosphere faster than it takes for it to become well-mixed and have impacts on global climate. Current measurements have not found a global climate impact from propane emissions.
When used as a fuel, propane does emit carbon dioxide and small amounts of nitrous oxide and methane. However, The Greenhouse Gas (GHG) footprint of LPG is relatively small compared to other fuels in terms of total emissions and emissions per unit of energy consumed. LPG has the lowest on-site emission rate of the major fossil fuel sources, with the exception of natural gas, as shown in the bar graph.
Now let’s take a quick look at the difference between on-site and site-to-source emissions. 44

45. On-Site and Off-Site Emissions
Indirect or Off-Site Emissions
Emissions released at the location where the energy is generated.
On-Site Emissions:
Emissions released at the location where the energy is consumed.
When quantifying the greenhouse gas emissions that result from the use of energy, it is important to distinguish between the emissions released at the location where the energy where the energy is consumed and the emissions released as a result of the generation of that energy.
For example, in the United States the majority of the electricity is produced by the burning of fossil fuels, predominantly coal. If we look at the pie charts displayed we see that propane has a percentage of propane emissions less than its percentage of energy consumption. Therefore, GHG emissions of propane have less of an impact on climate change relative to it’s consumption rate.
However, coal, with the largest market share of consumption, resulting primarily from the generation of electricity, contributes a percentage of emissions larger than its rate of consumption. Therefore GHG emissions of the burning of coal for electricity has a greater impact on climate change relative to its consumption rate.
With propane’s short lifetime in the atmosphere and low carbon content, it is advantageous compared to other energy sources in many applications. 45

46. Carbon Dioxide and Greenhouse Gasses
Primarily Carbon Dioxide (CO2)
Methane (CH4)
Nitrous Oxide (N2O)
Federal regulation of Greenhouse gases, to supplement current local and state initiatives, is increasing due to the changes these gasses cause the environment on a global scale. The most prevalent GHG – carbon dioxide – is a necessary byproduct of fossil fuel combustion. The amount of carbon dioxide released depends not on leaks or side reactions, but on the amount of carbon in the fuel and the amount of fuel consumed. Greenhouse gases are non-reactive and remain in the atmosphere for decades to centuries (Rubin and Rao 2002).
In general, lighter hydrocarbons release less carbon dioxide during combustion than heaver hydrocarbons, because lighter hydrocarbons consist of fewer carbon atoms per molecule. The mass of carbon dioxide released per Btu of fuel – the “carbon content” or as it sometimes called the “carbon footprint” – is a good first-order indicator of the CO2 emissions comparison between fuels. The carbon content for eight common fuels is shown in this table.
Natural gas (methane) generates fewer CO2 emissions per Btu than propane, but natural gas is chemically stable when released into the air and produces a global warming effect 25 times that of carbon dioxide. This means that one pound of methane produces the same effect on climate change as 25 pounds of carbon dioxide. 46

47. EF Rating Effect on the Carbon Footprint
Let’s look at a direct comparison of the effect of energy consumption water heating on the carbon footprint.
Earlier in the course, we defined the “EF” or Energy Factor as a rating used by the Department of Energy to evaluate the energy efficiency of water heaters. This bar graph shows the correlation between EF and the amount of carbon dioxide, measured in pounds per year, released in the atmosphere for several different tank sizes.
As tank size of conventional tanked water heaters increases, the EF factor decreases and the amount of CO2 emissions increases. However, for the tankless water heaters, the high EF factors yields the lowest amount of CO2 released.
(Review table values with attendees.)
Data and bar graph provided by Rinnai Corporation.
Used with Permission. 47

48. Propane Reduces Our Carbon Footprint
So, in summary, we can say that propane is good for you by providing retrofit opportunities, good for the homeowner by offering energy savings and both direct and indirect returns on their retrofit investment, and good for the planet by reducing our carbon footprint. 48

49. Tankless Water Heaters: General Installation Considerations
In this learning module, we will discuss some general installation information for tankless water heaters. As all manufacturers have different products, requirements, and specifications, this is not meant as a substitute for manufacturer product certification. On the contrary, we encourage you to visit some of the resources we will be providing at the end of the course.

50. Module Objectives
•Identify general tankless water heater installation guidelines.
•Explain why manufacturer product certification is necessary for a successful installation.
•Locate additional tankless water heater installation resources.
Upon completion of this module you will be able to
Identify general tankless water heater installation guidelines.
•Explain why manufacturer product certification is necessary for a successful installation.
•Locate additional tankless water heater installation resources.
All installation requirement suggestions in this module are provided by Takagi.
Used with permission. 50

51. Gas Supply Manufacturer Specifications and Local Codes Gas Meter Size
Gas Line Size
Gas Pressure
Gas Connection to the Heater
Gas Valve
The following gas supply requirements are determined by the tankless water heater manufacturer’s specification sheets in combination with local codes.
Gas Meter Size
Gas Line Size
Gas Pressure
Gas Connection to the Heater
Gas Valve 51

52. Venting Manufacturer Specifications and Local Codes for
Intake Supply (Combustion Air)
Exhaust Vents
General Venting Rules
Keep System Short and Straight
Do Not Common Vent
Do Not Upsize Pipe
Consider Any Pipe Slope
The venting requirements for intake supply and exhaust valves are determined by the tankless water heater manufacturer’s specification sheets in combination with local codes.
Also there are some general rules for venting.
For best results, try to keep the vent system as short and straight as possible.
The vent pipe should be removable from the top of the heater for inspection and possible servicing of the unit.
The heater MUST NOT be common-vented with any other gas appliance or vent stack.
Do not upsize (oversize) the vent pipe. It must be 4 inches in diameter for the entire run.
For horizontal runs, either a) slope the pipe upwards from the heater at a rate of ¼ inch per foot and install a condensation drain; or b) slope it down and away from the heater at the same rate (25), so that the condensate will drain out.
For any runs that are at a significant slope up to vertical and over 5 feet in length, always use a condensation drain to protect the heat exchanger, especially in cold weather. Refer to the manufacturers instructions for proper installation.
Illustrations provided by Noritz America Corp.
Used with permission. 52

53. Water Electrical Connections
Water Connections Require
Pipe Sizing
Valves
Header Size
Electrical Supply
You will need to be cognizant of the guidelines for water and electrical connections for tankless water heaters. This includes
Water Pipe Sizing
Valves
Header Size and
Electrical Supply 53

54. Other Installation Considerations
Clearance Requirements
Freeze Protection
Pressure Relief Valve
Temperature Settings
Outdoor Switch
Recirculation Systems
Some of the other things you will have to know to install a tankless water heater are
Clearance Requirements.
What Freeze Protection is already installed in the unit.
What are the local codes for the Pressure Relief Valve.
What are the preset Temperature Settings for the unit?
Verify that if an Outdoor Switch is used it is set correctly for the heater’s installed location.
Will the heater be using a Recirculation System?
Illustrations provided by Noritz America Corp.
Used with permission. 54

55. Manufacturer Certification
Product Specifics
Code Requirements
Tankless water heater manufacturers offer training programs and certification on their products. This training offers specific installation and maintenance information for their products, as well as considering any local codes or any codes published in the NFPA 54.
Illustration provided by Noritz America Corp.
Used with permission. 55

56. Thank you for taking this course.
To download a copy of this presentation, go to
If it is your first time there, click the “Register for MaRC Only” button, and complete the simple registration form.

57. Resources for Additional Information