1. Consortium for Energy Efficiency Overview of Commercial Water Heater Programs Philip Picotte Program Associate February 24, 2015 ACEEE Hot Water Forum

2. 2 Consortium for Energy Efficiency * Source: CEE 2013 Annual Industry Report 117 members serve all or part of 45 states and seven provinces 81% of the $8.0B* total efficiency expenditures in 2013 were directed by members 2009 EPA Climate Protection Award recognized CEE members approach CEE is a member-driven nonprofit, governed by a Board of Directors from member organizations

3. 3 Supplemental project managed by CEE Approach: educate contractors about 2015 NAECA standards and emphasize range of benefits of high efficiency water heaters Adaptable resources: www.eswaterheaters.comwww.eswaterheaters.com Sponsors:

4. 4 Insight from the 2014 Commercial Gas Water Heating Program Summary

5. 5 2014 Program Summary Scope Efficiency program information for gas water heaters and related measures Public information from 63 efficiency programs Covering 32 US states and Canadian provinces All programs were CEE members offering voluntary rebates or other incentives Not an analytical study or evaluation of water heater programs

6. 6 Overview of Water Heating Measures for Commercial Customers Comm. Storage Res. Storage Comm. Tankless Res. Tankless Heat Pump Indirect Boiler for DHW Direct Contact

7. 7 Overview of Storage Measures 65% of programs offered incentives for commercial-sized gas storage water heaters Median efficiency level is 90% TE Median rebate amount is $450 or $2 per MBtu/h 52% of programs offered incentives for residential-sized gas storage water heaters Median efficiency level is 0.67 EF Median rebate amount is $100

8. 8 Commercial Storage Water Heaters Rebate Levels by TE (%) Tier 1Tier 2 ES (*)

9. 9 Residential Storage Water Heaters Rebate Levels by EF ENERGY STAR Tier 0Tier 1Tier 2

10. 10 Overview of Tankless Measures 38% of programs offered incentives for commercial-sized gas tankless water heaters Median efficiency level is 90% TE Median rebate amount is $400 or $2 per MBtu/h 62% of programs offered incentives for residential-sized gas tankless water heaters Median efficiency level is 0.82 EF Median rebate amount is $500

11. 11 Commercial Tankless Water Heaters Rebate Levels by TE (%) Tier 1Tier 2 ES (*)

12. 12 Residential Tankless Water Heaters Rebate Levels by EF Tier 1 ENERGY STAR

13. 13 Overview of Commercial Measures for Other Technologies 22% of programs offer measures for indirect water heaters 10% of programs offer measures for direct contact water heaters 10% of programs offer measures for boiler equipment used for DHW purposes 8% of programs offer measures for heat pump equipment The program summary is limited to gas and dual- fuel programs, and excludes electric-only utility programs

14. 14 Overview of Related Measures 37% of programs offer rebates for gas laundry equipment in commercial settings 19 programs rebate residential-sized equipment (multifamily laundry rooms and laundromats) 24 programs rebate commercial washer measures, mostly for ozone systems Additional water heating measures Showerheads, faucet aerators, equipment tune-ups, drainwater heat recovery, pool heaters, pool covers, and hot tub covers

15. 15 Summary Water Heater TypeMedian Efficiency Level Average Customer Rebate Programs Offering Rebate to Customers Comm. Storage88% TE$45065% Res. Storage0.67 EF$10052% Comm. Tankless 90% TE$40037% Res. Tankless 0.82 EF$50062% Heat Pump 2.0 EF$5008% Indirect 85% AFUE$40022% Boiler for DWH 85% AFUE$1.50 / MBtuh10% Direct Contact 90% TE$1.10 - $2 / MBtuh10% For rebates of a fixed amount

16. 16 A Couple of Final Thoughts Commercial program customers range widely in business size and use of hot water Unlike other categories of energy use, customer size and sophistication cannot predict water heating needs Often, the smallest, most difficult customers to reach use the greatest amount of hot water Food service and hospitality The complete CEE Program Summary is available at www.cee1.org

17. 17 Contact Philip Picotte Program Associate 617-337-9271 ppicotte@cee1.org