Reaching New Heights in Efficient Water Heating Technologies
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1 Reaching New Heights in Efficient Water Heating Technologies Carlos Ruiz, Residential Programs Supervisor ACEEE Water Heater Forum Montrerey, CA June 8, 2009 This information is provided solely for informational purposes. Although Southern California Gas Company has used reasonable efforts to assure its accuracy, no representation is made that the contents are free from error or suitable for use for any particular purpose. Southern California Gas Company assumes no responsibility for use of, or reliance on, this information by any party, and specifically advise such parties to discuss any decisions or actions related hereto with their own advisors and experts Southern California Gas Company. Some materials are used by permission, and no copyright is asserted as to such materials. All copyright and trademark rights reserved.
2 Southern California Gas Company Southern California Gas Company (SoCalGas) has been delivering clean, safe and reliable natural gas to its customers for nearly 140 years. It is the nation s largest natural gas distribution utility, serving a population of 19.8 million consumers through 5.7 million gas meters in more than 500 communities. The company s service territory encompasses approximately 20,000 square miles of diverse terrain throughout Central and Southern California, from Visalia to the Mexican border. Headquartered in Los Angeles, we are a subsidiary of Sempra Energy (NYSE:SRE), a Fortune 500 company based in San Diego. Our commitment to provide customers with world-class service has been the key to our longevity and success. Our motto, Glad to be of service reflects this spirit. 2
3 Market Opportunities SoCal Gas Customer Base 5.7 million meters 5.3 Million Residential Single and Multi-Family Gas Hot Water Market Penetration 93% Market penetration in Residential Sector (RASS) 5 million water heaters Accounts for 31% of the average residential customer bill Water Heater Life Expectancy years Average Age of Water Heaters in Use 8-10 years.52 EF (Based on 50 gal unit) Average Age of Water Heaters at Replacement 12.9 years 3
4 Market Opportunities What Motivates Energy Efficiency California Energy Action Plan (2005) Loading Order Ensures California s Growing Energy Needs _PDF.pdf California Energy Efficiency Strategic Plan (CEESP) Statewide Effort IOU s and Industry Stakeholders Development of Short, Mid, and Long Term Energy Efficiency Goals Residential New Construction Zero Net Energy Homes by 2020 Existing Residential 40% Energy Reduction by 2020 Whole House Approach (HPwES) 4
5 Market Opportunities What Motivates Energy Efficiency (Cont.) Energy Efficiency Utility Program Goals Goals 35% increase over previous program cycle goals Save Energy and Money Energy Management Customer Education Energy Efficiency Programs Green House Gas Reduction* Reduce Environmental Impact Global Warming If all California households with old, inefficient (0.58 EF) gas water heaters upgraded to energy-efficient models (0.62 EF), it would save 100 million therms and 552,000 tons of CO 2 per year (equivalent to taking 100,000 cars off the road.) 5
6 Technology and Market Strategies How Did We Get Here? California Energy Commission (CEC) SEGWHAI Study (SCG Stakeholder) Consortium for Energy Efficiency (CEE) SCG CEE Member Energy Star Label for Gas Water Heaters The Coalition for Energy Star Water Heaters CEC Water Heater Initiative Tier 00 (>.62EF effective until 09/2010) Tier 01 (>.67 EF) CEC/Manufacturer Collaboration Energy Solutions Center (ESC) Utility/Manufacturer Collaboration 6
7 Coalition Website (eswaterheaters.org) The Website Serves: As a valuable reference resource for Energy Efficiency Programs, manufacturers, and other entities To inform contractors and consumers on high efficiency water heaters To highlight the benefits of ENERGY STAR qualified models As a link to other appropriate websites, articles, etc. To showcase press releases, recent news, video clips, etc. Contact: Kara Rodgers, Senior Program Manager, krogers@cee1.org 7
8 Energy Efficiency Programs Qualifying Products & Rebates: 2009 ENERGY STAR Qualified Natural Gas Storage Water Heaters: $30 (>.62EF) Mail-in On-line P.O.S. (Big Box and Smaller Independent Retailers) 2009 ENERGY STAR Qualified Tankless Water Heater Rebates (available through manufacturer): $150 (Tier 01 = >.82 EF) $200 (Tier 02 = >.90 EF) - Available for the purchase and installation of a qualified tankless water heater via participating manufacturers. - For more information visit Evolve Shower Start 1.5 GPM Low Flow Shower Head $15 P.O.S Rebate Costco Home Depot OSH Hardware 8
9 Energy Efficiency Starter Kits Program Description Available at NO COST to customers. Includes one low-flow showerhead (1.5 GPM), one kitchen faucet aerator (1.5 GPM) and two bathroom faucet aerators (1.0 GPM each). (SCG & SCE dual customers receive CFL and/or LED night light as well.) May help save as much as 30% of water consumption and also reduce the energy used to heat the water. Customer receives Kit via U.S. mail within 6-8 weeks. How to request a kit: By completing the Home Energy Efficiency Survey (online, mail-in, and in-home) By requesting online at Via sign-up at events where SoCalGas is present (trade shows, fairs, seminars) 9
10 Energy Efficiency Starter Kits EE Kits fulfilled through Outreach Events and Online Requests: = 69,663 (487,641 therms) EE Kits fulfilled through HEES: = 49,934 (349,538 therms) Total EE Kit Distribution = 119,597 (837,179 therms) 10
11 Energy Efficiency Programs Qualifying Products & Rebates: Multi-Family Central System Natural Gas Water Heaters - $500 Natural Gas Water Heater and/ or Boiler Controllers - $750 - $1500 Central System Natural Gas Boiler - $1500 (May be Water and Space Heating or Water Heating only) 11
12 Energy Efficiency Programs 3rd Party Contractor Programs Water Heater Upstream Rebate Program Distributor/Contractor/Installer Focused Energy Efficiency Training Shared Incentive to Stock and Purchase Higher Efficiency (>.62EF) Water Heaters. Minimizes Lost Opportunities for the Installation of Higher Efficiency Units on Emergency Replacement Calls. Water Heater Controller Program Multifamily Market 12
13 Barriers Marketplace Acceptance Newer Technology Higher Incremental Cost Lengthy Payback Product Availability Manufacturers/Distributors/ Contractors Limited Model Availability Immediate In-Store or On-truck Stock Availability First Cost (Missed Opportunities) Proper Installation 13
14 Over Coming Barriers Utility Strategies Leverage Energy Star Labeling Customer Education Bill Stuffers Collaterals Website Outreach Energy Efficiency Programs Home Energy Efficiency Audits P.O.S. Rebate Program Whole House (HPwES) Home Performance Contractor Training Federal Stimulus Package Tax Credits ($1,500) AB 811 (California On Bill Financing Program) 14
15 For more information contact: Carlos Ruiz Residential Programs Supervisor
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