WATER HEATING MARKET REPORT


Water heating market defined by efficiency


efficiency. It’s a great way to increase your portfolio of product and service offerings. Interestingly enough, however, “As energy costs went up,


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owners, engineers, utilities, and government regulators alike were susceptible to manufacturer’s hyped claims about their ‘efficiency.’ After a decade of experience, and a lot of education on real world data, people are waking up to the fact that operating efficiency tested under lab conditions is far different than in their particular application. Seasonal operating efficiency/energy savings depend chiefly on operating efficiency in that specific application and during high use periods, i.e. when the boiler is at full fire. And, total life-cycle costs include real, not lab-generated energy savings; then factored into first cost, installation cost, tune up — maintenance — repair costs, and total life expectancy of the boiler,” said Stan Young, Raypak.; The manufacturers appear in no particular order.


s we take an in-depth look at what water heating manufacturers are doing and saying about 2011, the overwhelming consensus revolves around energy


American Water Heaters www.americanwaterheater.com


Company News: American Water Heaters recently rolled out a newly designed fleet of gas water heaters. The new line features an advanced gas valve design with electronic controls and LED indicators. This improved design offers many


advanced features including: New Electronic Gas Valve: New high-tech


gas control is a self-powered gas valve that uses a thermopile to generate the power needed to operate the control. No external power source is required. With fewer moving parts and internal components, the valve optimizes performance through improved temperature control and accuracy. LimeFighter® Inlet Tube: Thanks to proven technology, the


inlet tube features water jets that redirect incoming cold water into the tank, creating turbulence, which helps prevent and reduce lime build-up. Brass Drain Valve: The corrosion-resistant valve contributes


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A.O. Smith www.hotwater.com


Trends: A.O smith is seeing a continued trend toward the adoption of new technologies in the water heating sector. Contractors and consumers are becoming aware that they now have a host of options to address their water heating needs beyond conventional and tankless technologies. Interest is increasing for all new technologies, and the trade is becoming more aware and accepting of these new water heating options. Company News: A. O. Smith will continue to focus on its


The recently launched A. O. Smith high efficiency portfolio of water heaters includes the latest in water heating technology.


to improved reliability. PEX-Lined Nipples: The PEX-lined nipples are specifically


designed for water heater apps. They prevent build-up in the waterway, allowing for maximum flow. Heat Trap Inserts: The heat trap inserts help retain heat in


the tank, reducing operating costs. These enhancements are included on all American Water


Heaters standard conventional-vent residential gas models under 75,000 BTU input.


State Water Heaters www.statewaterheaters.com


high efficiency portfolio of new products. Even though the incentives will be lower, there is traction in ENERGY STAR and other high efficiency products, and A.O. Smith will focus on training and informing the plumbing contractor about these new technologies. To that end, A.O. Smith is launching a “Mobile Showroom,” which will feature its new Voltex hybrid electric heat pump water heater, the Vertex high efficiency gas storage heater, the next high efficiency gas Hybrid heater, the Effex ENERGY STAR .70 EF atmospheric heater, the Cirrex solar hot water system and the new line of ENERGY STAR gas tankless water heaters. This showroom will travel the United States with the narrow focus of getting these new technologies in front of as many plumbing contractors as possible. Water Heating Market Outlook: In a word, “flat.” 2011


should look a lot like 2010. There will be little to no improvement in new home and new commercial construction but the replacement market has hit bottom in both segments. The incentive picture for high efficiency products is very unclear. The Federal Tax Credit program for water heaters is expiring and most state programs, which were funded with stimulus money, also are winding down. We expect there to be some sort of federal tax credit program in 2011, but it will likely be much less rich than in 2010, if there is a program at all. This will likely slow the rate of growth for heat pump water heaters and high efficiency gas storage and hybrid heaters and it may stall gas tankless all the way down to a zero growth rate. The exception may be solar with the 30 percent tax credit remaining in effect until 2016.


Company News: State Water Heaters reaches new heights of energy efficiency with the Premier Hybrid Electric Heat Pump Water Heater, an ENERGY STAR® rated appliance. With its enhanced energy efficiency, the unit can pay for itself in energy savings in three years or less, depending upon the application. The Premier Hybrid Electric requires less


than half the amount of energy as a standard electric water heater to operate. The difference in utility bills is significant: up to $203 annually for a Premier® Hybrid Electric, compared to as much as $575 for a conventional electric model depending upon local utility rates. Installation is very similar to a conventional electric model with the addition of a condensate drain. The system operates essentially like an air


conditioner in reverse, pulling heat out of the surrounding air and transferring it to the water in the tank. The homeowner can choose to operate the Premier Hybrid Electric in one of three modes. In “efficiency” mode, the water heater relies almost entirely on the heat pump. In “hybrid” mode, it switches back and forth between the heat pump and standard electric heating elements depending on the hot water demand. In “electric” mode, the Premier Hybrid Electric operates like a standard electric water heater.


The Premier Hybrid Electric requires less than half the amount of energy as a standard electric water heater to operate.


phc january 2011 www.phcnews.com


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