WATER HEATING PAGETTE
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1 WATER HEATING PAGETTE
2 HISTORY PAGette Started July 2005 Based on PAG meeting comments PAG members suggested we form group to examine Water Heating opportunities PAGette to report back to the PAG on its findings on a regular basis
3 PAGETTE MEMBERS Number of representatives from different organizations involved Consists of members from IOUs, CEC, CPUC, NRDC, LBNL, Consultants and other organizations Facilitators-Lance DeLaura Sempra Energy Utilities & Noah Horowitz - NRDC
4 PAGette Members Contd Other active participants include the following: Marshal Hunt- Valley Energy Effcy Corp Robert Mowris- Robert Mowris Assoc. James Lutz LBNL Gary Klein, Mike Messenger- CEC Christine Tam- CPUC Taghi Alereza- ADM Associates Nehemiah Stone- Heshong Mahone Group Dick Bourne Davis Energy Group
5 WATER HEATING CHARACTERIZATION
6 Water heating is a large fraction of Commercial and Residential Natural Gas Use in California Commercial Gas Water Heating 38% Residential Gas Water Heating 38% Miscellaneous 9% Cooking 6% Spa/Pool Heating 4% Clothes Drying 3% Cooking 22% Miscellaneous 5% Space Heating 31% Space Heating 44% Commercial Total: 2,100 Million therms per year Source PG&E, SCE, SDG&E CEUS and Xenergy Residential Total: 5,000 Million therms per year Source CEC 2000, California Energy demand and Xenergy
7 Reduction of WH UEC s has stagnated during last 10 years Figure 2. Historical Gas UEC Values for Space and Water Heating in Southern California
8 Average Energy Consumption (Btu) for Domestic Hot Water by Month 2,500,000 2,000,000 1,500,000 BTU 1,000, ,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
9 Gas Water Heating Energy Use in California Residential and commercial gas water heating is the largest share of total gas use in California with 38% for commercial or 800 million therms and 38% for residential or 1,900 Million therms in Miscellaneous 9% Water Heating 38% Cooking 22% Water Heating 38% Cooking 6% Spa/Pool Heating 4% Clothes Drying 3% Miscellaneous 5% Heating 31% Commercial Total: 2,100 Million therms per year Source PG&E, SCE, SDG&E CEUS and Xenergy Space Heating 44% Residential Total: 5,000 Million therms per year Source CEC 2000, California Energy demand and Xenergy
10 Potential Gas Savings by End-Use
11 Residential Potential Savings by IOU (Xenergy Study)
12 Residential Potential by Technology (Xenergy Study)
13 Commercial Potential Savings by IOU (Xenergy Study)
14 Commercial Potential by Technology (Xenergy Study)
15 Gas Savings by Funding Level (Xenergy Study)
16 SUMMARY OF PAGette ACTIVITIES Group has been meeting at least once a month Distributed drafts of team work and conference calls Five subgroups formed to examine various aspects of water heating Working on Final report
17 Analysis Approach Assign teams to work on assessing potential for different types of Water Heating improvements Water Heater Combustion systems-sf & MF Water Distribution Systems Integrated Systems Solar Water Heating More efficient Water Heating End Uses- clothes washers, showers, etc Multi-family Water Heating Water Heating Technologies
18 Analysis Approach continued Define market segments and estimate total energy usage and per unit usage Review past program approaches and estimates of costs and benefits Identify promising opportunities that represent an improvement over past program work and systems.
19 Program Opportunities Identified to Date Existing Market- Programs to promote more sales of storage water heater >.61 EF. More efficient Water distribution systems in new homes More efficient Multifamily home systems Tank less water heater systems
20 Near Term Opportunities
21 Technical Potential Gas Savings (Therms) for Water Heaters With Tanks, for Replacement Market Standard Energy Factor 0.58 to EF > 0.62 Number of Savings per Annual Lifetime Units Unit Savings Savings Single Family 314, ,438,301 57,697,907 Multi Family 28, ,530 4,751,884 Small Commercial 44, ,033,850 15,507,750 Total 5,837,680 77,957,540
22 Improving Hot Water Distribution Systems in Single-Family Housing Water waste while waiting for hot water to arrive in new homes is greater than 20 gallons/household per day The associated energy waste is roughly 100 therms per year The annual cost to consumers is $140 ($1/therm and $0.005/gallon water and wastewater combined)
23 Improving HW Distribution Systems in Single-Family Housing (contd) Goal is to reduce the waste from 0.5 to 1 gallon per hot water event to less than 2 cups Result is percent reduction in the waste (80 therms and 5840 gallons per household per year) Statewide potential 8,000,000 therms and 584,000,000 gallons per year based on 100,000 new homes per year
24 Improving HW Distribution Systems in Single-Family Housing (contd) Add Structured Plumbing concept to existing new construction programs Includes specifications for builders to improve bid responses, training for plumbers, builders and building inspectors and marketing materials for consumers Installed cost is estimated at $600/house Including in future T24 standards Develop program for retrofit
25 Multifamily Market Sector Approximately 60,000 new MF units to be built in California in 2006 Approximately 4,000,000 MF units in California Approximately 100,000 MF buildings Conservatively 15% of buildings have central distribution systems (~15,000 buildings) 60% built before 1978 (~9000 buildings) and 83% built before NAECA Standards (~12,500 buildings)
26 Multifamily Central Water Heating End Use Energy Saving Potential Older non-condensing boilers are 75-80% AFUE, newer ones are 82% to 92% AFUE Tank losses are minimal compared to individual water heaters (central DHW design is a savings opportunity) Distribution losses for central hot water systems 25%-40% of the total water heating energy Pump and temperature control strategies can cut recirculation loop distribution losses by 50% Comprehensive onsite audit of DHW system with tune-up or replacement of old boilers can save 25% more
27 Multifamily Central Water Heating Statewide Savings Potential (contd) 50% reduction in all MF central water heating losses would save 50 Million Therms/yr. A statewide program with 5% market penetration could save 2.5 Million therms every year Potential benefit/cost ratio around 2
28 Solar Water Heating Based on survey of solar installation contractors: Residential retrofit ~$ Residential new construction ~$3, Sample commercial system: multifamily apartment building ~ $104,000 Pool heating ~ XXX Fitness center ~ XXX
29 Solar Water Heating (contd) With 30% federal tax credit, TRC for residential retrofit (gas heater) ~ 0.2 TRC for residential new construction ~ TRC for multifamily apartment building ~ 0.52 TRC for commercial pool heating ~ XXX TRC for fitness center ~ XXX
30 Solar Water Heating Multifamily Potential Easy to add solar thermal panels during rehab or roof replacement event Existing buildings: easy to tap into central distribution loop, immediate savings New buildings: lower first cost of can justify expense of higher efficiency boiler and recirculation loop controls
31 Solar Water Heating Conclusions Residential applications not cost effective, but new construction application may be more attractive Commercial systems could be more cost effective depending on application However, from the building owner s perspective, payback for a commercial system (including depreciation) is around 5 years Recommend IOU programs to raise customer s awareness of the 30% federal tax credit (uncapped for commercial systems), effective 1/1/06 12/31/07 Recommend IOU consider rebate for commercial applications on a case-by-case basis
32 Longer Term Opportunities Tankless Water Heaters Forced draft water heaters High Efficiency Water Heaters
33 Technical Potential Gas Savings (Therms) for Tankless Water Heaters, for Replacement Market Standard Energy Factor > 0.8 Number of Savings per Annual Lifetime Units Unit Savings Savings Single Family 314, ,433, ,641,675 Multi Family 28, ,930,065 25,090,845 Small Commercial 44, ,438,950 81,584,250 Total 30,802, ,316,770
34 Multifamily Central Water Heating Future and Related Opportunities Related Markets: Hotel/Motel, Campus housing MicroCogen (heat recovery of clean-burning microturbine) Submetering of hot water delivery (benefits of central DHW while minimizing take-back and encouraging conservation)
35 Residential Domestic Water Heater Emerging Technology CEC Natural Gas PIER Super Efficient Gas Water Heating Appliance Initiative (SEGWHAI), a golden carrot program for the next generation water heater 30% increase in efficiency 50% decrease in NOx Cost effective market price Equivalent to standard water heaters for the customer and installing plumber Doubling of useful life
36 SEGWHAI Comprehensive program including Assessment of market needs Pathways to Energy Efficiency with lowered emissions and increased longevity Environmental and Energy Impacts Technology neutral technical specifications developed Prototype competition, multiple winners with multiple solutions Long term stream of incentive commitments from utilities and governmental entities through out North America
37 Emerging Technology Support of SEGWHAI SEMPRA and PG&E can use their Emerging Technologies Program to support SEGWHAI by: Involvement with the working committees: Executive, Technical and Program Design Facilitate contact with other natural gas distribution utilities through out North America Facilitate working with industry groups, i. e. AGA, GTI, and GAMA
38 CLOSING REMARKS Additional update from PAGette to the PAG in December 05 PAGette will continue reporting to the PAG team on a quarterly basis or as needed Pagette teams desire feedback from utilities by December 1, 2005
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