1. HVAC Trends Larry Butz, P.E. November 28, 2006

2. Sustainability Life Cycle Costing Improved tools for comparing environmental impact Design for recovery/recycle/reuse Zero leak systems Reduced refrigerant charge Reduced waste Less/no packaging materials maximizing the effectiveness of resource use while minimizing the impact of that use on the environment ASHRAE

3. Globalization New and growing markets New competitors Increasingly diverse needs Climatic, cultural, economic differences product variations

4. Mass Customization Diverse global markets (differing customer requirements) More knowledgeable customers (Internet) Improved flexible manufacturing technologies

5. Speed to Market Reduced development cycles Reduced manufacturing cycles Customer expectations Increasing importance of local production

6. HCFC-22 Phase out Ban on import and production of HCFC- 22 equipment in 2010 Many new HVAC applications are turning to HFC-410A Different regulations in Europe and for developing countries

7. Indoor Air Quality Conditioning of the air has evolved to include noise, safety, health and cleanliness of the air Quality of the Air

8. Reduced Sound Levels The XC15 from Lennox is twice as quiet as the company’s previous product. a molded composite material filled with a special sound damping material completely encloses the compressor and the base

9. Material Costs Rising costs of copper, aluminum and steel affects design and choice of technology Ex: microchannel heat exchangers with no copper tubes

10. Energy Costs Increasing costs Relative cost of natural gas to electricity encourages use of electric heat pumps Hybrid systems (multiple energy sources) Use waste heat

11. Residential SEER Trends Oil Embargo 10.0 SEER Standard 13.0 SEER Standard SEER (Btu/wh) Shipment-Weighted SEER Closer To Regulation Level

12. Energy Standards and Codes ASHRAE 90.1 Energy Star LEED Buildings certification Building Codes 40 states have codes for energy efficiency

13. CapacityASHRAE 90.1 2010 EER EER %Increase 65 - 134K 10.3 11.2* +9% 135 - 239K 9.7 11.0* +13% 240 - 759K 9.5 10.0* +5% * 0.2 Lower EER For A/C With Integrated Gas Heat H/P EER Requirements Are Also 0.2-0.5 Lower No IPLV Requirement Energy Policy Act 2010 Commercial A/C EER Standards Impact Yet To Be Seen States Will Be Pre-Empted After 2010 Std. Takes Effect

14. Energy Variable Pricing Different prices based on time of day or season 6% of U.S. electricity meters can read for variable pricing Wisconsin among leaders in implementation

15. Technology Evolving Market Requirements Drive Technology Changes

16. Compressor Efficiency Trends Fixed-Speed Reaching Top Arena % Efficiency Time Scroll Technology Has Contributed Continued Increasing Efficiency Trend

17. Efficiency (Up To 21.0 SEER) Better Comfort (67% Part Load Capacity) Quieter Operation (Sound And Vibration) Simpler Design – Inherent Scroll Design – No Shutdown To Change Capacity – Less Applied Components Proven Scroll Reliability Two-Step Scroll 100% Capacity (Ports Open) 67% Capacity (Ports Closed)

18. Application of Variable Speed Compressors Fans Pumps

19. Air Flow And Refrigerant Flow Modulation Standard PSC Fan Motor Inverter-DC Fan Motor TXVs In U.S. Residential Shift Overnight From ~20% to ~85% Fixed Flow Orifice Thermostatic Expansion Valve - Better Superheat Control - Less Cyclic Loss 0.25 SEER Typical SEER Gains 1+ SEER (Fixed-Speed A/C) 2+ SEER (Modulated A/C)

20. 20 Time Overall Conductance UA (w / ° K) Smooth Tube +Flat Fins Wavy Fins Rifled Tube Lanced Fins Enhanced Rifled 7mm Tube Microchannel Timing ? Q = (UA)* T Need Advances To Continue To Contribute To Reducing T Driven By Size, Commodity Cost, R410A Refrigerant Cost 7mm Tube And Microchannel Finned Tube Re-Arrange Fins Heat Exchanger Trends Reaching Diminishing Return –> Oversizing

21. Intelligent and Self Diagnostic Systems Preventative Improved operating efficiency Interactive Proactive Use intelligent components

22. Comfort Alert Diagnostics Gained Market Acceptance 2003200420052006 Volumes Improves technician service accuracy and increases productivity gathers and analyzes data on system performance immediately identifies electrical problems and system-related faults.

23. Advancing Sensor Technology More accurate More reliable Lower cost More rugged (imbedded applications)

24. *.PPT/INT 4/30/2015 12:08 Typical Integration Trends 13 13/14 15 16 18 20+ SEER Compr. ID Blwr. OD Fan Flow Control OD HX ID HX Single Single-Speed Recip Scroll Two-Stage/Variable-Cap. Compressors Orifice TXV EXV Single Spd/ Blr Delay Variable Speed Single Speed Variable Speed Standard Oversize Smaller Tube Controls Will Play Key Role In Integrating Components

25. *.PPT/INT 4/30/2015 12:08 Typical Energy Loss/Improvement Areas Improve Component Efficiencies -Compressor Efficiency -Better Fan cfm/w -New Heat Exchanger -Improve Flow Control Reduce Temperature Lift -Lower Tcond -Higher Tevap -Minimize Superheat -Efficient Subcooling Reduce Transient Losses -Cyclic -Frost/Defrost Systems Integration -Modulated Compressor -Variable-Speed Fans -Zoning Evap. Cond. Controls

26. Air Conditioner Or Heat Pump Residential Communicating System Controls & Protects User Interface Air Handler Control With Variable Speed Motor Gas Furnace Ignition System Communication Will Continue To Evolve Enriched With System Data Content For Assisting Contractors Enable Verification Services And Performance Monitoring Data Charge Level Air Flow Level Temps/Pressures Capacity Power Efficiency Embedded Electronics

27. Questions ? Discussion Comments