Residential Water Heating Program

Author : BG. Ashdown
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (316 download)

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Download or read book Heat Pump Water Heater Technology written by BG. Ashdown and published by . This book was released on 2004 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a case study of the residential heat pump water heater (HPWH) market. Its principal purpose is to evaluate the extent to which the HPWH will penetrate the residential market sector, given current market trends, producer and consumer attributes, and technical parameters. The report's secondary purpose is to gather background information leading to a generic framework for conducting market analyses of technologies. This framework can be used to compare readiness and to factor attributes of market demand back into product design. This study is a rapid prototype analysis rather than a detailed case analysis. For this reason, primary data collection was limited and reliance on secondary sources was extensive. Despite having met its technical goals and having been on the market for twenty years, the HPWH has had virtually no impact on contributing to the nation's water heating. In some cases, HPWH reliability and quality control are well below market expectations, and early units developed a reputation for unreliability, especially when measured against conventional water heaters. In addition to reliability problems, first costs of HPWH units can be three to five times higher than conventional units. Without a solid, well-managed business plan, most consumers will not be drawn to this product. This is unfortunate. Despite its higher first costs, efficiency of an HPWH is double that of a conventional water heater. The HPWH also offers an attractive payback period of two to five years, depending on hot water usage. On a strict life-cycle basis it supplies hot water very cost effectively. Water heating accounts for 17% of the nation's residential consumption of electricity (see chart at left)--water heating is second only to space heating in total residential energy use. Simple arithmetic suggests that this figure could be reduced to the extent HPWH technology displaces conventional water heating. In addition, the HPWH offers other benefits. Because it produces hot water by extracting heat from the air it tends to dehumidify and cool the room in which it is placed. Moreover, it tends to spread the water heating load across utility non-peak periods. Thus, electric utilities with peak load issues could justify internal programs to promote this technology to residential and commercial customers. For practical purposes, consumers are indifferent to the manner in which water is heated but are very interested in product attributes such as initial first cost, operating cost, performance, serviceability, product size, and installation costs. Thus, the principal drivers for penetrating markets are demonstrating reliability, leveraging the dehumidification attributes of the HPWH, and creating programs that embrace life-cycle cost principles. To supplement this, a product warranty with scrupulous quality control should be implemented; first-price reduction through engineering, perhaps by reducing level of energy efficiency, should be pursued; and niche markets should be courted. The first step toward market penetration is to address the HPWH's performance reliability. Next, the manufacturers could engage select utilities to aggressively market the HPWH. A good approach would be to target distinct segments of the market with the potential for the highest benefits from the technology. Communications media that address performance issues should be developed. When marketing to new home builders, the HPWH could be introduced as part of an energy-efficient package offered as a standard feature by builders of new homes within a community. Conducting focus groups across the United States to gather input on HPWH consumer values will feed useful data back to the manufacturers. ''Renaming'' and ''repackaging'' the HPWH to improve consumer perception, appliance aesthetics, and name recognition should be considered. Once an increased sales volume is achieved, the manufacturers should reinvest in R & D to lower the price of the units. The manufacturers should work with ''do-it-yourself'' (DIY) stores to facilitate introduction of the technology to these sales venues. The HPWH is an excellent example of a technology that would have benefited from the implementation of a market research program run in parallel with the technology R & D program. Understanding consumer values and ''willingness to pay'' for product attributes and recognizing the corresponding influences those values have on purchase decisions are crucial. This knowledge should be incorporated into the R & D process with continuous dialogue between the market research and the R & D programs. Partnerships among stakeholders to gather consumer feedback and market analysis during R & D will facilitate a strong framework for successful market penetration of energy-efficient technologies.