final 052606 strategies to increase res hvac …...3 central air conditioning, and cooling equipment...

Strategies to Increase Residential HVAC Efficiency in the Northeast Final Report May 2006

Prepared by: Elizabeth Titus, Project Manager

Northeast Energy Efficiency Partnerships With:

New Jersey Board of Public Utilities New York State Energy Research and Development Authority

Conservation Services Group Nexus Market Research

Proctor Engineering Group Vermont Energy Investment Corporation

Prepared for: National Association of State Energy Offices (NASEO)

Contract #03-STAC-01

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TABLE OF CONTENTS

TABLE OF CONTENTS ....................................................................................... ii

1. INTRODUCTION .............................................................................................. 1

1. 1 Purpose and Context of Study .................................................................... 1

1.2 Summary of Scope and Findings ................................................................ 2

1.3 Study Team ................................................................................................. 6

1.4 Report Organization .................................................................................... 7

2. ENERGY EFFICIENCY POTENTIAL ............................................................... 8

2.1 Overview ..................................................................................................... 8

2.2 Economic Potential Analysis ....................................................................... 9

2.3 Efficiency Opportunities and Measure Characterization ............................ 14

2.4 Beyond 2016: Long Term Emerging Technologies ................................... 19

3. NORTHEAST HVAC MARKET AND CURRENT PROGRAM EFFORTS ...... 21

3.1 Household Characteristics......................................................................... 21

3.2 Market Structure ........................................................................................ 22

3.3 Industry Perspectives on Achieving HVAC Energy Efficiency ................... 26

3.4 Market Barriers to Achieving Energy Efficiency ......................................... 28

3.5 Regional and National HVAC Activity ........................................................ 29

3.6 Northeast Program History ........................................................................ 33

3.7 Summary ................................................................................................... 35

4. CURRENT CONDITIONS: Reports from the Field on Benefits of Contractor Training for Quality Installation and Equipment Performance in the Northeast ..................................................................................................... 37

4.1 Benefits of Contractor Training .................................................................. 37

4.2 Equipment Performance in the Northeast ................................................. 41

4.3 Monitoring High Efficiency Central Air Conditioners .................................. 42

4.4 Monitoring High Efficiency Gas Furnaces.................................................. 49

5. CASE STUDY: Duct Sealing Market Research and Proposed Program Design ................................................................................................................ 52

5.1 Barriers and Opportunities Related to Market-Based Duct Sealing Programs in the Northeast .............................................................................. 52

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5.2 Market Research on Duct Sealing Program Design .................................. 54

5.3 Plan for Duct Sealing Program .................................................................. 56

6. CONCLUSIONS AND RECOMMENDATIONS: Agenda for Increasing Energy Efficiency in Northeast Regional HVAC ............................................. 63

6.1 Conclusions ............................................................................................... 63

6.2 Strategy ..................................................................................................... 63

6.3 Recommended Tactics .............................................................................. 64

6.4 Measures of Success ................................................................................ 65

7. APPENDICES ................................................................................................. 66

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1. INTRODUCTION Residential heating, ventilation and air conditioning (HVAC) is an important component of the Northeast’s energy profile as

Home heating accounts for roughly one-fourth of the region’s oil and gas consumption annually, and

Heating and cooling account for 60 percent of average annual household energy consumption in the region.1

Residential HVAC holds considerable promise for increased energy efficiency in the Northeast. The efficiency opportunities have the potential to displace electric and gas peak demand, as well as electric, gas and oil consumption. A variety of strategies are needed to achieve this potential due to the fact that the HVAC market is complex and includes multiple fuels, as well as the fact that many market barriers to energy efficiency are present. Moreover, there are some major gaps in coverage provided by current efficiency programs. However, with a comprehensive approach that takes advantage of technologies, organizations and programs currently available and that develops some of the emerging opportunities that have been identified, many obstacles can be tackled to create substantial long-lasting reductions in consumption.

1. 1 Purpose and Context of Study

In 2004, the National Association of State Energy Offices (NASEO) awarded a State Technology Advancement Collaborative (STAC) grant to conduct research on strategies to increase residential HVAC energy efficiency in the Northeast. Under the provisions of the grant, matching funds were provided by the New Jersey Board of Public Utilities (NJBPU) and the New York State Energy Research and Development Authority (NYSERDA). The research examined various aspects of the opportunities and challenges associated with realizing the potential to reduce electricity, gas, and oil consumption available from existing and emerging efficiency technologies and practices. Its objective was to provide information useful in developing a strategic agenda for how to realize energy efficiency opportunities from residential HVAC in the Northeast. We believe that results of the research tasks reported here are useful to document key issues pertaining to delivery of HVAC efficiency in the Northeast and to inform decisions about future Northeast HVAC efficiency program directions. We hope this study serves as a starting point for expanded programs and continued regional dialogue on energy efficiency policy as well as development of future research.

1 2001 Energy Information Administration, Residential Energy Consumption Survey and 2005 Annual Energy Outlook.

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1.2 Summary of Scope and Findings

The project scope called for a “comprehensive” assessment of residential HVAC efficiency opportunities and strategies. The analysis covers all major fuels, electricity, gas, oil and propane. For the purposes of this study, the sector and region are restricted to single-family homes in New York, New Jersey, and the New England states combined (Maine through Connecticut). The study assessed achievable energy efficiency potential over ten years from 2007 through 2016. It included most applicable HVAC efficiency measures, with the exception of fuel switching, building shell, and integrated heating and water heating. The overarching objective of the study is to develop recommendations for energy efficiency strategies that address all the primary HVAC fuels in the region. The recommendations are informed by specific research tasks designed to characterize various market opportunities and challenges. The study included the following research tasks:

Characterize the regional HVAC market based on market research. Identify key emerging HVAC technologies and practices. Estimate the potential achievable cost-effective electric, natural gas, and

oil savings in the Northeast region over a 10-year horizon from delivery of a portfolio of existing and emerging technologies and practices.

Explore benefits of HVAC contractor training related to energy efficiency of central air conditioning installations based on field research.

Explore the actual performance of high efficiency cooling and heating equipment based on field research.

Develop a model duct sealing program scenario based on market research.

The study findings are summarized as follows: Economic Potential. Our analysis finds that there is $3.02 billion (net present value) or 26,234.46 BBTU in achievable energy efficiency potential from residential HVAC measures and practices in the Northeast over the next ten years. This translates into 26,234.46 BBTU of cumulative electric, oil and gas savings - enough to reduce forecasted residential oil, gas and electricity consumption in the Northeast in 2016 by over 1 percent. The benefit:cost ratio to realize this potential is 3.34. New England, New York and New Jersey account for 29 percent, 38 percent, and 33 percent of the value of the savings, respectively. Overall, most of the potential savings come from existing homes. Over half of the oil heat savings, however, are from new construction. In a breakout by end use, duct sealing, which has heating and cooling benefits, is the source of over half of the potential. Efficient heating equipment, practices associated with quality installation of

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central air conditioning, and cooling equipment (central air conditioners and ductless mini-split systems) contribute 21 percent, 19 percent, and 8 percent of the savings, respectively. Market Characterization. An understanding of the structure of the HVAC market is necessary for identifying efficiency opportunities and understanding what strategies are needed to realize achievable potential. This includes industry trends, industry structure and culture, critical market barriers, and the role of national organizations, as well as current efficiency programs. The Northeast is characterized by relatively old housing stock and heating systems, many of which are hydronic (steam or hot water) furnaces or boilers. The region is further characterized by increasing penetration of central air conditioning in existing homes, including installation of duct systems. The current market share for high efficiency central cooling and high efficiency oil heating equipment has been estimated at five percent or less, and it is not expected to increase significantly without efficiency program intervention. Current market shares for efficient gas heating equipment are somewhat higher, 40 – 65 percent for furnaces and 52 percent for boilers. Critical market barriers to achieving energy efficiency associated with HVAC measures include: limited consumer awareness of energy efficiency opportunities and benefits; inability to differentiate good contractors in the marketplace; inability to differentiate quality of installations; poor contractor sales skills; seasonality of sales; split incentives; and electric prices that do not reflect true societal costs of operating air conditioners at summer peak. Recent legislation and activities by several HVAC trade organizations are helping to create opportunities for the Northeast market for efficient HVAC measures and practices. Chief among these are federal Energy Policy Act (EPACT) legislation, including tax incentives for efficient equipment, enactment of state efficiency standards, completion of quality installation specifications by the Air Conditioning Contractors of America (ACCA), preparation of a draft ENERGY STAR quality installation specification, as well as support for training and certification of HVAC contractors and technicians by the Building Performance Institute, North American Technician Excellence association (NATE), and others. Most states have efficiency programs that address electric and gas heat and central air conditioning, but there is little or no consistency between the programs in the states in the Northeast. Duct sealing and quality installation of air conditioning are just beginning to become features of efficiency programs. With few exceptions, mostly related to Home Performance programs, oil heat is not addressed in efficiency programs. Installation quality is not addressed by programs promoting efficient heating systems.

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Field investigation of benefits of contractor training. Several field studies were conducted to improve our understanding of current conditions relating to contractor practices and equipment performance. In a field study to assess the benefits of contractor training, two groups of homes in New Jersey were examined, one with central air conditioning systems installed by trained, certified contractors2, and one with systems installed by contractors who were not certified. This study found no statistically significant difference in installation quality, specifically charge, airflow, and equipment sizing, at the 90 percent confidence level. There was a significant difference in duct sealing quality (better quality with the certified group). Eighty-three percent of all homeowners across both groups were satisfied with their systems, and 76 percent were satisfied with their installers. Across the two groups, installation quality was found lacking: thirty-six percent of the ducts were sealed. Twenty percent of the systems had the correct refrigerant charge. Forty-nine percent of the systems had insufficient airflow. These results suggest that contractor training is necessary but not sufficient to ensure quality installation. Programs should consider inclusion of a verification component, and they should also consider promoting equipment such as ductless mini-splits as alternatives to ducted central air conditioning, where appropriate. Field performance of central air conditioning systems. Five high SEER air conditioning systems (four two speed and one single speed) were monitored during the 2005 cooling season. While definitive conclusions are not possible from the small sample, results suggest that:

Actual average seasonal efficiencies were significantly lower than rated efficiencies. (The average seasonal efficiency was 9.6 Btu/Wh or just 67 percent of the units’ average SEER rating of 14.25).

Actual steady-state operating efficiencies of variable speed units can differ from rated steady-state efficiencies. At low speed, they ranged from 79 to 95 percent of rated efficiency due to higher than rated watt draws, while variations from rated efficiencies at high speed were primarily a function of variances from rated capacities (some lower, some higher).

Manual J may significantly over-state actual total loads on the house. Average total loads were 56 percent of Manual J estimates. Oversizing contributed to an inability to control humidity levels in one home.

Occupant behavior has important impacts on system efficiency and comfort. The two homes that ran their fans continuously saw significant deterioration of seasonal efficiency, and one of those homes also experienced a serious inability to control humidity levels.

Over-sizing is not likely to significantly affect seasonal energy use of variable speed systems, since – for most units – the average duty cycle

2 In this study trained, certified contractors are defined as those working in a company in which over 75% of technicians employed have passed standardized tests on proper HVAC installation practices and as a result have received NATE certification.

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EER was very close to the end of cycle EER. However, proper sizing may still provide significant peak demand savings.

Field performance of efficient gas furnaces. Four high-efficiency condensing gas furnaces were monitored during the 2004/2005 heating season. While the sample is not statistically representative, the results revealed significant differences between rated and measured efficiency in these four cases. Measured efficiencies of all units ranged from 60 – 80 percent, compared with rated AFUEs over 90 percent. Because this monitoring task was an add-on to the original project scope, with limited funding, it was not possible to further study or identify the factors contributing to the discrepancy between actual and rated performance. The questions raised by these observations are material for an important potential new research task.

Duct sealing research and program design. Because duct sealing is an important source of efficiency potential, a case study on duct sealing program design was included in as part of this research effort. Market research in support of program design included a focus group of HVAC contractors. Results of the focus group identified the following as important elements of a market-based duct sealing program:

Verifiable program standards; different criteria for new and existing home applications;

Customer education; Marketing support for contractors; Recognition of seasonality of sales – that duct sealing may compete with

the equipment installation season; and Recognition that code change as a stand-alone strategy is insufficient, in

that it reduces the ability to realize potential from the existing homes market.

A successful market-based duct sealing program must address the following barriers: customers’ lack of information, their lack of understanding that comfort humidity issues may be related to duct leakage, lack of a clearly defined product that customers can understand such as including measurable performance criteria, as well as customers’ inability to identify contractors with the proper equipment and expertise. In addition, customer up-front investment is a barrier. Strategic agenda for realizing HVAC achievable energy efficiency potential. Based on understanding of the achievable savings targets, the measures, market barriers and opportunities, the following regional strategic agenda consisting of four interrelated steps is proposed for achieving HVAC efficiency potential:

1. Coordinate efficiency program efforts across fuels and sectors. We recommend continuation and enhancement of the energy efficiency programs that are active in the region. New programs are also needed to

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comprehensively address installation practices, operation and maintenance, efficient equipment and thermal envelope. A regional goal should be to address all major fuels, oil, gas, and electricity, in all states, and in all sectors – new construction, remodel and retrofit. Furthermore, coordination of these efforts is recommended.

2. Cultivate industry partnerships. Many activities at the national level,

such as ENERGY STAR, efficiency tiers defined by CEE, NATE certification procedures for HVAC contractors, and ACCA’s recent development of specifications for heating and cooling equipment installation, should be supported and continue to be incorporated into efficiency programs.

3. Upgrade state and federal building energy codes and equipment

standards. Upgrade codes and standards to raise the floor, or baseline energy efficiency. Codes and standards complement the market pull of efficiency programs and are thus an important aspect of market transformation. Energy efficiency standards for some HVAC equipment are under consideration in several Northeast states. Updated building energy codes would provide another opportunity outside of energy efficiency programs to encourage or enforce quality HVAC installation practices. For example, California’s Title 24 building energy code on duct sealing sets measurable performance standards and has provisions for quality assurance verification. At the national level, the IECC updates building energy codes every three years.

4. Support continued research and development of emerging and new

technologies that reduce HVAC energy and peak demand. Support new research to obtain a better understanding of in-field performance of some high efficiency equipment and to assure that the equipment delivers the savings that are expected. Continue research to move products under development into market. Market research is also needed to inform the development of program plans and customer education on new technologies as well as the benefits of quality installation.

1.3 Study Team

The project team consisted of many individuals and organizations, selected for their specialized expertise in HVAC technologies, efficiency program design, analysis and delivery, as well as market and field research. The multidisciplinary effort was managed by Northeast Energy Efficiency Partnerships, Inc. The contract was managed by NYSERDA. Table 1.1 lists the organizations and key contacts in the project team.

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Table 1.1 STAC Project Team Organization Key Contacts Northeast Energy Efficiency Partnerships, Inc. (Lexington, MA) Elizabeth Titus New Jersey Board of Public Utilities (Trenton, NJ) Cameron JohnsonNew York State Energy and Research Development Authority (Albany, NY) Brian Atchinson Conservation Services Group ( Westborough, MA) Mark Dyen Proctor Engineering Group (San Rafael, CA) John Proctor Nexus Market Research (Cambridge, MA) Lynn Hoefgen

Tim Pettit Vermont Energy Investment Corporation (Burlington, VT) Chris Neme The study team would also like to recognize the input provided by many staff members in these organizations and by Harvey Sachs of ACEEE.

1.4 Report Organization

This report is organized as follows:

Section 2: Energy Efficiency Potential and Future Technological Opportunities

Section 3: Northeast HVAC Market and Current Program Efforts Section 4: Current Conditions: Reports from the Field on Benefits of

Contractor Training on Quality Installation and Equipment Performance in the Northeast

Section 5: Case Study: Duct Sealing Market Research and Proposed Program Design

Section 6: Conclusion and Recommendations: Strategic Agenda for Increasing Energy Efficiency in Northeast Regional HVAC

In addition, the following appendices are provided:

A. Regional HVAC Market Research Survey and Results B. Review of Emerging HVAC Technologies and Practices C. Benefits of HVAC Contractor Training: Field Research Results D. Field Performance of High Efficiency Heating Equipment E. Duct Sealing Market Research and Program Design Strategy F. References

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2. ENERGY EFFICIENCY POTENTIAL

2.1 Overview

One goal of this project was to estimate how much energy could be saved over the next ten years by implementing cost-effective residential HVAC energy efficiency measures and practices that are currently available or emerging. Emerging measures and practices are either commercially available but at low market share, or capable of reaching 5 percent market share or more over the next ten years. The study was further restricted to exclude the multifamily segment of the residential sector. Achievable potential is defined as the savings potential based on market penetration of energy efficient measures that are cost-effective according to the Total Resource Cost (TRC)3 test and would be adopted through a sustained campaign involving energy efficiency programs and market interventions over the ten-year time horizon. The work presented here is a strategic regional-level analysis. It provides an estimate of potential that could be captured through continuation and expansion of energy efficiency program activity in New England, New York and New Jersey. It includes the assumption that new campaigns at expenditure levels roughly similar to those of existing gas and electric programs can be introduced to obtain savings from oil heat measures, and that some new cost-effective measures and practices can be introduced to existing programs. The analysis is based on assumptions of ten-year projections of market penetration of a set of cost-effective DSM measures and practices. We assume that the programs that deliver efficient products and services are designed to address market-driven, or lost opportunity investments. Pursuit of market-driven investments requires paying only the additional incremental cost of the efficient equipment as compared to purchasing standard efficiency equipment. Unlike retrofit investments that require paying the full cost of equipment and labor, a lost opportunity investment is typically a fraction of the total installation cost, often with no incremental labor cost. Programs are further broken down into new construction and existing households. For any given end-use, the size of the existing households market is typically determined as the fraction of households with equipment that is being retired.

3 The TRC test or modified version of it is used by most Northeast states. It measures net costs taking into perspective utility, participant, and non-participant costs. It can be applied at program and/or measure level. Costs accounted for in the test include: program costs paid by utility and participants; increase in supply costs during load increase periods; benefits are avoided supply costs; reduction in T&D, generation and capacity costs.

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We note several caveats about this study:

It does not estimate the overall technical potential (maximum achievable from cost-effective measures without consideration of market barriers). The technical potential for savings is significantly higher than the results of this study.

The analysis also does not capture as fine a level of detail for each state or program as is commonly used in program design or cost-effectiveness screening. (In New England and New York in particular, there are many instances where information was blended to represent the various programs that are in existence).

Thermal envelope improvements and space heating combined with water heating were not analyzed. Proper sizing and quality installation of heating equipment was also not considered.

Peak day natural gas impacts were not estimated. The study inputs and assumptions are based on a combination of past

analyses and expert judgment. Confidence levels were not developed for the results. The results are intended contribution to program planning and policy development, and a starting point for discussion, not as a final plan.

2.2 Economic Potential Analysis

Savings Estimation Approach The conceptual framework for the analysis involved the following steps:

Developing a comprehensive list of efficiency measures and practices; this was based in part on results of the review of emerging technologies conducted for the STAC study.

Characterization of the measures and practices, including defining incremental costs and savings, and measure life.

Characterizing the existing and forecasted markets for each measure and practice, quantifying housing units and equipment saturations, and forecasting new construction activity.

Estimating baseline penetrations of measures and practices in the existing and forecasted markets.

Developing regional weighted average avoided costs. Screening measures and practices for cost-effectiveness based on the

avoided cost estimates. Estimating efficiency program costs and spillover rates. Applying the per-unit efficient technology and practice characterizations

and baseline penetration projections to the relevant existing and forecasted markets to arrive at net achievable potential impacts and costs.

A large variety of data was used to support this process, including prior potential analyses; published research and

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baseline studies; and personal communication with industry experts; as well as research from other tasks in this STAC study. Savings Results The achievable potential for heating and cooling savings in the Northeast is large. We estimate achievable potential by 2016 of 647,000 MWh, 160,236 million cubic feet of gas, 53,780 million gallons of oil, and 892 MW demand savings. Combined, the cumulative savings translate to 26,234.46 BBTU. The present value of the net benefits is $3.02 billion. By 2016, residential HVAC efficiency strategies could reduce forecasted residential oil, gas and electricity consumption in 2016 in the Northeast4 by over 1 percent. To help put these savings into perspective, the cumulative potential gas savings in New York represent 1.5 percent of forecast sales in 2016.5 The potential HVAC savings in 2016, from New England, New York, and New Jersey for all fuels combined is roughly equivalent to 2 perecent of the HVAC-related energy consumption for the Northeast including Pennsylvania in 2001.6 Figure 2.1 Projected Residential Sector Fuel Consumption in the Northeast (Quadrillion BTUs)7

0.000

0.200

0.400

0.600

0.800

1.000

1.200

1.400

2003

2005

2007

2009

2011

2013

2015

Distillate Fuel

Natural Gas

Electricity

The benefit:cost ratio to realize this overall regional achievable potential is 3.34.

4 Note that the forecast includes Pennsylvania, although the energy efficiency measures are assumed to be applied to the Northeast excluding Pennsylvania. 5 This is based on Optimal Energy Inc. forecast residential sales of 386 million dekatherms in New York in 2016. 6The Energy Information Administration’s 2001 Residential Energy Consumption Survey reports 1.31 quadrillion BTUs consumed in the Northeast for space heating and electric AC. 7 Energy Information Administration Forecasts for New England and Mid-Atlantic States Combined

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Figures 2.2 through 2.4 illustrate how this potential is distributed. It is divided between New England, New York and New Jersey. By state, the largest share, 38 percent of the total potential, comes from New Jersey. By state and fuel type, the largest electric energy and demand savings come from New Jersey, and the largest oil savings come from New England. Gas savings are roughly evenly divided between New England, New York and New Jersey; however New York is the state with the largest potential for gas savings. Across all fuel types, over seventy percent of the savings can be achieved by programs for existing homes, while the remaining savings can be obtained from new construction. Figure 2.2 2016 Savings in New England, New York and New Jersey (Million $) and as % of Total

$53329%

$70438%

$60033%

New England New York New Jersey

Figure 2.3 Distribution of Savings by Fuel Type and State

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

MWH GAS OIL MW

% o

f R

egio

nal

Sav

ing

s

New England

New York

New Jersey

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Figure 2.4 Savings by Program Type

73.76%

67.19%

43.80%

34.93%

26.24%

32.81%

56.20%

30.04%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

120.00%

MWH

GAS

OIL

MW

Existing Homes New Construction

Figure 2.5 shows the forecast of cumulative net benefits over the ten year period. This forecast reflects assumptions of modest annual net increases in program-related penetration of efficient measures and practices. Table 2.1 summarizes first year and cumulative total energy, demand and environmental benefits in physical units. Figure 2.5 Forecast of Cumulative Net Benefits Through 2016

Cumulative Net Benefits from Achievable Residential HVAC EE

New England

New York

New Jersey

0

200

400

600

800

1000

1200

1400

1600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Mil

lio

n $

of

Net

Ben

efit

s

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Table 2.1 Cumulative Annual Electricity, Natural Gas and Oil/Propane Energy Savings by Program, State, and Northeast Region

Electricity Savings Natural Gas

Savings 103ccf

Oil/Propane Savings 103

gallons Summer Capacity Cumulative Environmental

MWh 103ccf 103 gallons MW Benefits Tons in 2016 State & Program 2007 2016 2007 2016 2007 2016 2007 2016 CO2 NOX SO2

New England Existing Homesx 6,695 114,559 1,574 31,344 503 11,095 10 163 87,065 120 355 New Construction 2,719 46,480 1,162 19,411 614 9,595 5 89 35,325 49 144

Subtotal 9,414 161,039 2,736 50,754 1,117 20,690 15 253 122,390 169 499

NY Existing Homes 8,703 144,445 2,371 47,218 390 8,095 12 203 109,778 152 448 New Construction 2,819 48,749 588 9,835 381 6,474 4 77 37,049 51 151

Subtotal 11,522 193,195 2,959 57,053 771 14,569 17 279 146,828 203 599

NJ Existing Homes 13,121 218,929 1,490 29,094 238 4,366 16 258 166,386 230 679 New Construction 4,562 74,756 1,474 23,334 927 14,156 6 102 56,815 78 232

Subtotal 17,683 293,685 2,964 52,429 1,164 18,521 22 360 223,201 308 910

Northeast Existing Homes 28,519 477,934 5,434 107,656 1,130 23,555 38 624 363,230 502 1,482 New Construction 10,101 169,985 3,224 52,580 1,922 30,225 16 268 129,189 178 527

Total 38,619 647,919 8,658 160,236 3,052 53,780 53 892 492,419 680 2,009

End Use and Other Impacts As shown in Table 2.1, by 2016, the HVAC efficiency potential would reduce demand by 226 MW. Capture of the regional achievable potential would also result in emissions reductions; over the 10-year planning horizon these total 146,421, 202 and 597 tons of CO2, NOX and SOX emissions, respectively. While not calculated, emissions reductions would continue beyond 2016, for the life of the measures installed. Figure 2.6 shows how the potential savings are distributed over end use categories of heating and cooling measures and practices. Duct sealing is the single largest source of potential savings, followed by heating equipment. Cooling practices, which include proper sizing and installation of central air conditioners as well as AC tune-ups, are responsible for roughly one-fifth of the total potential.

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Figure 2.6 Net Present Value of Cumulative End Use Savings (Thousands)

duct sealing, $1,727,722 ,

52%

cooling equipment,

$275,907 , 8%

cooling practices, $630,220 ,

19%

heating equipment, $710,261 ,

21%

2.3 Efficiency Opportunities and Measure Characterization

Cooling There are two key components to cooling savings potential: energy savings and peak demand savings. For the most part, residential customers in the Northeast see energy savings only. The impacts of efficiency on peak demands are important to the summer peaking grids in the Northeast.8 Two recent developments have advanced the market for efficient cooling: 1) the revision of the ENERGY STAR minimum standard on central air conditioners to SEER 14 (EER 11.5), and 2) the federal equipment efficiency standard of SEER 13, effective January 2006. Variable speed high efficiency air conditioners provide peak savings if operated properly, so that the high speed runs only during peak conditions. While there are products on the market with SEER ratings as high as 20, they are very rare and expensive. Although they may provide 40 percent energy savings relative to SEER 13s, they may not provide peak savings. Relative to the new federal efficiency standard, SEER 14 and 15 equipment provides up to seven percent and 13 percent energy savings, respectively. In contrast, savings potential associated with proper design and installation remains quite large. Numerous field studies, including the field research that is 8 One study estimated that wholesale electricity costs in the top 1% of the 8760 hours in the year accounted for 16% of total annual costs (Cowart, Richard, Efficient Reliability, published by the Regulatory Assistance Project, 2001).

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part of the STAC study, have demonstrated that equipment is usually over-sized, has inadequate airflow over the indoor coil, and has either too much or too little refrigerant in the system. Those same studies suggest that the efficiency penalty resulting from such problems is substantial. Proper sizing and installation can reduce electricity use by approximately 20 percent - the equivalent of upgrading from SEER 13 to SEER 16.9 Another strategy for improving efficiency is to install ductless mini-splits in lieu of conventional centrally ducted air conditioning. These systems have outdoor condensers connected by refrigerant lines to between one and four indoor units. These have several advantages of particular relevance in the Northeast. One advantage is that they avoid the need for ducts, and thus can be installed in existing homes with hydronic heating systems, at a lower overall cost than for installing ducts plus central air. Another is that the design and installation problems that reduce the energy efficiency of conventional air conditioning are avoided by this technology. Finally, they provide zoned cooling. With multiple units a homeowner can cool rooms as needed, rather than all or nothing. No field testing data are available to quantify all of the efficiency advantages. However, technical experts estimate savings of 50 percent or more are possible.10 Although rarely found in homes in the U.S., ductless mini-splits are quite common in homes outside of the U.S. They are also commonly used in small commercial facilities. Heating An ENERGY STAR gas furnace provides savings of 11 to 17 percent relative to a standard model with an AFUE of 80 percent. As noted in the previous section, market shares of gas furnaces are relatively high. Additional savings can be achieved with efficient blower fans on gas, propane, and oil furnaces. An efficient fan can save up to 500 kWh per year in the Northeast.11 Oil boilers and furnaces have lower savings potential than gas equipment. For example, the difference in consumption between ENERGY STAR and standard oil equipment (AFUE 85 percent versus 80 percent) is only about six percent. Condensing boilers and one condensing oil furnace are on the market, but very expensive. Field research suggests that heating equipment is even more commonly oversized than cooling equipment. However, the energy penalty from this is 9 See Neme, Proctor and Nadel. National Energy Savings Potential from Addressing Residential HVAC Installation Problems, ACEEE, February 1999. Also see Proctor, Appendix B of this report. 10 See Proctor, Appendix B of this report. 11 Ibid. See also Pigg, Electricity Use by New Furnaces, A Wisconsin Field Study. Technical Report 230-1. Prepared for Focus on Energy. Madison, WI: Energy Center of Wisconsin. October 2003.

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relatively small. Little or no information about heating installation problems is currently available, and thus it was not addressed in the estimate of efficiency potential. Duct Systems Numerous studies have demonstrated that there are potentially very large efficiency benefits from improving duct systems – both through design and reducing overall leakage. The fact that many central air conditioner sales in the Northeast are first-time installations in existing homes with hydronic heat means that there may be greater potential to get efficient distribution systems, because it is easier to install new ducts correctly than it is to repair existing ducts that were not originally designed for central cooling. Duct sealing is important because it affects both heating and cooling energy use in many homes. Importance of Thermal Envelope Thermal envelope improvements were not analyzed for the assessment of achievable potential. And, although it was also not directly addressed in our overall assessment of HVAC efficiency opportunities, it is important to note that HVAC system efficiency is influenced by the thermal envelope and the efficiency of the home as a whole. In the STAC field research task that monitored five homes, the thermal envelopes in two of the homes were so leaky that the central air conditioners could not maintain relative humidity levels below 60 percent (one common indicator used to measure comfort). Such conditions can lead building occupants to increase the amount of heating and cooling energy they consume and/or to demand larger pieces of equipment at time of replacement. Measure Characterization for Achievable Potential Study The study of achievable potential analyzed 18 different efficiency measures and practices. After accounting for new construction and existing homes programs in New York, New Jersey, and New England, that number grew to over 100 permutations. Each measure was screened for cost-effectiveness. For illustrative purposes, Table 2.2 lists all measures and practices that were included in the analysis for the existing homes programs in New England, New York and New Jersey and the benefit:cost ratios resulting from the measure screening.12 Most measures have benefit:cost ratios within the range of 1 to 10. Note that 85 AFUE oil furnaces are at the lowest end of the benefit:cost ratio, with a value of 1.0. They were included in the analysis in recognition of the fact that efficient product options are very limited among oil furnaces. Two other noteworthy exceptions, duct sealing and ductless mini-splits, are highly cost-effective. Proper

12 Similar measures were included in the new construction programs, and the values and ranges of benefit:cost ratios for new construction measures are roughly similar to those in the retrofit programs.

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duct sealing is highly cost-effective because it requires relatively small incremental investment over conventional practices. In the Northeast, it can save up to 18 percent of cooling energy consumption and 13 percent of heating energy consumption, and it is applicable to many homes with forced air heat and/or central air conditioning. Ductless mini-splits, by contrast, are an emerging technology that is an alternative to conventional central air conditioning. In this analysis, the incremental costs were developed by comparing them to installing ducts and central air conditioning in an existing home. Cost savings resulting from not installing ducts are dramatic and more than offset the fact that the unit can cost 20-30 percent more per ton of cooling than conventional central air-conditioning. While this analysis assumes relatively small, gradual adoption of ductless mini-splits as an alternative to installing ducted central AC systems, further research is needed to understand the longer-term program effects of promoting this technology. It is possible that people with one or two room air conditioners might choose ductless mini-splits instead and end up increasing their cooling load. Table 2.2 Residential HVAC Efficiency Measures and Practices Analyzed

Benefit: Cost Ratios for Existing Homes Measures by State

Energy Savings

per Measure

New England New York

New Jersey

All States

Existing Homes Cooling Measures

CAC E-Star (14/11.5) 1.71 1.82 1.89

CAC CEE Tier 1 (14/12.0) 3.04 3.04 3.04

CAC CEE Tier 2 (15/12.5) 1.57 1.67 1.74 13%

Ductless Mini-split - stnd w/3 units 5525.15 5650.47 5734.02 50%

Ductless Mini-split - hi efficiency w/3 units 1.46 1.49 1.51 50%

Existing Homes Cooling Practices

CAC proper sizing 4.85 4.93 na 2 – 10%

CAC Proper Installation 8.64 8.98 9.21 15%

CAC Tune-up 1.04 1.09 1.13

Duct sealing (cooling) na 2.10 2.15 15%

Existing Homes Gas Heating Measures

Gas Furnace - Condensing (from 80% to 92%) 3.00 3.00 3.00 11 – 17%

Gas Boiler - Energy Star (84%) 7.93 7.93 7.93 6%

Existing Homes Oil Heating Measures

Oil furnace - 85 AFUE 1.00 1.00 1.00 6%

Oil furnace – Condensing 1.73 1.73 1.73

Oil boiler - 85 AFUE 2.28 2.28 2.28 6%

Existing Homes Heating Practices

Duct sealing (heating) 10.60 10.60 10.60 15%

Combined Measures

Gas Furnace - Condensing w/ECM (80% - 92%) 9.67 9.67 9.67 50% of fan

use

Oil furnace w/ECM 6.38 6.38 6.38 50% of fan

use

Duct sealing (cooling and heating) 12.61 12.69 12.75 15%

18

Market Effects The estimate of achievable potential over a ten-year planning horizon is based on two components of a savings estimate: (1) program penetration rates – the number of efficiency measures that will be installed in each year, and (2) market effects often referred to as spillover – the fraction of program penetration that will be influenced by a program but not directly participate in it during the ten-year period that was analyzed. The forecast of penetration rates relied heavily on an understanding of the market barriers informed by other tasks in the STAC project, as well as by other programs that have attempted to address similar barriers. In the case of oil measures, extrapolation from experiences with gas and electric programs was necessary. In the absence of documented current market shares, best estimates were used. Penetration rates take into account expectations about future codes and standards as well as expected program participation. Penetration rates were estimated for: 1) the base case - what is expected to occur in the absence of programs, 2) “with program” rates that include the effects of programs, free ridership and spillover combined, and 3) “in program” rates that reflect the portion that is expected to directly participate in programs, thus impacting program budgets. Penetration rates are estimated separately for each measure. As mentioned, spillover refers to program-influenced market actions that did not involve direct program participation. This occurs for a variety of different reasons - for example, trade allies not bothering with submitting rebate forms or builders or contractors acquiring skills that they incorporate into work that does not qualify for program participation. In this analysis a 10 percent spillover rate was assumed for all efficient equipment. Spillover for practices (duct sealing, quality installation for example) increases from 10 to 40 percent over a ten-year horizon13. Post Program Effects A third component is the lingering market transformation effects that can be achieved following the end of the program. We note here that these have not been measured, but they can often be expected to persist more than five years after the end of a program. Thus, the effects of this savings potential would extend beyond 2016. Program Budgets The program budgets are partly a function of assumed in-program penetration rates because significant portions of most program budgets are variable and

13 This assumption of a three-fold increase over ten years is based on the fact that relatively small incremental customer investment is required, and markets for these services can develop very quickly if efficiency programs are successful in removing the barriers.

19

related to program participation levels. The estimated program budgets are based on experience with similar gas and electric efficiency programs in the Northeast. In the absence of other information, they assume that levels of administrative expenditures and equipment incentives required to realize oil heat energy efficiency potential are similar to expenditures in gas programs. Figure 2.4a Projected Electric Program Budgets

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

20072008

20092010

20112012

20132014

20152016

Mill

ion

$

NY New Construction

NJ New Construction

New England NewConstructionNY Existing Homes

NJ Existing Homes

New England Existing Homes

Figure 2.4b Projected Gas and Oil Program Budgets

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

2007

2009

2011

2013

2015

Mill

ion

$

NY New Construction

NJ New Construction

New England NewConstruction

NY Existing Homes

NJ Existing Homes

New England ExistingH

2.4 Beyond 2016: Long Term Emerging Technologies

This STAC project included a review of emerging technologies and measures that have the potential to increase residential HVAC efficiency in the Northeast. Nine of the technologies are in a research and development stage and will not be ready for market within five to ten years, thus they were not included in the analysis of achievable potential. They are listed below because they may be of benefit in the longer run.14 Table 2.5 ranks these technologies with respect to potential energy savings and readiness for market, where a rank of “1” indicates highest savings potential or most ready for market. 14 Detailed discussion of these technologies is available in Appendix B.

20

Evaporator Fan and Housing, which received the highest savings rank, is an improvement to the distribution system. It refers to a new design for fans and fan housing that can increase fan efficiency in an air conditioner or heat pump to 45 percent. Sizing and Matching, which could not be ranked, is a design strategy in which the various components of cooling systems would be selected based on consideration of capacity and energy efficiency, rather than current practice based on capacity alone. Table 2.5 Efficient HVAC Technologies In Development15 Technology Savings

Rank Readiness for Market Rank

Evaporator Fan and Housing 1 2 Integrated Cooling, Dehumidification & Ventilation

2 6

Dedicated dehumidification system 3 1 Central AC for Cold Climate 3 3 Central AC and Dehumidification 3 5 Frostless Heat Pump 4 4 Cold Climate Heat Pump 4 7 Aerodynamic Outdoor AC/HP 4 8 Sizing and Matching Components na na Need for Moisture Removal Many of these technologies integrate dehumidification with cooling and/or heating. These would be very applicable, particularly in New Jersey and New York, which are in “moist” climate zones, where outdoor air often contributes to the latent load on air conditioners. Moisture removal is becoming an increasing part of the cooling load throughout the Northeast, as improvements in building practices, such as increased insulation, low solar gain roofs, and high-efficiency window glass can block significant amounts of summer heat gain.

15 Rankings provided by John Proctor, personal communication, November 2005.

21

3. NORTHEAST HVAC MARKET AND CURRENT PROGRAM EFFORTS As discussed, the Northeast has significant potential to reduce its residential HVAC energy consumption. Understanding the residential HVAC market conditions in the Northeast was necessary to estimate achievable potential. In addition, knowledge of market structure and trends, and key opportunities and barriers relating to energy efficiency improvements, is important to strategic planning and consideration of what changes are needed for the Northeast to realize its efficiency potential. Information on the HVAC market was obtained from industry experts and literature, supplemented by the market research task of the STAC project. The market research included telephone surveys of 50 HVAC and plumbing and heating contractors throughout the Northeast as well as structured interviews with eight distributors and wholesalers, five regional efficiency program administrators, and individuals from eight trade ally organizations. While results of these interviews are neither completely representative of the region nor statistically significant due to relatively small samples, they provide a helpful perspective on the industry in the region. Additional details about the market research, including tabulated responses to survey questions, are provided in Appendix A.

3.1 Household Characteristics

Compared to other parts of the U.S. and the nation as a whole, the Northeast has high heating loads. As shown in Figure 3.1, heating accounts for 58 percent of average household fuel consumption in the Northeast. Figure 3.1 Energy Consumption by End Use as Percent of Total Residential Consumption in the Northeast16

Space Heat58%

Elec AC2%

Water Heat17%

Refrigeration4%

Lighting&Appl19%

16 Energy Information Administration, 2001 Residential Consumption Survey, Northeast Region (Includes Pennsylvania)

22

There is a more diverse array of heating systems, a high penetration of fuel oil heating, and higher levels of hydronic heating than in the rest of the country.17 This is partly due to the fact that housing stock and heating equipment are older, built before natural gas was available and before forced air heating became common. The Northeast has relatively modest seasonal cooling loads. Historically it had a low saturation of central air conditioning. However, the demand for central air conditioning has been growing rapidly in existing homes as well as in new construction, adding significant load to the summer peaking electricity grids. Table 3.1 2006 Distribution of Predominant Heating and Cooling Equipment in the Northeast18 Existing Construction New Construction Distribution of Equipment

New England

New York

New Jersey

New England

New York

New Jersey

Gas Furnace 15% 33% 39% 19% 19% 45% Gas Boiler 21% 28% 24% 26% 26% 28% Oil Furnace 17% 6% 8% 20% 20% 7% Oil Boiler 34% 22% 17% 30% 30% 15% Central AC 15% 18% 50% 60% 60% 75% Table 3.2 2006 Mix of Residential Housing in the Northeast19

New England New York New Jersey Total

1-4 units 21.88% 30.86% 12.18% 64.91%

5+ units 3.71% 21.05% 9.82% 34.58%

New Construction 0.19% 0.19% 0.13% 0.51%

Total 25.78% 52.09% 22.13% 100.00%

3.2 Market Structure

Market Channels The following groups play significant roles in the residential HVAC market: Manufacturers. Manufacturers are at the beginning of the distribution chain. Typically, manufacturers sell to distributors who sell to contractors who sell to consumers.20 Manufacturers play a key role in influencing HVAC contractor decisions, as contractors are often dedicated to one manufacturer. They are a source of training and technical assistance for HVAC contractors and plumbing 17 The Northeast has among the lowest saturations of electric space heat in the country, and very few heat pumps are sold in the Northeast. 18 Data provided by Vermont Energy Investment Corporation, based on extrapolations of U.S. Census data, EIA 2001 Residential Consumption Survey, and expert information. 19 Data provided by Vermont Energy Investment Corporation, based on extrapolations of U.S. Census data. 20 Lennox is an exception; they sell directly to contractors. Another exception is retail stores who sell directly to consumers.

23

and heating contractors. Seven major manufacturers are responsible for 98 percent of all U.S. sales of central air conditioners and furnaces.21 Distributors. Of the 500-700 HVAC wholesale distributors in the Northeast, 25 percent are in Massachusetts, 30 percent in New York, and 20 percent in New Jersey.22 As the bridge between the dealer and the manufacturer, distributors frequently maintain inventory for dealers. They also serve as a conduit for promotional information and installation and sales training. Contractors. This group is large and diverse. Nationally, 70 percent of HVAC firms are small, with fewer than five employees, and account for less than 10 percent of all HVAC sales. Medium firms up to 25 employees represent 25 percent of HVAC firms and account for 60 percent of all sales. The largest firms represent five percent of HVAC firms and account for 30 percent of sales.23 Anecdotal information suggests that similar patterns hold in the Northeast. Estimates of the number of HVAC firms in the Northeast are difficult due to large turnover in firms each year (as much as one-third of the total). Dun & Bradstreet suggests that there are up to 25,000 HVAC contractors in the Northeast, with 35 percent in New York, 20 percent in New Jersey, and 35 percent in Massachusetts and Connecticut combined. HVAC installers and dealers play a key role in the industry, as they frequently drive equipment choices for customers as well as installing and servicing equipment. In most firms, contractors often work autonomously and have multiple responsibilities, such as sales, equipment installation, and management. The HVAC contractors surveyed for the STAC research reported that the cooling equipment and oil furnace replacement work they do is split evenly between breakdowns and planned replacements, while two-thirds of gas furnace installations are planned replacements. HVAC contractors are also often responsible for duct layout in residential new construction work. Like HVAC contractors, plumbing and heating contractors are mostly small companies with an average of nine employees. These firms typically install and service heating and cooling equipment. Many also sell the equipment. Retail Stores. Big box retail stores such as Sears, Home Depot and Lowe’s all sell HVAC equipment directly to consumers. In 2000, Sears was estimated to have a national market share of five percent for central air conditioners and furnaces. Although neither regional information nor updated market share information is available, anecdotal evidence suggests that this market channel is gaining in importance as a source of equipment. These stores buy equipment from distributors and sell to consumers. They typically use a local network of private HVAC contractors to then install the equipment.

21 Appliance Magazine, September 2005. The manufacturers, in declining order of market share are: UTC/Carrier, American Standard (Trane), Lennox, Rheem, York, Nordyne, Goodman (Amana) 22 Personal communication with Bud Healy, HARDI Director of Education, November 11 2005. 23 HVAC Market Characterization Study for New Jersey, Xenergy, 2001.

24

Builders. They are generally the buyers of equipment for new homes. Consumers. Homeowners and landlords are responsible for purchasing equipment and services for existing homes. Market Trends and Market Share of Efficient Equipment Comprehensive industry data on regional sales and market shares are not available, and distributors and manufacturers interviewed as part of the STAC market research were unwilling to share proprietary information on market share, sales, and segmentation. HVAC contractors surveyed as part of the STAC research are not routinely installing the most efficient units on the market, and this practice has not changed much since 2003. The research also indicated that the proportion of high-efficiency central air conditioning units and high-efficiency gas furnaces being installed by HVAC contractors is higher in New England than in New York or New Jersey24. Table 3.3 presents baseline estimates of market shares of high efficiency equipment by state developed by Vermont Energy Investment Corporation for the economic potential analysis based on expert judgment. Table 3.3 Estimated 2007 Market Share of High Efficiency HVAC Equipment by State

New England New York New Jersey

CAC E-Star

Existing Homes 3% 3% 3%

New Construction 3% 3% 3%

Ductless Mini-split



Gas Furnace - Condensing



Gas Boiler - Energy Star



Oil furnace - 85 AFUE



Oil boiler - 85 AFUE



24 This observation is consistent with 2004 information on high efficiency furnaces as a percent of total shipments – Massachusetts 70%, New Hampshire 64%, New York 43%. Information from GAMA as reported in “Market Transformation as a Tool to Meet Natural Gas Savings Targets”, Bruce Johnson, Keyspan, March 21, 2006, MT Symposium, Washington, D.C.

25

Table 3.4 summarizes anecdotal information from contractors in the Northeast on their estimates of market shares of efficiency levels of equipment based on their recent sales.25 For reference, current ENERGY STAR criteria are listed in Table 3.5. When examined in context with other information provided by contractors in the survey, the self-reported estimates of market shares for high efficiency equipment are unrealistically high. For example, most contractors said they were not likely to propose high efficiency air conditioners or furnaces to customers. Contractors are somewhat more likely to propose high-efficiency boilers to customers. Table 3.4 Contractors’ Estimates of Shares of Installation/Sales of HVAC Equipment by Efficiency Levels in the Northeast

Shares, by Efficiency: I II III

Central Air Conditioners 74% (SEER <12.9) 15% (SEER 13-14) 11% (SEER 14+)

Gas Furnaces 41% (AFUE <89.9) 44% (AFUE 90-93.9) na (AFUE 94+)

Gas Boilers na 50% (AFUE 85-89.9)

18% (AFUE 90+)

Oil Furnaces 100% (AFUE < 90)

Oil Boilers na 50% (AFUE 85-89.9)

18% (AFUE 90+)

Table 3.5 ENERGY STAR criteria for Residential HVAC Equipment26 Equipment Minimum ENERGY STAR CriteriaCentral AC, Split Systems EER 11.5/SEER 14 Central AC, Package Systems EER 11/SEER 14 Gas, Oil, Propane Furnaces AFUE 90 Gas, Oil, Propane Boilers AFUE 85 Anecdotally, the following trends over the next five to ten years were expected by some distributors and wholesalers who were interviewed:

Barring any interventions, little change in market shares for high-efficiency equipment other than increasing efficiency levels of installed gas furnaces;

10-15 percent increase in forced air hydronic systems; 20-30 percent increase is expected in radiant heating systems; 10-25 percent increase in demand for variable speed technologies; 10-25 percent increase in demand for mini-split systems in the Northeast.

High efficiency equipment is typically priced higher than conventional HVAC equipment. Half of the distributors interviewed in the market research report that they do not further increase their markup rate for high efficiency equipment; half report that their markup rate increases from 2 to 15 percent, with the highest markup rates on boilers. As shown in Table 3.6 typical incremental prices

25 Market shares are expected to change with the federal standard effective in 2006 that establishes SEER 13 as the minimum efficiency requirement for residential air conditioners. 26 www.doe.energystar.gov

26

reported for most high efficiency equipment were $200, but they can be as much as 40 to 50 percent of the price of conventional equipment. Table 3.6 Ranges of Incremental Price Differences for High Efficiency Heating and Cooling Equipment Reported by Distributors Equipment Type Efficiency Level Number of

Responses Incremental Price Difference (either $ or %)

Central AC 10-13 SEER 5 $175 - $400 or 30-50% 13-14 SEER 1 25% Gas Furnaces 85-90 AFUE 5 $200 or 15-40% 90-94+ AFUE 1 20% Oil Furnaces 85-90 AFUE 1 $200 Gas Boilers 80-85 AFUE 1 10% 85-90 AFUE 3 $500-$600 or 20-40% As part of the market research, HVAC contractors were asked to estimate the cost to upgrade customers to high efficiency equipment, and to rank customers’ willingness to pay for high efficiency equipment. On a scale from 0 to 10, where 0 is unwilling and 10 is most willing to pay, contractors reported the following: Equipment Willingness to Pay Rank Cost to Upgrade Central AC of SEER 14+ 4 $1388 Gas Furnaces 7 $733-$800 Oil Furnaces 6 $950-$2000 Gas Boilers 6.5 $775 Oil Boilers 7.5 $1,254 Contractors’ definitions of high efficiency equipment were generally consistent with the ENERGY STAR criteria, with some differences. For example, contractors in New York considered lower SEER levels (below SEER 13) to be high efficiency units. Similarly, many of the contractors surveyed in New York said gas furnaces with AFUE ratings below 90 are efficient. As shown in Table 3.3, no contractors defined efficient oil furnaces as high as AFUE 90.

3.3 Industry Perspectives on Achieving HVAC Energy Efficiency

Distributors noted that contractors’ reluctance to change hinders their ability to adapt to new products. As one commented, “Contractors are reluctant to try anything new. The higher efficiency equipment is more complex and the contractors don’t want to be the guinea pigs trying out the newest stuff.” Trade allies - national and regional trade associations, training and certification organizations that support the HVAC industry – are in general agreement with

27

distributors on this point. Interviews with eight allies as part of the STAC study provided the following insights:

A majority agreed that lack of consumer awareness about what to expect from a contractor is a major barrier to increasing energy efficiency.

A majority agreed that lack of professional standards in the HVAC business is another major barrier.

Most trade allies interviewed support contractor licensing. NATE certification is generally recognized as a valuable strategy to

support training. Half of those interviewed believe licensing should be contingent on certification, including NATE certification. Most supported NATE certification when asked for their definition of a well-trained technician.

Most respondents feel that technicians are not well-trained and that training is poorly accepted within the industry.

Most of the respondents believe continuing education is central to having a well-trained base of technicians.

Turnover is high in the industry; there are no barriers to entry for technicians to become HVAC contractors. Business owners do not offer amenities or services that they should for development, training, energy efficiency, or quality of service.

Training and Marketing Energy Efficiency Manufacturers figure prominently in HVAC contractor training. Plumbing and heating contractors, by contrast, are more likely to have professional licensing and certification rather than manufacturer-provided training. In interviews, HVAC manufacturers and distributors were enthusiastic about NATE certification for HVAC contractors. NATE certifications now allow technicians to differentiate themselves. However, that differentiation does not yet apply to contractors. One benefit from their perspective is that the NATE certification will better equip contractors to sell the benefits of high efficiency equipment. Several distributors noted a concern that contractors do not dedicate sufficient amounts of time to following up on marketing and relationship building. “We need to get everyone in the marketing chain to partner with NATE, ACCA, and BPI to increase customer awareness; also data sharing from rebate processing up and down the market chain.” Program managers and trade allies further noted, “Contractors can’t handle selling up (promote the benefits of) the higher efficiency equipment.” And “we need to get into the field by educating installers…and get installers to educate consumers.” There is consensus among program administrators that technicians are inadequately trained. Training has importance as far more than a marketing strategy. As noted by one respondent, “new technologies and refrigerants will require additional training.” Currently, the business incentive is not to send NATE-certified technicians to installation jobs. They are sent for service or

28

commissioning. However, as many studies have found, poor quality of installation can significantly reduce the energy savings potential of HVAC equipment.27

3.4 Market Barriers to Achieving Energy Efficiency

There are a number of important market barriers to achieving the savings associated with high efficiency HVAC measures. Some of the key barriers are summarized below: Limited consumer awareness of energy efficiency opportunities and benefits. While some consumers have an understanding of efficiency differences and ratings of heating and cooling equipment, many do not. As suggested by the market research, contractors cannot be relied upon to educate or sell consumers on the benefits of efficient measures. Moreover, consumers have virtually no awareness of other aspects of efficiency or comfort associated with equipment installation. Inability to differentiate good contractors in the marketplace. As the market research indicated, there are few barriers to entry into HVAC contracting and many contractors are inadequately skilled. There are limited opportunities for contractors to differentiate themselves. BPI is now accrediting contractors that meet its standards, and several Northeast states are promoting BPI standards through Home Performance with ENERGY STAR, but there is limited consumer education about the benefits of trained, certified contractors and differences in the quality of equipment installation. Inability to differentiate quality of installations. Most consumers have no way to determine whether they have received a quality installation of their heating or air conditioning equipment. Although contractor training is necessary to ensure a quality installation, neither training nor certification can guarantee quality installations. This issue is discussed in more detail in Appendix C of this STAC study. Recently diagnostic tools have been developed that contractors can use to provide independent verification of quality installations, but this practice is neither widespread nor institutionalized. Poor HVAC contractor sales skills. Most HVAC contractors lack sales skills, time, and motivation to educate consumers about product choices, particularly when they believe that they must compete almost exclusively on price to survive. Seasonality of sales. Summer and winter are extremely busy seasons for central AC and heating equipment sales, respectively. They allow little or no extra time for special orders of efficient equipment, or proper sizing and installation. A large portion of contractors’ business is replacement of failed equipment, when speedy service is essential. 27 For example see Neme, Proctor and Nadel, National Energy Savings Potential from Addressing Residential HVAC Installation Problems, ACEEE, February 1999).

29

Split incentives. As noted above, roughly 25% of all HVAC sales are for new homes. The builders making those purchasing decisions will not be paying the energy bills associated with their choices and, therefore, have little incentive to buy efficient equipment. Electric prices do not reflect true societal costs of operating air conditioners. Electricity costs at peak times in the summer are often dramatically higher than during most of the rest of the year. However, residential consumers generally pay the same fixed price per kWh for their electric consumption throughout the summer, if not all year. Aesthetics. Because there is no duct work behind the drywall, indoor units of the ductless mini-splits stick out from the wall or ceiling. This is seen by some as aesthetically unappealing.28

3.5 Regional and National HVAC Activity

Although many aspects of HVAC markets are local, national and regional activities also play an important role in shaping the Northeast market for efficient HVAC measures and practices. Chief among these are: ENERGY STAR Specifications. The ENERGY STAR brand has been effectively leveraged by DSM programs and others promoting the sale of efficient equipment for years. In addition, ENERGY STAR has branded new construction, with ENERGY STAR Homes, as well as practices, such as ENERGY STAR duct sealing specification. Most recently, the U.S. Environmental Protection Agency has announced plans for an ENERGY STAR specification for quality central air conditioning installations beginning in 2007. Federal Energy Policy Act (EPACT) Legislation with Tax Incentives. Tax credits are available for many types of home improvements related to building shell and HVAC from EPACT 2005. The credit applies to improvements made in 2006 and 2007, and the maximum amount a homeowner can claim is $500 during the 2 year period of the tax credit. They include the following29

28 Ductless mini-splits are also generally quieter than room air-conditioners and may be quieter than some central air conditioners and fans, which is aesthetically appealing. 29Some windows, exterior and storm doors, metal roofs, and insulation qualify for tax credits. The complete list is available at www.energystar.gov/index.cfm?c=products.pr_tax_credits.

30

Product Type Tax Credit Specification Tax Credit Central AC EER 12.5/SEER 15 split systems $300 EER 12/SEER 14 Package systems Air Source Heat Pumps HSPF 9 EER 13 SEER 15 $300 Geothermal Heat Pumps EER 14.1 COP 3.3 Closed Loop $300 EER 16.2 COP 3.6 Open Loop EER 15 COP 3.5 Direct Expansion Furnace/Boiler AFUE 95 $150 Circulating Fan No more than 2% of furnace energy usage $50 In addition, home builders are eligible for a $2,000 tax credit for each new qualifying energy efficient home. There is a $1,000 tax credit to the producer of a qualifying new manufactured home. State Standards for heating equipment. Several Northeast states have drafted legislation calling for appliance and efficiency standards, including standards for residential furnaces, boilers, and furnace fans. There has been slow but significant progress with this strategy of raising the bar on energy efficiency. For example, legislation in Maine failed in committee earlier in 2006. In Connecticut, a standards bill is pending, although it was modified so that the furnace and boiler provisions apply only to government procurements. Massachusetts has adopted standards. Its next step is to petition the U.S. Department of Energy for a waiver from federal preemption. Standards legislation is currently under consideration by the full legislature in Rhode Island and Vermont; in both states it was reported favorably in committees. In addition, New York has enacted minimum efficiency standards for government procurements. These include provisions for residential furnaces and boilers, which apply to some state facilities. Table 3.7 summarizes the furnace and boiler provisions of Northeast states’ standards legislation.30 Table 3.7 State Efficiency Standards in Massachusetts and New York for Furnaces and Boilers Minimum

AFUE Maximum Electricity Ratio

MASSACHUSETTS Natural gas & propane furnaces 90% 2% Oil furnaces: 94,000+ Btu/hour 83% 2% Oil furnaces:<94,000 Btu/hour 83% 2.3% Natural gas, oil, propane hot water boilers 84% na Natural gas, oil, propane steam boilers 82% na NEW YORK (21 NYCRR Section 506.4) Natural gas furnaces: <225,000 Btu/hour 90% - Natural gas, oil steam & hot water boilers: <300,000Btu/hour

85% -

30 Isaac Elnecave, personal communication, April 21, 2006.

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Trade Associations, including BPI, NATE, and ACCA. Many relevant trade organizations are described in Table 3.8. The roles of several key trade associations that influence energy efficiency programs in the Northeast are summarized in the table below. One recent development is of note is that in 2006 an ACCA working group representing manufacturers, contractors, efficiency program administrators and advocates completed national specifications that are consensus definitions of a quality contractor and a quality installation. These specifications will inform the development of an ENERGY STAR installation specification. Table 3.8 Overview of HVAC Program Allies Program Ally

Description; Mission and Membership

Energy Efficiency Program Participation

Energy Efficiency Opinions31

Air Conditioner Contractors’ Association of America (ACCA)

Standards, Accreditation (National);ACCA accredits business practices to allow technicians to do job properly and is an information and networking resource for contractors.

ACCA is starting to become involved, particularly in Northeast and CA.

“We work with CEE on residential and commercial HVAC programs and support their efforts”.

National Association of Technician’s Excellence (NATE)32

Certification (National); NATE is a non member organization since 2000 that provides a residential and light commercial test protocol for technician certification. NATE administered 22,000 exams in 2004 with a 68% passing rate on all exams. Nationally there are over 17,000 technicians with at least one NATE certification.

The extent of NATE’s participation with utilities is with various organizations such as EPRI, CEE, and some larger utilities. Utilities are definitely a partner. Manufacturers support our testing protocol directly and indirectly through programs.

“Many efficiency programs take our certification as criteria for rebates.”

Eastern Heating and Cooling Council (EHCC)

Training, Test Administration (NJ, Long Island, MA); EHCC provides contractor training mostly in NJ, but also for Long Island Power Authority, MA programs, Honeywell, and CT. EHCC has a test bank. It requires 75% of member company technicians to be NATE certified effective July 2004. Only 15% of budget is from membership. “We need to raise the bar of

EHCC implements for NJBPU and is expanding. It works in the residential sector only. Most courses are NATE credits.

“Training is and should be necessary for field staff to participate in rebate programs”.

31 Quotes in this table were provided by individuals interviewed as part of the market research for this study. 32NATE is the leading certification program for HVAC technicians and is the only test supported by the entire industry. See www.natex.org for more information.

32

professionalism in industry. It’s not just about training contractors.”

Building Performance Institute (BPI)33

BPI became a national organization in 2004, with a three year grant to broaden its base. It promotes excellence in the contracting trades by establishing standards of performance for technicians and providing certifications for qualified contractors.

BPI contractors use a "whole house" approach to create energy efficient, durable buildings.

na

Refrigeration Service Engineers Society (RSES)

Training (National); RSES is a worldwide association, with 20,000 members in the U.S. and Canada. 75% of members are HVAC professionals.

RSES has recently been involved with installation and servicing heat pump programs in Indiana, where RSES is based. Rebated systems were required to be installed and served by an RSES trained technician.

RSES and NATE are developing a federal program. RSES provides Board membership, develops training manuals, and trains for NATE certification; NATE bylaws prohibit NATE from training.

American Refrigeration Institute (ARI)

Trade Association, Standards, Education (National); ARI has 200 member companies, and sets standards industry-wide, provides training and education for curriculum and testing, and has an accreditation program. ARI’s goals include upgrading the industry. One of ARI’s concerns is that contractors often return good equipment at a high cost to manufacturers. ARI lobbies state governments to unify standards.

“We support Clean Air Act support for EPA testing to handle refrigerants.”

Many members supported the move to a minimum standard of SEER 13. The EER might be a more effective measure for energy efficiency programs.

Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA)

Trade Association, Standards, Training (National); Sheet Metal Workers International (SMWI) is the parent organization for SMACNA; the National Energy Management Institute handles most training for SMWI; it develops training curricula for technicians and dealers to do performance contracting, M&V standards, and IAQ.

SMWI is involved. For example, a local CA union gave money for installation training to its workers for the Title 24 California building energy code concerning duct sealing.

Supports NATE certification.

Plumbing, Heating, and Cooling

Trade Association, Education (New York representative); Regional membership differs

“None that I’m aware of.”

“No opinion.”

33 BPI, coupled with Home Performance with ENERGY STAR programs in the Northeast can bring added focus to quality HVAC work and a house as a system approach to energy efficiency.

33

Contractors’ Association (PHCCA)

between New England and NY/NJ, since oil and gas divide as primary fuel source.

Empire State Petroleum Association (ESPA)

Trade Association, Marketing (New York); The ESPA represents 300 companies delivering all kinds of petroleum products. ESPA is the statewide association of the Petroleum Marketers Association of America; it is one of 42 similar state organizations.

na ESPA provides bill stuffers, etc. and serves as facilitator for NORA programs.

3.6 Northeast Program History Some states in the Northeast have promoted efficient HVAC equipment since the 1980s. By the late 1990’s, programs started to become more complex, as they began to address a broader range of efficiency opportunities. Many are summarized in Table 3.8. Key program features are:

Promotion of proper sizing and installation in addition to SEER and EER equipment requirements. New Jersey Clean Energy and the Long Island Power Authority (LIPA) required Manual J calculations and documentation of air flow measurements and refrigerant charge as a condition for receiving equipment rebates. New Jersey has also promoted NATE certification as part of its program. Rhode Island, Connecticut and Massachusetts program administrators have adopted central air conditioning (AC) programs with quality installation requirements. Connecticut provides incentives for contractors to use diagnostic software to improve system efficiency. Rhode Island requires Check-Me34 verification of charge and airflow as a condition for an equipment rebate, and Massachusetts offers supplemental rebates for installations by NATE certified technicians. Massachusetts program administrators have introduced a quality installation verification (QIV) feature in efficiency programs as well.

Home Performance with ENERGY STAR. NYSERDA launched and currently administers this program, which is a national model for efforts to transform the whole building retrofit services. Comprehensive treatment of HVAC system efficiency is an important part of the program. Vermont, New Jersey, Long Island and Massachusetts have also introduced these programs.

Rebates for efficient furnace fans. Massachusetts, Vermont, and New Jersey provide supplemental rebates for ENERGY STAR gas furnaces

34 Check-Me is one of the diagnostic software products currently available that assesses various aspects of central air conditioning installation and performance. It is used in air conditioning tune-ups and in verification of quality installations.

34

with efficient fans. Vermont offers rebates for high-efficiency fans on propane and oil furnaces as well.

Rebates for efficient gas furnaces and boilers. In Massachusetts and Vermont, the programs have recently placed greater emphasis (higher rebates) on highest efficiency models.

Duct sealing programs. In Connecticut in 2006, a duct sealing program was launched. It provides incentives for contractors to seal ducts in existing homes. The ENERGY STAR Homes residential new construction program in Massachusetts now provides incentives to customers who meet duct sealing specifications even if their new home does not qualify for ENERGY STAR status based on its HERS rating.

Table 3.8 Overview of Selected Efficiency Programs in the Northeast

Program

Sponsor(s) Scope Program Summary

Home Performance with Energy Star

NYSERDA Cooling and Heating; Marketing incentives to contractors

A BPI-certified contractor assesses the home, with recommendations for energy improvements and cost estimates. The program offers a 75% reimbursement on BPI certification and accreditation as well as low interest financing to home owners for energy improvements including heating and cooling systems and building shell improvements.

Cool Advantage

NJBPU Cooling equipment incentives; training incentives

Equipment incentives are tiered. The program reimburses the cost of NATE certification for contractors that pass. NJ requires documentation of proper sizing and installation

Cool Homes LIPA Cooling; equipment incentives; installation requirements

This program has been in existence for over 5 years. Over time requirements have changed to include correct sizing, charge and airflow, and random inspection to ensure quality installation. Coordination with ENERGY STAR Homes and Home Performance with ENERGY STAR is seamless to the customer. “For heating there has never been any successful coordination between gas and electrical divisions of KeySpan, and regulation applies only to electric not gas service.”

Cool Smart National Grid, NSTAR Electric

Cooling; equipment incentives; certification incentives; quality installation verification

This joint program has operated since 2000. It provides rebates for efficient central AC and ASHP (split systems with ECM motors).

35

Connecticut Residential HVAC Program

Connecticut Light & Power, United Illuminating

Cooling; equipment incentives

CT offers rebates on central air conditioning and heat pumps to consumers.

Warm Advantage

NJBPU Heating; equipment incentives

Rebates are offered for qualifying high efficiency gas furnaces and boilers.

RI ENERGY STAR Heating System Program

RI State Energy Office, National Grid (RI)

Heating; equipment incentives

Program offers rebates for steam or forced heat oil boilers in RI.

Gas Networks Consortium of MA, RI and NH gas utilities

Heating; equipment incentives; certification incentives

Incentives for high-efficiency furnaces and boilers with additional rebates for high-efficiency fans (i.e. ECM motors) split between MA electric utilities. Incentives for contractors to become NATE-certified and incentives per unit installed to NATE-certified contractor.

Whole House Efficiency Program

Efficiency Maine (Program developed by Governor’s Office of Energy Independence and Security)

Heating Pilot Program; audits and equipment incentives

Program delivery will begin before fall 2006. The program will provide homeowners access to qualified contractors who can perform energy audits and undertake cost-effective energy improvements, as well as access to financing that ensures that monthly energy savings exceed monthly debt payments, and rebates on heating equipment as well as energy efficient lighting and appliances. Funding and services provided by Efficiency Maine, Maine State Housing Authority, Northern Utilities, the Maine Oil Dealers and oil overcharge funds.

Vermont HVAC Program

Efficiency Vermont, Vermont Gas

Heating and Cooling equipment incentives

Equipment incentives for central HVAC and efficient furnaces and boilers. Heating equipment through Vermont Gas.

3.7 Summary

The energy efficiency programs in the Northeast go a long way toward overcoming some of the barriers to HVAC energy efficiency that are due to the business-as-usual conservative culture of HVAC contractors in the region. However, several gaps remain. These include:

Duct sealing. With the exception of the Home Performance programs and fledgling efforts in Connecticut, there is no concerted effort to create a strong market for duct sealing.

36

Oil and propane heating systems. Because these fuels are unregulated, they generally do not receive attention through efficiency programs.35

Alternatives to central air conditioning installations. While there is some evidence of progress in quality installation, more remains to be done. Many energy efficiency programs and trade organizations have committed themselves to business models built on the premise that quality work is required. Training, use of diagnostic equipment, and requirement of field verification are growing in the region. However, as documented as part of this STAC project’s field research, NATE certification does not produce noticeably different sizing practices or proper charge and airflow. One alternative that has not been explored by programs is promotion of ductless mini-split systems that avoid many of the installation problems of central air systems.

35 New construction and Home Performance programs are exceptions, in that in most states they are designed to address all new buildings regardless of heating fuel.

37

4. CURRENT CONDITIONS: Reports from the Field on Benefits of Contractor Training for Quality Installation and Equipment Performance in the Northeast The STAC project included two field research tasks: an assessment of the benefits of contractor training in quality installation of central air conditioning systems, and continuous monitoring of high efficiency heating and cooling equipment performance. Results of these tasks are described briefly below. Additional details are available in Appendices D and E.

4.1 Benefits of Contractor Training

The purpose of this research task was to investigate and measure the impacts of training and certification on recent HVAC installations, and to recommend possible modifications to current training approaches in order to increase customer benefits and cost-effectiveness. Specific research questions addressed included:

Are there significant differences in system performance between new and existing homes?

Are there differences in system performance between installations done by contractors with and without training and certification?

What are the costs and benefits of installer training? How can the savings and cost effectiveness of current training activities be

improved? Methodology The essence of the research plan was to collect quantitative information from on-site assessments of recent central air conditioning installations from two samples of homes—one with systems installed by trained/certified installers and one with systems installed by a not trained/not certified group—and to compare results obtained from the two groups. The onsite assessments were geographically clustered in New Jersey. Customer recruitment had to meet several requirements. In particular, the installation had to be recent, within less than two years. The customer names had to be tied to researchable contractor contact information so that two distinct samples could be identified: trained/certified and not trained/not certified.36 For those cases in which the HVAC contracting firms were identified, the firms were cross-checked against a membership database provided by the Eastern Heating

36 Customer names were obtained by requesting and obtaining manufacturer warranty card information from sales of recent central air conditioning system installations to customers in New Jersey

38

and Cooling Council. This database identifies and classifies HVAC contractors according to participation in training and certification activities. We classified firms according to the level of training and certification in their staff, based on information provided in the database, and ranked them on a scale from 1 to 8, from most trained/certified to least. Firms in which over 75 percent of staff are NATE-certified were ranked as most trained/certified. Firms without NATE certification and that had participated in at most one seminar or course were ranked least trained/not certified. The two sample frames were constructed using this information: the trained/certified group included all rank 1 firms; the uncertified group included rank 7 and 8 firms. The sampling plan called for a minimum of 68 completed onsite assessments of homes: 34 trained/certified, and 34 not trained/not certified. This size provides 13 percent precision at the 90 percent confidence level. Onsite assessments were conducted during the cooling season, in outdoor temperatures over 65 degrees Fahrenheit, when air conditioning performance can be measured. A small technical team was responsible for the assessments, to ensure consistency in observations. To eliminate the introduction of bias into the onsite data collection process, the customer recruitment, scheduling and onsite assessments were blind. The Conservation Services Group (CSG) staff responsible for recruitment, scheduling and assessments did not know whether customers were in the trained/certified or not trained/not certified group.37 Results of the site assessments were not shared with the customers. Participating customers received an incentive payment after completion of the onsite assessment. Final Sample. Two teams of CSG field staff completed visits to 76 sites between June and August, 2005. Proctor Engineering Proctor Engineering Group (PEG) analyzed data on 76 air conditioner installations in New Jersey. Of these, 72 assessments passed the quality control review. As shown in Table 4.1, the distribution of the final sample included 37 and 35 certified and not certified sites, respectively. Due to the challenges of recruiting, it was not possible to achieve balance in the sample with respect to new construction, rebated equipment, and efficiency levels of air conditioning systems installed, as shown in Tables 4.1 through 5.3. Roughly one-third of the homes in the total sample were new construction. The majority of the new construction sites were also in the certified group. Roughly one-fourth of the homes in the total sample had received a utility rebate for purchase of an energy efficient air conditioner, heat pump or furnace. The majority of the rebated equipment was installed in existing homes. The central air

37 The CSG staff was provided the model numbers of the AC systems they were to assess, as some homes had multiple systems; in cases where there were multiple new installations from the same HVAC contractor, only one system from each home was assessed.

39

conditioners installed ranged from SEER 8 to SEER 15. The not certified group has a slightly larger proportion of higher efficiency equipment. Table 4.1 Sample of On-Sites, by Certification and Construction Type

Table 4.2 Sample of On-Sites by SEER of Central AC System SEER Certified Not Certified Min 8 7.1 Mean 10.8 12 Median 10 12.4 Mode 10 13 Max 13.4 15.5 Table 4.3 Sample of On-Sites by HVAC Rebates Received Certified Not Certified Total Rebate Received (all existing construction)38 3 14 17 Results As shown in Table 4.4, the majority of customers were satisfied with their HVAC contractor and with their system installation. However, the majority of the homes in the sample failed to meet the criterion of “quality installation.” Only 20 percent of the systems (excluding those that had been serviced since installation) had the correct refrigerant charge and roughly one-third of all installations had duct sealing that was adequate. Figure 1 illustrates that close to 50 percent of the systems in the certified and not-certified groups had lower than recommended airflow (under 400 cfm), while Table 10 shows that, overall, systems were oversized by 20 percent. 38 Rebates received in 2003 – 2004. Includes some rebates for heating systems.

Certified Not Certified TotalExisting Construction 14 32 46 New Construction 23 3 26 n 37 35 72

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Table 4.4a Comparison of Results of Assessments of Installation by Certified and Not Certified Installers

House Type Installer Sample

New Existing Certified Not Certified

n 26 46 35 37

Correct Charge39 22% 15% 24% 17% 20%

Is Customer Satisfied with System Rating?

81 % Satisfied 82 % Satisfied 78% Satisfied 86% Satisfied 83 %Satisfied

Is Customer Satisfied with Installer? 61% Satisfied 82% Satisfied 67% Satisfied 85% Satisfied 76% Satisfied

Ducts Sealed 42% 33% 56%* 16%* 36%

* denotes significant differences at the 90% confidence level

Table 4.4b Comparison of Results of Assessments of Duct Sealing Quality by Certified and Not Certified Installers Duct Sealing Quality (Visual Assessment) Certified Not CertifiedNot Sealed 44%* 84%* Poor Quality 27% 13% Fair Quality 11%* 0%* Good Quality 17%* 2%* * denotes significant differences at the 90% confidence level

Furthermore, this study found that there is no statistically significant difference in installation quality, specifically charge and airflow, between the certified and not certified groups of installers at the 90 percent confidence level. Significant differences were found between certified and not certified groups with respect to duct sealing.

Many of the installation problems noted in this sample are common problems in air conditioner installations. For example, 49 percent of these air conditioners had insufficient airflow across the indoor coil, with little difference between those in the certified and not certified groups. Airflow in the AC systems installed by certified installers averaged 347 cubic feet per minute (cfm) per ton compared to a “standard” of 400 cfm per ton. Airflow in the systems in the not certified group averaged 368 cfm per ton. Similarly, there was little difference between groups with respect to refrigerant charge. Twenty-four percent of the units installed by certified installers had the correct amount of refrigerant charge, and 17% of the units installed by the not-certified installer group had the correct amount of refrigerant charge.

39 Only Systems that have not been serviced since installation are included. Twenty-two percent of the units had been serviced since installation. When systems that have been serviced are included: New 16%; Existing 27% ; Certified 26%; Not Certified 18%

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Oversizing was present in both the certified and not certified installer groups, and in both existing and new construction. The only measure with a statistically significant difference between certified and not certified installers was duct leakage. Based on a visual observation, it appears the certified installers do a better job of sealing the duct systems. Summary Findings and Recommendations With respect to charge and airflow, there were no statistically significant differences between installations in new and existing construction or by certified and uncertified contractors. Interestingly, in the case of duct sealing there were statistically significant differences; certified installers are more likely to seal ducts and their duct sealing is of higher quality than installers who are not certified. However, based on the visual assessments, even the certified installers did not consistently comply with building code (i.e. use mastic) for duct sealing. Findings of this study were consistent with recent baseline studies in that the quality of the majority of the central air conditioning system installations was inadequate. Results of this study imply that contractor training and certification alone will not produce the energy efficiency benefits that are technically achievable from proper installation. Anecdotal evidence and market research findings indicate that many contractors receive some level of training on HVAC system installation. While many say they know what constitutes quality installation, various factors are barriers to quality installation. That said, even though systems are typically oversized, have insufficient airflow and leaky ducts, there is some anecdotal evidence that the degree of oversizing and leakage has decreased over time. Recommendations related to the benefits of contractor training are that while training and certification are necessary, they are not sufficient to achieve energy efficiency benefits. Therefore, efficiency programs should continue to promote comprehensive training that includes field practice by approved organizations. Meanwhile, programs should also adopt inspection, testing and third party verification as part of energy efficiency program design. In addition, increased code official compliance and education and customer education are needed.

4.2 Equipment Performance in the Northeast

The purpose of this research task was to monitor the performance of high efficiency cooling and heating equipment in the field40 and to assess the relationship between laboratory testing and real world performance.

40 The original scope of the STAC project was amended to include monitoring of heating equipment.

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4.3 Monitoring High Efficiency Central Air Conditioners

Proctor Engineering Group monitored five high SEER systems in New Jersey and New York during the 2005 cooling season with Campbell Scientific CR10X data loggers. The monitoring project included four air conditioners with recently installed high SEER two speed air conditioning systems and one high efficiency single speed AC system. Three of the systems were located in New Jersey and two of the systems were located in New York. The sample was a sample of convenience. The characteristics of the homes and air conditioners are listed in Table 4.5. Data collected included heating and cooling capacity, power consumption, EER, indoor/outdoor temperature and relative humidity. The data were analyzed to assess the relationship between laboratory testing and real world performance.41 Table 4.5 Characteristics of Air Conditioners and Houses That Were Monitored

House Characteristics

Site P42 Site S Site T Site N Site W

House Size (square feet) 1620 2375 1900 3500 2300

Year Built 2002 2000 1940s 1960s 1970s

Manual J7 Cooling Load (Btuh) at 90/75/63 22118 44683 24044 57380 25789

Air Changes per Hour (ACH50) 3.9 2.8 5.5 7.4 12.7

Air to Air Heat Exchanger Flow (% of airflow) 17% 12% none none none

% of Time Indoor RH >60% 2% 13% 0% 40% 35%

Air Conditioner Specifications

Rated SEER 14.25 14 15 14 14

High Speed Rated EER at 95/80/67 10.3 10.7 9.4 10.8 11.5

Low Speed Rated EER at 95/80/67 None 12.2 11.7 12.4 12.6

High Speed Rated Capacity at 95/80/67 (Btuh) 34900 46080 34300 48230 48230

Low Speed Rated Capacity at 95/80/67 (Btuh) None 25260 24700 27180 27180

Number of Compressor Speeds 1 2 2 2 2

Metering Device Fixed TXV TXV TXV TXV

41 These results were prepared by Proctor Engineering Group. Additional details are available in Cohn, Gabriel et al., 2006, “Two-Stage High Efficiency Air Conditioners: Laboratory Ratings vs. Residential Installation Performance” pending publication in ACEEE Summer Study Proceedings.

42 ARI ratings are not available for the system combination (using a third party evaporator coil). The estimated rated SEER, EER, power, and capacities are for a manufacturer’s combination with the same nominal capacity.

43

Fan Motor Hp 1/2 Hp 1 Hp 1 Hp 1 Hp 1 Hp

Fan Motor Type ECM ECM ECM ECM ECM

Fan Mode (TD = Time Delay IO = Instant Off) TD Const. TD IO Const.

House Characteristics All the sites were two-story homes with furnaces and ducts in the basement. Site P is a new modular home and Site S is a new ENERGY STAR home. The homes were tested for air leakage using a single point blower door test. There was a large variation in the measured air leakage (2.8 ACH5043 to 12.7 ACH50). Sites N and W were the leakiest homes and the dual capacity/variable airflow air conditioners were unable to adequately control the inside relative humidity. The cooling loads were calculated using Manual J 7. Latent and sensible loads were calculated independently. Site N has a Manual J 7 estimated load that exceeds the nominal tonnage of the installed air conditioner – an unusual situation. Air Conditioner Specifications The air conditioners represented a narrow band of efficiencies from 14 to 15. The units were three-ton and four- ton units. There were three different types of furnace fan operation observed in these units: Constant on – this produces the minimum latent capacity since moisture on the coil at the end of the compressor cycle is evaporated back into the house air; Time delay – this is the most common fan control which is designed to maximize the SEER of the unit; and Instant off – the fan control which should produce the most latent cooling (moisture removal). Results Low Speed Performance Sites P and T do not have low speed data because the former is a single speed machine and the latter dual speed machine that ran only on high speed. As noted in the table below, at low speed the other three units achieved 90+ percent of the rated capacity and their input power exceeded the rated values by 10 percent or more. The unit at Site N approached the rated capacity. The two speed high SEER air conditioning systems perform at 79 to 95 percent of their rated efficiency at low compressor speeds. This is due to a combination of lower than expected capacities and higher than expected compressor watt draws.

43 ACH50 refers to air changes per hour at 50 pascals of pressure.

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Table 4.6 Summary of Air Conditioner Performance at Low Speed Site Site P Site S Site T Site N Site W

Average Outside Temperature (deg F) NA 82.3 NA 82.3 82.1

Average Return Drybulb Temperature (deg F) NA 70.2 NA 71.1 73.7

Average Return Wetbulb Temperature (deg F) NA 63.8 NA 61.9 64.9

Average Cycle Length (min) NA 22.8 NA 62.1 64.7

Number of Cycles NA 414 NA 26 184

Capacity

End of Cycle Net Capacity (Btuh) NA 21529 NA 29230 24972

Mfr. Steady State (SS) Net Capacity (Btuh) NA 24333 NA 26855 26754

% of Mfr. Steady State Net Capacity NA 88% NA 109% 93%

End of Cycle Net Sensible Capacity (Btuh) NA 13483 NA 17225 17131

Mfr. SS Net Sensible Capacity (Btuh) NA 15080 NA 18415 18837

% of Mfr. SS Net Sensible Capacity (Btuh) NA 89% NA 94% 91%

Input Power

Total End of Cycle Input Power (W) NA 2011 NA 1943 2037

Mfr. Steady State Input Power (W) NA 1792 NA 1692 1860

% of Mfr. Steady State Input Power NA 112% NA 115% 110%

EER

End of Cycle EER NA 10.72 NA 15.09 12.27

Mfr. Steady State EER NA 13.59 NA 15.88 14.39

% of Mfr. Steady State EER NA 79% NA 95% 85%

High Speed Performance The two speed high SEER air conditioners generally perform at or close to the manufacturers’ ratings at high speed. Actual watt draws were close to manufacturer ratings. Thus, variations from rated efficiencies at high speed were primarily a function of variances from rated capacities (some lower and some slightly higher than rated).

Table 4.7 Summary of Air Conditioner Performance at High Speed Outside Temperature Bin Site P Site S Site T Site N Site W

Average Outside Temperature (deg F) 82.4 82.3 82.6 82.3 82.1

Average Return Drybulb Temperature (deg F) 72.5 70.2 71.9 71.1 73.7

Average Return Wetbulb Temperature (deg F) 64.7 63.8 63.7 61.9 64.9

Average Cycle Length (min) 14.5 9.2 128 10.3 29.6

Number of Cycles 366 186 9 9 52

Capacity

End of Cycle Net Capacity (Btuh) 23560 32933 27445 46822 46161

Mfr. Steady State (SS) Net Capacity (Btuh) 33685 40964 32488 44382 42436

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% of Mfr. Steady State Net Capacity 70% 80% 84% 105% 109%

End of Cycle Net Sensible Capacity (Btuh) 17018 19560 22777 28005 30823

Mfr. SS Net Sensible Capacity (Btuh) 20964 23900 24954 27692 27471

% of Mfr. SS Net Sensible Capacity (Btuh) 81% 82% 91% 101% 112%

Input Power

Total End of Cycle Input Power (W) 2902 4375 2627 3909 4127

Mfr. Steady State Input Power (W) 2647 4423 2719 4164 3988

% of Mfr. Steady State Input Power 110% 99% 97% 94% 103%

EER

End of Cycle EER 8.13 7.54 10.45 12.05 11.19

Mfr. Steady State EER 12.74 9.27 11.95 10.66 10.64

% of Mfr. Steady State EER 64% 81% 87% 113% 105%

Moisture Removal The two homes (P and S) with the least air leakage had heat recovery ventilators that supplied ventilation to the home. The single speed air conditioner in one of the tight homes (P) was able to keep the indoor relative humidity to less than 60 percent for all but two percent of the time. The two speed air conditioner in the other tight home (S) succeeded in that task all but 13 percent of the time. Moisture removal in home S was seriously compromised by the use of a continuously running fan.

The two leakiest homes (W and N) exceeded 60 percent indoor relative humidity (Rh) 35 and 40 percent of the time respectively. It is likely that Site W had significant duct leakage which, when combined with constant fan, caused latent removal problems the air conditioner could not overcome. Site N with instant off fan and a nominally undersized air conditioner was still unable to adequately control the moisture in the home. One reason for this was that the actual load was only 30 percent of the Manual J estimate. Sizing In all cases the actual loads under design conditions were less than Manual J7 estimates. In four of the five cases the loads were less than 60 percent of the Manual J estimate, and actual loads at two of the five homes less than 40 percent of Manual J (i.e. Manual J estimates for those homes were two to three times the actuals). Manual J results for the sensible portion of total loads were even worse. Oversizing is not likely to significantly affect seasonal energy use of variable speed systems. For most of the units the average duty cycle EER was very close to the end of cycle EER.

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Table 4.8 Comparison of Measured and Estimated Cooling Loads Site Site P Site S Site T Site N Site W

Design Cooling Loads

Manual J7 Estimated Total (btuh) 22,118 44,683 27,513 57,384 25,789

Measured Total (btuh) 8381 15,702 15,026 34,565 23,660

Actual/Total MJ7(%) 38% 35% 55% 60% 92%

Manual J7 Estimated Sensible (btuh) 19,298 37,841 24,044 52,682 23,226

Measured Sensible (btuh) 6687 10,648 12,395 15,767 16,244

Actual/Sensible MJ7 (%) 35% 28% 52% 30% 70%

Peak Energy Use Proper sizing may provide significant peak demand savings. Based on analysis of the results, Proctor noted that for two machines with the same peak EER, there will be no difference in peak energy consumption if the two units are sized to run continuously on peak. Given two machines sized to a high speed duty cycle of 75 percent at peak, with the same peak EER, one single speed machine and one two speed machine: the two speed machine would save 12 percent on peak. Seasonal Energy Efficiency Seasonal Energy Efficiency and consumption were calculated using TMY-2 temperature bins for locations selected for proximity, similar latitude, and similar distance inland. The capacities and input powers were averaged for all cycles in each temperature bin for Seasonal Efficiency calculations. Each site is compared to average central air conditioned homes in the Middle Atlantic region by AC Energy Intensity (kWh/sq.ft.) as reported by the Energy Information Administration Residential Energy Consumption Survey results from 2001. In all cases the measured seasonal efficiency was less than the rated SEER. Sites S and W would both be substantially more efficient without the continuous fan. All homes except Site N had an AC Energy Intensity (seasonal air conditioning kWh per conditioned square foot that exceeded the average for the Mid Atlantic Region.

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Table 4.9 Comparison of Measured and Rated Seasonal Energy Efficiency House ID P44 S T N W

Seasonal Performance

Rated SEER 14.25 14 15 14 14

Measured Seasonal BTU/Wh 7.92 8.6 11.5 11.7 8.25

Seasonal BTU/Wh without constant fan 9.9 12.2

Seasonal kWh 1445 2351 2777 2168 1870

Seasonal kWh without constant fan 1986 1299

Average Seasonal kWh/sq.ft. in Region 0.63 0.63 0.63 0.63 0.63

Site Seasonal kWh/sq.ft. 0.89 0.99 1.46 0.62 0.81

Fan Operation The two sites (S and T) with constant fan display some of the problems with that type of fan control; the seasonal energy efficiencies of these two units were substantially degraded. Single Speed System The one single speed machine was the worst performer of the units in this test; measured steady state efficiency was 64 percent of rated efficiency. This is inconsistent with the results of past field tests of other single speed air conditioners which suggested that properly installed units operated at efficiencies close to those suggested by manufacturer ratings. Summary of Air Conditioner Performance With a sample of four two-speed and one single-speed high efficiency systems definitive conclusions are not possible. However, results of the monitoring of these units suggest:

Actual average seasonal efficiencies were significantly lower than rated efficiencies. The average seasonal efficiency was 9.6 Btu/Wh or just 67percent of the units’ average SEER rating of 14.25. Part of this reason was that two units were operated with the fan running continuously. However, even adjusting for that effect the average seasonal efficency was just 10.6 Btu/Wh, or 74 percent of their average SEER rating.

Actual steady-state operating efficiencies of variable speed units can

differ from rated steady-state efficiencies. At low speed, they ranged

44 ARI ratings are not available for the system combination (using a third party evaporator coil). The estimated rated SEER, EER, power, and capacities are for a manufacturer’s combination with the same nominal capacity.

48

from 79 to 95 percent of rated efficiency. Higher than rated watt draws were the biggest contributor to lower efficiencies at low speed (although a couple of units also experienced slightly lower than rated capacities). Actual watt draws at high speed were very close to manufacturer ratings. Thus, variations from rated efficiencies at high speed were primarily a function of variances from rated capacities (some lower and some a little higher than rated).

The actual steady-state efficiency of the one single-speed AC was

much lower than (i.e. 64 percent of) its rated efficiency; this finding is inconsistent with the results of past field tests of other similar single-speed air conditioners45.

Manual J may significantly over-state actual total loads on the house.

Actual average total loads were 56 percent of Manual J estimates (i.e. Manual J estimates were as much as 2 to 3 times the actual loads). Manual J results for the sensible portion of total loads were even worse.

Humidity control was a significant problem in two homes. This

appears to have been a function of significant over-sizing relative to actual loads (not relative to Manual J, which dramatically over-estimated the load) in one home, and continuous running of the fan in another.

Occupant behavior has important impacts on system efficiency and

comfort. The two homes that ran their fan continuously saw significant deterioration of seasonal efficiency as a result. One of those homes also experienced a serious inability to control humidity levels because continuous fan use negates the ability of a central air conditioner to remove moisture from the air (the moisture on the coils is re-evaporated when the compressor turns off).

Building envelope can impact system efficiency. Significant air

leakage in some of the homes was a factor contributing to the inability of some of the systems to control humidity.

Over-sizing is not likely to significantly affect seasonal energy use of

variable speed systems, since – for most units – the average duty cycle EER was very close to the end of cycle EER. However, proper sizing may still provide significant peak demand savings.

Variable speed ACs do not run continuously at full speed during the

peak hour if the thermostat is not manipulated to make them do so (this happened in one home).

45 John Proctor, personal communication, January 2006.

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The interaction of sizing, building tightness, and occupant behavior (thermostat settings and/or fan use) impacts system efficiency. As noted in the discussion, all of these factors influence measured system efficiency.

4.4 Monitoring High Efficiency Gas Furnaces

Four of the five sites in the Central Air Conditioning Monitoring Study had high efficiency condensing gas furnaces that were monitored during the 2004/2005 heating season. Condensing gas furnaces are the most energy-efficient furnaces available, with seasonal efficiencies between 89 and 97 percent. Most have burners similar to conventional furnaces, with draft supplied by an induced draft fan. There are additional heat exchange surfaces made of corrosion-resistant materials (usually stainless steel) that extract most of the heat remaining in the combustion by-products before they are exhausted. In this condensing heat exchange section, the combustion gases are cooled to a point where the water vapor condenses, thus releasing additional heat into the home. The condensate is piped to a floor drain. In this monitoring study, operating characteristics were measured and seasonal performance of the furnaces was calculated. Summary results are provided in the table below. Additional details, including charts of each furnace’s cycle length and end of cycle and mean efficiencies throughout the range of temperature differentials, are provided in Appendix D. Table 4.10 Summary of Furnace Specifications and Operating Characteristics

House ID W T P S

House Size (square feet) 2300 1900 1620 2375

Year Built 1970s 1940s 2002 2000

Furnace/Air Handler Location Basement Basement Basement Basement

Manual J Heating Load 49,709 30,594 20,701 58,680

Air Leakage ACH50 12.7 5.5 3.9 2.8

Air to Air Heat Exchanger Flow (% of total airflow)

None None 17% 12%

Furnace Specifications

Rated AFUE 0.941 0.943 0.91 0.941

Low Fire Input (BTU/h) 52,000 60,000 52,000 52,000

High Fire Input (BTU/h) 80,000 88,000 80,000 80,000

Rated Temp Rise (deg F) 50-80 35-65 50-80 50-80

Rated High Fire Temp Rise (deg F) 35-65 70-100 35-65 35-60

Fan Motor Hp 1 Hp 1 Hp ½ Hp 1 Hp

Fan Motor Type ECM ECM ECM ECM

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Furnace Operating Characteristics

Mean Indoor Temperature (deg F) 65.9 69.3 67.4 69.5

Run Time at Bin of Highest Use 48.5 16.5 6.2 13.0

% of Time on High Fire 16% 8% 0% 5%

Seasonal Gas Energy Use (Therms) 2006 937 724 465

Seasonal Electrical Energy Use (kW) 1023 313 302 158


Measured Heating Load BTU/h 53,886 30,594 14,570 na

Seasonal Efficiency 0.67 0.68 0.59 0.79

Measured Heating Load as % of Manual J7

108.4% 71% 70% na

Summary of Furnace Performance

The Annual Fuel Utilitization Efficiency (AFUE) is the most widely used measure of a furnace’s heating efficiency. The U.S. Department of Energy defines AFUE as:

“The measure of seasonal or annual efficiency of a furnace or boiler. It takes into account the cyclic on/off operation and associated energy losses of the heating unit as it responds to changes in the load, which in turn is affected by changes in weather and occupant controls46.”

Figure 4.11 Comparison of End of Cycle Efficiency at Maximum Temperature Differential with Rated AFUE

0

0.2

0.4

0.6

0.8

1

P 8.9 S 18.5 T 23.9 W165.2

End of CycleEfficiency

Rated AFUE

Note: Both the site identifier and the cycle length (minutes) at maximum temperature differential are shown on the x axis.

In this sample of four condensing gas furnaces, all had AFUE Ratings over .9 (over 90 percent). The efficiencies measured based on monitoring results were in the 60-80 percent range. A sample of four condensing furnaces provides anecdotal information, and is not a representative sample. These results are

46 http://www.furnacecompare.com/faq/definitions/afue.html

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impossible to explain without additional information. For example, more information is needed to understand the degree to which building envelope factors and occupant behavior and sizing affect equipment performance. It would also be helpful to better understand assumptions and test conditions used in the establishment of manufacturer AFUE ratings.

Contrary to conventional and mid-efficiency furnaces, where efficiency decreases with furnace oversizing, some literature suggests that “condensing furnaces are actually more efficient when they are oversized and run for shorter periods.”47 To investigate these and other benefits of high-efficiency condensing gas furnaces in comparison to conventional furnaces, monitoring of the in-field performance of conventional equipment is also needed.

Note that measured heating loads of two furnaces, T and P, are 70 percent of Manual J7 loads. The furnace that is the closest to the actual heating load (W) has a measured efficiency similar to site T. Although W, and S have the same rated AFUE, they vary with respect to cycle length and measured efficiency. Cycle length is dictated by thermostat deadband and the volume of the house as well as furnace size. Based on cycle lengths, W at 48 minutes ought to be most efficient; however S with the second lowest cycle length, 13 minutes, is most efficient. P, which also has a smaller fan motor, has the shortest cycle length and also the lowest efficiency. The site with the longest cycle, W, has an intermediate efficiency.

Because this monitoring task was an add on to the original project scope, with limited funding, it was not possible to conduct a comparative study of conventional and condensing furnaces, or to identify the factors contributing to the differences between measured and rated performance of the four furnaces that were monitored. However, these monitoring results raise questions that may merit future research with larger sample sizes.

47 This point is discussed in oee.nrcan.gc.ca. See this site also for further discussion of size ranges available in condensing furnaces.

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5. CASE STUDY: Duct Sealing Market Research and Proposed Program Design Duct sealing is an important but challenging component of a strategy to increase overall HVAC energy efficiency in residential buildings in the Northeast. One task in the STAC project was to propose a program design to deliver duct sealing, following review of current programs, literature and market research to test program design concepts. Key aspects of this task are summarized here, and additional details are available in Appendix E.

5.1 Barriers and Opportunities Related to Market-Based Duct Sealing Programs in the Northeast While the potential market for duct sealing is large, current opportunities to deliver quality duct sealing are limited. A successful market-based duct sealing program must address the following barriers: customers’ lack of information, their lack of understanding that comfort humidity issues may be related to duct leakage, lack of a clearly defined product that customers can understand such as the inclusion of measurable performance criteria, as well as customers’ inability to identify contractors with the proper equipment and expertise. In addition, customer up-front investment is a barrier. Lack of adequate training and certification of HVAC contractors is another barrier. Market research suggests that a majority of HVAC contractors are somewhat knowledgeable about duct sealing but not specifically trained and certified on duct sealing.48 Moreover, those who are trained and certified do not necessarily apply their training in the field. Because the residential HVAC business is a low-bid business, HVAC contractors see little opportunity for profit from investing extra time, staff, paperwork or training on duct sealing. Furthermore, duct sealing is not typically a stand-alone activity. More commonly, when it is done, it is done in combination with other services. Another barrier is that there is no quality assurance process in place to ensure that duct sealing is done properly. As indicated by various field studies, building codes have not proved sufficient to ensure proper duct sealing in these markets. Building code requirements in the Northeast address only the new construction and remodeling parts of the target market for duct sealing. From a strategic perspective, the growing interest in duct sealing among efficiency program administrators in the Northeast, and the ENERGY STAR specification for duct sealing, are both opportunities and barriers. Utility

48 Please see Appendix A for tabulations of HVAC contractor survey questions related to current duct sealing practices.

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incentives and “branding” of duct sealing can assist contractors in delivering and marketing duct sealing, but the variety of programs and program requirements sends confusing signals and adds to the “cost and hassle” concerns of contractors. While performance requirements are common and often necessary for implementation of efficiency programs, flexibility is needed to capture a significant portion of the potential market. The Massachusetts residential new construction program for example, now offers tiers of duct sealing requirements, which enlarges its target market. High fuel costs are an opportunity in the sense that they can help generate customer interest and awareness of energy savings; they also increase the value of the savings to utilities. Finally, recent increases in the availability of training and certification of HVAC contractors on installation issues by utilities and trade organizations are an opportunity, as these can be leveraged by a market-based duct sealing program. Existing Duct Sealing Programs Experience with existing duct sealing programs is concentrated in the Southern and Northwestern states. A survey of current duct sealing programs is included in Appendix E. Some programs emerged in Florida in the early 1990’s. More recently Georgia, Texas, Arizona, Oregon, California, and New York introduced programs. Virtually all of the programs provide incentive payments to defray customer and/or contractor costs. Some (Connecticut for example) offer free duct sealing to customers or free contractor training (Texas, San Diego County). Many provide training for HVAC contractors. Two programs partner with the federal ENERGY STAR program (Texas, New York State Energy Development and Research Authority), and at least two have duct sealing performance requirements similar to the ENERGY STAR requirements (Sacramento California, Oregon). Most of the programs use conventional marketing including stuffers and mass media outlets, as well as relying on contractors for marketing. One unique community-oriented word-of-mouth-based marketing strategy used in a pilot program by Georgia Interfaith Power and Light and the Georgia Power Company is to recruit customers in church congregations.49 Most programs specialize in serving either new construction or duct repair in existing homes, or in one case, the mobile home market. Given that contractors tend to specialize in one market and that the programs restrict participation to trained contractors, opportunities to increase the supply of trained HVAC contractors are somewhat limited.

49 Katy Hinman, Executive Director, Georgia Interfaith Power and Light, personal communication, October 2005.

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California provides examples of multiple duct sealing program strategies. Taken together, they combine the market pull of efficiency programs,50 providing incentives to contractors to offer duct sealing as a remediation service, with the market push of a new building energy code that includes both measurable performance criteria and a quality assurance process for duct sealing in new construction and remodeling projects. Beginning October 1, 2005, under Title 24 of the California building energy code, a home’s ducts must be tested for leaks when a central air conditioner or furnace is installed or replaced. Ducts that leak 15 percent or more (relative to total cfm distribution) must be repaired to reduce the leaks.51 Under the Prescriptive Compliance Approach, every custom home and every seventh production home must be tested by a HERS rater. After the job is complete, the homeowner chooses whether to have an approved third-party field verifier check to make sure the ducts testing and sealing were done properly or to have the home included in a random sample where one in seven duct systems are checked. Under the Prescriptive Compliance Method ducts must be sealed in all climate zones. Under the Performance Compliance Method, the builder may make credit by “trading-off” between the building envelop, water heating and space conditioning, but will probably find that duct sealing is the most cost effective measure.52

5.2 Market Research on Duct Sealing Program Design

As part of the STAC project, three core program design scenarios for the delivery of market-based duct sealing programs were identified, and HVAC contractor reactions to these scenarios were tested in a focus group of ten contractors53 in Clifton, New York in October 2005. Performance standards for the three scenarios were held constant. The scenarios included: Code Change. Local building codes are changed so that all duct systems for newly constructed homes or major renovations must be sealed. For replacing equipment on existing duct work, systems leaking in excess of 20 percent must be sealed to less than 15 percent of total airflow. Before installing any new or existing system, a contractor must include plans for testing ductwork and measuring duct leakage. Code inspections may include testing and verification of adequate duct sealing, and failure to achieve an adequate level of duct sealing will result in failure to pass code inspection.

50 The Sacramento Municipal District 2006 Air Conditioner and Heat Pump Program, for example, offers incentives to contractors for duct sealing based on measurable criteria and includes a verification requirement. 51 The mandatory requirements for duct systems include: UL 181 approved tapes and sealants; no duct tape without mastic and a draw band; building cavities cannot convey conditioned air; plenum insulation must have a R4.2 resistance factor; ducts must be supported every four inches to reduce sagging. 52 See http: www.title24energy.com/title24_testing.php 53 Five were recruited from the NYSERDA Home Performance with ENERGY STAR program list of participating contractors and five from the local yellow pages.

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Premium Service Program. Financial incentives are offered for testing and sealing ductwork. This includes payment to the contractor upon testing duct leakage and providing test results to the customer; payment to the customer upon satisfactory completion of duct sealing; and payment to the contractor upon satisfactory completion of duct sealing. In addition, participating contractors will be required to attend a three-day training on duct sealing techniques. To ensure quality of service delivered, contractors will be required to call a dedicated call center and report on specific testing and performance measurements to verify that the duct system is adequately sealed. All jobs will be subject to independent testing and verification. Ten percent of all rebated systems will be independently tested and verified. Failed systems result in penalties to the contractor. Add-On to HVAC Installation Program. Duct sealing services will be added on to existing energy efficiency programs, such as incentives to purchase high efficiency furnaces or central AC systems, or energy audits of existing homes, for example. Financial incentives are offered to the customer and contractor. Requirements for the contractor are similar to those in the premium service scenario – requirement of free training to participate. All jobs will be subject to similar independent testing and verification. The contractor receives an incentive to become NATE-certified that covers the training and exam costs. The customer receives an incentive payment for each high efficiency furnace, central AC or heat pump system that is installed by a NATE-certified contractor and sized by ACCA procedures. The customer receives an incentive for satisfactory completion of the duct sealing work as well. Participants in the focus group scored each scenario based on their perceptions of the scenario’s strengths and weaknesses, by rating a set of statements on a scale of 1 to 5, strongly agree to strongly disagree. Further details of the focus group research are included in Appendix E. The table below is based on a summary of the scores from the participants, based on aggregating evaluated statements into two groups, scenario benefits and scenario costs and ranking the respondent results from 1 to 3. A rank of 1 indicates the scenario is most preferred, based on strongest agreement with evaluated statements. Table 5.1 Set of Program Attributes Evaluated by Focus Group

Benefits This program offers clear verifiable standards so that my work will be held to the same standard as my competitionThis program will give me added business during slow seasons.This program gives me a good way to differentiate myself from the competition.I think my customers would take advantage of this program.Costs Paperwork and inspection process sound reasonable to me.My training needs will be adequately addressed.This program would be a tough sell to customers.This program will cost me more in equipment than I can recover.Applications This program will be effective in new construction and first-time installations.This program will work well for retrofits.

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Table 5.2 Focus Group Results: Rank of Scores by Scenario Attributes Code Premium Add-On Maximum Contractor Benefits 3 2 1 Minimum Contractor Costs 3 2 1 Effective for: New Construction 3 2 1 Retrofit 3 1 2 Overall Grade 3 2 1 Note: Rank where 1 is scenario most-preferred by respondents and 3 is least- preferred, based on their scores on evaluated statements In summary, the results of the focus group indicate that the participants preferred incentive programs to code change as a program approach. Discussion revealed that a major concern was inconsistency of code enforcement by code officials. Also, the incentive programs are more likely to serve a larger variety of customers (new construction and retrofit). These results imply that elements of a program design that will be successful from contractors’ perspective should include:

Clear verifiable performance standards; Different criteria for new and retrofit applications; Customer education; Marketing support for contractors; Recognition that in current practice duct sealing competes with the

installation season, most training is on-the-job, and that code change as a stand-alone strategy restricts the target market and energy savings potential from duct sealing unnecessarily.

5.3 Plan for Duct Sealing Program

Strategies and Goals The fundamental goal of this program will be to create a residential duct sealing market in the Northeast to one in which quality installations or repairs are standard practice. Making properly sealed ducts the norm in the residential housing sector will be expected to generate substantial energy and peak demand savings.

Program Features The program combines lessons learned from the analysis of existing programs. Key features of the recommended market-based program strategy include:

Verifiable and enforced performance criteria; A comprehensive incentive structure that allows contractors to address

nearly every system that has potential in both new construction and existing homes;

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Hands-on in-field training for contractors; Leveraging other national efforts, including quality installation

specifications developed by ACCA and the national ENERGY STAR Homes program criteria and ENERGY STAR duct sealing specifications;

Building energy code requirements that define measurable standardized minimum acceptable performance criteria for duct sealing in new HVAC installations.

To be successful in transforming the market, the program will need to address all the market barriers to duct sealing. Given the diverse nature of the barriers and the large potential target audience, the program will have several components that are described below.

Verifiable Performance Criteria and Comprehensive Incentive Structure. Table 5.3 identifies the performance criteria and incentive structures developed for three categories of potential duct sealing customers: ENERGY STAR Homes program participants, customers with new duct installations, and customers with existing ductwork in need of repair and sealing. These requirements are intended to reinforce customer education and provide incentives for contractors. Additional incentives to raise the skill level of HVAC contractors and to assist with marketing and customer education are also provided.

Table 5.3 Summary of Proposed Performance Criteria and Incentives

Target ENERGY STAR Homes

New Ductwork Duct Repair

Performance Criteria

Customer Incentive

Contractor Incentive


Customer Incentive


Base $50 towards audit measuring of pre-treatment CFM

$.50/CFM

Reduction for documented treatment

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Tier 1 <6 CFM to outdoors per 100 sq ft of conditioned space54

<6 CFM to outdoors per 100 sq ft of conditioned space

$100 per qualifying job


Reduce leakage by 50% or achieve <20% of system air flow



Tier 2 <4 CFM to outdoors per 100 sq ft of conditioned space55

<4 CFM to outdoors per 100 sq ft of conditioned space



Reduce leakage by 67% or achieve ENERGY STAR duct sealing criteria of 10% of total system leakage.56



Contractor Incentives to Support Training and Marketing.

Any participating contractor who successfully completes the training and certification qualifies for a partial rebate on the purchase of duct measurement equipment (e.g. a Duct Blaster).

Participating HVAC Contractors who successfully complete a minimum threshold number of jobs in a year will be entered into a drawing for a prize.

Contractors who measure whole house leakage and submit documentation of the test results to the customer and program administrator will receive an incentive to help defray the cost of the test.

This is a first step in educating customers about the possible interactions of duct leakage and house leakage and the impact of house leakage on the performance of HVAC equipment. It will provide customers and program administrators with information that can assist in identifying and prioritizing additional energy efficiency opportunities.

54 The EPA duct leakage requirement reported in the ENERGY STAR Qualified Homes National Performance Path is: “Ducts must be sealed and tested to be 6 cfm to outdoors/100 sq. ft. of conditioned floor area, as determined and documented by a RESNET-certified rater using a RESNET-approved testing protocol or through an equivalent ASTM-approved testing protocol. Duct leakage testing can be waived if all ducts and air handling equipment are located in conditioned space (i.e., within the home’s air and thermal barriers) AND the envelope leakage has been tested to be 3 ACH50 OR 0.25 cfm50 per sq. ft. of the building envelope.” (www.energystar.gov/partners) 55 This condition meets ENERGY STAR criteria under the Building Option Package (BOPS) in which HERS ratings are not used (Richard Faesy, personal communication, May 25, 2006). 56 Supply and return leakage divided by fan flow should be no more than 10% or 40 cfm/ton per ENERGY STAR DUCT SPECIFICATIONS (www.energystar.gov/ia/products).

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Contractor Training and Certification. Participating contractors are required to successfully complete an approved training program that includes infield practice. If contractors have previous training that covers the training program content, they must demonstrate completion of that training (e.g. certification) and be observed in the field prior to participation.

Referral/Marketing. Program administrators will market the duct sealing services, and post lists of certified participating contractors on a web site.

Quality Assurance. Contractors must submit documentation of pre- (retrofit) and post-duct sealing tests prior to receiving rebates. Independent testing and random verification of some sample of all jobs will take place. For example, the NYSERDA Home Performance program requires independent quality assurance technicians check the first three jobs of every participating contractor. After that, they inspect 15 percent of all the jobs completed. Customers can also request inspections.The test results are included in quarterly reports57. Failure in the testing and verification will result in penalties to the contractor.

Delivery. These duct sealing provisions may be offered as one or more stand-alone programs or as components of a building performance program and/or an efficient equipment program, depending on the portfolio and needs of individual program administrators. Economies of scale are available by providing training to contractors and independent verification and testing as services to all possible target audiences.

Building Energy Code Upgrade. The incentive and performance criteria recommended to increase duct sealing is a strategy to build a market. Adopting a longer term perspective, program administrators have the opportunity to help increase opportunities for duct sealing through building code upgrades. The combination of California Title 24 building energy code experience combined with evaluation results from current and future Northeast duct sealing efforts could serve as inputs to recommendations for building code change at the national level. Program administrators can identify and begin to work with an appropriate organization, such as the Alliance to Save Energy Building Code Assistance Project, on this issue. The next opportunities for updates of the International Construction Code are three and six years in the future, March 2009 and 2012, respectively. Recommending code changes typically requires enlisting interest and support from around the country, including documentation of impacts including expected costs and energy and other benefits. While state-level building energy code upgrades can also be made, change at the national level would have a larger market-based impact. Impacts on Market Barriers

52 Mark Dyen, personal communication, February 2006.

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The table below summarizes how the market barriers will be addressed by various duct sealing program features. Table 5.4 Market Barriers Addressed by Intervention Strategies Market Barriers Program Feature/ Intervention Strategy Customers Lack of Information Marketing and outreach Lack of Understanding Use ENERGY STAR Brand where applicable

and incentives to send message, piggy back on other efficiency programs

Inability to Differentiate Contractors Establish Preferred contractor program with requirements for participation in incentive programs

Up -front Investment Required Incentives Contractors Lack of Training and Certification Work with trade allies to design and offer training

on techniques; Installation Skills not applied Provide in the field training; quality assurance

component; building code change; measurable criteria

Quality not Assured Require third party inspection, verification; impose performance requirements that are measurable standards

Lack of Profit Motive Tiered incentives; penalties for failed performance; provide for training; change building code to level playing field

Lack of Utility Program Consistency Encourage consistency in approaches with

neighboring utilities. Evaluate pilot efforts early to refine incentives,

messaging, savings estimates. Leveraging national efforts including the ACCA

quality installation specifications and Energy Star Homes Programs.

Evaluation and Tracking: Indicators, Outcomes Measurable progress in the following areas can be tracked. In the first two to three years, the program will attempt to:

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Increase the number of HVAC contractors with good skills by promoting in-depth training on equipment, sealing products, and key issues related to design and repair;

Increase the quality of duct installations and repairs by including measurable performance standards and third party verification of workmanship into the practice of duct sealing.

Raise the market penetration of duct sealing services in conjunction with other efficiency services available to single family residential homes, including new construction, remodeling/replacement, and existing homes.

Increase customer awareness by providing customer incentives for proper duct sealing practices in conjunction with other energy efficiency services.

Increase customer and contractor perception of value. Prepare for future building energy code update by documenting regional

baselines and duct sealing program results, as the next opportunity to update ICC code will be in 2009.

The program should be judged according to its ability to meet these objectives over the next three years. Longer-term objectives of the program are to

Identify and make use of appropriate mechanisms for permanently institutionalizing demand for and supply of duct sealing practices in the residential HVAC market.

Reduce the costs of duct sealing practices. Establish consistent duct sealing requirements in the region. Update national building energy code concerning duct sealing. Facilitate or support efforts of regional and national stakeholders to modify

ICC Building Code to establish performance standards and a third party inspection process for duct sealing for consideration in the 2009 or 2012 update.

Increase the regional baseline energy efficiency of new HVAC installations by changes to building energy codes related to duct sealing in some Northeast states.

Program Integration Many of the program features can be added on to existing programs that promote high efficiency heating and cooling equipment and to programs that offer home audits and weatherization services. To maximize participation, gas and electric efficiency programs should share in benefits and costs of the program features, as well as providing coordinated training, marketing, and outreach to appropriate customers.58

58 If/when oil energy efficiency programs are developed, these should also share in benefits and costs of developing a market for duct sealing.

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Program administrators should leverage other opportunities to communicate the duct sealing message to homeowners and contractors, such as outreach about equipment operation and maintenance or health benefits related to indoor air quality.

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6. CONCLUSIONS AND RECOMMENDATIONS: Agenda for Increasing Energy Efficiency in Northeast Regional HVAC

6.1 Conclusions

As shown in previous sections of this study, it is possible to achieve enough energy and demand savings from efficient residential HVAC over the next ten years to reduce consumption by over one percent of forecasted residential oil, gas and electricity demand in 2016. This can only be accomplished by significant improvements in whole HVAC systems throughout the region and across all fuels. The improvements will necessarily reflect changes in practices as well as in the distribution of HVAC equipment in the region including:

Proper sizing and quality installation of residential HVAC equipment Equipment efficiency Distribution systems, duct sealing and thermal envelope Market mechanisms that lead to maintenance and optimal operating

efficiency of HVAC systems.

6.2 Strategy

The first step in realizing the estimated potential is to identify the strategies that are needed to overcome barriers present in the current Northeast HVAC market. In recognition of the complex nature of the market, the agenda for change needs to engage many, varied stakeholders in the market. We recommend four interrelated strategies to achieve the desired changes in the Northeast region. They include:

1. Coordinate efficiency program efforts across fuels and sectors. Energy efficiency programs that are active in the region already play a key role in overcoming customer and HVAC contractor-related barriers to improved energy efficiency. We recommend that these programs continue with some enhancements and that new programs are launched, with the end result that installation practices, operation and maintenance, HVAC equipment for all fuels, and thermal envelope improvements are program elements in all states, across all fuels – oil, gas, and electricity, and for all sectors – new construction, remodel and retrofit. Coordination is needed so that customers and HVAC contractors receive consistent messages about HVAC energy efficiency opportunities. Coordination across programs, sectors and fuels could also leverage promotions, the costs of providing HVAC contractor training and installation inspections, and sharing of information.

2. Cultivate industry partnerships. Many activities that break down barriers

to increased HVAC energy efficiency take place among industry

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stakeholders, often at the national level. Examples are ENERGY STAR branding of efficient equipment, efficiency tiers defined by CEE, NATE certification procedures for HVAC contractors, and ACCA’s recent development of specifications for heating and cooling equipment installation. We recommend that program administrators and other stakeholders from the Northeast continue to participate in these and other industry partnerships. In this way, the needs and interests of the Northeast are represented to industry, and the products of the industry partnerships can be incorporated into efficiency programs.

3. Upgrade state and federal building energy codes and equipment

standards. Codes and standards complement the market pull of efficiency programs. Upgrading codes and standards raises the floor, or baseline energy efficiency and is thus an important aspect of market transformation. Energy efficiency standards for some HVAC equipment are under consideration in several Northeast states. Updated building energy codes would provide another opportunity outside of energy efficiency programs to encourage or enforce quality HVAC installation practices. For example, California’s Title 24 building energy code on duct sealing sets measurable performance standards and has provisions for quality assurance verification. At the national level, the IECC updates building energy codes every three years.

4. Support continued research and development of emerging and new

technologies that reduce HVAC energy and peak demand. New and improved HVAC technology is one of several ways to increase HVAC efficiency. New research that is needed includes better understanding of in-field performance of some high efficiency equipment to assure that it delivers the savings that are expected; continued research to move products under development into market; and market research to inform the development of program plans that incorporate new technologies.

6.3 Recommended Tactics

For convenience, recommendations on how to carry out strategies have been grouped in to three categories below. 1. Enhance and increase regional coordination of current program efforts addressing retrofit, remodel, and new construction sectors.

Continue gas furnace/boiler rebates. Continue central A/C rebates but in conjunction with a quality installation

verification (QIV) requirement. Expand Home Performance with ENERGY STAR. Provide QIV for all central A/C installations. Continue and expand HVAC contractor sales training.

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Provide consumer education (social marketing) about the importance of quality installation and the value of trained HVAC contractors.

2. Launch new efforts.

Develop or expand HVAC service and repair programs. Launch duct sealing initiative as a new program or an element in existing

programs targeting new construction, retrofit, and remodeling customers. Create an oil/propane heating program funding mechanism. Provide oil/propane heating equipment rebates. Develop a ductless minisplit initiative. Promote cross-program integration across fuels, sectors, and states.

3. Support national efforts, industry collaboration, and research and development.

Update equipment standards and building energy codes. Support ACCA, BPI, ENERGY STAR, CEE and other national efforts. Support industry efforts to establish QIV specification. Conduct additional market, field research and product development.

6.4 Measures of Success

By implementing the comprehensive set of recommendations we should expect to see many changes in the HVAC market. Listed below are some quantifiable measures that can be used to track progress over time. Short Term Measures The list below identifies measurable changes that are expected over the next three to five years, as a result of increasing institutionalization of recommended strategies to increase HVAC efficiency.

Increasing number of HVAC technicians receiving training and certification;

Increasing number of HVAC firms being accredited; Growing use of third-party field verification tools; Increasing market shares for efficient HVAC equipment; Increasing consumer awareness of importance and benefits of efficient

equipment and – at least as importantly – quality installations; Increased marketing of efficiency – particularly quality installation and

servicing – by HVAC manufacturers, distributors and contractors. Long Term Measures

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The list below identifies measurable changes that are expected over the next five to ten years, as a result of increasing institutionalization of recommended strategies to increase HVAC efficiency.

A small, but significant percentage (e.g. 3 to 5 percent) of HVAC contractors see duct sealing as a profitable business opportunity and aggressively sell such services.

The majority of new furnaces sold have efficient fans. New gas furnaces sales are typically condensing (i.e. over 80 percent

market share). New oil furnaces sales typically have AFUEs of at least 85 percent, with

condensing units (90 perent AFUE) having a significant market presence (i.e. five to 10 percent market share).

Sales of boilers – gas and oil – with AFUEs of 85 perent are standard (i.e. over 80 percent market share).

Sales of condensing boilers – gas and oil – have a significant market presence (i.e. five to 10 perent).

Among new installations, average heating and cooling system over-sizing is half of current national averages (i.e. reduce to average over-sizing of 50 percent or less for heating systems and 30 percent or less in cooling systems).

Fewer than 25 percent of all new central air conditioners are charged incorrectly.

Fewer than 25 percent of all new central air conditioners have inadequate airflow (i.e. have less than 350 cfm/ton).

7. APPENDICES

Nexus Market Research

Appendix A: Regional HVAC Market Research Survey and Results

Part 1 of 3 03-STAC-01

Memorandum To Characterize the Heating and Cooling Market in the Northeastern U.S., New York, and

New Jersey

Submitted to:

Northeast Energy Efficiency Partnerships under contract to

NYSERDA, New Jersey BPU and the State Technologies Advancement Collaborative (STAC)

Performed by: Nexus Market Research, Inc.

November 2005

Contents 1 Introduction................................................................................................................. 1 2 Methodology ............................................................................................................... 2

2.1 Installers and Dealers.......................................................................................... 2 2.2 Equipment Distributors and Wholesalers ........................................................... 3 2.3 Program Managers and Implementers ................................................................ 3 2.4 Program Allies .................................................................................................... 4

3 Executive Summary .................................................................................................... 5 4 Installers and Dealers................................................................................................ 10

4.1 HVAC Module.................................................................................................. 10 4.2 Plumbing Module.............................................................................................. 14

5 Equipment Distributors and Wholesalers ................................................................. 17 6 Program Managers and Implementers ...................................................................... 24 7 Program Allies .......................................................................................................... 29


Task 2 STAC Market Characterization Memorandum Page 1

1 Introduction This memorandum reports the results of a study to characterize the market for residential heating and cooling equipment and installation services in the northeastern United States. This market characterization task was conducted for the Northeast Energy Efficiency Partnerships (NEEP) under contract to the New York State Energy Research and Development Authority (NYSERDA) and the New Jersey Board of Public Utilities (NJ BPU) under a grant as part of the national State Technologies Advancement Collaborative (STAC)—a five-year pilot program funded by the U.S. Department of Energy. The overall goal for this market research effort is to characterize regional (New York, New Jersey, and New England) market trends for different residential heating and cooling equipment, fuel types, and installation services. In addition, this memorandum explores the following: how new construction, remodeling and renovation activities, system replacement, and fuel conversions are affecting the market; the effect of existing and possible future equipment efficiency standards on the market; how new or emerging technologies may impact the market; and how industry is marketing products and services to consumers. Nexus Market Research (NMR) conducted this market characterization task through structured discussions by telephone with heating and cooling program managers and implementers in local, regional, state level market transformation, energy efficiency & utility organizations; program allies in trade, training, and certification organizations; heating and cooling equipment distributors and wholesalers; and formal computer-assisted telephone interviews (CATI) with heating and cooling installers and dealers. In this memorandum, NMR summarizes the findings from each of the interview and survey efforts to develop an overall picture of the heating and cooling market in the Northeast. This assessment aims to provide information to program administrators on the current market and future trends for efficient HVAC products and installation and maintenance services in the northeastern United States.



2 Methodology The methodology for this market characterization task is outlined by the market actors interviewed as follows:

• Installers and Dealers • Equipment Distributors and Wholesalers • Program Managers and Implementers • Program Allies

2.1 Installers and Dealers

NMR completed 50 installer and dealer (a.k.a. contractors) interviews using a computer assisted telephone interview (CATI) system during April and May 2005. With 50 interviews, the survey’s sponsors recognize that the sample is not representative; nonetheless, every attempt was made to make the sample as representative as possible. The survey’s sponsors agreed on a quota system to ensure adequate representation by state based roughly on household population; but was fine-tuned to include a minimum requirement of two complete interviews per state, with a maximum of 15 (30%) interviews to be completed each in New York and New Jersey, and the remaining 20 interviews (40%) to be completed in New England. Table 2-1 shows the final disposition of completed interviews by state which matched the intended quotas reasonably well, but did result in single interviews in RI and ME.

Table 2-1: Interviews by Geographic Region

State Completed Interviews Maine 1 Vermont 4 New Hampshire 3 Massachusetts 7 Connecticut 4 Rhode Island 1 New Jersey 15 New York 15 Total 50

The sample frame by state was drawn with additional considerations for heating fuel type (oil versus natural gas) to capture regional contractor expertise by equipment type. As a primary heating fuel, natural gas is more common in mid-atlantic states (NY and NJ) with relatively higher concentrations of “dry” heating and cooling systems whereas oil is more common in New England with “wet” heating and relatively fewer central cooling systems. NMR developed sample weights based on 2001 Residential Energy Consumption Survey (RECS) data to reflect proportional differences in fuel type, and drew the sample using purchased data of (yellow page listed) heating and cooling contractors. The survey’s sponsors also agreed on minimum quota requirements to ensure adequate coverage by contractor and equipment type. Table 2-2 lists the final disposition of completed interviews,



showing 26 heating, ventilation, and air conditioning (HVAC) contractors and 24 plumbing and heating (P&H) contractors from New England, New Jersey, and New York. In the final disposition statistics, responses conformed reasonably well to the sample design. There was a greater proportion of plumbing and heating contractors in New England, where fuel oil and boilers are relatively more common, and a greater proportion of HVAC contractors in New Jersey and New York, where forced hot air and central air conditioners are more common.

Table 2-2: Status of Respondents: Plumbing v. HVAC

Type of Business Total New England New Jersey New York Plumbing and heating contractors (“wet” heat) from SIC 171102, 171105, 171198)

21 9 6 6

Heating, ventilation, and air conditioning (“dry” heat) from SIC 171112, 171114, 171117, 171120)

26 8 9 9

Both 3 3 0 0

2.2 Equipment Distributors and Wholesalers

NMR completed interviews with eight equipment distributors and wholesalers. These in-depth interviews were conducted by telephone using a discussion guide allowing for extensive probing and follow-up. The interviews examined the distribution channels for heating and cooling equipment in the region (not all manufacturers use the same type of distribution channels to get their products to contractors), industry support of training and certification efforts, industry position on the promotion of high efficiency equipment, market consolidation, the impact of new or recent market entrants, e.g., Home Depot, Sears and Lowe’s, current trends in fuel market share, emerging technologies, and the impact of building codes, ENERGY STAR programs, and federal efficiency standards. The sample agreed upon by the sponsors was intended to provide maximum coverage of northeastern states, manufacturers, heating and cooling equipment types, and fuels. Sample data was provided by the sponsors themselves, the Eastern Heating and Cooling Council (EHCC), and in-house lists.

2.3 Program Managers and Implementers

NMR completed in-depth interviews with five regional program managers and implementers covering the majority of residential heating and cooling programs in the region. These interviews were conducted by telephone and focused on program goals and objectives, target markets, roles of different trade allies, program incentives, program marketing, and training and/or certification efforts and requirements.



2.4 Program Allies

Regional and national trade associations, training, and certification organizations can play a key role in providing training and/or certification programs to their members. NMR staff interviewed eight representatives (regional and national) of these organizations to better understand their current and potential future roles in offering training and certification services to their members.



3 Executive Summary This memorandum reports the results of a study to characterize the market for residential heating and cooling equipment and installation services in the northeastern United States. This market characterization task was conducted for the Northeast Energy Efficiency Partnerships (NEEP) under contract to the New York State Energy Research and Development Authority (NYSERDA) and the New Jersey Board of Public Utilities (NJ BPU) under a grant as part of the national State Technologies Advancement Collaborative (STAC)—a five-year pilot program funded by the U.S. Department of Energy. The overall goal for this market research effort is to characterize regional (New York, New Jersey, and New England) market trends market for different residential heating and cooling equipment, fuel types, and installation services. Nexus Market Research (NMR) conducted this market characterization task through structured discussions by telephone with heating and cooling program managers and implementers in local, regional, state level market transformation, energy efficiency & utility organizations; program allies in trade, training, and certification organizations; heating and cooling equipment distributors and wholesalers; and formal computer-assisted telephone interviews (CATI) with heating and cooling installers and dealers. In this memorandum, NMR summarizes the findings from each of the interview and survey efforts to develop an overall picture of the heating and cooling market in the Northeast. Installers and Dealers Heating and cooling installers and dealers are the key industry participant in understanding the delivery of efficient, well-installed heating and cooling systems in new and existing homes.

NMR completed 50 installer and dealer (a.k.a. contractors) interviews using a computer assisted telephone interview (CATI) system during April and May 2005. With 50 interviews, the survey’s sponsors recognize that the sample is not representative; nonetheless, every attempt was made to make the sample as representative as possible. The final disposition of completed interviews, showing 26 heating, ventilation, and air conditioning (HVAC) contractors and 24 plumbing and heating (P&H) contractors from New England, New Jersey, and New York.

HVAC • HVAC manufacturers are positioned to play a key role in the choices HVAC contractors

make for equipment recommendations, training, and installation techniques: Close to half of HVAC contractors surveyed install only one brand of heating and cooling equipment. Manufacturers also are a primary source for training of HVAC technicians and for providing contractors with installation technical assistance.

• HVAC technicians most often have EPA refrigerant certification; 14 out of 26 HVAC contractors say all of their technicians have this certification and five say at least one-quarter of their employees have it. Eight out of 26 HVAC contractors say at least some of their employees have NATE certification.

• In addition to certifications, 19 out of 26 HVAC contractors say their technicians are trained in duct-sealing techniques, including 12 contractors who say all of their technicians have duct-sealing training.

• A fast turn-around on most equipment installations means that HVAC contractors, not customers, likely drive the equipment choice.



o Taking into consideration all the cooling equipment and oil furnace replacement work they do, HVAC contractors estimate that roughly half are due to breakdowns and half are planned replacements. However, for gas furnaces, there are more planned replacements compared to breakdowns (62% v. 38%).

o In breakdown situations, customers typically expect to have the work done the same or next day. Planned replacements also have a tight time schedule and depending on the equipment, contractors say many customers need to have the work done in less than a week.

• For duct layout in residential new construction work, contractors typically decide the layout specification themselves. Rarely an architect or engineer is also involved. Nearly all HVAC firms rely on the ACCA Manual D to decide on the size, configuration, and layout of duct in residential new construction.

• While manufacturers do not figure as prominently in Plumbing &Heating (P&H) technician training as they do with HVAC contractors, manufacturers are an important information resource for P&H contractors. P&H contractors seek installation technical assistance from equipment manufacturers more than any other source. Also, 10 out of 24 P&H contractors install just one brand of heating equipment.

• For all types of cooling and heating equipment, HVAC contractors are not installing the most efficient units on the market. This practice has not changed much since 2003.

• For both CAC and gas furnaces, the proportion of high-efficiency CAC units being installed by HVAC contractors is smaller in New York compared to other regions.

• Even while contractors have definitive ideas about installation tools and techniques, they are open to input about efficiency improvements in home construction. If the builder or homeowner indicates that the home will be insulated and air-sealed to above code standards, 14 out of 19 HVAC contractors say they would change the specification for size of the CAC or heat pump to be installed.

Plumbing and Heating

• While manufacturers figured prominently in the training for HVAC technicians, for P&H technicians, they do not. This may be due to the fact that Plumber’s licenses figure prominently in the industry—21 out of 24 P&H contractors say their plumbers are licensed. The majority of P&H contractors say their plumbers have some form of certification, including six who say their plumbers have a Master’s license and five who say their plumbers hold Apprentice or Journeyman’s certification.


• As with HVAC equipment, because customers demand a fast turn-around on most P&H heating installations, contractors not customers, likely drive the equipment choice.



o Taking into consideration all the gas boiler replacement work they do, P&H contractors estimate that overall, an average of 53% are due to breakdowns and 47% are planned replacements. For oil boilers, contractors estimate that overall there are more planned replacements than breakdowns (63% v. 37%).

o In breakdown situations, customers expect to have the work done the same or next day. Planned replacements also have a tight time schedule; contractors say half of customers need to have the work done within one week.

• The proportion of high-efficiency gas and oil boilers being installed relative to other boiler efficiencies is larger in New England compared to other regions.

Equipment Distributors and Wholesalers Equipment distributors and wholesalers are the essential bridge between the dealer and the manufacturer. Not only do the distributors and wholesalers maintain equipment inventories for dealers who cannot afford to carry them; they also serve as the conduit for manufacturer promotional information, installation training, sales training, and other manufacturer service deliveries. NMR conducted interviews with eight representatives of regional equipment distributors

and wholesalers covering a significant number of heating and cooling products, equipment types, and fuel types in February and March of 2005.

Respondents shared little proprietary information on market share, sales, and segmentation. Qualitatively, respondents see little recent change in the market shares for high-efficiency equipment since 2003, other than increasing efficiency levels of installed gas furnaces.

o Two respondents forecast a 10% to 15% increase in demand over the next five to ten years for forced-air hydronic systems from representatives that serve the northern PA to ME regions for their company.

o Three respondents predict increasing installations of radiant heating systems, with demand increases ranging from 20% to 30% over the next five to ten years from representatives that serve the northern PA to ME regions for their company.

o Three respondents forecast a 10% to 25% increase in demand over the next five to ten years for variable speed technologies from representatives that serve the northern PA to ME regions for their company.

o Three respondents forecast a 10% to 25% increase in demand over the next five to ten years for mini-split systems from representatives that serve the northern PA to ME regions for their company.

Respondents indicate two major barriers to marketing and selling energy efficiency products and services: 1) Contractor reluctance to change; and, 2) The first cost barrier to the consumer who tend to focus on payback.

All respondents except one are aware of the ENERGY STAR label. Of those who are aware, none are aware of the proposed specification changes, and opinions of the ENERGY STAR program vary from enthusiastic support to indifference. Of those who



are aware, three respondents support an ENERGY STAR installation requirement, two do not, and one was unsure.

When asked what benefits they recognize from selling energy efficient products, six respondents say higher margins. Three out of six respondents say their markup rate does not change for high-efficiency equipment.

Seven out of eight wholesaler representatives believe dealer training is broadly needed. Six out of eight respondents are enthusiastic about NATE certification.

Program Managers and Implementers Program managers and their implementers under contract are the catalysts and facilitators of energy efficiency programming in the Northeastern United States, New York, and New Jersey.

NMR conducted interviews with five program managers or key implementation staff covering a significant number of efficient heating and cooling initiatives throughout the Northeastern United States in February and March of 2005.

GasNetworks, LIPA, and NYSERDA all coordinate marketing activities and programs to some degree with ENERGY STAR Homes and Home Performance with ENERGY STAR (federal programs).

Four out of five respondents mention consumer awareness as a significant barrier to increasing the market share of energy efficient equipment and quality installations. Barriers related to adequacy of technician training are commonly mentioned.

All five respondents indicate that their programs primarily emphasize increasing the stock of high-efficiency products; however, all programs also have a training component. Only two respondents say their programs are ramping up training activities beyond current program support levels or in terms of quality installation requirements, including third-party verification or participant certification requirements.

Respondents consistently support the value of the federal ENERGY STAR program in assisting with marketing their own energy efficiency programs, but believe the federal program does not go far enough to fully meet their needs.

Respondents are split on pursuing program opportunities with furnace fan efficiency. All respondents believe duct sealing should be a program priority, but are skeptical.

All respondents believe that the majority of the heating and cooling sales force is inadequate with respect to proper specification and selling the benefits of energy efficiency..

All respondents believe the current stock of technicians is inadequately trained; two respondents go further in suggesting that not all well-trained contractors follow-through on providing quality installations.

Regarding emerging energy efficiency program opportunities, three respondents express support for supporting vocational technical schools in some capacity.

Outside of their own training programs, respondents suggest that technicians receive most of their training through manufacturers and distributors. Two respondents are upbeat on the prospects of more manufacturers incentivizing dealers to get NATE-certified. No respondent believes the distributor and manufacturer trainings alone are adequate.



Program Allies Regional programs to support high-efficiency heating and cooling in the Northeastern U.S. receive a great deal of support from national and regional trade associations, and certification and training organizations. These program allies offer access, facilitation services, and legitimacy to energy efficiency programs that intervene directly in the industry.

NMR conducted interviews with eight program allies in February and March of 2005.

The most common barrier mentioned by six respondents is the lack of consumer awareness in what to expect from a contractor. The second most common barrier mentioned by five respondents is the lack of professional standards in the HVAC business.

Opinions on the federal ENERGY STAR program are overwhelmingly positive, except one respondent claims little knowledge. Three respondents are concerned about the proposed requirement for third-party verification on installations.

Most respondents support contractor licensing, and four believe licensing should be contingent on proper certification, including NATE certification.

Respondent estimates for what percentage of technicians is well-trained vary from 2% to 60%, but the majority feel technicians are not well-trained.

When asked what is a well-trained technician, generally respondents support NATE certification; however, most respondents believe continuing education is central to having a well-trained base of technicians.

Opinions on the role and quality of vocational technical schools varied widely: All representatives of dry heating contractors believe the schools are inadequate; the two representatives from largely wet heating contractors believe they are adequate and at least as effective as any other training opportunity available. Four respondents believe energy efficiency organizations and utilities need to reach out more to vocational technical schools.

Half of the respondents believe if a sales person is trained, certified, or using their own tools, the sales person is adequately prepared to sell high efficiency equipment and the benefits of energy efficiency.

Regarding emerging technologies, one respondent speculates that: “New refrigerants, new compressor technologies, and new motor technologies will be very different and require new education.”



4 Installers and Dealers Heating and cooling installers and dealers are the key industry participant in understanding the delivery of efficient, well-installed heating and cooling systems in new and existing homes. These interviews address: types of systems installed, types of residential buildings (e.g., single vs. multifamily) and construction activity (e.g., new construction vs. remodeling) targeted, current attitudes and promotional efforts related to high efficiency heating and cooling equipment, fuel and system type preferences, understanding and role of ENERGY STAR equipment specifications, participation in utility and state efficiency programs, role of building codes in product recommendations, support from manufacturers and distributors, marketing efforts, staff training and certification, membership in trade associations, system installation protocols (design practices, sizing, charge, airflow, duct sealing, etc.), and maintenance service offerings.

Due to the small sample sizes, unless otherwise noted, all data presented in this analysis represent the number of responses.

4.1 HVAC Module

HVAC Company Profile • The HVAC contractors surveyed are typically small companies, with an average of fewer

than seven employees. The majority of employees work in a technical capacity, either as HVAC installers or HVAC service technicians; other employees work in HVAC sales or in an administrative role (Office Manager, Bookkeeper, Receptionist, etc.).

• The HVAC contractors surveyed work primarily in the residential sector, with a mean of 70% of gross sales revenue generated from residential work and 23% from light commercial work.

• All of the HVAC contractors surveyed install heating and cooling equipment and provide service and maintenance service; almost all of them also sell the equipment they install. A very small number of contractors distribute heating or cooling equipment to other companies.

• All HVAC contractors surveyed work on gas furnaces and CAC; they estimate that the bulk of their residential work is with these types of equipment. Half of the contractors surveyed also work with oil furnaces; this work represents 9% of residential sales revenue from HVAC contractors. Sales of oil furnaces are spread across all regions, but sales of air source heat pumps are clustered in New Jersey.

HVAC Manufacturers • HVAC manufacturers are positioned to play a key role in the choices HVAC contractors

make for equipment recommendations, training, and installation techniques: Close to half of HVAC contractors surveyed install only one brand of heating and cooling equipment. Manufacturers also are a primary source for training of HVAC technicians and for providing contractors with installation technical assistance.

• HVAC contractors surveyed install 24 brands of heating and cooling equipment, with Carrier (10), Lennox (5), and Bryant (4) the most frequently cited brands.



• Most of the major manufacturers foster relationships with HVAC contractors through preferred dealer networks; a sizable number of HVAC contractors say they hold status with or membership to such dealer networks for the equipment they sell.

HVAC Industry Organizations • Less than half (10 out of 26) of the HVAC contractors surveyed have memberships with

industry organizations. Contractors with industry membership most often support the American Society of Heating, Refrigeration, and Air-Conditioning Engineers (ASHRAE) and the Refrigeration Service Engineers (RSES). None of the HVAC contractors surveyed are union members.

HVAC Training/Certification • HVAC technicians most often have EPA refrigerant certification; 14 out of 26 HVAC

contractors say all of their technicians have this certification and five say at least one-quarter of their employees have it. Eight out of 26 HVAC contractors say at least some of their employees have NATE certification.

• In addition to certifications, 19 out of 26 HVAC contractors say their technicians are trained in duct-sealing techniques, including 12 contractors who say all of their technicians have duct-sealing training.

Sales • Most HVAC companies are small, which means that contractors often work

autonomously and have multiple responsibilities. Sales bids are typically handled by HVAC contractors alone (18 out of 26); eight say they work on sales bids in coordination with other sales staff. More than half (15 out of 26) of HVAC contractors say sales responsibilities are only part-time duties; 11 contractors say they are full-time duties. Those with part-time sales duties also work as equipment installers or service technicians, in administration or management, or serve as company president/owner.

• A fast turn-around on most equipment installations means that HVAC contractors, not customers, likely drive the equipment choice.


o In breakdown situations, customers typically expect to have the work done the same or next day. Planned replacements also have a tight time schedule and depending on the equipment, contractors say many customers need to have the work done in less than a week.

Installation Practices • For duct layout in residential new construction work, contractors typically decide the

layout specification themselves. Rarely an architect or engineer is also involved. Nearly all HVAC firms rely on the ACCA Manual D to decide on the size, configuration, and layout of duct in residential new construction.



Air Conditioners or Heat Pumps • For cooling equipment installations and diagnostics, HVAC contractors typically rely on

one or two tools or techniques and rarely use other methods:

o When determining the proper charge for an air conditioning or heat pump system, HVAC contractors most often weigh in the charge on new installations according to manufacturer’s specifications or measure the super-heat or sub-cooling method to determine the correct charge. Six out of 11 contractors use a weigh in charge exclusively; similarly, six out of nine say the only method they use to determine the proper charge is by measuring super-heat or sub-cooling.

o Fifteen of the 19 HVAC contractors surveyed say they routinely check the airflow across the indoor coil. About half of these say they exclusively use a single method for doing so. The most popular method identified is measuring static pressure with a gauge; four respondents say they only use this method and another three say they use it at least half the time. Measuring the temperature split across the coil is exclusively used by two respondents and occasionally used by four.

o To determine the size of CAC or heat pump recommended, 12 out of 19 HVAC contractors only use a single methodology. Typically contractors either use ACCA Manual J/Right J (four use this method exclusively) or calculate the square footage or cubic footage per ton (six use this method exclusively).

• Even while contractors have definitive ideas about installation tools and techniques, they are open to input about efficiency improvements in home construction. If the builder or homeowner indicates that the home will be insulated and air-sealed to above code standards, 14 out of 19 HVAC contractors say they would change the specification for size of the CAC or heat pump to be installed.

Oil and Gas Furnaces • Similarly, for heating equipment installations and diagnostics, HVAC contractors again

typically rely on one or two tools or techniques and rarely use other methods:

o When checking the operating performance of newly installed furnaces, HVAC contractors most often test the heat rise across the coil or use the combustion efficiency test. Of the 17 contractors who test the heat rise across the coil, eight say it is the only method they use. Similarly, four out of 10 who test the heat rise across the coil use the method exclusively.

o When determining the size of furnace to install, HVAC contractors typically use ACCA Manual J/Right J (including eight out of 12 who use the method exclusively) or calculate the square footage per ton (five out of eight use the method exclusively); a small number rely exclusively on software provided by the manufacturer.

• As with cooling, even while contractors have definitive ideas about installation tools and techniques, they are open to input about efficiency improvements in home construction. If a builder or homeowner indicates that the home will be insulated and air-sealed to above code standards, 18 of 22 HVAC contractors say they would change the size of the furnace they would specify.

Equipment Efficiency




• For both CAC and gas furnaces, the proportion of high-efficiency CAC units being installed by HVAC contractors is smaller in New York compared to other regions.

Cooling • The majority (74%) of CAC installations in existing homes (new installations and

replacements) are with units that have a SEER 12.9 or less; 15% are between 13 and 14 SEER. Only 11% of installations are with high-efficiency units (SEER 14 or higher).

• When selling CACs and heat pumps, the majority of HVAC contractors consider a SEER of 12 or 13 to be energy efficient. Those in New England say a minimum standard for energy efficiency is 13 SEER and in New Jersey the majority of estimates range from 12 SEER to 14 SEER. Contractors in New York consider lower SEER levels to be efficient compared to contractors in other regions; six out of eight say a SEER of 10 to 12 meets a minimum standard for energy efficiency.

• When making bids to residential customers, there is a wide range of practices by HVAC contractors—a sizable group (7 responses) never or rarely proposes high-efficiency units of 14 SEER or higher and about the same number (8 responses) often or almost always proposes the high-efficiency units. In New Jersey, contractors are more likely than not to propose high-efficiency cooling, while in New York the opposite is true.

Gas Furnaces • In 2004 41% of gas furnace installations in existing homes (new installations and

replacements) are with units with an AFUE rating of 89.9 or less and slightly more, 44% have an AFUE rating between 90 and 93.9. In 2004, only five out of 19 contractors say they install gas furnaces with AFUE ratings of 94 or higher.

• When selling gas furnaces, the majority of HVAC contractors consider an AFUE rating of 90 or higher to be energy efficient, but 3 contractors say an 80 AFUE is high-efficient. Most contractors in New England and New Jersey say a minimum standard for energy efficiency is 90 AFUE. In New York, the opinion is split; half of the contractors say AFUE ratings below 90 are efficient and half say the minimum level for high-efficiency is 90 or 92 AFUE.

• When making bids to residential customers, HVAC contractors are more likely than not to propose high-efficiency units of 90 AFUE or higher; 12 out of 19 contractors say they propose them often or almost always. Contractors in New England and New Jersey are more likely to propose high-efficiency cooling, while in New York, the likelihood is split.

Oil Furnaces • Of the six HVAC contractors surveyed who install oil furnaces in existing homes all of

their installations have AFUE ratings under 90.

• When selling oil furnaces, HVAC contractors consider a wide range of AFUE ratings—from 78 to 88 AFUE—to be energy efficient, but none of the contractors set the minimum efficiency level as high as 90 AFUE. The number of responses is too small to report geographic differences.



• When making bids to residential customers, HVAC contractors are not likely to propose high-efficiency units of 90 AFUE or higher. Two out of six contractors say they propose them never or rarely; three would propose them occasionally.

4.2 Plumbing Module

P&H Company Profile • Like the HVAC contractors, P&H contractors surveyed are mostly small companies, with

an average of about nine employees. The majority of employees are master plumbers or helpers/technicians; others are journeyman or apprentice plumbers or serve administrative roles.

• The majority of P&H contractors surveyed work in the residential sector, with a mean of 78% of gross sales revenue generated from residential work and 19% from light commercial work; a very small portion of revenues are from large C&I work.

• All of the P&H contractors surveyed install heating and cooling equipment and nearly all provide service and maintenance services; the majority of them also sell the equipment. Only one contractor offers financing of heating and cooling equipment and only one contractor distributes heating or cooling equipment to other companies.

• P&H contractors say that the bulk of their residential work is with gas and oil boilers; 21 out of 24 say they work with gas boilers and 19 out of 24 say they work with oil boilers. A small number of contractors do additional work in areas such as plumbing, furnaces, and air conditioners.

P&H Manufacturers • While manufacturers do not figure as prominently in P&H technician training as they do

with HVAC contractors, manufacturers are an important information resource for P&H contractors. P&H contractors seek installation technical assistance from equipment manufacturers more than any other source. Also, 10 out of 24 P&H contractors install just one brand of heating equipment.

• P&H contractors surveyed install 27 brands of heating equipment, with Burnham (8), Weil-McLain (7), Peerless (6), and Buderus (5), the most frequently cited brands.

• Some manufacturers have preferred dealer networks, but the majority of P&H contractors (16 out of 24) do not hold any status with or membership to any preferred dealer network for the equipment they sell.

P&H Industry Organizations • Just over one-quarter (7 out of 24) P&H contractors surveyed have memberships with the

Plumbing, Heating, and Cooling Contractors Association (PHCCA). Three of the P&H contractors are union members.

P&H Training/Certification • While manufacturers figured prominently in the training for HVAC technicians, for P&H

technicians, they do not. This may be due to the fact that Plumber’s licenses figure prominently in the industry—21 out of 24 P&H contractors say their plumbers are licensed. The majority of P&H contractors say their plumbers have some form of



certification, including six who say their plumbers have a Master’s license and five who say their plumbers hold Apprentice or Journeyman’s certification.

• When hiring new technicians, more than half of HVAC contractors (13 out of 24) look for some form of certification among candidate qualifications. Most often employers look for a contractor’s license, trade association training, or prior job experience.

• P&H technicians most often are trained through trade or vocational-technical schools and/or on the job. Many also receive training through state or utility programs and through PHCCA.

Sales • As with HVAC contractors, the fact that most P&H contractors are small businesses

means that contractors work autonomously and have multiple responsibilities. Sales bids are typically handled by P&H contractors alone (21 out of 24); three say they work on sales bids in coordination with other sales staff. The majority (20 out of 24) of P&H contractors also say sales responsibilities are only part-time duties; four contractors say they are full-time duties. Those with part-time sales duties also work as equipment installers or service technicians, administration or management, or company president/owner.

• As with HVAC equipment, because customers demand a fast turn-around on most P&H heating installations, contractors not customers, likely drive the equipment choice.


o In breakdown situations, customers expect to have the work done the same or next day. Planned replacements also have a tight time schedule; contractors say half of customers need to have the work done within one week.

Installation Practices • When working on the pipe layout in residential new construction work, contractors say

they typically decide the layout specification. Rarely the builder, general contractor, architect, project manager, or engineer is also involved.

• To determine the size of boiler recommended, 15 out of 24 P&H contractors exclusively use a single methodology. Of the methods used exclusively, heat loss calculations based on manufacturer recommendations (six use exclusively) and the Hydronics Institute IBR Method (four use exclusively) are the most popular.

• There are three methods that P&H contractors most often use to check the operating performance of a newly installed boiler: the Bacharach test, measuring the water temperature rise on supply and return, and the combustion efficiency test. Many contractors also assemble and balance the system and observe proper function. Each method has its devotees—that is contractors who use a single method exclusively, but most use more than one method to check boiler operating performance.

• P&H contractors most often seek installation technical assistance from equipment manufacturers and to a lesser extent, wholesalers or distributors. Many also rely on



manuals from ACCA, the Hydronic Institute, and other trade association manuals/journals.

Equipment Efficiency • The proportion of high-efficiency gas and oil boilers being installed relative to other

boiler efficiencies is larger in New England compared to other regions.

Gas Boilers • P&H contractors estimate that half of gas boiler installations in existing homes (new

installations and replacements) are with units with AFUE ratings between 85 and 89.9; and 18% are high-efficiency units (90 AFUES or higher).

• For gas boilers, the majority of P&H contractors consider an AFUE rating of 85 or higher to be energy efficient, with a mean rating of 87.6 AFUE. Contractors in New England have the highest standards for energy efficient gas boilers, with a mean AFUE rating of 88.9 being efficient.

• When making bids to residential customers, P&H contractors are about as likely to propose high-efficiency units of 85 AFUE or higher as they are not to propose them; 9 out of 21 contractors say they propose them often or almost always and 8 say they rarely or never propose them.

Oil Boilers • Similarly, just over half of oil boiler installations in existing homes are with units with

AFUE ratings between 85 and 89.9; and 18% are high-efficiency units (90 AFUES or higher).

• For oil boilers, the majority of P&H contractors consider an AFUE rating of 85 or higher to be energy efficient, with a mean rating of 85.8 AFUE. There is little difference in estimates by geographic region.

• When making bids to residential customers, P&H contractors are more likely to propose energy efficient units of 85 AFUE or higher; 8 out of 19 contractors say they propose them often or almost always.



5 Equipment Distributors and Wholesalers Equipment distributors and wholesalers are the essential bridge between the dealer and the manufacturer. Not only do the distributors and wholesalers maintain equipment inventories for dealers who cannot afford to carry them; they also serve as the conduit for manufacturer promotional information, installation training, sales training, and other manufacturer service deliveries. Indeed, equipment distributors and wholesalers are the first business resource for installers and dealers on matters such as advertising, marketing, and technical information, and they have some direct or indirect role in nearly any high-efficiency program strategy. This section summarizes discussions with eight equipment distributors and wholesalers throughout New York, New Jersey and the Northeastern United States.

General Business Characteristics NMR conducted interviews with eight representatives of regional equipment distributors

and wholesalers covering a significant number of heating and cooling products, equipment types, and fuel types in February and March of 2005. Basic information and firmographic data are itemized in Table 5-1.

Segments Served and Sales Data Respondents shared little proprietary information on market share, sales, and

segmentation. Qualitatively, respondents see little recent change in the market shares for high-efficiency equipment other than increasing efficiency levels of installed gas furnaces.

Two respondents forecast a 10% to 15% increase in demand over the next five to ten years for forced-air hydronic systems from representatives that serve the northern PA to ME regions for their company. One respondent claims they offer the customer “Total comfort control.”

Three respondents predict increasing installations of radiant heating systems, with demand increases ranging from 20% to 30% over the next five to ten years from representatives that serve the northern PA to ME regions for their company. One respondent comments that installations will increase mostly in kitchens and new construction.

Three respondents forecast a 10% to 25% increase in demand over the next five to ten years for variable speed technologies from representatives that serve the northern PA to ME regions for their company. Two respondents saw these increases since 2003. One respondent believes the new 13 SEER requirement will drive them; another says, “…because of comfort issues, he sees uses on both hydronic and air systems.”

Three respondents forecast a 10% to 25% increase in demand over the next five to ten years for mini-split systems from representatives that serve the northern PA to ME regions for their company.



Table 5-1: Heating and Cooling Equipment Distributors and Wholesalers Interviewed in the Northeastern United States

Company Description Branches Employees Exclusive

Brands Competitors Associations Contractor

Interactions Offer Training

Sessions A Member owned

co-op 1 10 None Janitrol, Coleman,

Crown Boiler, Rennai, Willians heaters, RBI copper, Munchkin, Comfort Air, Friederich, Amana

North American Heating & Air Conditioning Wholesalers Association, NATE

Contractors range from 1 man shops to firms with 110+ employees. Often help them with sizing. Almost daily to about once per month depending on size. Not much discussion with them about energy efficiency.

Yes, offer both manufacturer- sponsored and independent. Mostly they are manufacturer sponsored when a rep comes in to train on new line or current line or products.

B RC&I, sell from Syracuse to Maine

68 1200 Only insome areas of New England.

Bryant, Comfort Maker. RJ Murray is a competitor with Bryant in some areas of New England.

ASHRAE RSCS Deal with a range of sizes, almost daily interaction with them. Talk to them quite a bit on energy efficiency issues, many want 90+ efficiency furnaces. Also have 12-14 inside sales people.

Yes, usually manufacturer-sponsored, and the focus is on equipment and refrigerants, especially the new refrigerants. They also certify people on refrigerants.

C Sell parts and equipment, residential, commercial, industrial and institutional. Primarily deal with contractors.

70 500 ICP andTempstar

ArcoAire, Ohio, Fedders, Ducane, Peerless, Crown, Dunkirk, Williamson

ACCA, HARDI, Oil heat service assoc., NAOHSM

About a 50/50 split between large and small contractors. Reps usually visit them once per week.

Sponsor all kinds of training. Mostly manufacturer sponsored. Some training is for certification, e.g. EPA for refrigerants. Some in house training for new employees or new lines.

D Eastern NY,Western MA, & VT

Carrier, Bryant and Payne

ASHRAE Yes, offer about once/month and it covers everything: HE furnaces, zoning, duct sizing, manual J, etc.



Company Description Branches Employees Exclusive Brands

Competitors Associations Contractor Interactions

Offer Training Sessions

E Plumbing andHVAC supply. About 50% of business is HVAC equipment. Sell from Poukeepsie to Plattsburg, Watertown and Massena

12 107 Only on BDietrich

Armstrong and ARES furnace and AC equipment. Also Weil McLean, Utica, Numax

Oil Heat industries, NECA and wholesale buying groups.

Small to mediums sized contractors. They make lots of calls on customers. In contact at least once per month.

Yes mostly do manufacturer sponsored training. Also send their people and some contractors to training sessions.

F Serve upstateNY to PA

13 100 Ruud Weather King,Mitsubishi ductless splits.

Refrigeration service engineers society, HARDI, ACCA, also some buying groups.

Have a large counter business for parts so see many at least once per week for parts. Have a broad base of customers. Some large industrial customers seen daily. On average sales people visit once per month.

Yes, pride themselves on training. Each branch is responsible for training at least 2 times per year. Most of it is manufacturer sponsored and focused on equipment service and installation.

G Serve NW CT to Western MA

2 60 None Weil, Comfort Aire, Buderus, Viesman

PHCC, ASHRAE, Resident Panel Association

See customers on a daily basis. Do everything from design to just ordering equipment. Bulk of business is with smaller contractors.

Do training "all the time". Mostly new products and design. All of them are manufacturer sponsored.

H NJ, NY and PA 17 225 None Comfort Maker, Westinghouse, Gibson, Peerless, Burnham, Weil, Viessman

DK See all sizes of customers probably weekly.

Have mostly manufacturer sponsored training sessions. Sometimes they charge a fee but they rebate it back when they purchase equipment.


Task 2 STAC Market Characterization Memorandum-PRELIMINARY DRAFT Page 20

Marketing Energy Efficient Products and Services Respondents indicate two major barriers to marketing and selling energy efficiency

products and services: 1) Contractor reluctance to change. Says one respondent: “Contractors are reluctant to try anything new. A 13 SEER unit is ridiculous because of the low AC load in Northeast. The higher efficiency equipment is more complex and the contractors don't want to be the guinea pigs trying out the newest stuff”; and, 2) The first cost barrier to the consumer who tends to focus on payback.

All respondents except one are aware of the ENERGY STAR label. Of those who are aware, none are aware of the proposed specification changes, and opinions of the ENERGY STAR program vary from enthusiastic support (“It has pushed contractors and homeowners to recognize the difference in products and the high efficiency products.”), to qualified support (“Excellent program but very divisive and hard to understand. Not enough education comes with the label. In other words, the cost savings should also be pointed out on the label.”), to indifference (“Probably one of several features to help sell a product, it takes away from equipment that does not have it. It seems to be a ticket to the mainstream.”).

When asked to what levels the ENERGY STAR specifications should change, the majority of wholesaler and distributor representatives are reluctant to change:

o For CAC, four respondents think the ENERGY STAR specifications should remain the same; four do not know.

o For furnaces, one respondent says 94AFUE, another says “…everything should be over 90 [AFUE as a minimum standard],” three do not believe it should change; and, three do not know.

o For boilers, two respondents do not want any changes, one respondent again says “…everything should be over 90 [AFUE as a minimum standard],” one says, “…beyond 85 AFUE is difficult especially for oil,” and, four do not know.

Of those who are aware, three respondents support an ENERGY STAR installation requirement, two do not, and one was unsure:

o “Absolutely, there are whole ranges in quality of what is being put in.”

o “[No,] …the NJ rebate had an air flow test to guarantee the rebate. It sounds pretty invasive to me.”

o “Unnecessary. Licenses are good, especially in MA. Also NATE is good. There is a need for more certification, especially in NY.”

o “Absolutely, yes. The equipment is only as good as the installation.”

Three out of seven distributors or wholesalers market their residential high-efficiency products differently than their standard-efficiency products:

o “Yes, we usually consider ENERGY STAR as high efficiency and only call ENERGY STAR-labeled products as high efficiency.



Marketing Energy Efficient Products and Services (continued) o “Yes, to different contractors. We sell it only to people who come to our seminars

and are qualified to install it. We also have a certification program for contractors who attend seminars and are so qualified.”

o “Not really. Because there is more margin in high efficiency products, they may spend more advertising for it and spend more time training sales people on it.”

o “Not really market differently. Only about 10% of contractors can really install the higher efficiency equipment.”

o “Yes. We provide sales tools to calculate the payback and return on investment for the high efficiency products.”

When asked what benefits they recognize from selling energy efficient products, six respondents say higher margins. Says one wholesaler representative: “Higher return (because of the higher price) but another benefit is the service provided to the customer of upgrading their equipment to high efficiency.” Another respondent echoes this, saying, “Fewer Problems, happy customers.”

Three out of six respondents say their markup rate does not change for high-efficiency equipment. Three respondents say their markup rate does change by 2%, 5%, and 10% to 15% with the highest markup rates on boilers.

Incremental price differences for high-efficiency equipment are summarized in Table 5-2.

Table 5-2: Ranges of Incremental Price Differences for High-Efficiency Heating and Cooling Equipment

Equipment Type Efficiency

Level Number of Responses

Responses on Incremental Price Difference (Responses given in either dollar or percentage terms)

Central Air Conditioners

10-13 SEER 5 $175 to $400 or 30% to 50%

13-14 SEER 1 25%

Gas Furnaces

85-90 AFUE 5 $200 or 15% to 40%

90-94+ AFUE 1 20%

Oil Furnaces

85-90 AFUE 1 $200

Gas Boilers

80-85 AFUE 1 10%

85-90 AFUE 3 $500-$600 or 20%-40%

When asked what advice respondents would give to energy efficiency program mangers to increase the market share for energy-efficient products, responses vary:

o “I think most people are aware of energy-efficient equipment. Installation and service-level education needs improvement. Retail customers sometimes know more than contractors.”



Marketing Energy Efficient Products and Services (continued) o “The Sears model works because of financing. If a contractor could offer a credit

plan with the system and have contractors be approved quickly it would be an easier sell.”

o “It has to be a compelling story to convince consumers to install higher efficiency. For example, a better warranty, lower maintenance, quieter, lifetime costs, and so on. The contractor is the one to sell efficient equipment and the quality of the dealer. The pitch and delivery of the message [are] important.”

o “A rebate to homeowners and maybe contractors will move more equipment. It was effective in getting oil tanks replaced.”

o “We need to raise the awareness level of the return on high efficiency furnaces.”

o “Program managers should push the quality, lifetime savings, comfort and other benefits of energy-efficient products.”

o “Have the utilities get involved and that will get contractors aware because they will hear it from their customers through bill stuffers.”

In terms of formal marketing plans or goals for high-efficiency equipment, two say the information is proprietary; three say they have no marketing goals, one say their energy efficiency promotion marketing goals vary by season, and one mentions training: “More training on ultra efficiency installations.” Only three respondents are aware of plans to increase the role of energy efficiency in marketing strategies over the next few years.

Training and Certification Seven out of eight wholesaler representatives believe dealer training is broadly needed;

one disagrees, saying: “Sizing is mostly done by the distributor. For replacement it is not a problem.” Three respondents say training is needed in all areas. One respondent emphasizes the need for installation training; another emphasizes the high efficiency equipment; and, a third respondent echoes this need to constantly train installers in controls and new equipment. Two distributor representatives believe certification should be tied to training. One respondent comments: “Sizing is important. Most are oversized…Only big builders undersize when they use ASHRAE standards, [but] the design temperature is sometimes inadequate for customers’ comfort.”

o Regarding sales personnel, nearly all respondents believe the training requirements are different for sales personnel; five believe the sales personnel in their dealer networks are adequately trained; four say they train their sales force separately. Says one wholesaler representative: “Sales people can know less. The designer and installer need to be well trained.” One respondent dissents: “Sales commissions are structured in such a way that they don't keep up with the options offered by the equipment.”

Six out of eight respondents are enthusiastic about NATE certification and (“It leads to higher quality work. It also is an indicator that contractors NATE certified want to be good and do a better job.”) and three say they actively support it among their contractors. One respondent claims no involvement; one respondent says: “I’m not a fan of it.”



Training and Certification (continued) With respect to sponsorship of training opportunities, all respondents say they support

training among their dealer networks—many are coordinated with manufacturers:

o “Yes, [we] hold about 12-15 per year at each site and pay for it.”

o “We see training for strategic reasons. If we train the contractors, then they will buy the equipment from us. It also prevents problems later from bad installations.”

o “Provide about 2 training sessions per month. It helps out in sales as well as helping our contractors.”

o “It builds customer loyalty but it is often hard to get customers to be receptive to it.”

o “We offer a training about once/month and it covers everything: high-efficiency furnaces, zoning, duct sizing, manual J, and so on.”



6 Program Managers and Implementers Program managers and their implementers under contract are the catalysts and facilitators of energy efficiency programming in the Northeastern United States, New York, and New Jersey. For heating and cooling programs, implementation efforts generally focus on incentivizing high-efficiency equipment purchases for consumers and training for contractors, with additional related support through home improvement or new construction programs. This section summarizes NMR’s discussions with a select group of these representatives.

General Program Characteristics NMR conducted interviews with five program managers or key implementation staff

covering a significant number of heating and cooling throughout the Northeastern United States in February and March of 2005. These programs are itemized in Table 6-1. Additional research through the internet and in-house sources provided information on NYSERDA and New Jersey BPU’s programs.

Marketing Energy Efficient Products and Services GasNetworks, LIPA, and NYSERDA all coordinate marketing activities and programs to

some degree with ENERGY STAR Homes and Home Performance with ENERGY STAR. In New Jersey, little coordination exists between Cool Advantage, heating rebate, ENERGY STAR Homes, and Home Performance with ENERGY STAR, but they are reasonably compatible, and: “Quality Builders take advantage of all of them.”

Four out of five respondents mention consumer awareness as a significant barrier to increasing the market share of energy efficient equipment and quality installations: “Consumers don't pay much attention to their CAC or furnace.”

Two respondents mentioned how the split incentive barrier in new construction results in low envelope quality and low efficiency equipment for a growing stock of housing. Says one respondent: “Weatherization needs to improve.”

Barriers related to technician training are commonly mentioned, but the emphasis varies:

o “HVAC, CAC in particular, is very susceptible to installation problems and customers won't know any better, but it adds significantly to demand/peak, given the low number of cooling hours annually in the NE.”

o “It's not a trade where people want to be in.”

o “Contractors' reluctance to change. New CAC technologies are very exacting for installation. Call backs are killer to business when a system isn't installed correctly.”

o “Business incentive is not to send NATE techs to installation jobs. NATE certified technicians aren't assigned to construction jobs. The NATE tech is sent for service or commissioning.”

Three respondents believe an insufficient amount of time is dedicated to following up on marketing and relationship building. One respondent says: “We need to get everyone in the marketing chain to partner with NATE, ACCA, and BPI to increase customer awareness; and data sharing from rebate processing up and down the market chain.”



Table 6-1: Heating and Cooling Programs Interviewed in the Northeastern United States

Program Sponsor(s) ProgramScope

Heating/ Cooling

Program Summary

Cool Homes LIPA Equipment incentives; installation requirements ramping up in 2005 and 2006

Cooling Cool Homes is in its fifth year. Tiers are SEER 13, 14, and 15 (sometimes with an EER requirement) for the rebate. The tiers and incentives have changed over time (currently $300 at 13, $400 at 14, and $500 at 15), with $120/unit to the installer. LIPA is increasing market share but it’s unclear on installation quality changes. In 2001 LIPA required correct sizing; in 2002 required charge and airflow and enforced application quality and random inspection. LIPA will change requirements for the installer in 2005 for training, and holds right to inspect systems. Random inspections are not adequate and LIPA is considering other mechanisms. In 2006, participation in training as a requirement for the program is very likely. Coordination with ENERGY STAR Homes and Home Performance with ENERGY STAR is seamless to the customer. “For heating, there has never been any successful coordination between gas and electrical divisions of KeySpan, and regulation only applies to electric and not gas.”

Cool Smart NSTAR, National Grid, WMECO, Unitil, Cape Light Compact

Equipment incentives; certification incentives

Cooling (Piggy back with Gas Networks)

CoolSmart is a joint electric utility program of MA Investor Owned Utilities and Cape Light Compact since 2000. It covers CAC and ASHP (split systems with ECM motors). Program piggy backs with GasNetworks’ heating program. In 2005 it will be operating within ENERGY STAR Homes program. The incentive structure is two tiered, for example the SEER 13 with 11 EER is $300 and the ECM is $350; $450 for 14 SEER and 11 EER and $500 with the ECM. Cool Smart has voluntary third party verification beginning 2005. “We need to keep the number of rebates low in order to ensure that quality installation inspections occur and as we step up our emphasis on quality inspections.”

Cool Change Narragansett Electric

Equipment incentives; third-party verification requirement

Cooling Since 2002 CoolChange is Narragansett Electric’s program to address CAC and ASHP. It is not addressing new construction at all but hopes to work through ENERGY STAR Homes program to get that sector. Key difference from CoolSmart, is that any participating contractor must have a third party inspection using CheckMe.

RI Boiler Program

Equipmentincentives

Heating Program offers $300 for steam or forced heat boilers 85% (oil) in RI and the program is called ENERGY STAR; it has minimal training requirements

NJ Furnace program

NJBPU Equipmentincentives

Heating “The furnace programs are not scrutinized as closely and the rebate process is less burdensome.” Program includes PSE&G, NJ Natural Gas, South Jersey Gas, Elizabeth Gas, and Rocklands Gas and offers $300 for 90+ furnace and 85+ boiler; $100 for a high efficiency water heater.



Program Sponsor(s) Program Scope

Heating/ Cooling

Program Summary

Cool Advantage

NJBPU Equipmentincentives; training incentives

Cooling Cool Advantage covers all New Jersey utilities and began in 1999. Contractors do not need to be on a list, but the program has funneled some work to better contractors. Connectiv does 2500 rebates annually and the other two major electric utilities do two or three times that. The program reimburses about 75% of NATE certification cost if they pass. The equipment incentives are tiered such as 13 SEER & 11 EER is $300; 14 SEER & 12 EER is $500, but the program is less than 5% of market.

GasNetworks BerkshireGas, Fall River Gas, New England Gas MA & RI, KeySpan NE, Bay State Gas, Northern Utilities, NSTAR Gas, Unitil MA

Equipment incentives; certification incentives

Heating (Piggy back with Cool Smart)

Offer incentives for high-efficiency furnaces and boilers and piggy back 92% gas furnace with an ECM Motor rebate ($400) split between MA IOU electric and GasNetwork utilities. GasNetworks incentivizes 82% steam boilers (no ENERGY STAR rating) because there is alot of steam in MA and 75% of shipments before program had a pilot light so we required electronic ignition. With Cool Smart, GasNetworks wants contractor to replace both furnace and CAC unit simultaneously to at least ENERGY STAR specs with incentives dependent on the SEER level. Impact is unclear but annual rebate goals are approaching saturation at 70 or 80% for ENERGY STAR furnaces in MA since 1998-9. The program will eliminate 90% furnace rebates and keep ECM rebate. Keyspan does not honor all rebate levels; they are generally lower. Like Cool Smart, GasNetworks offers incentives for contractors to become NATE certified, and will pay $100 per unit to a NATE certified contractor.

CT CAC/HP program

United Illuminating, Connecticut Light and Power

Equipment incentives

Cooling For electricity, there are low-income types of programs where rebates are offered for specific energy auditors and the utility pays a contractor. CT had trouble meeting electric heat reduction goals for low-income program due to saturation. CAC is primarily a resource acquisition program and ENERGY STAR did not work well due to spec change synching issues and branding issues which customers did not really understand. No NATE training in CT yet. Gas utilities in CT do not have any regulatory orders to participate in conservation programs. Gas companies give high-efficiency equipment for fuel switching but aren't looking at models with ECM motors.

Home Performance with ENERGY STAR

NYSERDA Freemarketing incentives to contractors

Both “Under Home Performance with ENERGY STAR, a participating Building Performance Institute (BPI)-certified Home Performance contractor will perform an assessment of your home, make recommendations for energy improvements and provide a cost estimate to do the improvements.1”

1 www.nyserda.org, August 31, 2005.



Marketing Energy Efficient Products and Installations (continued) All five respondents indicate that their programs primarily emphasize increasing the

stock of high-efficiency products; however, all programs also have a training component. Only two respondents say their programs are ramping up training activities beyond current program support levels or in terms of quality installation requirements, including third-party verification or participant certification requirements. Says one respondent in which installation quality support activities have stagnated: “It’s a fine line to cross in telling contractors how to do their business.”

Opinions of the federal ENERGY STAR program consistently support its value in marketing energy efficiency programs, but believe it does not go far enough for their programmatic applications. One respondent says: “Without ENERGY STAR it would be difficult to market anything.” Another respondent summarizes: “An ENERGY STAR Home with a 10 SEER CAC and 90 plus [AFUE] furnace shouldn't be allowed.”

All respondents support increasing the energy performance specifications for ENERGY STAR labeled heating and cooling equipment with a few exceptions:

o Three out of four respondents think the new SEER requirement for ENERGY STAR should be set to 14; one respondent thinks it should be 15 or 16 by 2006.

o Two respondents think a gas furnace specification probably cannot exceed 92 AFUE, “…because the bigger models can't make 93 or 94.”

o “Gas boilers should stay at 85 AFUE—too many barriers and not enough options.”

o “It's unclear whether we can pull off an ENERGY STAR installation component.”

o “For oil furnaces the technology isn't ready for prime time to raise efficiency levels.”

Respondents are split on pursuing program opportunities with furnace fan efficiency. Two of five respondents believe it is low priority (one says it is lower than duct sealing) and three think it is a current and realistic opportunity.

All respondents believe duct sealing should be a program priority, but are skeptical. One respondent says: “From a commercialization perspective there are too many contractors out there, but no one who can do that effectively. Aeroseal by Carrier can do amazing things, but it's really expensive. But you won't send a technician to do a laborer’s job.”

All four respondents who work with electricity energy efficiency programs believe heating and cooling programs are highly important to their peak management and demand-side strategies, and the opportunities for savings are equal or greater than any other current or planned program opportunity.

Respondents acknowledge a narrow and limited opportunity to market high-efficiency heating and cooling equipment in the spring as a planned replacement:

o “Some two-stage piggy backing opportunities—when a customer installs one, then install the other. We do this by coordinating GasNetworks and Cool Smart.”

o “Higher incentives in the spring because people who replace CAC proactively also tend to replace furnace at the same time; and its tax return time also.”

o “One-third of our replacements were functioning equipment without rebates.”



Training and Certification All respondents believe that the majority of the heating and cooling sales force is

inadequate. Says one respondent: “Sizing is a problem—the sales people don't do it and Manual J oversizes it naturally. They need to be taught to sell a quality installation too.”

All respondents believe the current stock of technicians are inadequately trained; two respondents go further in suggesting that not all well-trained contractors follow-through on providing quality installations: “About 50% of contractors know how to charge equipment properly; half of them actually do it. Of those contractors who are actually doing it right on rebate programs are also doing it properly on 10 SEER equipment.”

Outside of their own training programs, respondents suggest that technicians receive most of their training through manufacturers and distributors. Two respondents are upbeat on the prospects of more manufacturers incentivizing dealers to get NATE-certified. No respondent believes the distributor and manufacturer trainings alone are adequate.

Regarding emerging energy efficiency program opportunities, three respondents mention supporting vocational technical schools; otherwise, respondents’ opinions vary:

o “How do we handle a hot air distribution system that was not intended for CAC and how do we train contractors to do that efficiently?”

o “We need to brand a quality installation to raise consumer awareness.”

o “Kids from trade schools are more amenable to new technologies. Current and emerging heating and cooling technologies need quality training to get the savings.”

o “Code enforcement on HVAC at municipal levels—like an electrical inspector—would be great. Two of every three houses are rebated by contractor suggestion.”

o “Training is absolutely essential but the biggest opportunity is the lack of any targeted campaign toward trade schools and vo-tech schools—to target them toward the more efficient equipment. Their budgets are low. They take poor equipment from distributor donations. The testing level is too low. The teachers teach the wrong stuff…There is a huge gap between what is needed and what is taught.”

In terms of an increased role that energy efficiency organizations or utilities could play, respondents offer the following:

o “Training should be the responsibility of the techs and the contractors. We need to help make NATE the industry standard and make sure that qualified trainers are available despite 35% turnover. In the long run, HVAC contractors need to offer better salaries and the occupation needs to be a more professionalized occupation.”

o “Could find better ways to integrate heating and hot water systems, indirect systems, but that savings may be on the oil or gas side.”

o “More volume of training in general—it’s a big effort and big expense. Indoor air quality is an emerging issue.”

o “Continuing education is important and the market is too fragmented without having it to maintain quality levels.”

o Providing facilities for good speakers and organizing speakers.



7 Program Allies Regional programs to support high-efficiency heating and cooling in the Northeastern U.S. receive a great deal of support from national and regional trade associations, and certification and training organizations. These program allies offer access, facilitation services, and legitimacy to energy efficiency programs that intervene directly in the industry. This section summarizes interviews conducted with representatives from these organizations.

Organizational Characteristics NMR conducted interviews with eight program allies in February and March of 2005.

Table 7-1 lists those organizations and describes their mission briefly.

Attempts to reach a member of the Builders’ Performance Institute (BPI) were unsuccessful. BPI is a regional organizational ally located in Albany, New York with the vast majority of its member installers and dealers from New York. BPI has plans to expand nationally. “The Building Performance Institute promotes excellence in the contracting trades by establishing standards of performance for technicians and providing certifications for qualified contractors. BPI contractors use a "whole house" approach to create energy efficient, durable buildings that are both comfortable and safe for the people who occupy them2.” BPI’s protocols and certification standards are integrated with NYSERDA’s Home Improvement with ENERGY STAR program.

Marketing Energy Efficiency Services The most common barrier mentioned by six respondents is the lack of consumer

awareness in what to expect from a contractor. One respondent claims: “Consumers don’t know what to ask for.” Another is quoted saying, there is “a lack of consumer understanding of the difference between, or variation in, technicians. Their price reflects that qualitative difference.” Another respondent says: “Sales people in our membership know what they sell; consumers need to be willing to become educated.”

The second most common barrier mentioned by five respondents is the lack of professional standards in the HVAC business: “There are no barriers to entry for a technician to become an HVAC contractor. They don't offer amenities or services that they should for energy efficiency, or development, training, and education of quality service. Not a technician shortage problem but a contractor business owner problem. Half of those businesses are single truck businesses less than 3 years old and they aren't adequately prepared and no barriers exist to entering the market.” Another says: “Contractors must value [training and certification] as a part of their professionalism. Training is poorly accepted.” A third respondent says: “Turnover is high and 100% certification is impossible.”

A few respondents mention the lack of sales skills as a barrier: “Poor sales skills such as smaller contractors in our membership—but it’s probably universal. Contractors can't handle selling up the higher efficiency equipment.” Another says: “We need to get into the field by educating installers…and get industry (installers) to educate consumers about a good ROI.”

2 http://www.bpi.org/bpi/www/pages/home/home.asp, August 31, 2005.



Table 7-1: Program Ally Characteristics and Missions

Program Ally Organizational Description

Organizational Mission and Membership Energy Efficiency Program Participation

Energy Efficiency Programs (Opinion)

Air Conditioner Contractors’ Association of America (ACCA)

Standards, Accreditation (National)

ACCA accredits business practices to allow technician to do job properly.

ACCA is starting to do that now. The Northeast and CA have been most supportive at this point.

Working with CEE on residential and commercial HVAC programs and support their efforts.

Eastern Heating and Cooling Council (EHCC)

Training, Test Administration (New Jersey, Long Island, MA)

EHCC provides contractor training mostly in NJ, but is now providing NATE training for LIPA, MA utilities and Honeywell, and CT. EHCC has a NATE test bank and it’s one of various classes taught including refrigerants. EHCC requires 75% of member company technicians to be NATE certified as of July 1, 2004. EHCC web site lists them. EHCC works with some distributors and wants to involve more South Jersey contractors and national associations; only 15% of budget is from membership. “We need to raise the bar of professionalism in industry. It’s not just about training contractors.”

EHCC implements for NJBPU and are expanding to other regions for training. EHCC works in the residential sector only and participates with many groups. Almost all courses are NATE credits for continuing certification, and provide some non-NATE related courses as well.

Training is and should be necessary for field staff to participate in rebate programs. “We developed the first NATE continuing ed. course and we aren't after the kid out of trade school, but for existing contractors.”

Refrigeration Service Engineers Society (RSES)

Training (National)

RSES is a Worldwide association, since 1933, with 20000 members in USA and Canada and members on every continent, to develop training materials for technician in field, covering installation and service. Trend is toward service in midwest, and 75% of membership are HVAC professionals—including furnace contractors--rather than refrigeration. “The training materials shift with trends in industry and focus on all residential HVAC equipment but mostly CAC, ASHP. NATE is driving demand because manufacturers like it. Manufacturers are committing dollars to high-end dealership by offering advertising and equipment pricing.”

RSES has recently been involved with heat pump programs to install and service them--mostly utilities Indiana utilities where RSES is based. Rebated system were required to be installed and serviced by an RSES trained technician.

RSES and NATE are developing a Federal training and certification program. RSES provides Board membership, develops training manuals, and trains for NATE certification; however, NATE bylaws prohibit NATE from doing training).

Empire State Petroleum Association (ESPA)

Trade Association, Marketing (New York)

The ESPA represents 300 companies delivering all kinds of products. ESPA is the statewide association of the Petroleum Marketers Association of America, and its one of 42 similar state organizations

“ESPA is a resource to federal and state agencies including NYSERDA; but we don't carry programs directly. We're an industry stakeholder.”

ESPA will continue to provide dealers with bill stuffers, videos, and brochures, and serve as a facilitator for NORA's tools and programs.



Program Ally Organizational Description

Organizational Mission and Membership Energy Efficiency Program Participation

Energy Efficiency Programs (Opinion)

Sheet Metal and Air Conditioning Contractors' National Association (SMACNA)

Trade Association, Standards, Training (National)

Sheet Metal Workers International is the parent organization for SMACNA; the National Energy Management Institute develops training curricula for technicians and dealers to do performance contracting; M&V standards; and IAQ. The International Training Institute handles most training for NEMI and SMWI

“SMWI does a lot of participation.” A local CA union CA gave money for installation training to its workers for a CEC program. (Title 24 CEC mandates duct sealing.)

Supports NATE certification.

National Association of Technician’s Excellence (NATE)

Certification (National)

NATE is a non member organization since 2000 that provides a residential and light commercial test protocol for technician certification. All tests are on air handling industry and NATE is developing a hydronics, commercial, and an HVAC Analyst exam targeting sales people in particular. To become NATE-certified, technicians are required to pass 12 exams, including a core exam and specialty certification in 1 of 10 categories (5 in installation; and 5 in service). We administered 22,000 exams in 2004 with a 66-68% passing rate on all exams.

The extent of NATE’s participation with utilities is with various orgs such as EPRI, CEE, and some larger utilities. Utilities are definitely a partner. Manufacturers support our testing protocol directly and indirectly through programs.

Many utilities or state energy orgs take our cert as criteria for rebate

American Refrigeration Institute (ARI)

Trade Association, Standards, Education (National)

ARI has 200 member companies, and sets standards industry-wide, provides training and education for curriculum and testing, and has an accreditation program. ARI needs to upgrade the industry and make contractors better. Contractors often return good equipment at a high cost to manufacturers. ARI wants to be environmentally friendly too and HARDI handles that. Finally, ARI lobbies state governments to unify standards. ARI has international counterparts because manufacturers export a lot of equipment and refrigeration trucks. The new 13 SEER standard changes the competitive mix of member manufacturers because units are relatively larger and that impacts distribution channels.

“We provide Clean Air Act support for EPA testing to handle refrigerants.”

Many members supported the move to a minimum standard of SEER 13. The EER might be a more effective measure for energy efficiency programs.

Plumbing, Heating, and Cooling Contractors’ Association (PHCCA)

Trade Association, Education (New York representative)

New England is really different from NY and NJ because of oil and gas divide as a primary fuel source. These differences are reflected in the makeup of our regional membership.

“None that I’m aware of.” “I don’t really know—have nothing to contribute on that.”



Marketing Energy Efficiency Services (continued) Opinions on the federal ENERGY STAR program are overwhelmingly positive, except

one respondent claims little knowledge and the ARI representative chose not to comment.

Three respondents are concerned about the requirement for third-party verification. Says one: “I have concerns about the role of third party verifiers where the verification process may not necessarily be independent. Need a code of conduct at least.” Another says: “The new proposal includes that with other installation requirements but doesn't go far enough on duct work. We need good contractors talking to the consumers. A CAC system only concerns the homeowner when it's not working. If the customer has a service contract, they might have the opportunity; however, we still need good techs.”

Training and Certification When asked what is a well-trained technician, only two respondents provide specifics: A

Certified HVAC Master Mechanic and NORA’s Silver Certification. Generally respondents support NATE certification; however, most respondents believe continuing education is central to having a well-trained base of technicians.

Most respondents support contractor licensing, and four believe licensing should be contingent on proper certification, including NATE certification. “I support licensing but certification at the technician level and accreditation at the dealer level. Only 35 states have it; but mostly to ensure tax revenues come from it--CA, AZ, NY, and FL for example go beyond that.”

Respondent estimates for what percentage of technicians is well-trained varies from 2% to 60%, but the majority feel technicians are not well-trained: “Nobody does a whiz-bang job in education and training. BOCES, union, or education institutions--none of the technicians walk out ready to tackle the world. You need to train them on the job.”

Half of the respondents believe if a sales person is trained, certified, or using their own tools, the sales person is adequately prepared to sell high efficiency equipment and the benefits of energy efficiency. For example, one respondent says: “Those who train the salesmen are the manufacturers themselves. It's in their best interest.” Half of the respondents think the needs are different. Says one respondent: “They largely know what they're selling but can't really size units or sell energy efficiency well. They need more training in specific areas than technicians.”

Respondents identify many training needs including airflow measurement, equipment sizing and Manual J. All respondents except one also believe training is generally needed, and several emphasize that the training should lead to certification and be accredited.

In terms of the best training organizations and where technicians train, response varied including distributors, supply houses, manufacturers, vocational-technical schools, unions and on-the-job. One respondent discusses the new CAC SEER standard in terms of driving the training need: “Not all schools train everything; mostly just residential work and the curriculum is generic. Curricula must change to meet leapfrogging technologies with the new SEER standard. Whether trade schools will respond is an open question and the 5-year cycle for accreditation will inform that process.”



Opinions on the role and quality of vocational technical schools varied widely: All representatives of dry heating contractors believe the schools are inadequate even though one suggests that the schools in the Northeast are among the best in the country; the two representatives from largely wet heating contractors believe they are adequate and at least as any other training opportunity available.

In terms of what role energy efficiency organizations and utilities to fill, three respondents mention incentives for training. Says one respondent: “My area is the Midwest, but linking training to rebate, and subsidizing contractors to get training, it raised the quality of installations.”

Four respondents believe energy efficiency organizations and utilities need to reach out more to vocational technical schools. “Utilities should partner with Vo-tech schools. Utilities could sponsor educators and train them better such as the Carrier's instructors' school in Syracuse or the ARI teachers' workshop. Utilities could sponsor trainings in vo-techs with contractors and/or partner with distributors and vo-tech schools. “PGE has training center to train the teachers.” Says another: “Instructors can't really teach it adequately and are paid less than in the installation world. There is a barrier at the curricula level that may respond to changing standards”

Competitive Issues One respondent commented on new entrants into the market saying: “Lowe’s and Home

Depot give leads to trained contractors…and could provide funding for contractor training.” The representative does not know if those contractors are trained, however. A second respondent thinks the entry of big box retailers offer opportunities to raise consumer awareness, and believes their contractors are trained and qualified.

Regarding emerging technologies, one respondent speculates that: “New refrigerants, new compressor technologies, and new motor technologies will be very different and require new education.”





Training, Installation, and Marketing Practices for Heating and Cooling Installers in the Northeastern U.S.,

New York, and New Jersey

Submitted to:

Northeast Energy Efficiency Partnerships under contract to

NYSERDA, New Jersey BPU and the State Technologies Advancement Collaborative (STAC)

Performed by: Nexus Market Research, Inc.

Contents 1 Introduction................................................................................................................. 1 2 Methodology ............................................................................................................... 2 3 Executive Summary .................................................................................................... 4

3.1 HVAC Module.................................................................................................... 4 3.2 Plumbing Module................................................................................................ 8

4 Survey Findings—HVAC......................................................................................... 12 4.1 General Business Characteristics...................................................................... 12 4.2 Training............................................................................................................. 15 4.3 Sales Staff/General............................................................................................ 17 4.4 Segments Served and Sales Data—Part 1......................................................... 18 4.5 Installation Practices ......................................................................................... 19 4.6 Segments Served and Sales Data—Part 2......................................................... 27 4.7 Selling HVAC Equipment and Services ........................................................... 34 4.8 HVAC Related Products and Services.............................................................. 42

5 Survey Findings—Plumbing Module ....................................................................... 49 5.1 General Business Characteristics...................................................................... 49 5.2 Training............................................................................................................. 53 5.3 Segments Served and Sales Data—Part 1......................................................... 55 5.4 Installation Practices ......................................................................................... 56 5.5 Segments Served and Sales Data—Part 2......................................................... 63 5.6 Selling Heating Services ................................................................................... 67 5.7 P&H Related Products and Services................................................................. 72


1 Introduction This document reports results of a survey among residential heating and cooling installation contractors in the northeast conducted for more on objectives of study.


2 Methodology This survey was conducted via computer-assisted telephone interviewing (CATI) during April and May 2005, using a purchased sample of heating and cooling contractors. In total, there were 50 interviews with 26 heating, ventilation, and air conditioning (HVAC) contractors and 24 plumbing and heating (P&H) contractors from New England, New Jersey, and New York. The survey’s sponsors agreed on a quota system to ensure adequate representation by state, with considerations for heating fuel type (oil versus natural gas). Based on 2001 RECs data, Table 2-1

Table 2-1: Surveys by Geographic Region

State Completed Surveys

Maine Vermont New Hampshire Massachusetts Connecticut Rhode Island New Jersey 15 New York 15 Total 50

The survey’s sponsors also agreed on a quota system to ensure representation by contractor and equipment type, such that there would be:

• 50 Total interviews • At least 20 P&H module responses • At least 20 HVAC module responses • At least 5 gas boilers, 5 oil boilers (P&H module) • At least 5 gas furnaces, 5 oil furnaces, and 10 central air conditioning (CAC) or

heat pumps (HVAC module) • HVAC module respondents could answer no more than two equipment types,

randomly chosen. Table 2-2 lists the final disposition of completed interviews.

Table 2-2: Status of Respondents: Wet v. HVAC

Type of Business Total New England

New Jersey

New York


Plumbing and heating contractors

21 9 6 6

Heating, ventilation, and air conditioning

26 8 9 9

Both 3 3 0 0 Total

Due to the small sample sizes, unless otherwise noted, all data presented in this report represent the number of responses.


3 Executive Summary 3.1 HVAC Module HVAC Company Profile

• The HVAC contractors are typically small companies, with an average of fewer than seven employees. The majority of employees work in a technical capacity, either as HVAC installers or HVAC service technicians; other employees work in HVAC sales or in an administrative role (Office Manager, Bookkeeper, Receptionist, etc.).

• The HVAC contractors surveyed work primarily in the residential sector, with a

mean of 70% of gross sales revenue generated from residential work and 23% from light commercial work.

• All of the HVAC contractors surveyed install heating and cooling equipment and

provide service and maintenance service; almost all of them also sell the equipment they install. A very small number of contractors distribute heating or cooling equipment to other companies.

• All HVAC contractors surveyed work on gas furnaces and CAC; they estimate

that the bulk of their residential work is with these types of equipment. Half of the contractors surveyed also work with oil furnaces; this work represents 9% of residential sales revenue from HVAC contractors. Sales of oil furnaces are spread across all regions, but sales of air source heat pumps are clustered in New Jersey.

HVAC Manufacturers

• HVAC manufacturers are positioned to play a key role in the choices HVAC contractors make for equipment recommendations, training, and installation techniques: Close to half of HVAC contractors surveyed install only one brand of heating and cooling equipment. Manufacturers also are a primary source for training of HVAC technicians and for providing contractors with installation technical assistance.

• HVAC contractors surveyed install 24 brands of heating and cooling equipment,

with Carrier (10), Lennox (5), and Bryant (4) the most frequently cited brands. • Most of the major manufacturers foster relationships with HVAC contractors

through preferred dealer networks; a sizable number of HVAC contractors say they hold status with or membership to such dealer networks for the equipment they sell.


HVAC Industry Organizations • Less than half (10 out of 26) of the HVAC contractors surveyed have

memberships with industry organizations. Contractors with industry membership most often support the American Society of Heating, Refrigeration, and Air-Conditioning Engineers (ASHRAE) and the Refrigeration Service Engineers (RSES). None of the HVAC contractors surveyed are union members.

HVAC Training/Certification

• HVAC technicians most often have EPA refrigerant certification; 14 out of 26 HVAC contractors say all of their technicians have this certification and five say at least one-quarter of their employees have it. Eight out of 26 HVAC contractors say at least some of their employees have NATE certification.

• In addition to certifications, 19 out of 26 HVAC contractors say their technicians

are trained in duct-sealing techniques, including 12 contractors who say all of their technicians have duct-sealing training.

Sales

• Most HVAC companies are small, which means that contractors often work autonomously and have multiple responsibilities. Sales bids are typically handled by HVAC contractors alone (18 out of 26); eight say they work on sales bids in coordination with other sales staff. More than half (15 out of 26) of HVAC contractors say sales responsibilities are only part-time duties; 11 contractors say they are full-time duties. Those with part-time sales duties also work as equipment installers or service technicians, in administration or management, or serve as company president/owner.

• A fast turn-around on most equipment installations means that HVAC contractors,

not customers, likely drive the equipment choice.


o In breakdown situations, customers typically expect to have the work

done the same or next day. Planned replacements also have a tight time schedule and depending on the equipment, contractors say many customers need to have the work done in less than a week.


Installation Practices • For duct layout in residential new construction work, contractors typically decide

the layout specification themselves. Rarely an architect or engineer is also involved. Nearly all HVAC firms rely on the ACCA Manual D to decide on the size, configuration, and layout of duct in residential new construction.

Air Conditioners or Heat Pumps

• For cooling equipment installations and diagnostics, HVAC contractors typically rely on one or two tools or techniques and rarely use other methods:

o When determining the proper charge for an air conditioning or heat pump system, HVAC contractors most often weigh in the charge on new installations according to manufacturer’s specifications or measure the super-heat or sub-cooling method to determine the correct charge. There are strong supporters for each methodology—six out of 11 contractors use a weigh in charge exclusively; similarly, six out of nine say the only method they use to determine the proper charge is by measuring super-heat or sub-cooling.

o Fifteen of the 19 HVAC contractors surveyed say they routinely check the

airflow across the indoor coil. About half of these say they exclusively use a single method for doing so. The most popular method identified is measuring static pressure with a gauge; four respondents say they only use this method and another three say they use it at least half the time. Measuring the temperature split across the coil is exclusively used by two respondents and occasionally used by four.

o To determine the size of CAC or heat pump recommended, 12 out of 19

HVAC contractors only use a single methodology. Typically contractors either use ACCA Manual J/Right J (four use this method exclusively) or calculate the square footage or cubic footage per ton (six use this method exclusively).

• Even while contractors have definitive ideas about installation tools and

techniques, they are open to input about efficiency improvements in home construction. If the builder or homeowner indicates that the home will be insulated and air-sealed to above code standards, 14 out or 19 HVAC contractors say they would change the specification for size of the CAC or heat pump to be installed.

Oil and Gas Furnaces

• Similarly, for heating equipment installations and diagnostics, HVAC contractors again typically rely on one or two tools or techniques and rarely use other methods:

o When checking the operating performance of newly installed furnaces, HVAC contractors most often test the heat rise across the coil or use the combustion efficiency test. Of the 17 contractors who test the heat rise


across the coil, eight say it is the only method they use. Similarly, four out of 10 who test the heat rise across the coil use the method exclusively.

o When determining the size of furnace to install, HVAC contractors

typically use ACCA Manual J/Right J (including eight out of 12 who use the method exclusively) or calculate the square footage per ton (five out of eight use the method exclusively); a small number rely exclusively on software provided by the manufacturer.

• As with cooling, even while contractors have definitive ideas about

installation tools and techniques, they are open to input about efficiency improvements in home construction. If a builder or homeowner indicates that the home will be insulated and air-sealed to above code standards, 18 of 22 HVAC contractors say they would change the size of the furnace they would specify.



• For both CAC and gas furnaces, the proportion of high-efficiency CAC units

being installed by HVAC contractors is smaller in New York compared to other regions.

Cooling

• The majority (74%) of CAC installations in existing homes (new installations and replacements) are with units that have a SEER 12.9 or less; 15% are between 13 and 14 SEER. Only 11% of installations are with high-efficiency units (SEER 14 or higher).

• When selling CACs and heat pumps, the majority of HVAC contractors

consider a SEER of 12 or 13 to be energy efficient. Those in New England say a minimum standard for energy efficiency is 13 SEER and in New Jersey the majority of estimates range from 12 SEER to 14 SEER. Contractors in New York consider lower SEER levels to be efficient compared to contractors in other regions; six out of eight say a SEER of 10 to 12 meets a minimum standard for energy efficiency.

• When making bids to residential customers, there is a wide range of practices

by HVAC contractors—a sizable group (7 responses) never or rarely proposes high-efficiency units of 14 SEER or higher and about the same number (8 responses) often or almost always proposes the high-efficiency units. In New Jersey, contractors are more likely than not to propose high-efficiency cooling, while in New York the opposite is true.


Gas Furnaces • In 2004 41% of gas furnace installations in existing homes (new installations and

replacements) are with units with an AFUE rating of 89.9 or less and slightly more, 44% have an AFUE rating between 90 and 93.9. In 2004, only five out of 19 contractors say they install gas furnaces with AFUE ratings of 94 or higher.

• When selling gas furnaces, the majority of HVAC contractors consider an AFUE

rating of 90 or higher to be energy efficient, but 3 contractors say an 80 AFUE is high-efficient. Most contractors in New England and New Jersey say a minimum standard for energy efficiency is 90 AFUE. In New York, the opinion is split; half of the contractors say AFUE ratings below 90 are efficient and half say the minimum level for high-efficiency is 90 or 92 AFUE.

• When making bids to residential customers, HVAC contractors are more likely

than not to propose high-efficiency units of 90 AFUE or higher; 12 out of 19 contractors say they propose them often or almost always. Contractors in New England and New Jersey are more likely to propose high-efficiency cooling, while in New York, the likelihood is split.

Oil Furnaces

• Of the six HVAC contractors surveyed who install oil furnaces in existing homes and all of their installations have AFUE ratings under 90.

• When selling oil furnaces, HVAC contractors consider a wide range of AFUE

ratings—from 78 to 88 AFUE—to be energy efficient, but none of the contractors set the minimum efficiency level as high as 90 AFUE. The number of responses is too small to report geographic differences.

• When making bids to residential customers, HVAC contractors are not likely

to propose high-efficiency units of 90 AFUE or higher. Two out of six contractors say they propose them never or rarely; three would propose them occasionally.

3.2 Plumbing Module P&H Company Profile

• Like the HVAC contractors, P&H contractors surveyed are mostly small companies, with an average of about nine employees. The majority of employees are master plumbers or helpers/technicians; others are journeyman or apprentice plumbers or serve administrative roles.

• The majority of P&H contractors surveyed work in the residential sector, with a

mean of 78% of gross sales revenue generated from residential work and 19% from light commercial work; a very small portion of revenues are from large C&I work.


• All of the P&H contractors surveyed install heating and cooling equipment and nearly all provide service and maintenance services; the majority of them also sell the equipment. Only one contractor offers financing of heating and cooling equipment and only one contractor distributes heating or cooling equipment to other companies.

• P&H contractors say that the bulk of their residential work is with gas and oil

boilers; 21 out of 24 say they work with gas boilers and 19 out of 24 say they work with oil boilers. A small number of contractors do additional work in areas such as plumbing, furnaces, and air conditioners.

P&H Manufacturers

• While manufacturers do not figure as prominently in P&H technician training as they do with HVAC contractors, manufacturers are an important information resource for P&H contractors. P&H contractors seek installation technical assistance from equipment manufacturers more than any other source. Also, 10 out of 24 P&H contractors install just one brand of heating equipment.

• P&H contractors surveyed install 27 brands of heating equipment, with Burnham

(8), Weil-McLain (7), Peerless (6), and Buderus (5), the most frequently cited brands.

• Some manufacturers have preferred dealer networks, but the majority of P&H

contractors (16 out of 24) do not hold any status with or membership to any preferred dealer network for the equipment they sell.

P&H Industry Organizations

• Just over one-quarter (7 out of 24) P&H contractors surveyed have memberships with the Plumbing, Heating, and Cooling Contractors Association (PHCCA). Three of the P&H contractors are union members.

P&H Training/Certification


• When hiring new technicians, more than half of HVAC contractors (13 out of 24)

look for some form of certification among candidate qualifications. Most often employers look for a contractor’s license, trade association training, or prior job experience.


• P&H technicians most often are trained through trade or vocational-technical schools and/or on the job. Many also receive training through state or utility programs and through PHCCA.

Sales

• As with HVAC contractors, the fact that most P&H contractors are small businesses means that contractors work autonomously and have multiple responsibilities. Sales bids are typically handled by P&H contractors alone (21 out of 24); three say they work on sales bids in coordination with other sales staff. The majority (20 out of 24) of P&H contractors also say sales responsibilities are only part-time duties; four contractors say they are full-time duties. Those with part-time sales duties also work as equipment installers or service technicians, administration or management, or company president/owner.

• As with HVAC equipment, because customers demand a fast turn-around on most

P&H heating installations, contractors not customers, likely drive the equipment choice.


o In breakdown situations, customers expect to have the work done the

same or next day. Planned replacements also have a tight time schedule; contractors say half of customers need to have the work done within one week.

Installation Practices

• When working on the pipe layout in residential new construction work, contractors say they typically decide the layout specification. Rarely the builder, general contractor, architect, project manager, or engineer is also involved.

• To determine the size of boiler recommended, 15 out of 24 P&H contractors

exclusively use a single methodology. Of the methods used exclusively, heat loss calculations based on manufacturer recommendations (six use exclusively) and the Hydronics Institute IBR Method (four use exclusively) are the most popular.

• There are three methods that P&H contractors most often use to check the

operating performance of a newly installed boiler: the Bacharach test, measuring the water temperature rise on supply and return, and the combustion efficiency test. Many contractors also assemble and balance the system and observe proper function. Each method has its devotees—that is contractors who use a single method exclusively, but most use more than one method to check boiler operating performance.


• P&H contractors most often seek installation technical assistance from equipment

manufacturers and to a lesser extent, wholesalers or distributors. Many also rely on manuals from ACCA, the Hydronic Institute, and other trade association manuals/journals.


• The proportion of high-efficiency gas and oil boilers being installed relative to other boiler efficiencies is larger in New England compared to other regions.

Gas Boilers

• P&H contractors estimate that half of gas boiler installations in existing homes (new installations and replacements) are with units with AFUE ratings between 85 and 89.9; and 18% are high-efficiency units (90 AFUES or higher).

• For gas boilers, the majority of P&H contractors consider an AFUE rating of 85

or higher to be energy efficient, with a mean rating of 87.6 AFUE. Contractors in New England have the highest standards for energy efficient gas boilers, with a mean AFUE rating of 88.9 being efficient.

• When making bids to residential customers, P&H contractors are about as likely

to propose high-efficiency units of 85 AFUE or higher as they are not to propose them; 9 out of 21 contractors say they propose them often or almost always and 8 say they rarely or never propose them.

Oil Boilers

• Similarly, just over half of oil boiler installations in existing homes are with units with AFUE ratings between 85 and 89.9; and 18% are high-efficiency units (90 AFUES or higher).

• For oil boilers, the majority of P&H contractors consider an AFUE rating of 85 or

higher to be energy efficient, with a mean rating of 85.8 AFUE. There is little difference in estimates by geographic region.

• When making bids to residential customers, P&H contractors are more likely to

propose high-efficiency units of 85 AFUE or higher; 8 out of 19 contractors say they propose them often or almost always.


4 Survey Findings—HVAC 4.1 General Business Characteristics All of the HVAC contractors surveyed install heating and cooling equipment and provide service and maintenance service; the vast majority of them also sell equipment. While few HVAC contractors in New England and New York offer financing to customers, eight out of nine contractors surveyed in New Jersey claim to offer financing. A very small number of contractors distribute heating or cooling equipment to other companies. (Table 4-1)

Table 4-1: Types of Services Offered by HVAC Businesses

(n=26)

Service Total New

England (n=8)

New Jersey (n=9)

New York (n=9)

Sell equipment 24 7 9 8 Install equipment 26 8 9 9 Service & maintenance 26 8 9 9 Financing 11 2 8 1 Distribution to other companies

3 1 1 1

HVAC contractors are mostly small companies, with an average of fewer than seven employees. Only one company was large, reporting 200 employees. (Table 4-2) As Table 4-3 shows, the majority of employees work in a technical capacity, either as HVAC installers or HVAC service technicians; other employees work in HVAC sales or in an administrative role (Office Manager, Bookkeeper, Receptionist, etc.).

Table 4-2: Number of HVAC Employees

(n=26) Number of Employees

Total New England New Jersey New York

1 4 2 1 1 2-5 6 1 3 2 6-10 11 3 2 6 11-20 4 2 2 0 21+ 1 0 3 0 Mean* 6.8 7.8 6.3 6.6 *Excludes one case, a company with 200 employees


Table 4-3: Type of HVAC Employees

(n=26) (Mean number of employees, by type)*

Type of Employee Mean HVAC Installers 3.6 HVAC Service Technicians 1.9 HVAC Sales .6 Administration .7 Total 6.8

*Excludes one case, a company with 200 employees Eleven out of 26 HVAC contractors surveyed install only one brand of heating and cooling equipment; the others represent multiple brands. Overall, contractors surveyed install 24 different equipment brands, with Carrier (10), Lennox (5), and Bryant (4) most frequently cited. While the majority of HVAC contractors (16 out of 26) do not hold any status with, or membership to any preferred dealer network for the equipment they sell, a few contractors report affiliations with Lennox (3), Bryant (2), York (2), Carrier (1), Nordyne (1), and Pierce Phelps (1).

Table 4-4: HVAC Equipment Installations and Affiliation with Manufacturers

(n=26)

Manufacturer Equipment Types Install

Equipment

Membership/Preferred Dealer

Network Airco Furnaces 1 Amana Refrigeration Incorporated CAC and Furnaces 1 American Standard Companies Inc CAC and Furnaces 3 Armstrong Air Conditioning Inc. CAC and Furnaces 3 Bryant CAC and Furnaces 4 2 Carrier Corporation CAC and Furnaces 10 1 Dornback Furnace Division Furnaces 1 ECR International Furnaces 1 Freus, Incorporated CAC 1 Goodman Manufacturing CAC and Furnaces 2 International Comfort Products (ICP) CAC and Furnaces 1 Lennox Industries Incorporated CAC and Furnaces 5 3 Nordyne CAC and Furnaces 1 Rheem-Ruud Manufacturing CAC and Furnaces 3 The Trane Company CAC and Furnaces 2 Thermo Products, LLC CAC and Furnaces 2 Xenon Heating and Air Conditioning CAC and Furnaces 1 York International Corp. UPG CAC and Furnaces 3 2 Honeywell Controls 1


Weil McLain Boilers 1 Payne CAC and Furnaces 1 Utica Boilers 1 Peerless Boilers 1 Dunkirk Boilers 1 Pierce Phelps CAC 1

Less than half (10 out of 26) of the HVAC contractors surveyed have memberships with industry organizations. Contractors with industry membership most often support the American Society of Heating, Refrigeration, and Air-Conditioning Engineers (ASHRAE) and the Refrigeration Service Engineers (RSES). None of the HVAC contractors surveyed are union members. (Table 4-5)

Table 4-5: Membership in HVAC Industry Organizations

(n=26) Responses Air Conditioning Contractors Association (ACCA) 2 Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA)

1

American Society of Heating, Refrigeration, and Air-Conditioning Engineers (ASHRAE)

6

Refrigeration Service Engineers Society (RSES) 5 Union Shop 0


HVAC contractors most often cite a lack of interest or perceived need as the reasons for not joining the industry organizations ACCA, SMACNA, ASHRAE, and RSES. Other reasons for not joining the organizations include a lack of time/not getting around to it and the expense/perceived value of the memberships. As non-union shops, some contractors say they have not joined SMACNA because it represents union interests.

Table 4-6: Reasons for Not Being a Member of HVAC Industry Organizations

ACCA SMACNA ASHRAE RSES No need/not interested 7 7 6 6 Too small 2 2 1 Belong to local, not national 2 1 No time/never got around to it 5 2 3 2 Expensive/not worth it 1 1 3 3 It is union 5 Did not know could be a member/not aware

1

Meetings too far away 1 No sheet metal work 2 No refrigeration work 2 Don’t know 8 7 6 7 4.2 Training When hiring new technicians, more than half of HVAC contractors (15 out of 26) look for some form of certification among candidate qualifications. As Table 4-7 shows, most often employers look for refrigerant certification from the EPA, trade association training (particularly NATE training), and/or a contractor’s license.

Table 4-7: Types of Training HVAC Employers Look For

(Multiple response) (n=15)

Responses Refrigerant certification from EPA 6 Trade association training 5 Contractor’s license 4 Manufacturer’s certificate/training 3 NATE training 3 Two-year technical college 3 Prior job experience 2 Mechanical and technical 1


Typically, HVAC technicians are trained through manufacturer programs (12), trade or vocational-technical schools (7), and/or on the job (8); one respondent uses training offered by distributors or wholesalers. A small number (4) do not send technicians for training. (Table 4-8)

Table 4-8: Where HVAC Technicians Receive Training


Responses Manufacturer 12 On the job 8 Trade or vocational-technical schools 7 Distributors or Wholesalers 1 Do not send technicians for training 4

HVAC technicians most often have EPA refrigerant certification; 14 out of 26 HVAC contractors say all of their technicians have this certification and five say at least one-quarter of their employees have it. Eight out of 26 HVAC contractors say at least some of their employees have NATE certification. Other certifications, including CM, CMS, and NTC are held by a few technicians. (Table 4-9) Compared to technicians without NATE certification, 7 out of 26 HVAC contractors say NATE-certified technicians typically are paid more; 8 say they are paid about the same and 10 don’t know. Contractors estimate that NATE-certified technicians are paid an average of 17% more than non-certified technicians, with estimates ranging from 9% to 30%. Customers typically do not ask for NATE-certified technicians; 23 out of 26 HVAC contractors say customers never ask and only 3 say customers rarely or occasionally ask for a NATE-certified technician. In addition to certifications, 19 out of 26 HVAC contractors say their technicians are trained in duct-sealing techniques, including 12 contractors who say all of their technicians have duct-sealing training.


Table 4-9: Percentage Breakdowns of HVAC Technicians with Certification

(n=26) None 1%-

25% 26%-50%

51%-75%

76%-99%

100%

EPA-refrigerant 6 0 3 2 0 14 NATE 16 4 1 1 0 2 CM 23 0 0 0 0 1 CMS 23 0 1 0 0 0 NTC 22 0 0 1 0 1 State/Federal license (unspecified)

24 0 0 1 0 1

License for ventilation and sheet metal

25 0 0 0 0 1

Technical certification from trade schools

25 0 0 0 0 1

All HVAC contractors note there is a shortage of qualified, well-trained technicians and the majority (19 out of 26) says this shortage limits the amount of work they can do. 4.3 Sales Staff/General Sales bids are typically handled by HVAC contractors alone (18 out of 26); eight say they work on sales bids in coordination with other sales staff. More than half (15 out of 26) of HVAC contractors say sales responsibilities are only part-time duties; 11 contractors say they are full-time duties. Those with part-time sales duties also work as equipment installers or service technicians, administration or management, and company president/or owner. (Table 4-10)

Table 4-10: Additional Job Duties for Those Involved in HVAC Sales on a Part-Time Basis


Responses Administration/Management 12 Equipment installer 10 Service technician 9 President or Owner 7 Bookkeeping 8 Laborer or helper 4


In companies where sales bids are drafted in coordination with additional staff members, the sales staff has prior experience in sales (6 out of 8 responses), as technicians (6), and/or as equipment installers (4). 4.4 Segments Served and Sales Data—Part 1 The HVAC contractors surveyed work primarily in the residential sector, with a mean of 70% of gross sales revenue generated from residential work and 23% from light commercial work. (Table 4-11)

Table 4-11: Percent of HVAC Gross Sales Revenue by Customer Base

(n=26) Customer Base Mean Range Residential 70% 10% to 100% Light Commercial 23% 0% to 50% Large Commercial and Industrial 7% 0% to 50%

HVAC contractors estimate that the bulk of their residential work is with gas furnaces and central air conditioners; all contractors surveyed perform work for these types of equipment. Half of the contractors surveyed also work with oil furnaces; this work represents 9% of residential sales revenue from HVAC contractors. (Table 4-12) As Table 4-13 shows, sales of oil furnaces are spread across all regions, but sales of air source heat pumps are clustered in New Jersey.

Table 4-12: Breakdown of HVAC Residential Sales Revenue

(n=26) Number

Respondents Performing

Type of Work

Mean Range (All respondents)

Gas furnaces 26 43% 2% to 80% Oil furnaces 13 9% 0% to 60% Central air conditioners 26 42% 10% to 97% Air source heat pumps 5 2% 0% to 15% Duct work 1 1% 0% to 30% Indoor air quality 1 1% 0% to 19% Humidifier, radiant heat 1 <1% 0% to 10%


Table 4-13 Breakdown of HVAC Residential Sales by Geographic Region

Total New

England (n=8)

New Jersey (n=9)

New York (n=9)

Gas furnaces 26 8 9 9 Oil furnaces 13 5 4 4 Central air conditioners 26 8 9 9 Air source heat pumps 5 1 4 0 Duct work 1 0 0 0 Indoor air quality 1 0 1 0 Humidifier, radiant heat 1 0 0 1

4.5 Installation Practices HVAC contractors most often seek installation technical assistance from equipment manufacturers. Smaller numbers seek assistance from the local chapter of trade associations or the equipment wholesaler/distributor. (Table 4-14)

Table 4-14: Where Seek Technical Assistance for HVAC Installations


Responses Manufacturer 19 Local chapter of trade association 4 Wholesaler/Distributor 3 ACCA manuals 1 Co-workers 1 Code inspector 1 Do not seek technical assistance 2

When testing installation quality and performance in residential installations, HVAC contractors most often use gauge or meter calibration, electronic thermometers, and/or infrared thermometers. As Table 4-15 shows, other diagnostic tools commonly used include electronic humidity measurement, dry- and wet-bulb Delta T, sling psychrometer, and/or use of ventilation or air cleaning for total comfort.


Table 4-15: Diagnostic Tools or Equipment Used to Test HVAC Installation Quality and Performance


Responses Gauge/meter calibration 14 Electronic thermometers 13 Infrared thermometers 8 Electronic humidity measurement 6 Dry bulb and wet bulb Delta T 5 Sling psychrometer 5 Ventilation - total comfort 5 Air cleaning for total comfort 5 Wet and dry bulb thermometers 4 Mechanical thermometers 4 Recording thermometers - digital and analog 4 Liquid column thermometers 3 Humidity probes attachments for use with electrical meters 2 Role of humidity in total comfort 2 Equipment source 2 Airflow source 2 Combustion analyzer 1 (Don’t know) 5


Air Conditioners or Heat Pumps When determining the proper charge for an air conditioning or heat pump system, HVAC contractors most often weigh in the charge on new installations according to manufacturer’s specifications or measure the super-heat or sub-cooling method to determine the correct charge. There are strong supporters for each methodology—six out of 11 contractors use a weigh in charge exclusively; similarly, six out of nine say the only method they use to determine the proper charge is by measuring super-heat or sub-cooling. (Table 4-16)

Table 4-16: Methods to Determine Proper Charge of CAC or Heat Pump


Responses Mean Range* Weigh in charge on new installations according to manufacturer’s specifications

11 70% 5% to 100%

Measure super-heat or sub-cooling method to determine the correct charge

9 73% 1% to 100%

Adjust charge until achieve a 20-degree temperature split across the indoor coil

3 61% 30% to 94%

Adjust charge until suction line starts to feel cool or sweats

3 27% <1% to 67%

Add or remove refrigerant based on refrigerant system pressures

2 50% <1% to 100%

(Don’t know) 1 - - *For respondents using method


Fifteen of the 19 HVAC contractors surveyed say they routinely check the airflow across the indoor coil. About half of these say they exclusively use a single method for doing so; each of the methods listed in Table 4-17 are the preferred methodology for at least two respondents. The most popular method identified is measuring static pressure with a gauge; four respondents say they exclusively use this method and another three say they use it at least half the time. Measuring the temperature split across the coil is exclusively used by two respondents and occasionally used by four.

Table 4-17: Methods to Check Airflow across Indoor Coil


Responses Mean Range Measure static pressure with a gauge 7 87% 50% to 100% Measure temperature split across the coil

6 58% 20% to 100%

Use a flow grid, flow hood, or hot wire anemometer

4 60% <1% to 100%

Use a rule of thumb such as feel output at registers

2 100% 100%

(Don’t know) 1 - - Among those who measure static pressure with a gauge, four out of seven HVAC contractors take it from the return to after the coil; two take it from the return to before the coil (including one who does it both before and after); two don’t know which method they use. Among the six HVAC contractors who measure the temperature split across the coil, two use a temperature split table, one says it depends on the ambient temperature split when it is being tested, one says it varies by system and uses information on the equipment as a guide, one says the split should be when there is a 15 to 20 degree change in temperature, and one respondent does not know. To determine the size of CAC or heat pump recommended, 12 out of 19 HVAC contractors exclusively use a single methodology. Typically contractors either use ACCA Manual J/Right J (four use this method exclusively) or calculate the square footage or cubic footage per ton (six use this method exclusively). (Table 4-18)


Table 4-18: Methods to Determine Size of CAC or Heat Pump


Responses Mean Range Use ACCA Manual J or Right J 11 78% 25% to 100% Calculate square footage or cubic footage per ton

8 79% 15% to 100%

Use a software package provided by manufacturer

4 63% <1% to 100%

Use a bigger unit than before because the customer is not cool enough

3 18% <1% to 50%

Use the same size as previous unit if replacing

2 3% <1% to 5%

If the builder or homeowner indicates that the home will be insulated and air-sealed to above code standards, 14 out or 19 HVAC contractors would change the size of the CAC or heat pump they would specify. (Table 4-19) Those who would change the size specification say that they would need a smaller unit or that the heat load would be lower. Those who would not change the equipment size say they rely on specifications dictated by the total square footage or Manual J; others explain it is just the way they do business or do not know why they would not change the size. (Table 4-20)

Table 4-19: Would Change Size of CAC or Heat Pump Based on Plans

Responses Total (n=19) 14 New England (n=5) 4 New Jersey (n=7) 4 New York (n=7) 6


Table 4-20: Reasons Why/Why Not Change Size of CAC or Heat Pump Based on Plans

Responses Would change size of CAC or heat pump Smaller unit 10 Heat load lower 5 Would NOT change size of CAC or heat pump Go by square footage 1 Go by Manual J 1 Just the way we do it 1 (Don’t know) 2

As Table 4-21 shows, callbacks or warranty claims on CAC or heat pump installations are rarely or occasionally received by HVAC contractors; three never receive callbacks. Manufacturer’s defects, faulty wires/electrical problems, and leaks are causes cited for the infrequent callbacks or warranty claims.

Table 4-21: Frequency of Callbacks or Problems with CAC or Heat Pump Installations

Responses Never 3 Rarely 12 Occasionally 4 Often 0 Almost always 0

Only one HVAC contractor cites a problem with high-efficiency CAC or heat pumps (SEER or 14 or higher)—that it is harder to sell higher priced equipment.


Oil and Gas Furnaces When checking the operating performance of newly installed furnaces, HVAC contractors most often test the heat rise across the coil or use the combustion efficiency test. Of the 17 contractors who test the heat rise across the coil, eight say it is the only method they use. Similarly, four out of 10 who test the heat rise across the coil do so exclusively. (Table 4-22)

Table 4-22: Method for Checking Operating Performance of Newly Installed Furnace


Responses Mean Range Test the heat rise test across the coil 17 73% 25% to 100% Use the combustion efficiency test 10 67% 25% to 100% Feel output at registers 5 46% <1% to 100% Input rat of the gas valve 1 100% 100% Manifold gas pressure 1 50% 50%

When determining the size of furnace to install, HVAC contractors typically use ACCA Manual J/Right J (including eight out of 12 who use the method exclusively) or calculate the square footage per ton (five out of eight use the method exclusively); a small number rely exclusively on software provided by the manufacturer. (Table 4-23)

Table 4-23: Method to Determine Size of Furnace


Responses Mean Range Use ACCA Manual J or Right J

12 86% 30% to 100%

Calculate square footage per ton

8 84% 50% to 100%

Use the software package provided by manufacturer

3 100% 100%

If a builder or homeowner indicates that the home will be insulated and air-sealed to above code standards, 18 of 22 HVAC contractors would change the size of the furnace they would specify. As Table 4-24 shows, contractors say the increased insulation would mean that a smaller unit would be needed or it would mean the heat load would be less. One of the contractors who would not change the size of the furnace says that the installation techniques would change.


Table 4-24: Reasons Why/Why Not Change Size of Furnace Based on Plans

Responses Would change size of furnace (n=18) Need smaller unit 14 Heat load less 3 (Don’t know) 1 Would not change size of furnace (n=2) Installation would change 1 Just the way we do it 1

As Table 4-25 shows, callbacks or warranty claims on furnace installations are rarely or occasionally received by HVAC contractors; three never receive callbacks. Customer complaints/not being able to run equipment, improper duct work or sizing, manufacturer’s defects, not enough heat in a room, and maintenance needs are the causes cited for any callbacks or warranty claims. (Table 4-26)

Table 4-25: Frequency of Callbacks or Problems with Furnace Installations

(n=22) Responses Never 3 Rarely 12 Occasionally 7 Often 0 Almost always 0

Table 4-26: Reasons for Callbacks on Furnace Installations


Responses Customer complaints/can’t run equipment 3 Improper duct work or sizing 2 Manufacturer defects 1 Not enough heat in room 1 Maintenance 1

The majority of HVAC contractors (18 out of 22) do not report any problems with high-efficiency furnaces (AFUE greater than 90). As Table 4-27 shows, those who have had problems cite equipment reliability, the need to train personnel, gas leakage due to tube corrosion, and fan speed adjustments as the reasons for problems.


Table 4-27: Problems with High-Efficiency Furnaces


Responses Reliability problems 2 Need to train sales staff/installers 2 Gas leakage from secondary coils due to tube corrosion

1

Fan speed adjustments necessary 1 No problems 18

4.6 Segments Served and Sales Data—Part 2 Cooling The majority of HVAC contractors provide a combination of service/repair and installation services of cooling equipment to residential customers. Overall, an average 27% of contractor residential cooling revenues are for service and repair, 31% are installations in new homes, 14% are installations in additions, and 15% are replacements. There is wide variation in the mix of work by contractors. For example, two out of 19 contractors do no new construction work, while four say these installations represent 80% or more of total residential revenues. (Table 4-28)

Table 4-28: Breakdown of Residential Cooling Sales Revenue

(n=19) Total* Mean Range Service and repair 18 27% 0% to 70% New construction installation 17 31% 0% to 95% Installations in new additions to existing homes

13 14% 0% to 40%

Replacements in existing homes 15 27% 0% to 73% *Total represents those offering service


As Table 4-29 shows, the majority of HVAC contractors across all geographic regions provide a combination of service/repair and various types of installation services of cooling equipment. However, the proportion of contractors in New England doing installations in new additions and replacements is lower than in other geographic regions.

Table 4-29: Breakdown of Residential Cooling Sales Revenue by Geographic Region

(n=19) Service Total* New

England (n=5)

New Jersey (n=7)

New York (n=7)

Service and repair 18 5 6 7 New construction installation 17 5 7 5 Installations in new additions to existing homes

13 2 6 5

Replacements in existing homes 15 1 7 7 *Total represents those offering service As Table 4-30 shows, the majority (74%) of CAC installations in existing homes (new installations and replacements) are with units with SEER 12.9 or less; about 11% of installations are with high-efficiency units (SEER 14 or higher). There is little difference in the mix of installations by SEER rating from 2003 to 2004; only two contractors claim differences. Reasons cited for changes in SEER ratings are that customers are demanding more efficient units and changes in sales training.

Table 4-30: Percentage Breakdown of CAC Installations by SEER Rating in 2003 and 2004

(New installations and replacements in existing homes) (n=19)

SEER 2004 2003 Rating Total* Mean Range Total* Mean Range

10 to 12.9 19 74% 1% to 100% 19 75% 1% to 100% 13 to 13.9 11 15% 0% to 50% 11 15% 0% to 50% 14 to 15.9 6 9% 0% to 90% 6 9% 0% to 90% 16.0 and up 5 2% 0% to 10% 5 1% 0% to 8%

*Total represents those offering service Looking at geographic breakdowns of SEER ratings, the proportion of high-efficiency CAC units is smaller in New York compared to other regions. (Table 4-31)


Table 4-31: Number of CAC Installations by SEER Rating and Geographic Region

(2004 new installations and replacements in existing homes)

SEER Rating Total New

England (n=5)

New Jersey (n=7)

New York (n=7)

10 to 12.9 19 5 7 7 13 to 13.9 11 3 5 3 14 to 15.9 6 2 3 1 16.0 and up 5 2 3 0

Taking into consideration all the CAC replacement work they do, HVAC contractors estimate that overall, an average of 51% are due to breakdowns and 49% are planned replacements. (Table 4-32) In breakdown situations, customers typically need to have the work done the same or next day. Planned replacements also have a tight time schedule; contractors say half of customers need to have the work done within a week or less. (Table 4-33)

Table 4-32: Reasons for CAC Replacements

(n=19) Mean Range Breakdowns 51% 10% to 100% Planned 49% 0% to 90%

Table 4-33: Customer Timing Expectations for CAC Replacements

Breakdowns (n=19)

Planned (n=16)

Same or next day 14 6 Within 1 week 3 2 1 week to 1 month 0 4 1 month or more 1 3 (Don’t know) 1 1 Mean number of days 3 days 75 days

Heating The majority of HVAC contractors provide a combination of service/repair and installation services of heating equipment to residential customers. Overall, an average 31% of contractor residential heating revenues are for service and repair, 25% are installations in new homes, 17% are installations in additions, and 27% are replacements.


There is wide variation in the mix of work by contractors, with two contractors doing no installations in new homes or additions and two others who said 80% of their revenue comes from providing one or the other of those services. (Table 4-34)

Table 4-34: Breakdown of Residential Heating Sales Revenue


19 17% 0% to 80%

Replacements in existing homes 19 27% 0% to 64% *Total represents those offering service As (Table 4-35) shows, the majority of HVAC contractors across all geographic regions provide a combination of service/repair and various types of installation services of cooling equipment. However, the proportion of contractors in New England doing replacements is lower than in other geographic regions.

Table 4-35: Breakdown of Residential Heating Sales Revenue by Geographic Region

(n=19)

Service Total* New

England (n=7)

New Jersey (n=9)

New York (n=6)


19 7 8 4

Replacements in existing homes 19 4 9 6 *Total represents those offering service Gas Furnaces As Table 4-36 shows, in 2004 41% of gas furnace installations in existing homes (new installations and replacements) are with units with an AFUE rating of 89.9 or less and slightly more, 44% have an AFUE rating between 90 and 93.9. In 2004, only five out of 19 contractors install gas furnaces with AFUE ratings of 94 or higher. There appears to be a slight shift in the mix of installations from 2003 to 2004 from the least efficient units to those with AFUE ratings of 90 to 93.9. Reasons cited for changes in higher AFUE ratings are that customers are demanding more efficient units (4 responses), falling equipment prices (1 response), and the increase in fuel prices (1 response).


Table 4-36: Percentage Breakdown of Gas Furnace Installations by AFUE Rating in 2003 and 2004


AFUE 2004 2003 Rating Total* Mean Range Total* Mean Range

78 to 89.9 17 41% 0% to 100% 16 43% 0% to 100% 90 to 93.9 14 44% 0% to 90% 14 42% 0% to 90% 94 and up 5 15% 0% to 100% 6 15% 0% to 100%

*Total represents those offering service Comparing geographic breakdowns of AFUE ratings, the proportion of higher-efficiency gas furnaces is smaller in New York compared to other regions. (Table 4-37)

Table 4-37: Number of Gas Furnace Installations by AFUE Rating and Geographic Region

(2004 new installations and replacements in existing homes) (n=19)

AFUE Rating

Total* New

England (n=6)

New Jersey (n=9)

New York (n=4)

78 to 89.9 16 5 8 4 90 to 93.9 14 5 7 2 94 and up 6 1 2 0

*Total represents those offering service HVAC contractors estimate that an average of 38% of all gas furnace replacements are due to breakdowns and 62% are planned replacements. (Table 4-38) In breakdown situations, customers typically need to have the work done the same or next day. Planned replacements also have a tight time schedule; contractors say about half of customers need to have the work done within a week. (Table 4-39)

Table 4-38: Reasons for Gas Furnace Replacements


Table 4-39: Customer Timing Expectations for Gas Furnace Replacements

(n=19)


Breakdowns (n=19)

Planned (n=18)

Same or next day 19 4 Within 1 week 0 6 1 week to 1 month 0 5 1 month or more 0 1 (Don’t know) 0 2 Mean number of days <1 day 8 days

Oil Furnaces As Table 4-40 shows, the six HVAC contractors surveyed who install oil furnaces in existing homes all use equipment with AFUE ratings under 90. There is no difference in the efficiency levels from 2003 to 2004. Of the six HVAC contractors surveyed who install oil furnaces, three are from New England, two are from New York, and one is from New Jersey.

Table 4-40: Percentage Breakdown of Oil Furnace Installations by AFUE Rating in 2003 and 2004



78 to 89.9 6 100% 100% 6 100% 100% 90 to 93.9 0 0% 0% 0 0% 0% 94 and up 0 0% 0% 0 0% 0%

*Total represents those offering service


Taking into consideration all the oil furnace replacement work they do, HVAC contractors estimate that an average of 53% of jobs are due to breakdowns and 48% are planned replacements. (Table 4-41) In breakdown situations, customers typically need to have the work done the same or next day. Planned replacements have a more flexible time schedule; contractors say the majority of customers need to have the work done within a month. (Table 4-42)

Table 4-41: Reasons for Oil Furnace Replacements


Table 4-42: Customer Timing Expectations for Oil Furnace Replacements

Breakdowns (n=6)

Planned (n=5)

Same or next day 5 0 Within 1 week 1 0 1 week to 1 month 0 3 1 month or more 0 1 (Don’t know) 0 1 Mean number of days 1.3 days 18 days


4.7 Selling HVAC Equipment and Services Central Air Conditioners and Heat Pumps When selling CACs and heat pumps, the majority of HVAC contractors consider a SEER of 12 or 13 to be energy efficient. Those in New England say a minimum standard for energy efficiency is 13 SEER and in New Jersey the majority of estimates range from 12 SEER to 14 SEER. Contractors in New York consider lower SEER levels to be efficient compared to contractors in other regions; six out of eight say a SEER of 10 to 12 meets a minimum standard for energy efficiency. (Table 4-43)

Table 4-43: Contractor Assumptions of Efficient SEER Level for CACs and Heat Pumps

(n=20)

SEER Level Total New England

(n=5) New Jersey

(n=7) New York

(n=8) SEER 10 and up 2 1 0 1 SEER 11 and up 1 0 0 1 SEER 12 and up 6 0 2 4 SEER 13 and up 5 3 2 0 SEER 14 and up 2 0 2 0 SEER 15 and up 1 0 1 0 Depends on size of house and AC

1 0 0 1

(Don’t know) 2 1 0 1 Contractors estimate that they would charge customers an additional $969 to upgrade a CAC or heat pump from a 13 SEER to a 14 SEER; they estimate an upgrade from a 14 SEER to a 15 SEER to be $1,388. Contractors in New England would charge more for efficiency upgrades than those in other regions. (Table 4-44)

Table 4-44: Average Price Increase for Upgrades to Higher Efficiency CACs or Heat Pumps

(n=20) Upgrade Level Total

Mean New England

(n=5) New Jersey

(n=7) New York

(n=8) 13 SEER to 14 SEER

$969 $1,533 $660 $950

14 SEER to 15 SEER

$1,388 $1,800 $1,380 $1,230

Contractors say consumers are slightly unwilling to pay the higher cost associated with higher-efficiency cooling equipment. Using a scale of 0 to 10, where 0 represents


consumers being completely unwilling to pay the extra cost for higher efficiency air conditioning with SEER levels of 14 or higher and 10 is completely willing; HVAC contractors say customers are a four. (Table 4-45) Contractors in New Jersey rank consumer willingness to pay higher than contractors in other geographic areas. HVAC contractors speculate that customers who are willing to pay the extra cost for higher efficiency air conditioning do so because of high electric rates (2 responses), to save or conserve energy (2 responses), the equipment operates better (1 response), and to save money (1 response).

Table 4-45: Rank of Willingness to Pay Extra Cost of High-Efficiency Cooling—14 SEER or Higher

(n=20)

Total New

England (n=5)

New Jersey (n=7)

New York (n=8)

0-Completely unwilling 4 2 1 1 1 to 3 6 0 2 4 4 to 6 5 2 1 2 7 to 9 4 1 2 1 10-Completely willing 1 0 1 0 Mean 4.0 3.4 5.1 3.3


The primary benefits that HVAC contractors stress when selling high-efficiency CACs or heat pumps are lower operating costs or lower utility bills. Additional benefits promoted by contractors include increased comfort, better warranties, and that the high-efficiency cooling units are better for the environment. (Table 4-46)

Table 4-46: Selling Points of High-Efficiency CAC or Heat Pump


Responses Low operating costs/lower utility bills 13 Comfort 4 Better for environment 3 Better warranties 3 Noise reduction 2 Low maintenance costs 2 Indoor air quality 1 Reliability 1 Rebates through utility company 1 Save energy 1 (Don’t know) 6

When making bids to residential customers, there is a wide range of practices by HVAC contractors—a sizable group (7 responses) never or rarely proposes high-efficiency units of 14 SEER or higher and about the same number (8 responses) often or almost always proposes the high-efficiency units. In New Jersey, contractors are more likely than not to propose high-efficiency cooling, while in New York the opposite is true. (Table 4-47)

Table 4-47: Tendency to Propose High-Efficiency Cooling in Customer Bids

(n=20)

Total

New England (n=5)

New Jersey (n=7)

New York (n=8)

Never 3 1 0 2 Rarely 4 1 1 2 Occasionally 4 0 2 2 Often 2 1 1 0 Almost always 6 2 3 1 (Don’t know) 1 0 0 1


Gas Furnaces When selling gas furnaces, the majority of HVAC contractors consider an AFUE rating of 90 or higher to be energy efficient, but 3 contractors say an 80 AFUE is high-efficient. Most contractors in New England and New Jersey say a minimum standard for energy efficiency is 90 AFUE. In New York, the opinion is split; half of the contractors say AFUE ratings below 90 are efficient and half say the minimum level for high-efficiency is 90 or 92 AFUE. (Table 4-48)

Table 4-48: Contractor Assumptions of Efficient AFUE Rating for Gas Furnaces

(n=19) AFUE Rating

Total New England

(n=6) New Jersey

(n=9) New York

(n=4) 80 3 0 2 1 88 2 1 0 1 90 9 3 5 1 92 3 1 1 1 94 1 0 1 0 95 1 1 0 0

Contractors estimate that they would charge customers an additional $735 to upgrade a gas furnace from 78 AFUE to 90 AFUE; they estimate an upgrade from 90 AFUE to 94 AFUE and higher to be $646. Contractors in New England would charge more for efficiency upgrade from 78 to 90 AFUE, but less for an upgrade from 90 to 94 AFUE than those in other regions. (Table 4-49)

Table 4-49: Average Price Increase for Upgrades to Higher Efficiency Gas Furnaces

(n=19) Upgrade Level

Total Mean

New England

(n=6)

New Jersey (n=9)

New York (n=4)

78 to 90 AFUE $735 $800 $688 $733 90 to 94 AFUE or higher $646 $425 $717 $800

Contractors say consumers are willing to pay the higher cost associated with higher-efficiency gas furnaces. Using a scale of 0 to 10, where 0 represents consumers being completely unwilling to pay the extra cost for higher efficiency gas furnaces with AFUE levels of 90 or higher and 10 is completely willing; HVAC contractors say customers are nearly a 7. (Table 4-50) Contractors in New England rank consumer willingness to pay higher than contractors in other geographic areas.


Table 4-50: Rank of Willingness to Pay Extra Cost of High-Efficiency Gas Furnaces—90 AFUE or Higher

(n=19)

Total New

England (n=6)

New Jersey (n=9)

New York (n=4)


HVAC contractors speculate that customers who are willing to pay the extra cost for higher efficiency gas furnaces primarily do so because the units save money. Technical merits of the units, such as better operating and ability to reduce noise and environmental factors such as better air quality and saving energy also are among the factors that influence consumers. (Table 4-51)

Table 4-51: Why Customers Willing to Pay for High-Efficiency Gas Furnaces


Responses Saves money 10 Better operating 2 Saves energy/conservation 1 Better air quality 1 Better education/understanding 1 Comfort 1 Noise reduction 1


The primary benefits that HVAC contractors stress when selling high-efficiency gas furnaces are lower operating costs or lower utility bills. Additional benefits promoted by contractors include increased comfort, better indoor air quality, reliability, and low maintenance costs. (Table 4-52)

Table 4-52: Selling Points of High-Efficiency Gas Furnaces


Responses Low operating costs/lower utility bills 17 Comfort 6 Indoor air quality 5 Reliability 4 Low maintenance costs 4 Noise reduction 3 Better for environment 3 Better warranties 2 Save energy 1

When making bids to residential customers, HVAC contractors are more likely than not to propose high-efficiency units of 90 AFUE or higher; 12 out of 19 contractors propose them often or almost always. Contractors in New England and New Jersey are more likely to propose high-efficiency cooling, while in New York, the likelihood is split. (Table 4-53)

Table 4-53: Tendency to Propose High-Efficiency Gas Furnaces in Customer Bids

(n=19)

Total

New England (n=6)

New Jersey (n=9)

New York (n=4)



Oil Furnaces When selling oil furnaces, HVAC contractors consider a wide range of AFUE ratings—from 78 to 88 AFUE—to be energy efficient, but none of the contractors set the minimum efficiency level as high as 90 AFUE. The number of responses is too small to report geographic differences. (Table 4-54)

Table 4-54: Contractor Assumptions of Efficient AFUE Rating for Oil Furnaces

(n=6) AFUE Rating

Total

78 2 83 1 84 1 85 1 88 1

Contractors estimate that they would charge customers an additional $950 to upgrade a gas furnace from 78 AFUE to 90 AFUE; they estimate an upgrade from 90 AFUE to 94 AFUE and higher to be $2,000. (Table 4-55)

Table 4-55: Average Price Increase for Upgrades to Higher Efficiency Oil Furnaces

(n=6) Upgrade Level Total

Mean 78 to 90 AFUE $950 90 to 94 AFUE or higher $2000

Contractors say consumers are somewhat willing to pay the higher cost associated with higher-efficiency oil furnaces. Using a scale of 0 to 10, where 0 represents consumers being completely unwilling to pay the extra cost for higher efficiency oil furnaces with AFUE levels of 85 or higher and 10 is completely willing; HVAC contractors say customers are nearly a 6. Contractors think consumers are slightly less likely to be willing to pay extra for oil furnaces with AFUE levels of 90 or higher. (Table 4-56) HVAC contractors speculate that customers who are willing to pay the extra cost for higher efficiency oil furnaces do so because the units save money and because of high energy prices (1 response each).


Table 4-56: Rank of Willingness to Pay Extra Cost of High-Efficiency Oil Furnaces

90 AFUE or Higher

85 AFUE or Higher

(n=3) (n=6) 0-Completely unwilling 1 0 1 to 3 0 1 4 to 6 2 1 7 to 9 1 1 10-Completely willing 1 0 (Don’t know) 1 0 Mean 5.6 5.0

The primary benefits that HVAC contractors stress when selling high-efficiency oil furnaces are lower operating costs or lower utility bills. Technical merits of the units, such as better operating and ability to reduce noise and environmental factors such as better indoor air quality and being better for the environment also are among the factors that are used as selling points. (Table 4-57)

Table 4-57: Selling Points of High-Efficiency Oil Furnaces


Responses Low operating costs/lower utility bills 4 Comfort 1 Indoor air quality 1 Reliability 1 Low maintenance costs 1 Noise reduction 1 Better for environment 1 Better warranties 1 (Don’t know) 2


When making bids to residential customers, HVAC contractors are not likely to propose high-efficiency units of 90 AFUE or higher. Two out of six contractors propose them never or rarely; three would propose them occasionally. (Table 4-58)

Table 4-58: Tendency to Propose High-Efficiency Oil Furnaces in Customer Bids

(n=6)

Total Never 1 Rarely 1 Occasionally 3 Often 0 Almost always 1

4.8 HVAC Related Products and Services In addition to providing heating and cooling equipment installations and service, 19 out of 26 HVAC contractors often or almost always recommend or install programmable thermostats. There is little geographic variation in their likelihood to recommend programmable thermostats. (Table 4-59) The two contractors who would rarely recommend programmable thermostats say it is because they do not like them and the thermostats do not save money.

Table 4-59: Tendency to Recommend or Install Programmable Thermostats

(n=26)

Total

New England (n=8)

New Jersey (n=9)

New York (n=9)



When working on the duct layout in residential new construction work, contractors typically decide the layout specification themselves. Rarely an architect or engineer is also involved. (Table 4-60)

Table 4-60: Who is Involved with Duct Layout in New Construction


Responses HVAC contractor 14 Architect 1 Engineer 2

HVAC firms typically rely on the ACCA Manual D to decide on the size, configuration, and layout of duct in residential new construction. A few who rely on general rules of thumb say they “just know” how it should be done. (Table 4-61)

Table 4-61: How Determines Duct Layout in New Construction

Multiple response) (n=15)

Responses ACCA Manual D 14 Rules of thumb 3 Slide Rule/manual calculator 2 Software 1 Manual J 1 Equal pressure method 1

The majority of HVAC firms have equipment to measure the proper airflow through ductwork to individual rooms. Typically they use flow hoods or hot-wire anemometers; smaller numbers use duct blasters. (Table 4-62)

Table 4-62: Equipment Used to Measure Proper Airflow to Rooms


Responses Flow hoods 13 Hot-wire anemometers 11 Duct blasters 4 Use subcontractors 1 None 3


It is commonplace for HVAC contractors to use duct testing equipment on residential jobs—21 out of 26 use it at least occasionally, including 11 who use it often or almost always. There is little geographic variation in the likelihood to use duct testing equipment. (Table 4-63)

Table 4-63: Tendency to Use Duct Testing Equipment

(n=23)

Total

New England (n=7)

New Jersey (n=9)

New York (n=7)

Never 0 0 0 0 Rarely 2 2 0 0 Occasionally 10 2 4 4 Often 6 1 4 1 Almost always 5 2 1 2 When testing ductwork, 12 out of 26 HVAC contractors say an acceptable level of duct leakage is anything under 5%; 7 others would accept anything under 7%. (Table 4-64)

Table 4-64: Acceptable Levels of Duct Leakage

(n=26) Responses Under 5% 12 5% to 7% 8 8% to 10% 4 10% to 19% 1 (Don’t know) 1

Additional Services Duct Cleaning A minority of HVAC contractors offer duct cleaning services and very few are interested in providing the service. (Table 4-65)

Table 4-65: Additional Services Offered—Duct Cleaning

(n=26) Responses Offer service 5 Interest in providing service 4


Contractors have varied opinions about duct cleaning. As Table 4-66 shows, over half say duct cleaning is a good service; however a sizable group of contractors have negative opinions or are wary of the benefits of the service. Some contractors say duct cleaning is usually not necessary or call it a scam and do not trust the contractors who provide duct cleaning services.

Table 4-66: Opinion of Duct Cleaning Services


Responses Good service 9 Scam/mistrust contractors providing service

4

Depends on quality of work/ 1 Not usually necessary 1

HVAC contractors who express interest in providing duct cleaning services have considered doing so but do not due to lack of manpower or likely profits; one contractor believes the service would save energy. Those not interested in providing duct cleaning services cite similar reasons: primarily a lack of manpower/time and concern that the service would not be profitable, possibly because scammers would underbid their firm. (Table 4-67)

Table 4-67: Interest in Providing Duct Cleaning Services

(Multiple response) Responses Interested in providing duct cleaning service 4 Have talked with company about providing service 1 Profit 1 Interested, but do not have enough manpower 1 Saves energy 1 Not interested in providing duct cleaning 17 Not enough manpower/time 8 Not profitable/scammers will underbid 3 Already subcontracts this service 1 Allergic to dust 1 It is a scam 1 Technology needs to improve 1 Don’t want to take on cost 1 (Don’t know) 2


Duct Repair or Duct Sealing Services A majority of HVAC contractors offer duct repair or duct sealing services and only one of the six contractors not currently offering the service is interested in doing so. (Table 4-68)

Table 4-68: Additional Services Offered—Duct Repair or Duct Sealing

(n=26) Responses Offer service 20 Interest in providing service 1

The few contractors who do not provide duct repair or duct sealing services have varied opinions about the service. Two contractors are wary of the services and say it depends on the contractor and it is usually better to replace than repair faulty equipment. Two contractors with more favorable views say the services are needed and help to reduce leakage. (Table 4-69)

Table 4-69: Opinion of Duct Repair or Duct Sealing Services


Responses Better to replace than repair 1 Depends on contractor 1 Reduces leakage 1 Is needed 1 (Don’t know) 2

Only one contractor who does not currently offer duct repair or sealing services is interested in doing so, due to the expected revenue stream it would generate. Those not interested in adding duct repair or duct sealing services say they do not have enough manpower or time. (Table 4-70)

Table 4-70: Interest in Providing Duct Repair or Sealing Services

(Multiple response) Responses Interested in providing duct cleaning service 1 …..Revenue 1 Not interested in providing duct cleaning 5 Not enough manpower/time 3 (Don’t know) 2


HVAC contractors who perform duct repair or duct sealing services typically use mastic, butyl-backed aluminum tape, or sealant. Five use duct tape. (Table 4-71)

Table 4-71: Materials Used for Duct Sealing


Responses Mastic 10 Butyl-backed aluminum tape 9 Sealant 8 Duct tape 5 Fibrous backing tape 4 Pressure-sensitive tape 4 Foil tape 1 (Don’t know) 1

Customers do not typically ask for duct maintenance and repair services from HVAC contractors. There is little geographic variation in customer requests for the services. (Table 4-72)

Table 4-72: Tendency for Customers to Ask for Duct Maintenance and Repair

(n=20)

Total

New England (n=6)

New Jersey (n=6)

New York (n=8)

Never 3 2 0 1 Rarely 8 2 2 4 Occasionally 8 2 3 3 Often 1 0 1 0 Almost always 0 0 0 0


There are a variety of additional services that HVAC contractors offer to customers, including humidifiers and a variety of air cleaners/filtration systems. (Table 4-73)

Table 4-73: Additional Services Offered—Not Previously Identified—HVAC Contractors


Responses Humidifiers 8 Air cleaners/filtration 6 Ultraviolet light purifiers 2 Radon mitigation 1 Radiant heating/cooling 1 Air quality test 1 (Don’t know) 15

Relative to their competition, HVAC contractors say they adopt new and innovative products and services slightly faster. Using a scale of 0 to 10, where 0 represents contractors offering new and innovative products and services extremely slowly and 10 is extremely quickly, HVAC contractors say they are just over a six. There is little geographic variation in adoption rates. (Table 4-74)

Table 4-74: Adoption Rates for Introducing New and Innovative Products and Services—HVAC Contractors

(n=26)

Total New

England (n=8)

New Jersey (n=9)

New York (n=9)

0-Extremely slowly 0 0 0 0 1 to 3 6 2 2 2 4 to 6 7 2 2 3 7 to 9 9 2 4 3 10-Extremely quickly 4 2 1 1 Mean 6.4 6.5 6.3 6.2


5 Survey Findings—Plumbing Module 5.1 General Business Characteristics All of the P&H contractors surveyed install heating and cooling equipment and nearly all provide service and maintenance services; the majority of them also sell the equipment. Only one contractor offers financing of heating and cooling equipment and only one contractor distributes heating or cooling equipment to other companies; both of these businesses are in New England. (Table 5-1)

Table 5-1: Types of Services Offered by Plumbing and Heating Businesses

(n=24)

Service Total New

England (n=12)

New Jersey (n=6)

New York (n=6)

Sell equipment 15 9 3 3 Install equipment 24 12 6 6 Service & maintenance 22 11 6 5 Financing 1 1 0 0 Distribution to other companies

1 1 0 0

P&H contractors surveyed are mostly small companies, with an average of about nine employees. Across all P&H contractors, the total number of employees ranged from one to 71. (Table 5-2) As Table 5-3 shows, the majority of employees are master plumbers or helpers/technicians; others are journeyman or apprentice plumbers or serve administrative roles.

Table 5-2: Number of P&H Employees

(n=24) Number of Employees

Total New England

(n=12) New Jersey

(n=6) New York

(n=6) 1 5 2 0 3 2-5 10 4 3 2 6-10 5 2 2 1 11-20 2 2 0 0 21+ 2 1 1 0 Mean 9.0 11.1 10.7 3.0


Table 5-3: Type of P&H Employees

(Mean number of employees, by type) (n=24)

Type of Employee Mean Master Plumbers 3.0 Journeyman Plumbers 0.8 Apprentice Plumbers 1.3 Pipe Fitters 1.0 Helpers 2.5 Administration 0.3 Truck Drivers 0.1 Total 9.0


Fourteen out of 24 P&H contractors install more than one brand of equipment; the others install one brand exclusively. P&H contractors surveyed install 27 different equipment brands, with Burnham (8), Weil-McLain (7), Peerless (6), and Buderus (5), the most frequently cited brands. The majority of P&H contractors (16 out of 24) do not hold any status with or membership to any preferred dealer network for the equipment they sell; among those who hold affiliations, no single source was mentioned by more than one respondent. (Table 5-4)

Table 5-4: P&H Equipment Installations and Affiliation with Manufacturers

(n=24)

Manufacturer Install

Equipment

Membership/Preferred Dealer

Network Armstrong 1 Bryant 1 1 Buderus Hydronic Systems 5 Burnham Corporation 8 1 Carrier Corporation 2 Columbia Boiler Company 2 Crown Boiler Company 1 Dunkirk 1 1 Economy Supply 1 ECR International 1 Energy Kinetics 2 1 Goodman 1 1 Heat Transfer Products, Incorporated 1 1 Hydrotherm Boilers 3 Keyspan 1 Lennox 1 1 Luxair 1 Monitor Products Incorporated 1 Peerless 6 Slant/Fin Corporation 1 Smith Boilers 1 Thermo-Dynamics Boiler Company 1 Top Performer 1 Utica Boilers 2 Viessmann Manufacturing Company 4 Waterpik Technologies/ Laars Heating System 2 Weil-McLain 7 Rhuum 1 ThermoPride 2 1


Just over one-quarter (7 out of 24) P&H contractors surveyed have memberships with the Plumbing, Heating, and Cooling Contractors Association. Three of the P&H contractors are union members.

Table 5-5: Membership in P&H Industry Organizations

(n=24) Responses Plumbing, Heating, and Cooling Contractors Assoc. (PHCCA) 7 Union Shop 3

P&H contractors most often cite a lack of interest or perceived need as the reason for not joining PHCCA. Other reasons for not joining the organization include the feeling that their business is too small or that they belong to local, not national organizations. (Table 5-6)

Table 5-6: Reasons for Not Being a Member of PHCCA

(n=18) PHCCA No need/not interested 7 Too small 2 Belong to local, not national 2 No time/never got around to it 1 Expensive/not worth it 1 They are not plumbers 1 No cooling work 1 Needs to renew 1 Don’t know 2


5.2 Training Plumbers When hiring new technicians, more than half of HVAC contractors (13 out of 24) look for some form of certification among candidate qualifications. Most often employers look for a contractor’s license, trade association training, or prior job experience. (Table 5-7)

Table 5-7: Types of Training P&H Employers Look For

(Multiple response) Responses Contractor’s license 8 Trade association training 6 Prior job experience 6 Two-year technical college 3 Drivers License 1 High school diploma 1

P&H technicians most often are trained through trade or vocational-technical schools and/or on the job. Many also receive training through state or utility programs and through PHCCA. (Table 5-8)

Table 5-8: Where Technicians Receive P&H Training

(Multiple response) Responses Trade or vocational-technical schools 16 On the job 12 State or utility programs 5 PHCCA 3 Manufacturer 1 Drivers license 1 (Don’t know) 2

The majority of P&H contractors say their plumbers hold some form of certification. Six say their plumbers have a Master’s license and five say their plumbers hold Apprentice or Journeyman’s certification. Table 5-9 lists additional certifications identified by P&H contractors. In addition to certifications, 21 out of 24 P&H contractors say their plumbers are licensed. Of these, 13 say at least half of their plumbers are licensed, including 8 who say all of their plumbers are licensed.


Table 5-9: Number of Technicians with Certification


Responses Masters license 6 Unspecified certification 4 Apprentice 3 Contractors of America-License in heating and plumbing

3

Burner installation 2 Journeyman 2 P1 or P2 1 For track pipe or stainless steel 1 Well water certification 1

Twenty-two out of 24 P&H contractors note there is a shortage of qualified, well-trained plumbers and the majority (15 out of 24) say this shortage limits the amount of work they can do. Sales Staff/General Sales bids are typically handled by P&H contractors alone (21 out of 24); three work on sales bids in coordination with other sales staff. The majority (20 out of 24) of P&H contractors also say sales responsibilities are only part-time duties; four contractors say they are full-time duties. Those with part-time sales duties also work as equipment installers or service technicians, administration or management, and company president/owner. (Table 5-10)

Table 5-10: Additional Job Duties for Those Involved in P&H Sales on a Part-Time Basis


Responses Service technician 16 Equipment installer 15 Administration/Management 12 President or Owner 9 Laborer or helper 8 Bookkeeping 6


In companies where sales bids are drafted in coordination with additional staff members, the sales staff have prior experience as technicians (2 out of 6 responses), installers (2), and/or in sales (1). 5.3 Segments Served and Sales Data—Part 1 The majority of P&H contractors surveyed work in the residential sector, with a mean of 78% of gross sales revenue generated from residential work and 19% from light commercial work; a very small portion of their revenues come from large C&I work. (Table 5-11)

Table 5-11: Percent of P&H Gross Sales Revenue by Customer Base

Customer Base Mean Range Residential 78% 50% to 100% Light Commercial 19% 0% to 50% Large Commercial and Industrial 3% 0% to 25%

P&H contractors say that the bulk of their residential work is with gas and oil boilers; 21 out of 24 work with gas boilers and 19 out of 24 work with oil boilers. A small number of contractors do additional work in areas such as plumbing, furnaces, and air conditioners. (Table 5-12) There do not appear to be any geographic differences in the type of equipment installed. (Table 5-13)

Table 5-12: Breakdown of P&H Residential Sales Revenue

(n=24) Number

Respondents Performing Type

of Work

Mean Range (All respondents)

Gas boilers 21 43% 0% to 100% Oil boilers 19 40% 0% to 100% Plumbing 5 17% 0% to 95% Furnaces 1 <1% 0% to 85% Air conditioners 1 <1% 0% to 25%


Table 5-13: Breakdown of P&H Residential Sales Geographic Region

Total New

England (n=12)

New Jersey (n=6)

New York (n=6)

Gas boilers 21 10 6 5 Oil boilers 19 11 4 4 Plumbing 5 3 1 1 Furnaces 1 1 0 0 Air conditioners 1 1 0 0

5.4 Installation Practices P&H contractors most often seek installation technical assistance from equipment manufacturers and to a lesser extent, wholesalers or distributors. Many also rely on manuals from ACCA, the Hydronic Institute, and other trade association manuals/journals. (Table 5-14)

Table 5-14: Where Seek Technical Assistance for P&H Installations


Responses Manufacturer 14 Wholesaler/Distributor 5 ACCA standards 3 Hydronic Institute manuals 3 Other association manuals 3 Trade journals 2 Local association 1 Local chapter of trade association 2 Co-workers 1 Do not seek technical assistance 3


When testing installation quality and performance in residential installations, P&H contractors most often use gauge or meter calibration, electronic thermometers, and combustion analyzer or Bacharach kit. As Table 5-15 shows, other diagnostic tools commonly used include use of ventilation for total comfort and the airflow source.

Table 5-15: Diagnostic Tools or Equipment Used to Test P&H Installation Quality and Performance


Response Gauge/meter calibration 7 Electronic thermometers 6 Combustion analyzer/Bacharach kit 5 Ventilation - total comfort 4 Airflow source 4 Electronic humidity measurement 3 Dry bulb and wet bulb Delta T 3 Air cleaning for total comfort 3 Recording thermometers - digital and analog 3 Humidity probes attachments for use with electrical meters 3 Role of humidity in total comfort 3 Voltmeter/ampmeter 2 Mechanical thermometers 2 Infrared thermometers 2 Liquid column thermometers 2 Equipment source 2 Gas company does testing 1 (Don’t know) 3


There are three methods that P&H contractors most often use to check the operating performance of a newly installed boiler: the Bacharach test, measuring the water temperature rise on supply and return, and the combustion efficiency test. Many contractors also assemble and balance the system and observe proper function. Each method has its devotees—that is contractors who use a single method exclusively, but most use more than one method to check boiler operating performance. (Table 5-16)

Table 5-16: Methods to Check Operating Performance of Newly Installed Boiler


Responses Mean Range Measure water temperature rise supply and return

11 54% 25% to 100%

Use the combustion efficiency test 11 43% 1% to 100%Use the Bacharach test 15 51% 1% to 100%Assemble and balance system and observe proper function

9 39% 2% to 100%

Fuel supplier does it 1 100% 100% (Don’t know) 1 - -


The majority of P&H contractors use industry standards to determine the size, configuration, and layout of heating pipes in residential new construction. Thirteen out of 24 P&H contractors rely on Hydronic Institute standards (including 7 who use the method exclusively) and seven use ASHRAE standards (including three who use the method exclusively). However, seven out of 24 contractors use rules of thumb to determine the layout of pipes. Typically, the rules of thumb are based on the size of the house or boiler system, sometimes used with a multiplier (600 multiplied by baseboard measure/four multiplied by total cubic footage). (Table 5-17)

Table 5-17: Methods to Determine Size, Configuration, and Layout of Heating Pipes


Responses Mean Range Hydronic Institute standards 13 77% 25% to 100% Rules of thumb 7 54% <1% to 100% Cost effective way to meet code 1 - - Use multiplier with room measurement 2 - - Depends on size of house 2 - - Depends on boiler size 1 - - Common sense/based on experience 1 - - ASHRAE standards 7 59% 10% to 100% Manufacturer recommendation 3 48% 20% to 100% Computer program 2 100% 100% Heat loss 1 100% 100% Not applicable—no new construction 1 - -


To determine the size of boiler recommended, 15 out of 24 P&H contractors exclusively use a single methodology. Of the methods used exclusively, heat loss calculations based on manufacturer recommendations (six use exclusively, three others use sometimes) and the Hydronics Institute IBR Method (four use exclusively, five use sometimes) are the most popular. (Table 5-18)

Table 5-18: Methods to Determine Size of Boilers


Responses Mean Range Hydronics Institute IBR Method 9 65% 10% to 80% Perform heat loss calculation from manufacturer recommendation

7 86% <1% to 100%

Measure linear footage of baseboard and design considerations

6 34% <1% to 80%

Measure BTUs per size unit of house 5 29% <1% to 100% Calculate square footage per ton 4 16% <1% to 30% Use ACCA Manual J or Right J 3 7% <1% to 10% Use a software package provided by manufacturer

2 15% 10% to 20%

Let the supply house calculate 2 100% 100% Use the same size as previous boiler if replacing

2 65% 40% to 90%

Perform ASHRAE load calculation 2 50% <1% to 100% Load calculations (unspecified) 1 100% 100% (Don’t know) 1 - -


If the builder or homeowner indicates that the home will be insulated and air-sealed to above code standards, 10 out or 24 P&H contractors would change the size of the CAC or heat pump they would specify. None of the contractors in New York indicate that they would be willing to change the size of the boiler specified. (Table 5-19) Those who would change the size specification say that they would need a smaller unit and the change would mean a more efficient boiler because it would not have to run as much. Those who would not change the boiler size are doubtful a change is warranted; for example, they do not trust the builder or insulation contractor, they believe the current standard works, and that square footage is a better indicator of boiler size than sealing or insulation improvements. (Table 5-20)

Table 5-19: Would Change Size of Boiler Based on Plans

Responses Total (n=24) 10 New England (n=12) 6 New Jersey (n=6) 4 New York (n=6) 0

Table 5-20: Reasons Why/Why Not Change Size of Boiler Based on Plans

Responses Would change size of boiler Smaller unit 9 More efficient boiler wouldn’t run as much 1 (Don’t know) 1 Would NOT change size of boiler Do not trust builder/insulator 4 Standard works 2 Square footage more important than sealing/insulation 2 It would change the type of boiler, not size 1 IBR doesn’t account for that very well 1 Worst would be just a bigger boiler 1 Too much temperature variation in region 1 (Don’t know) 2

As Table 5-21 shows, callbacks or warranty claims on boiler installations are rarely or occasionally received by P&H contractors; three say they never receive callbacks. The reasons cited for the infrequent callbacks or warranty claims include claims that unit does not heat properly, boiler failure, and customer problems with operating the thermostat. (Table 5-22)


Table 5-21: Frequency of Callbacks or Problems with Boiler Installations

(n=24) Responses Never 3 Rarely 14 Occasionally 6 Often 0 Almost always 0 (Don’t know) 1

Table 5-22: Reasons for Callbacks on Boiler Installations

(n=6) (Multiple response)

Responses Does not heat properly 2 Boiler failed within 1 year 1 Build up of air 1 Installation error 1 Customer does not know how to operate thermostat

1

Adjustments 1 Four out of 24 P&H contractor cite problems with high-efficiency boilers (AFUE greater than 85). As Table 5-23 shows, some of the problems are due to corrosion of vent piping and condensation in the combustion chamber; other problems are related to reliability and higher maintenance costs.

Table 5-23: Problems with High-Efficiency Boilers

(n=24) (Multiple response)

Responses Corrosion in vent piping 2 Condensation in combustion chamber 1 Reliability 1 Higher maintenance costs 1 (Don’t know) 1 None 20


5.5 Segments Served and Sales Data—Part 2 The majority of P&H contractors provide a combination of service/repair and installation services of heating equipment to residential customers. Overall, an average 34% of contractor residential revenues are for service and repair, 27% are installations in new homes, 13% are installations in additions, and 26% are replacements. (Table 5-24)

Table 5-24: Breakdown of Residential Heating Sales Revenue


15 13% 0% to 60%

Replacements in existing homes 18 26% 0% to 75% *Total represents those offering service As Table 5-25 shows, the majority of P&H contractors across all geographic regions provide a combination of service/repair and various types of installation services of heating equipment. However, the proportion of contractors in New Jersey doing installations in new construction is lower than in other geographic regions.

Table 5-25: Breakdown of Residential Heating Sales Revenue by Geographic Region

(n=23) Service Total* New

England (n=12)

New Jersey (n=5)

New York (n=6)


15 8 3 4

Replacements in existing homes 18 10 5 3 *Total represents those offering service Gas Boilers As Table 5-26 shows, contractors estimate that half of gas boiler installations in existing homes (new installations and replacements) are with units with AFUE ratings between 85 and 89.9; and 18% are high-efficiency units (90 AFUES or higher). Only one contractor notes a difference in the efficiency ratings of units installed from 2003 to 2004, with slightly more installations of units with AFUE ratings of 85 to 89.9 compared to lower-efficiency units. The contractor credits customers with the change due their demands for more efficient products.


Table 5-26: Percentage Breakdown of Gas Boiler Installations by AFUE Rating in 2003 and 2004



84.9 or less 8 32% 0% to 100% 9 35% 0% to 100% 85 to 89.9 14 50% 0% to 100% 14 48% 0% to 100% 90 or higher 6 18% 0% to 100% 6 18% 0% to 100%

*Total represents those offering service Looking at geographic breakdowns of installations by AFUE ratings, the proportion of high-efficiency gas boilers is larger in New England compared to other regions. (Table 5-27)

Table 5-27: Number of Gas Boiler Installations by AFUE Rating and Geographic Region

(2004 new installations and replacements in existing homes) (n=19)

AFUE Rating

Total New

England (n=5)

New Jersey (n=5)

New York (n=5)

84.9 or less 8 22% 8% 77% 85 to 89.9 14 50% 77% 23% 90 or higher 6 28% 15% 0%

*Total represents those offering service


Taking into consideration all the gas boiler replacement work they do, P&H contractors estimate that overall, an average of 53% are due to breakdowns and 47% are planned replacements. (Table 5-28) In breakdown situations, customers expect to have the work done the same or next day. Planned replacements also have a tight time schedule; contractors say half of customers need to have the work done within one week. (Table 5-29)

Table 5-28: Reasons for Gas Boiler Replacements


Table 5-29: Customer Timing Expectations for Gas Boiler Replacements

Breakdowns (n=20)

Planned (n=16)


Oil Boilers As Table 5-30 shows, contractors estimate that over half of oil boiler installations in existing homes (new installations and replacements) are with units with AFUE ratings between 85 and 89.9; and 18% are high-efficiency units (90 AFUES or higher). Only one contractor notes an increase in the efficiency ratings of units installed from 2003 to 2004, citing customer demand for more efficient products.

Table 5-30: Percentage Breakdown of Oil Boiler Installations by AFUE Rating in 2003 and 2004

(New installations and replacements in existing homes) (n=16**)


84.9 or less 6 27% 0% to 100% 6 30% 0% to 100% 85 to 89.9 11 55% 0% to 100% 11 53% 0% to 100% 90 or higher 4 18% 0% to 100% 4 18% 0% to 100%

*Total represents those offering service **Includes 2 respondents with “Don’t know” responses


Looking at geographic breakdowns of installations by AFUE ratings, the proportion of high-efficiency oil boilers is larger in New England compared to other regions. (Table 5-31)

Table 5-31: Number of Oil Boiler Installations by AFUE Rating and Geographic Region

(2004 new installations and replacements in existing homes) (n=16**)

AFUE Rating

Total* New

England (n=8)

New Jersey (n=4)

New York (n=2)

84.9 or less 6 11% 25% 97% 85 to 89.9 11 65% 63% 3% 90 or higher 4 24% 13% 0%

*Total represents those offering service **Includes 2 respondents with “Don’t know” responses

Taking into consideration all the oil boiler replacement work they do, P&H contractors estimate that overall there are more planned replacements than breakdowns (63% v. 37%). (Table 5-32) In breakdown situations, customers expect to have the work done the same or next day. Planned replacements also have a tight time schedule; contractors say about half of customers need to have the work done within one week. (Table 5-33)

Table 5-32: Reasons for Oil Boiler Replacements


Table 5-33: Customer Timing Expectations for Gas Boiler Replacements

Breakdowns (n=13)

Planned (n=15)



5.6 Selling Heating Services Gas Boilers For gas boilers, the majority of P&H contractors consider an AFUE rating of 85 or higher to be energy efficient, with a mean rating of 87.6 AFUE. Contractors in New England set the highest minimum standards for energy efficient gas boilers, with a mean AFUE rating of 88.9. (Table 5-34)

Table 5-34: Contractor Assumptions of Efficient AFUE Rating for Gas Boilers

(n=21)

AFUE Rating Total New

England (n=10)

New Jersey (n=6)

New York (n=5)

80 1 1 0 0 82 1 0 0 1 83 1 0 0 1 84 4 2 2 0 85 6 3 2 1 88 1 0 1 0 90 3 1 0 2

95 and above 2 1 1 0 (Don’t know) 2 2 0 0

Mean 87.6 88.9 86.8 86.0 Contractors estimate that they would charge customers an additional $775 to upgrade a gas boiler from 85 AFUE to 90 AFUE. Contractors in New Jersey would charge more for efficiency upgrade from than those in other regions. (Table 5-35)

Table 5-35: Average Price Increase for Upgrades to Higher Efficiency Gas Boilers


Total Mean

New England

(n=4)

New Jersey (n=6)

New York (n=4)

85 to 90 AFUE or higher $775* $800* $983 $437 *Excluding one respondent who reported an increase of $4,700. Contractors say consumers are somewhat willing to pay the higher cost associated with higher-efficiency gas boilers. Using a scale of 0 to 10, where 0 represents consumers being completely unwilling to pay the extra cost for higher efficiency gas boilers with AFUE levels of 85 or higher and 10 is completely willing; P&H contractors say


customers are 6.5. (Table 5-36) Contractors in New England rank consumer willingness to pay higher than contractors in other geographic areas.

Table 5-36: Rank of Willingness to Pay Extra Cost of High-Efficiency Gas Boilers—85 AFUE or Higher

(n=21)

Total New

England (n=10)

New Jersey (n=6)

New York (n=5)


P&H contractors speculate that customers who are willing to pay the extra cost for higher efficiency gas boilers primarily do so because the units save money and have a good return on investment. (Table 5-37)

Table 5-37: Why Customers Willing to Pay for High-Efficiency Gas Boilers


Responses Saves money/ROI 13 Reliability/Better operating 2 Saves energy/conservation 1 Better for environment/air quality 1 Trust contractor 1


The primary benefits that P&H contractors stress when selling high-efficiency gas boilers (85 AFUE or higher) are lower operating costs or lower utility bills. Additional benefits promoted by contractors include reliability and low maintenance costs. (Table 5-38)

Table 5-38: Selling Points of High-Efficiency Gas Boilers


Responses Low operating costs/lower utility bills 17 Reliability 8 Low maintenance costs 8 Comfort 5 Indoor air quality 5 Noise reduction 5 Better for environment 4 Better warranties 4 American-made products/German-made are cheaper

1

(Don’t know) 1 When making bids to residential customers, P&H contractors are about as likely to propose high-efficiency units of 85 AFUE or higher as they are not to propose them; 9 out of 21 contractors say they propose them often or almost always and 8 rarely or never propose them. Contractors in New Jersey are slightly more likely not to propose high-efficiency heating, while in New York, they are slightly more likely. (Table 5-39)

Table 5-39: Tendency to Propose High-Efficiency Gas Boilers in Customer Bids

(n=21)

Total

New England (n=10)

New Jersey (n=6)

New York (n=5)

Never 1 1 0 0 Rarely 7 4 3 0 Occasionally 4 0 2 2 Often 2 2 0 0 Almost always 7 3 1 3 Oil Boilers For oil boilers, the majority of P&H contractors consider an AFUE rating of 85 or higher to be energy efficient, with a mean rating of 85.8 AFUE. There is little difference in estimates by geographic region. (Table 5-40)


Table 5-40: Contractor Assumptions of Efficient AFUE Rating for Oil Boilers

(n=19)

AFUE Rating Total New

England (n=11)

New Jersey (n=4)

New York (n=4)

83 1 0 0 1 84 1 1 0 0 85 8 5 2 1 86 2 2 0 0 87 1 1 0 0 88 2 0 2 0

90 and above 1 0 0 1 (Don’t know) 3 2 0 1

Mean 85.8 85.3 86.5 86.0 Contractors estimate that they would charge customers an additional $1,254 to upgrade an oil boiler from 85 AFUE to 90 AFUE. Contractors in New Jersey would charge more for efficiency upgrade from than those in other regions. (Table 5-41)

Table 5-41: Average Price Increase for Upgrades to Higher Efficiency Gas Boilers


Total Mean

New England

(n=6)

New Jersey (n=4)

New York (n=3)

85 to 90 AFUE or higher $1,254 $1,150 $2,025 $433


Contractors say consumers are willing to pay the higher cost associated with higher-efficiency oil boilers. Using a scale of 0 to 10, where 0 represents consumers being completely unwilling to pay the extra cost for higher efficiency gas boilers with AFUE levels of 85 or higher and 10 is completely willing; P&H contractors say customers are 7.5. (Table 5-42) Contractors in New England rank consumer willingness to pay higher than contractors in other geographic areas.

Table 5-42: Rank of Willingness to Pay Extra Cost of High-Efficiency Oil Boilers—85 AFUE or Higher

(n=19)

Total New

England (n=11)

New Jersey (n=4)

New York (n=4)

0-Completely unwilling 0 0 0 0 1 to 3 1 0 0 1 4 to 6 2 1 0 1 7 to 9 11 6 4 1 10-Completely willing 3 3 0 0 (Don’t know) 2 1 0 1 Mean 7.5 8.2 7.8 4.7

P&H contractors speculate that customers who are willing to pay the extra cost for higher efficiency oil boilers primarily do so because the units save money and have a good return on investment. Three contractors say customer willingness to pay is not an issue because the price differential is not significant. (Table 5-43)

Table 5-43: Why Customers Willing to Pay for High-Efficiency Oil Boilers


Responses Saves money/ROI 9 Do not charge extra/little price difference 3 Reliability/Better operating 2 Saves energy/conservation 1 Trust contractor 1

The primary benefits that P&H contractors stress when selling high-efficiency oil boilers (85 AFUE or higher) are lower operating costs or lower utility bills. Additional benefits promoted by contractors include reliability, low maintenance costs, and comfort. (Table 5-44)


Table 5-44: Selling Points of High-Efficiency Oil Boilers


Responses Low operating costs/lower utility bills 16 Low maintenance costs 7 Reliability 6 Comfort 5 Indoor air quality 4 Noise reduction 4 Better for environment 4 Better warranties 4 (Don’t know) 2

When making bids to residential customers, P&H contractors are more likely to propose high-efficiency units of 85 AFUE or higher; 8 out of 19 contractors propose them often or almost always. Contractors in New York are less likely to propose high-efficiency heating than those in other regions. (Table 5-45)

Table 5-45: Tendency to Propose High-Efficiency Oil Boilers in Customer Bids

(n=19)

Total

New England (n=11)

New Jersey (n=4)

New York (n=4)

Never 1 1 0 0 Rarely 3 2 0 1 Occasionally 4 0 1 3 Often 3 2 1 0 Almost always 5 4 1 0 (Don’t know) 2 2 1 0 5.7 P&H Related Products and Services P&H contractors are about as likely to recommend or install programmable thermostats as they are not to propose them; 11 out of 24 contractors propose them often or almost always and 11 rarely or never propose them. Contractors in New England are less likely to recommend or install programmable thermostats than those in other regions. (Table 5-46)


Table 5-46: Tendency to Recommend or Install Programmable Thermostats

(n=24)

Total

New England (n=12)

New Jersey (n=6)

New York (n=6)

Never 4 3 0 1 Rarely 7 5 1 1 Occasionally 2 2 0 0 Often 6 1 3 2 Almost always 5 1 2 2 P&H contractors say the primary reasons why they rarely or never recommend or install programmable thermostats are that the units are too expensive and are problematic or malfunction. (Table 5-47)

Table 5-47: Reasons Why Rarely/Never Recommend or Install Programmable Thermostats

(n=11) Responses Too expensive 3 Problematic/malfunction 3 Too complicated 1 Lack of customer demand 1 Do not save enough 1 (Don’t know) 3

When working on the pipe layout in residential new construction work, contractors typically decide the layout specification themselves. Rarely the builder, general contractor, architect, project manager, or engineer is also involved. (Table 5-48)

Table 5-48: Who is Involved with Pipe Layout in New Construction


Responses P&H contractor 19 Builder or General contractor 2 Architect 2 Project manager 1 Engineer 1 (Don’t know) 1


Additional Services Nine out of 24 P&H contractors provide customers with new or innovative services that improve the comfort, efficiency, or safety of the home beyond those identified in the survey. These services include radiant heat, heat/energy recovery ventilators, humidifiers, and carbon monoxide detectors ( Table 5-49)

Table 5-49: Additional Services Offered—Not Previously Identified—P&H Contractors


Responses Radiant heat 4 Heat/energy recovery ventilators 3 Humidifiers 2 Carbon monoxide detectors 2 Outdoor reset controls 1 Electrostatic air filters 1

Relative to their competition, P&H contractors say they adopt new and innovative products and services slightly faster. Using a scale of 0 to 10, where 0 represents contractors offering new and innovative products and services extremely slowly and 10 is extremely quickly, the mean rating for P&H contractors is 6.8. Contractors in New York introduce new and innovative products at a slightly slower rate than those in other regions. (Table 5-50)

Table 5-50: Adoption Rates for Introducing New and Innovative Products and Services—P&H Contractors

(n=24)

Total New

England (n=12)

New Jersey (n=6)

New York (n=6)

0-Extremely slowly 1 0 1 0 1 to 3 2 1 0 1 4 to 6 6 4 0 2 7 to 9 11 4 4 3 10-Extremely quickly 4 3 1 0 Mean 6.8 7.0 7.0 6.2




HVAC Market Research Survey Instrument


March 2005

STAC Contractor Survey Instrument V032405 Page 1

NMR #1084 March 2005

STAC —HVAC Contractor Survey Instrument FINAL

QUOTAS: 1. 50 Total interviews 2. At least 20 Plumbing Module responses 3. At least 20 HVAC Module responses 4. At least 5 gas boilers, 5 oil boilers [PLUMBING MODULE SS2.] 5. At least 5 gas furnaces, 5 oil furnaces, and 10 CAC or Heat Pump [HVAC MODULE

SS2] 6. HVAC Module respondents answer no more than 2 equipment types (randomly choose

from SS2 but treat CAC and heat pump as the same equipment type) 7. Interviews in the following states

State No. ME 2NH 2VT 2MA 8CT 4RI 2NY 15NJ 15 Total 50

Hello, may I speak to the sales manager? Hello, my name is ______, and I’m calling from Nexus Market Research. I am calling as part of a joint research project co-sponsored by [INSERT: NYSERDA—THE NEW YORK STATE ENERGY, RESEARCH, AND DEVELOPMENT AUTHORITY (IF NEW YORK); THE NEW JERSEY BOARD OF PUBLIC UTILITIES (IF NEW JERSEY); OR, THE SPONSORING UTILTIES OF THE NORTHEAST ENERGY EFFICIENCY PARTNERSHIPS (IF ELSEWHERE)] and the United States Department of Energy. I am specifically calling heating and cooling installers in the northeastern U.S. to obtain your perspective on the market for RESIDENTIAL equipment. Upon completion of the study in late 2005, we will send you a free copy at your request. Would you be willing to contribute your professional experience to this process? Please note that your responses will be grouped together with others’ responses and will be completely confidential.


SCREENER SC1. Does your company install RESIDENTIAL heating and cooling systems, including

boilers, furnaces, or central air conditioners?

1. Yes [GOTO SC2] 2. No [THANK AND TERMINATE]

SC2. How would you characterize your company’s residential services.

[READ AND ROTATE]

1. Plumbing and heating contractors, or “Wet” heating contractors [GOTO PLUMBING MODULE]

2. Heating, ventilation, and air conditioning, or HVAC contractors [GOTO HVAC MODULE]

3. Both [RANDOMLY CHOOSE MODULE]

4. Neither [THANK AND TERMINATE]


HVAC MODULE


General Business Characteristics GB1. I’d like to begin by asking general questions about your business. I’m going to read a list

of types of services your company may provide. After I read each service, please tell me if your company provides it. Are you engaged in… [READ AND RANDOMIZE] [MULTIPLE RESPONSE]

1. Selling heating and cooling equipment 2. Installing heating and cooling equipment 3. Servicing and maintaining heating and cooling equipment 4. Financing heating and cooling equipment 5. Distributing heating/cooling equipment to other companies

[IF GB1 NOT EQUALS 2 THEN THANK AND TERMINATE] GB2. How many total employees are in your office [ENTER NUMBER: ______] How many

employees in each of the following categories do you have? [READ EACH CATEGORY; FILL IN NUMBER FOR EACH; SUM OF CATEGORIES SHOULD EQUAL TOTAL; DECIMALS (.75 OR .5) ARE ACCEPTABLE] 1. HVAC Installers 2. HVAC Service Technicians 3. HVAC Sales People 4. Office Manager 5. Bookkeeper 6. Receptionist 97. OTHER: Please describe:____________________________ 98. OTHER: Please describe: ____________________________ 99. (Don’t know)


GB3. What equipment brands do you generally install: [SELECT FROM TABLE: FURNACES AND CAC; DO NOT READ]

Manufacturer Equipment Types Adams Manufacturing Company Furnaces Airco Furnaces Amana Refrigeration Incorporated CAC and Furnaces American Standard Companies Inc CAC and Furnaces Armstrong Air Conditioning Inc. CAC and Furnaces Bryant CAC and Furnaces Carrier Corporation CAC and Furnaces Daikin U.S. Corporation CAC Dornback Furnace Division Furnaces ECR International Furnaces Excel Comfort Systems, Inc. Furnaces Freus, Incorporated CAC Goettl Air Conditioning Incorporated CAC Goodman Manufacturing CAC and Furnaces Heat Controller Inc. Furnaces International Comfort Products (ICP) CAC and Furnaces Lennox Industries Incorporated CAC and Furnaces NORDYNE CAC and Furnaces Nyle Special Products LLC CAC Olsen Furnaces Rheem-Ruud Manufacturing CAC and Furnaces Sears Roebuck and Company CAC Texas Furnace, LLC Furnaces The Trane Company CAC and Furnaces Thermo Products, LLC CAC and Furnaces Whirlpool Corporation CAC and Furnaces Xenon Heating and Air Conditioning CAC and Furnaces York International Corp. UPG CAC and Furnaces

97. (Other [SPECIFY: ]) 98. (Other [SPECIFY: ]) 99. (Don’t know/Refused)


GB4. Does your firm hold any status with, or membership to, any preferred dealer network for the equipment you sell for a particular manufacturer?

1. Yes [SPECIFY FROM TABLE: FURNACES AND CAC; MULTIPLE RESPONSE] Which manufacturers? [DO NOT READ]


2. No 97. (Other [SPECIFY: ]) 98. (Other [SPECIFY: ]) 99. (Don’t know)


GB5. Is your company a member of ACCA, or the Air Conditioning Contractors Association? 1 Yes 2 No Why not? [SPECIFY:

GB6. Is your company a member of SMACNA, or the Sheet Metal and Air Conditioning Contractors’ National Association?

1 Yes 2 No Why not? [SPECIFY:

GB7. Is your company a member of ASHRAE, or the American Society of Heating,

Refrigerating and Air-Conditioning Engineers? 1 Yes 2 No Why not? [SPECIFY:

GB8. Is your company a member of RSES, or the Refrigeration Service Engineers Society?


GB9. Is your company a union or non-union shop?

1 (Union) 2 (Non-union) 99 (Don’t know/refused)


Training For the purpose of this survey, I’ll refer to all service and installation staff as technicians. TR1. When hiring new technicians, do you or does your company look for any particular type

of certification? 1. Yes 2. No 99. (Don’t know)

[ASK IF TR1=1; ELSE GOTO TR3] TR2. What training do you look for? [DO NOT READ; MULTIPLE RESPONSE]

1. (Manufacturer’s certificate/training) 2. (Trade association training) 3. (NATE training) 4. (Refrigerant certification from EPA) 5. (Two-year technical degree) 6. (Prior job experience) 7. (Contractor’s license) 8. (Other [SPECIFY: _______________________________________]) 9. (Do not look for any particular training)

TR3. Where do you send your technicians to get the training they need? [DO NOT READ; MULTIPLE RESPONSE]

1. (Manufacturer) 2. (Trade or Vocational-Technical schools) 3. (On the job) 4. (ACCA [the Air Conditioning Contractors Association]) 5. (RSES [the Refrigeration Service Engineers Society]) 6. (State or utility programs) 7. (Distributors or Wholesalers) 8. (Other [SPECIFY: ]) 9. (Do not send technicians for training)

TR4. What certifications do your technicians hold? [MULTIPLE RESPONSE; DO NOT READ; RECORD UP TO THREE “OTHER” CATEGORIES]

1. _______ % NATE 2. _______ % CM 3. _______ % CMS 4. _______ % NTC 5. _______ % EPA—refrigerant 6. _______ % [SPECIFY: __________________]


TR5. What percentage of your technicians are trained in duct-sealing techniques?_______ % TR6. Do you feel there is a shortage of qualified, well-trained technicians?

1 Yes 2 No 3 (Don’t know)

TR7. Does a shortage of qualified technicians limit the amount of work you can do?

1. Yes 2. No 99 (Don’t know)

TR8. Compared to technicians without NATE certification, how much higher, if at all, is the typical pay of NATE-certified technicians? [ASK FOR PERCENTAGE AFTER RESPONDING HIGHER OR LOWER; INTERVIEWER CAN ACCEPT DON’T KNOW FOR PERCENTAGE BUT SHOULD NOT TAKE DON’T KNOW FOR HIGHER OR LOWER OR SAME]

1 Higher [ENTER PERCENT_______ %; or 99 Don’t know]

2 Lower [ENTER PERCENT_______ %; or 99 Don’t know]

3 Same

4 (Don’t know)

TR9. How often do customers ask for NATE-certified technicians?

1 Never 2 Rarely 3 Occasionally 4 Often 5 Almost always 99 (Don’t know)


Sales Staff/General TR13. For your company, do you handle sales bids… [READ]

1. In coordination with other sales staff 2. Alone as the only sales person

TR14. Are your sales responsibilities… [READ]

1. Your full-time duties 2. Part-time duties

[ASK IF TR14=2; ELSE GOTO TR16] TR15. What other job duties do you perform for your company? [READ]

1. President or Owner 2. Service technician 3. Equipment installation 4. Laborer or helper 5. Administration/Management 6. Bookkeeping 7. (Other: [SPECIFY: ____________________________) 8. (Other: [SPECIFY: ____________________________)

[ASK IF TR13=1; ELSE GOTO IP1] TR16. What background do sales staff typically have in your company? [MULTIPLE RESPONSE; READ LIST]

1. Prior sales experience 2. Prior technician experience 3. Prior installation experience 4. Other related experience [SPECIFY: _______________________] 99 (Don’t know)


Segments Served and Sales Data—PART 1 SS1. About what percentage of your work in gross sales revenue is residential, what

percentage is light commercial, and what percentage is large commercial and industrial? [NOTE TO INTERVIEWER IF ASKED TO CLARIFY:] By RESIDENTIAL I mean

single family homes, duplexes and townhouses, and apartments with individual heating or central air conditioning units. By LIGHT COMMERCIAL I am referring to small commercial buildings that utilize heating and cooling equipment that is similar to residential equipment. BY LARGE COMMERCIAL AND INDUSTRIAL I mean large apartment buildings multi-story office buildings, or industrial facilities. Percent of Total Gross Sales Rev. [MULTIPLE RESPONSE; ENTER PERCENT; TOTAL MUST EQUAL 100%]

1. Residential 2. Light Commercial 3. Large Commercial and Industrial 100% For the remainder of this interview, I am going to ask you only about your RESIDENTIAL work. SS2. What percentage of your company’s RESIDENTIAL gross sales revenue did the

following account for in 2004?

Percent of Residential Sales Revenue [MULTIPLE RESPONSE; ENTER PERCENT; TOTAL MUST EQUAL 100%; CONFIRM THEY ARE TALKING ONLY ABOUT RESIDENTIAL]

1. Gas furnaces 2. Oil furnaces 3. Central air conditioners 4. Air source heat pumps 97 OTHER 98 OTHER 100%



Now I’d like to ask a couple of questions about your installation practices. IP1. Where do you typically seek technical assistance for installations? [MULTIPLE RESPONSE; DO NOT READ]

1. (Co-workers) 2. (Wholesaler) 3. (Manufacturer) 4. (ACCA Manuals) 5. (Other Association manuals) [SPECIFY ASSOCIATION: __________] 6. (Local chapter of trade association) [SPECIFY ASSOCIATION: _______] 7. (Code Inspector) 8. (Other) [SPECIFY: ] 9. (Other) [SPECIFY: ] 10. (Don’t seek technical assistance) 99. (Don’t know)

IP2. What diagnostic tools or equipment do you most commonly use to test installation quality

and performance for RESIDENTIAL installations? [DO NOT READ]

1. [Liquid column thermometers] 2. [Mechanical thermometers] 3. [Electronic thermometers] 4. [Infrared thermometers] 5. [Gauge / meter calibration] 6. [Recording thermometers - digital and analog] 7. [Dry bulb and wet bulb Delta T] 8. [Sling psychrometer] 9. [Wet and dry bulb thermometers] 10. [Electronic humidity measurement] 11. [Gauge / meter calibration] 12. [Using psychrometric chart] 13. [Humidity probes attachments for use with electrical meters] 14. [Role of humidity in total comfort] 15. [Ventilation - total comfort] 16. [Air cleaning for total comfort] 17. [Equipment source] 18. [Airflow source] 96. [OTHER (SPECIFY: ________________________)] 97. [OTHER (SPECIFY: ________________________)] 98. [OTHER (SPECIFY: ________________________)] 99. [Don’t know/Refused]


[ASK IF SS2 = Q#3 + Q#4 > 10%; ELSE GOTO IP12] Air conditioners or heat pumps IP3. Which of the following methods do you use most often to determine the proper charge

for an air conditioning or heat pump system? [READ AND RANDOMIZE; MULTIPLE RESPONSE]

1 Weigh in charge on new installations according to manufacturer’s specifications 2 Measure super-heat or sub-cooling method to determine the correct charge 3 Adjust charge until we achieve a 20-degree temperature split across the indoor coil 4 Add or remove refrigerant based on refrigerant system pressures 5 Adjust charge until suction line starts to feel cool or sweats 9 Or something else? [SPECIFY: ______________________] 99 (Don’t know)

IP3A. [ASK FOR EACH RESPONSE EXCEPT 99] For about what percentage of central air conditioning or heat pump systems do you [INSERT RESPONSE]. Enter Percentages ; DK = 9999

[RESPONSES SHOULD TOTAL 100%]

IP4. Do you routinely check the airflow across the indoor coil?

1. Yes

2. No [SKIP TO IP6]

99. (Don’t know) [SKIP TO IP6]


IP5 Which of the following methods do you use most often to check the airflow across the indoor coil? [READ AND RANDOMIZE; MULTIPLE RESPONSE]

1 Use a rule of thumb such as feel output at registers 2 Measure static pressure with a gauge 3 Measure temperature split across the coil 4 Use a flow grid, flow hood, or hot wire anemometer 9 Or something else [SPECIFY: ______________________________________] 99 (Don’t know)

IP5A. [ASK FOR EACH RESPONSE EXCEPT 99] For about what percentage of central air conditioning or heat pump systems do you [INSERT RESPONSE]. Enter Percentages ; DK = 9999


IP5B. [ASK IF IP5 = 2] Where do you take the static pressure measurement? [DO NOT

READ; MULTIPLE RESPONSE]

1. (Both sides of the indoor coil) 2. (Across the furnace) 3. (From the return to before the coil) 4. (From the return to after the coil) 97. (Other [SPECIFY: _______________________________]) 98. (Other [SPECIFY: _______________________________]) 99. (Refused)

IP5C. [ASK IF IP5 = 3] What is the target temperature split? [DO NOT READ; MULTIPLE

RESPONSE]

1. (ENTER SPECIFIC RANGE; TWO NUMBERS; SPECIFY: _________ TO ______________)

2. (Depends on the ambient temperature when its being tested) 3. (Use temperature split table) 4. (Use slide rule) 97. (Other [SPECIFY: __________________________)] 98. (Other [SPECIFY: __________________________)] 99. (Don’t know/refused)


IP6. How do you generally determine the size of the central air conditioner or heat pump that you recommend? [READ AND RANDOMIZE; MULTIPLE RESPONSE]

1 Calculate square footage or cubic footage per ton 2 Use ACCA Manual J or Right J 3 Use a software package provided by manufacturer 4 Use the same size as previous unit if replacing 5 Use a bigger unit than before because the customer is not cool enough 9 (Other [SPECIFY: ______________________]) 99 (Don’t know)

IP6A. [ASK FOR EACH RESPONSE EXCEPT 99] A. For about what percentage of central

air conditioning systems or heat pumps do you [INSERT RESPONSE].

Enter Percentages ; DK = 9999


IP7. If the builder or homeowner indicates that the home will be insulated and air-sealed to above code standards, would that change the size of the central air conditioner or heat pump that you specify?

1. Yes [ASK] IP7A. In what way? __________________________________ 2. No [ASK] IP7B. Why not? 99. (Don’t know)

IP8. How often do you receive callbacks or warranty claims on central air conditioner or heat

pump installations?


IP9. [IF IP8 > 2] What are the most frequent causes of callbacks or warranty claims? [SPECIFY:

]

IP10. Have you had any problems with central air conditioners or heat pumps having a SEER

of 14 or higher? [DO NOT READ LIST; RECORD ALL THAT APPLY] 1 (Had reliability issues) 2 (Higher maintenance cost) 3 (Needed to train sales staff, installers, technicians, office staff) 4 (Harder to sell higher priced equipment) 9 (Other, please describe:___________________________________________) 99 (Don’t know)


Oil and Gas Furnaces [ASK IF SS2 Q#3 + Q#4 > 10%; ELSE GOTO SS1]

IP12. What method do you most often use to check the operating performance of a newly installed furnace [READ AND RANDOMIZE; MULTIPLE RESPONSE]?

1. Feel output at registers 2. Test the heat rise test across the coil 3. Use the combustion efficiency test 9 Other [SPECIFY: ___________________________] 99. (Don’t know)

[ASK FOR EACH RESPONSE EXCEPT 99] A. For about what percentage of furnaces do you [INSERT RESPONSE].

Enter Percentages ; DK = 9999 [RESPONSES SHOULD TOTAL 100%]

IP13. How do you generally determine the size of the furnace that you recommend? [READ

AND RANDOMIZE; MULTIPLE RESPONSE] 1 Calculate square footage per ton 2 Use ACCA Manual J or Right J 3 Use the software package provided by manufacturer 9 Other [SPECIFY: ______________________] 99 (Don’t know)

[ASK FOR EACH RESPONSE EXCEPT 99] A. For about what percentage of furnaces do you [INSERT RESPONSE].

Enter Percentages ; DK = 9999 [RESPONSES SHOULD TOTAL 100%]

IP14. If the builder or homeowner indicates that the home will be insulated and air-sealed to above code standards, would that change the size of the furnace that you specify?

1. Yes [ASK] IP14A. In what way? __________________________________ 2. No [ASK] IP14B. Why not?

99. (Don’t know) IP15. How often do you receive callbacks or warranty claims on furnace installations?


IP16. [IF IP15 > 2] What are the most frequent causes of callbacks or warranty claims

associated with installation practices? [SPECIFY: ]


IP17. Have you had any problems with furnaces with an AFUE that is greater than 90? [DO NOT READ LIST; RECORD ALL THAT APPLY]

1 (Had reliability issues) 2 (Higher maintenance cost) 3 (Needed to train sales staff, installers, technicians, office staff) 4 (Harder to sell higher priced equipment) 5 (Other, please describe:___________________________________________) 6 (Don’t know)


Segments Served and Sales Data—PART 2 [ASK IF SS2 Q#3 + Q#4 > 10%; ELSE GOTO SS7] SS3. Now I’m going to ask the percentages of your RESIDENTIAL cooling work that falls in

various categories.

For the RESIDENTIAL COOLING work you perform, what percentage of your residential revenue is from… [READ AND ROTATE; MULTIPLE RESPONSE; ENTER PERCENT; TOTAL MUST EQUAL 100%] 1. Service and repair 2. New construction installation 3. Installations in new additions to existing homes 4. Replacements in existing homes 100%


Now I’d like to ask about your central air conditioner or air source heat pump installations in existing homes. SS4. Approximately what percentage of the central air conditioners you installed in existing

homes (replacements or additions) in 2003 and 2004 had SEER ratings of [READ CATEGORIES; MULTIPLE RESPONSE; ENTER PERCENT; TOTAL MUST EQUAL 100%]

2003 Percent 2004 Percent SEER Rating

10 to 12.9 13 to 13.9 14 to 15.9 16.0 and up 100% 100% 100% SS5. [IF THE PERCENTAGES CHANGED FROM 2003 TO 2004] Why do you think these

percentages changed between 2003 and 2004? [DO NOT READ; MULTIPLE RESPONSE]

1. (Better product availability) 2. (Incentives/rebate) 3. (Falling prices) 4. (Customers demanding more efficient products) 5. (Change in company installation practices) 6. (Sales training) 97. (Other: ) 98. (Other: ) 99. (Don’t know)

SS6. Now, please think about all the central air conditioner equipment replacement work you

do. What percent of the replacements are breakdown replacements and what percent are planned (including remodeling)? [ENTER PERCENT; TOTAL MUST EQUAL 100%]

1. Breakdown

SS6A. [IF SS6 Q#1 > 5%] How quickly do customers need these? Days

2. Planned

SS6B. [IF SS6 Q#2 > 5%] How quickly do customers need these? Days 99.(Don’t know)


[ASK IF SS2 Q#1 > 10% OR SS2 Q#2 > 5%; ELSE GOTO IP1] SS7. I’m going to ask the percentages of your RESIDENTIAL heating work across new

construction, replacement, installations in new additions to homes, and service & repair.

For the RESIDENTIAL heating work you perform, what percentage of your RESIDENTIAL revenue is from… [READ AND ROTATE; MULTIPLE RESPONSE; ENTER PERCENT; TOTAL MUST EQUAL 100%] 1. Service and repair 2. New construction installation 3. Installations in new additions to existing homes 4. Replacements in existing homes 100%


[ASK IF SS2 #1 > 10%; ELSE GOTO SS11] Now I’d like to ask about your gas furnace installations in existing homes. SS8. Approximately what percentage of the gas furnaces you installed in existing homes

(replacements or additions) in 2003 and 2004 had AFUE ratings of… [READ CATEGORIES; MULTIPLE RESPONSE; ENTER PERCENT; TOTAL MUST EQUAL 100%]

2003 Percent 2004 Percent AFUE Rating

78-89.9 90-93.9 94+ 100% 100% SS9. [IF THE PERCENTAGES CHANGED FROM 2003 TO 2004] Why do you think these


1. [Better product availability] 2. [Incentives/rebate] 3. [Falling prices] 4. [Customers demanding more efficient products] 5. [Change in company installation practices] 6. [Sales training] 97. [Other: ] 98. [Other: ] 99. (Don’t know)

SS10. Now, please think about all the gas furnace replacement work you do. What percent of

the replacements are breakdown replacements and what percent are planned (including remodeling)? [ENTER PERCENT; TOTAL MUST EQUAL 100%]

1. Breakdown

SS10A. [IF SS10 Q#1 > 5%] How quickly do customers need these? Days

2. Planned SS10B. [IF SS10 Q#2 > 5%] How quickly do customers need these? Days

99. (Don’t know)


[ASK IF SS2 #2 > 5%; ELSE GOTO SL1] Now I’d like to ask about your oil furnace installations in existing homes. SS11. Approximately what percentage of the oil furnaces you installed in existing homes



78-89.9 90-93.9 94+ 100% 100% SS12. [IF THE PERCENTAGES CHANGED FROM 2003 TO 2004] Why do you think these



SS13. Now, please think about all the oil furnace replacement work you do. What percent of the

replacements are breakdown replacements and what percent are planned (including remodeling)? [ENTER PERCENT; TOTAL MUST EQUAL 100%]

1. Breakdown SS13A. [IF SS13 Q#1 > 5%] How quickly do customers need these? Days


99.(Don’t know)


Selling HVAC Equipment and Services Next, I’d like to ask you a few questions about selling techniques for heating and cooling equipment.

[ASK IF SS2 = 1 OR 2; ELSE GOTO SL8]

Central air conditioners and heat pumps

SL1. What SEER level do you consider to be energy efficient on a central air conditioner or heat pump? [NUMBER MUST BE GREATER THAN 10; LESS THAN 25]

1. [Record response] _______

99. (Don’t know) SL2. What is the increase in your price to a RESIDENTIAL customer for a central air

conditioner or heat pump to improve from a… [READ LIST AND RECORD A RESPONSE FOR EACH INCREMENTAL INCREASE; READ ESTIMATE OF “$500 TO $800” ONLY IF RESPONDENT BALKS]

$ 13 SEER to 14 SEER – the best single-speed system 1. record $figure; 9999=dk SL3. What is the increase in your price to a RESIDENTIAL customer for a central air

conditioner or heat pump to improve from a… [READ LIST AND RECORD A RESPONSE FOR EACH INCREMENTAL INCREASE; READ ESTIMATE OF “MORE THAN $800” ONLY IF RESPONDENT BALKS]

$ 14 SEER to 16 SEER and higher – a two-speed system 1. record $figure; 9999=dk


SL4. What benefits do you stress when selling high-efficiency central air conditioners or heat pumps that are 14 SEER or higher? [DO NOT READ LIST; RECORD ALL THAT APPLY] 1 (Comfort) 2 (Reliability) 3 (Noise reduction) 4 (Low operating costs/Lower utility bills) 5 (Low maintenance costs) 6 (Better for the environment) 7 (Better warranties) 8 (Indoor air quality) 9 (Other, please describe:__________________________) 99 (Don’t Know/Not Sure)

SL5. On a scale from 0 to 10 where 0 is completely unwilling and 10 is completely willing, how willing are customers to pay the extra cost for higher efficiency air conditioning with SEER levels of 14 or higher? 1. [Record response] _______ 99. (Don’t know)

[IF SL5 IS GREATER THAN 5; ASK SL6; ELSE GOTO SL7] SL6. Why do you think customers are willing to pay the higher price for higher efficiency air conditioning? [SPECIFY: ] SL7. How often do you provide RESIDENTIAL customers with bids for high-efficiency units,

such as a 14 SEER unit or higher, as well as lower-efficiency units? Is it . . .[READ LIST]

1 Never

2 Rarely

3 Occasionally

4 Often

5 Almost always

99 (Don’t know)


[ASK IF SS2 Q#3 > 10%; ELSE GOTO SL15]

Gas Furnaces Now I’d like to ask about the market for the gas furnaces you sell. SL8. What AFUE level do you consider to be energy efficient on a gas furnace? [NUMBER

MUST BE GREATER THAN OR EQUAL TO 78; LESS THAN 100]

1. [Record response] _______ 99. (Don’t know)

SL9. What is the increase in your price to a RESIDENTIAL customer for a gas furnace to

improve from a… [READ LIST AND RECORD A RESPONSE FOR EACH INCREMENTAL INCREASE; READ ESTIMATE OF “$400 TO $800” ONLY IF RESPONDENT BALKS]

$ 78 AFUE to 90 AFUE 1. record $figure; 9999=dk SL10. What is the increase in your price to a RESIDENTIAL customer for a gas furnace to

improve from a… [READ LIST AND RECORD A RESPONSE FOR EACH INCREMENTAL INCREASE; READ ESTIMATE OF “MORE THAN $800” ONLY IF RESPONDENT BALKS]

$ 90 AFUE to 94 AFUE and higher 1. record $figure; 9999=dk


SL11. What benefits do you stress when selling high-efficiency gas furnaces that are 90 AFUE or higher? [DO NOT READ LIST; RECORD ALL THAT APPLY] 1 (Comfort) 2 (Reliability) 3 (Noise reduction) 4 (Low operating costs/Lower utility bills) 5 (Low maintenance costs) 6 (Better for the environment) 7 (Better warranties) 8 (Indoor air quality) 9 (Other, please describe:__________________________) 99 (Don’t Know/Not Sure)

SL12. On a scale from 0 to 10 where 0 is completely unwilling and 10 is completely willing, how willing are customers to pay the extra cost for higher efficiency gas furnaces, that is with AFUE levels of 90 or higher? 1. [Record response] _____ 99. (Don’t know)

[IF SL12 IS GREATER THAN 5; ASK SL13; ELSE GOTO SL14] SL13. Why do you think customers are willing to pay the higher price for higher efficiency gas furnaces? [SPECIFY: ] SL14. How often do you provide RESIDENTIAL customers with bids for high-efficiency units,

such as a 90 AFUE unit or higher, as well as lower-efficiency units? Is it . . .[READ LIST]

1 Never

2 Rarely

3 Occasionally

4 Often

5 Almost always

99 (Don’t know)


[ASK IF SS2 Q#4 > 5%; ELSE GOTO PS1]

Oil Furnaces Now I’d like to ask about the market for the oil furnaces you sell. SL15. What AFUE level do you consider to be energy efficient on an oil furnace? [NUMBER

MUST BE GREATER THAN OR EQUAL TO 78; LESS THAN 100]

1. [Record response] _______ 99. (Don’t know)

SL16. What is the increase in your price to a customer for an oil furnace to improve from a…

[READ LIST AND RECORD A RESPONSE FOR EACH INCREMENTAL INCREASE; READ ESTIMATE OF “$200 TO $800” ONLY IF RESPONDENT BALKS]

$ 78 AFUE to 90 AFUE 1. record $figure; 9999=dk SL17. What is the increase in your price to a customer for an oil furnace to improve from a…

[READ LIST AND RECORD A RESPONSE FOR EACH INCREMENTAL INCREASE; READ ESTIMATE OF “MORE THAN $800” ONLY IF RESPONDENT BALKS]

$ 90 AFUE to 94 AFUE and higher 1. record $figure; 9999=dk


SL18. What benefits do you stress when selling high-efficiency oil furnaces that are 90 AFUE or higher? [DO NOT READ LIST; RECORD ALL THAT APPLY] 1 (Comfort) 2 (Reliability) 3 (Noise reduction) 4 (Low operating costs/Lower utility bills) 5 (Low maintenance costs) 6 (Better for the environment) 7 (Better warranties) 8 (Indoor air quality) 9 (Other, please describe:__________________________) 99 (Don’t Know/Not Sure)

SL19. On a scale from 0 to 10 where 0 is completely unwilling and 10 is completely willing, how willing are customers to pay the extra cost for higher efficiency oil furnaces, that is with AFUE levels of 85 or higher? 1. [Record response] ______ 99. (Don’t know) [IF SL19 IS LESS THAN 5; GOTO SL22] SL20. On a scale from 0 to 10 where 0 is completely unwilling and 10 is completely willing, how willing are customers to pay the extra cost for higher efficiency oil furnaces, that is with AFUE levels of 90 or higher? 1. ]Record response] _____ 99. (Don’t know)

[IF SL20 IS GREATER THAN 5; ASK SL21; ELSE GOTO SL22] SL21. Why do you think customers are willing to pay the higher price for higher efficiency oil furnaces of 90 AFUE or higher? [SPECIFY: ] SL22. How often do you provide RESIDENTIAL customers with bids for high-efficiency units,


1 Never

2 Rarely

3 Occasionally

4 Often

5 Almost always

99 (Don’t know)


HVAC Related Products & Services

[INTERVIEWER READ:] Now, I would like to ask you about other types of RESIDENTIAL services your company may provide. PS1. How often do you recommend or install programmable thermostats? [READ LIST]

1 Never—(A) Why not? [SPECIFY: ] 2 Rarely—(A) Why not? [SPECIFY: ] 3 Occasionally 4 Often 5 Almost always 99 (Don’t know)

[ASK IF SS3 Q#2 OR Q#3 > 10%; ELSE GOTO PS4] PS2. Who typically decides on the duct layout specifications in your RESIDENTIAL new construction work? [READ AND ROTATE; MULTIPLE RESPONSE]

1. You, the HVAC contractor 2. The builder or general contractor 3. The architect 4. Project manager 5. Engineer 6. (Other) [SPECIFY: _________________________________] 99. (Don’t know)

PS3. How does your firm decide on the size, configuration, and layout of duct work in RESIDENTIAL new construction? [READ LIST; SELECT ONE RESPONSE]

1 Rules of thumb–(A) What is the rule of thumb you use? [SPECIFY: ] 2 ACCA Manual D 3 Other [SPECIFY: _______________________________________________] 99 (Don’t know)

PS4. Does your firm have equipment to measure proper airflow through ductwork to individual rooms of a home such as..? [READ AND ROTATE]

1. Flow hoods 2. Hot-wire anemometers. 3. Duct blasters 4. Other [[RECORD UP TO THREE; SPECIFY: ] 5. [None]


PS4A. What amount of duct leakage do you consider to be acceptable?

1. 20-30% 2. 10-19% 3. 8-10% 4. 5-7% 5. Under 5%

9. (Other [SPECIFY: ________________]) 99. (Don’t know/refused) [ASK IF PS4 IS NOT EQUAL TO 5; ELSE GOTO PS6]

PS5. How often do you use this equipment on RESIDENTIAL jobs?


PS6. Do you provide duct-cleaning services?

1. Yes 2. No [IF PS6 = 2 THEN ASK A AND B.]

A. What is your opinion of this service? [SPECIFY: ] B. Do you have any interest in providing this service?

1. YES [SPECIFY] Why? _______________________ 2. NO [SPECIFY] Why not? ______________________ 3. (Don’t know)

PS7. Do you provide duct repair or duct sealing services?

1. Yes 2. No [IF PS7 = 2 THEN ASK A AND B.]

A. What is your opinion of this service? [SPECIFY: ] B. Do you have any interest in providing this service?

1. YES [SPECIFY] Why? _______________________ 2. NO [SPECIFY] Why not? ______________________ 3. (Don’t know)


[ASK IF PS7 = 1; ELSE GOTO PS9] PS8. What materials do you typically use for sealing ducts? [READ RESPONSES, RECORD

ALL THAT APPLY]

1 Duct tape 2. Butyl-backed aluminum tape 3 Fibrous backing tape 4 Pressure-sensitive tape 5 Mastic 6 Sealant 7 Other [SPECIFY: ___________________________________]

PS8. How often do customers ask for duct maintenance and repair?


PS9. Do you provide any other new or innovative services that I have not asked about to

improve the comfort, efficiency, or safety of a home?

1. Yes. [[RECORD UP TO THREE]; SPECIFY: ] 2. No.

PS10. On a scale of 0 to 10, where 0 is extremely slowly and 10 is extremely quickly, relative to

your competition, how quickly do you begin offering new and innovative products or services?

1 [Record response] ________________ 99. (Don’t know)


Thank you very much for being willing to respond to this interview. Would you like a copy of this study when it is completed?

1. YES [INTERVIEWER: RECORD NAME] Someone from Nexus Market Research will be contacting you about the study schedule within the next 30 days.

2. NO [INTERVIEWER: THANK AGAIN AND TERMINATE]


PLUMBING MODULE


General Business Characteristics GB1. I’d like to begin by asking general questions about your business. I’m going to read a list

of types of services your company may provide. After I read each service, please tell me if your company provides it. Are you engaged in… [READ AND RANDOMIZE] [MULTIPLE RESPONSE]

1. Selling heating and cooling equipment 2. Installing heating and cooling equipment 3. Servicing and maintaining heating and cooling equipment 4. Financing heating and cooling equipment 5. Distributing heating/cooling equipment to other companies

[IF GB1 NOT EQUALS 2 THEN THANK AND TERMINATE] GB2. How many total employees are in your office [ENTER NUMBER: ______] How many

employess in each of the following categories do you have? [READ EACH CATEGORY; FILL IN NUMBER FOR EACH; SUM OF CATEGORIES SHOULD EQUAL TOTAL; DECIMALS (.75 OR .5) ARE ACCEPTABLE] 1. Master Plumbers 2. Journeyman Plumbers 3. Apprentice Plumbers 4. Pipe fitters 5. Helpers 6. OTHER: Please describe:____________________________ 7. OTHER: Please describe: ____________________________ 99. (Don’t know)


GB3. What equipment brands do you generally install: [SELECT FROM TABLE; DO NOT READ]

Manufacturer Axeman-Anderson Baxi Spa Buderus Hydronic Systems Burnham Corporation Carrier Corporation Columbia Boiler Company Conematic Heating Systems Inc. Crown Boiler Company De Dietrich Dunkirk ECR International Energy Kinetics GlowCore Heat Transfer Products, Incorporated Hydrotherm Boilers Mestek, Inc. Monitor Products Incorporated New Yorker Boiler Company, Inc. NY Thermal Inc. P. B. Heat, LLC Peerless Quietside Technologies Slant/Fin Corporation Smith Boilers Thermo-Dynamics Boiler Company Triangle Tube/Phase III Co., Inc. Utica Boilers Viessmann Manufacturing Company Waterpik Technologies/ Laars Heating System Weil-McLain

97 Other [SPECIFY: ] 98 Other [SPECIFY: ] 99. (Don’t know/Refused)


GB4. Does your firm hold any status or a member of any preferred dealer network for the equipment you sell for a particular manufacturer?

1. Yes [SPECIFY FROM TABLE; MULTIPLE RESPONSE] Which manufacturers?

Manufacturer Axeman-Anderson Baxi Spa Buderus Hydronic Systems Burnham Corporation Carrier Corporation Columbia Boiler Company Conematic Heating Systems Inc. Crown Boiler Company De Dietrich Dunkirk ECR International Energy Kinetics GlowCore Heat Transfer Products, Incorporated Hydrotherm Boilers Mestek, Inc. Monitor Products Incorporated New Yorker Boiler Company, Inc. NY Thermal Inc. P. B. Heat, LLC Peerless Quietside Technologies Slant/Fin Corporation Smith Boilers Thermo-Dynamics Boiler Company Triangle Tube/Phase III Co., Inc. Utica Boilers Viessmann Manufacturing Company Waterpik Technologies/ Laars Heating System Weil-McLain

2. No 97 Other [SPECIFY: ] 98 Other [SPECIFY: ] 99. (Don’t know/Refused)


GB5. Is your company a member of PHCCA, or the Plumbing, Heating, and Cooling Contractors Association?


GB6. Is your company a union or non-union shop? 1 Union 2 Non-union 99 (Don’t know/Refused)


Training Plumbers TR1. When hiring new plumbers, do you or does your company look for any particular type of

certification?

1. Yes 2. No 99. (Don’t know)

[ASK IF TR1=1; ELSE GOTO TR3] TR2. What training or certification do you look for? [DO NOT READ; MULTIPLE

RESPONSE]

1. (Manufacturer’s training or certification) 2. (Trade association training or certification) 3. (Two-year technical degree) 4. (Prior job experience) 5. (Contractors’ license) 6. (Other [SPECIFY: __________________________]) 7. (Do not look for training or certification)

TR3. Where do your plumbers go to get the training they need? [DO NOT READ; MULTIPLE

RESPONSE]

1. (Manufacturer) 2. (Trade or Vocational-Technical schools) 3. (On the job) 4. (PHCCA [THE PLUBMING, HEATING AND COOLING CONTRACTORS OF

AMERICA]) 5. (State or utility programs) 6. (Distributors/Wholesalers) 7. (Other [SPECIFY: ])

TR4. What percentage of your plumbers hold certifications? [MULTIPLE RESPONE; DO NOT READ; RECORD UP TO THREE]

1. _______ % [SPECIFY: __________________] 2. _______ % [SPECIFY: __________________] 3. _______ % [SPECIFY: __________________] 4. _______ % [SPECIFY: __________________]

TR5. What percentage of your plumbers are licensed?_______ %


TR6. Do you feel there is a shortage of qualified, well-trained plumbers? 1 Yes 2 No 3 (Don’t know / Not sure)

TR7. Does a shortage of qualified plumbers limit the amount of work you can do?

1. Yes 2. No

99 (Don’t know)


Sales Staff/General TR13. For your company, do you handle sales bids… [READ]

1. In coordination with other sales staff 2. Alone as the only sales person

TR14. Are your sales responsibilities… [READ]

1. Your full-time duties 2. Part-time duties

[ASK IF TR14=2; ELSE GOTO TR16] TR15. What other job duties do you perform for your company? [READ]

1. President or Owner 2. Service technician 3. Equipment installation 4. Laborer or helper 5. Administration/Management 6. Bookkeeping 7. (Other: [SPECIFY: ____________________________) 8. (Other: [SPECIFY: ____________________________)

[ASK IF TR13=1; ELSE GOTO IP1] TR16. What background do sales staff typically have in your company? [MULTIPLE RESPONSE; READ LIST]

1. Prior sales experience 2. Prior technician experience 3. Prior installation experience 4. Other related experience [SPECIFY: _______________________]

99 (Don’t know)


Sales and Segmentation—PART 1 SS1. About what percentage of your work in gross sales revenue is residential, what

percentage is light commercial, and what percentage is large commercial and industrial? [NOTE TO INTERVIEWER IF ASKED TO CLARIFY:] By RESIDENTIAL I mean

single family homes, duplexes and townhouses, and apartments with individual heating or central air conditioning units. By LIGHT COMMERCIAL I am referring to small commercial buildings that utilize heating and cooling equipment that is similar to residential equipment. BY LARGE COMMERCIAL AND INDUSTRIAL I mean large apartment buildings multi-story office buildings, or industrial facilities. Percent of Total Gross Sales Rev. [MULTIPLE RESPONSE; ENTER PERCENT; TOTAL MUST EQUAL 100%]

1. Residential 2. Light Commercial 3. Large Commercial and Industrial 100% For the remainder of this interview, I am going to ask you only about your RESIDENTIAL work. SS2. What percentage of your company’s RESIDENTIAL gross sales revenue did the

following account for in 2004?

Percent of Residential Sales Revenue [MULTIPLE RESPONSE; ENTER PERCENT; TOTAL MUST EQUAL 100%; CONFIRM THEY ARE TALKING ONLY ABOUT RESIDENTIAL]

1. Gas burning boilers 2. Oil burning boilers 97 OTHER 98 OTHER 100%



Now I’d like to ask a couple of questions about your installation practices. IP1. Where do you typically seek technical assistance for installations? [MULTIPLE RESPONSE; DO NOT READ]

1. (Co-workers) 2. (Wholesaler) 3. (Manufacturer) 4. (ACCA standards) 5. (ASHRAE manuals) 6. (Hydronic Institute manuals) 7. (Other association manuals) [SPECIFY ASSOCIATION: __________] 8. (Local chapter of trade association) [SPECIFY ASSOCIATION: _______] 9. (Code Inspector) 10. (Other) [SPECIFY: ] 11. (Other) [SPECIFY: ] 12. (Don’t seek technical assistance) 99. (Don’t know)

IP2. What diagnostic tools or equipment do you most commonly use to test installation quality

and performance for RESIDENTIAL installations? [DO NOT READ]

1. [Liquid column thermometers] 2. [Mechanical thermometers] 3. [Electronic thermometers] 4. [Infrared thermometers] 5. [Gauge / meter calibration] 6. [Recording thermometers - digital and analog] 7. [Dry bulb and wet bulb Delta T] 8. [Sling psychrometer] 9. [Wet and dry bulb thermometers] 10. [Electronic humidity measurement] 11. [Gauge / meter calibration] 12. [Using psychrometric chart] 13. [Humidity probes attachments for use with electrical meters] 14. [Role of humidity in total comfort] 15. [Ventilation - total comfort] 16. [Air cleaning for total comfort] 17. [Equipment source] 18. [Airflow source] 96. [OTHER (SPECIFY: ________________________)] 97. [OTHER (SPECIFY: ________________________)] 98. [OTHER (SPECIFY: ________________________)] 99. [Don’t know/Refused]


IP3. What method do you most often use to check the operating performance of a newly installed boiler? [READ AND RANDOMIZE; MULTIPLE RESPONSE]

1. Measure water temperature rise supply and return 2. Use the combustion efficiency test 3. Use the Bacharach test 4. Assemble and balance system and observe proper function 5. (Other [SPECIFY: ______________________________]) 99. (Don’t know)

[ASK FOR EACH RESPONSE EXCEPT 99] A. For about what percentage of

boiler systems do you [INSERT RESPONSE].



IP4. How does your firm decide on the size, configuration, and layout of heating pipes in RESIDENTIAL new construction? Do you… [READ AND RANDOMIZE; MULTIPLE RESPONSE] 1 Use rules of thumb–(A) What is the rule of thumb you use? [SPECIFY ] 2 Use Hydronic Institute standards 3 Use ASHRAE standards 4 Use manufacturer recommendation 5 Other [SPECIFY: _______________________________________________] 99 (Don’t know)

[ASK FOR EACH RESPONSE EXCEPT 99] A. For about what percentage of boiler systems do you [INSERT RESPONSE].




IP5. How do you generally determine the size of the boiler that you recommend [READ AND RANDOMIZE; MULTIPLE RESPONSE] 1 Calculate square footage per ton 2 Use ACCA Manual J or Right J 3 Hydronics Institute IBR Method 3 Use software package provided by manufacturer 4 Perform a heat loss calculations from a manufacturer recommendation 5 Measure BTUs per size unit of house 6 Measure linear footage of baseboard and design considerations 7 Let the supply house calculate 8 Use the same size as previous boiler if replacing 9 Perform ASHRAE load calculation 97 (Other [SPECIFY: ______________________]) 99 (Don’t know)

[ASK FOR EACH RESPONSE EXCEPT 99] A. For about what percentage of boiler systems do you [INSERT RESPONSE].



IP6. If the builder or homeowner indicates that the home will be insulated and air-sealed to above code standards, would that change the size of the boiler that you specify?

1. Yes [ASK] IP6A. In what way? __________________________________ 2. No [ASK] IP6B. Why not?

99. (Don’t know)

IP7. How often do you receive callbacks or warranty claims on boiler installations?


IP8. [IF IP7 > 2] What are the most frequent causes of callbacks or warranty claims associated

with installation practices? [SPECIFY: ]


IP9. Have you had any problems with boilers having an AFUE that is greater than 85? [DO NOT READ LIST; RECORD ALL THAT APPLY] 1 (Had reliability issues) 2 (Higher maintenance cost) 3 (Needed to train sales staff, installers, technicians, office staff) 4 (Harder to sell higher priced equipment) 5 (Other, please describe:___________________________________________)

9 (Don’t know)


Sales and Segmentation—PART 2 [ASK IF SS2 Q#1 + Q#2 > 10%; ELSE GOTO SL1] SS3. Now I’m going to ask the percentages of your RESIDENTIAL heating work falls in

various categories. For the RESIDENTIAL heating work you perform, what percentage of your

RESIDENTIAL revenue is from… [READ AND ROTATE; MULTIPLE RESPONSE; ENTER PERCENT; TOTAL MUST EQUAL 100%]. 1. Service and repair 2. New construction installation 3. Installations in new additions to existing homes 4. Replacements in existing homes 100%


[ASK IF SS2 #Q1 > 10%; ELSE GOTO SS7] Now I’d like to ask about your gas boiler installations in existing homes. SS4. Approximately what percentage of the gas boilers you installed in existing homes



84.9 or less 85-89.9 90+ 100% 100% SS5. [IF THE PERCENTAGES CHANGED FROM 2003 TO 2004] Why do you think these



SS6. Now, please think about all the gas boiler replacement work you do. What percent of the




99. (Don’t know)


[ASK IF SS2 #2 > 10%; ELSE GOTO SL1] Now I’d like to ask about your oil boiler installations in existing homes. SS7. Approximately what percentage of the oil boiler you installed in existing homes



84.9 or less 85-89.9 90+ 100% 100% SS8. [IF THE PERCENTAGES CHANGED FROM 2003 TO 2004] Why do you think these



SS9. Now, please think about all the oil boiler replacement work you do. What percent of the




99. (Don’t know)


Selling Heating Services Next, I’d like to ask you a few questions about selling techniques for heating equipment.

[ASK IF SS2 = 1; ELSE GOTO SL8]

Gas Boilers Now I’d like to ask about the market for the gas boilers you sell. SL1. What AFUE level do you consider to be energy efficient on a gas boiler? [NUMBER

MUST BE GREATER THAN 80; LESS THAN 100]

1. [Record response] _______ 99. (Don’t know) SL2. What is the increase in your price to a customer for a gas boiler to improve from a…


$ 80 AFUE to 85 AFUE 1. record $figure; 9999=dk SL3. What is the increase in your price to a customer for a gas boiler to improve from a…


$ 85 AFUE to 90 AFUE 1. record $figure; 9999=dk


SL4. What benefits do you stress when selling high-efficiency gas boilers that are 85 AFUE or higher? [DO NOT READ LIST; RECORD ALL THAT APPLY] 1 (Comfort) 2 (Reliability) 3 (Noise reduction) 4 (Low operating costs/Lower utility bills) 5 (Low maintenance costs) 6 (Better for the environment) 7 (Better warranties) 8 (Indoor air quality) 9 (Other, please describe:__________________________) 99 (Don’t Know/Not Sure)

SL5. On a scale from 0 to 10 where 0 is completely unwilling and 10 is completely willing, how willing are customers to pay the extra cost for higher efficiency gas boilers, that is with AFUE levels of 85 or higher? 1. [Record response] _____ 99. (Don’t know)

[IF SL5 IS GREATER THAN 5; ASK SL6; ELSE GOTO SL7] SL6. Why do you think customers are willing to pay the higher price for higher efficiency gas boilers? [SPECIFY: ] SL7. How often do you provide RESIDENTIAL customers with bids for high-efficiency units,


1 Never

2 Rarely

3 Occasionally

4 Often

5 Almost always

99 (Don’t know)


[ASK IF SS2 = 2; ELSE GOTO PS1]

Oil Boilers Now I’d like to ask about the market for the oil boilers you sell. SL8. What AFUE level do you consider to be energy efficient on a oil boiler ? [NUMBER

MUST BE GREATER THAN 80; LESS THAN 100]

1. [Record response] _______ 99. (Don’t know) SL9. What is the increase in your price to a customer for a oil boiler to improve from a…

[READ LIST AND RECORD A RESPONSE FOR EACH INCREMENTAL INCREASE; READ ESTIMATES ONLY IF RESPONDENT BALKS]

$ From 80 AFUE to 85 AFUE ($200 - $500 increase) 1. record $figure; 9999=dk $ From 85 AFUE to 90 AFUE ($500 - $800) 1. record $figure; 9999=dk SL10. Does your mark-up or margin differ with higher priced, high-efficiency oil boiler units

such as a AFUE 85 as opposed to lower cost, standard-efficiency units such as a AFUE 80? Again, I’m asking about the rate of markup or margin over the wholesale price and not the actual price difference.

1. YES [IF YES] A. By what percent higher? Again, I’m asking about the

difference in the rate of markup or margin over the wholesale price and not the actual price difference. [ENTER PERCENT ]

2. NO 99. (Don’t know)


SL11. What benefits do you stress when selling high-efficiency oil boilers that are 85 AFUE or higher? [DO NOT READ LIST; RECORD ALL THAT APPLY] 1 (Comfort) 2 (Reliability) 3 (Noise reduction) 4 (Low operating costs/Lower utility bills) 5 (Low maintenance costs) 6 (Better for the environment) 7 (Better warranties) 8 (Indoor air quality) 9 (Other, please describe:__________________________) 99 (Don’t Know/Not Sure)

SL12. On a scale from 0 to 10 where 0 is completely unwilling and 10 is completely willing, how willing are customers to pay the extra cost for higher efficiency oil boilers, that is with AFUE levels of 85 or higher? 1. [Record response] _____ 99. (Don’t know)

[IF SL12 IS GREATER THAN 5; ASK SL13; ELSE GOTO SL14] SL13. Why do you think customers are willing to pay the higher price for higher efficiency oil boilers? [SPECIFY: ] SL14. How often do you provide RESIDENTIAL customers with bids for high-efficiency units,


1 Never

2 Rarely

3 Occasionally

4 Often

5 Almost always

99 (Don’t know)


Heating and Plumbing Related Services [INTERVIEWER READ:] Now, I would like to ask you about other types of RESIDENTIAL services your company may provide. PS1. How often do you recommend or install programmable thermostats? [READ LIST]


PS2. Who typically decides on the pipe layout specifications in your RESIDENTIAL new construction work? [READ AND ROTATE]

1. You, the plumbing contractor 2. The builder or general contractor 3. The architect 4. Project manager 5. Engineer 6. (Other) [SPECIFY: _________________________________]

99. (Don’t know)

PS3. Do you provide any other new or innovative services that I have not asked about to improve the comfort, efficiency, or safety of a home?

1. Yes. [SPECIFY: ] 2. No.

PS4. On a scale of 0 to 10, where 0 is extremely slowly and 10 is extremely quickly, relative to

your competition, how quickly do you begin offering new and innovative products or services?

1. [Record response] _______

99. (Don’t know)


Thank you very much for being willing to respond to this interview. Would you like a copy of this study when it is completed?

1. YES [INTERVIEWER: RECORD NAME] Someone from Nexus Market Research will be contacting you about the study schedule within the next 30 days.

2. NO [INTERVIEWER: THANK AGAIN AND TERMINATE]


Appendix B

Review of Emerging HVAC Technologies and Practices

03-STAC-01

Emerging Technologies Report

October 2005

Author:

John Proctor, P.E.

Prepared for the

Northeast Energy Efficiency Partnerships

TABLE OF CONTENTS

I. INTRODUCTION..........................................................................................................2

II. TECHNOLOGY OVERVIEW....................................................................................3

2.1 TECHNOLOGY LIST .........................................................................................................3 2.2. TECHNOLOGY SUMMARIES ............................................................................................4

2.2.1. Sizing and matching................................................................................................4 2.2.2. Obtaining and maintaining designed operation.....................................................4 2.2.3. Load Reduction.......................................................................................................5 2.2.4. AC/HP Improvements .............................................................................................5 2.2.5. Distribution Systems ...............................................................................................6 2.2.6. Integrated Appliances.............................................................................................8 2.2.7. Alternative Systems.................................................................................................8

III. DETAILED DESCRIPTIONS OF EMERGING TECHNOLOGIES .................10

3.1 SIZING AND MATCHING ................................................................................................10 3.1.1. Matching each component to work at peak efficiency with the other components.............................................................................................10 3.1.2. Airflow Across the Heat Exchanger, Heat Exchanger Selection, Duct Design, Air Handler Selection ...........................................................................................................11

3.2 OBTAINING AND MAINTAINING DESIGNED OPERATION ................................................16 3.2.1 Ensuring proper refrigerant charge ......................................................................16 3.2.2. Ensuring adequate indoor coil airflow.................................................................18

3.3 LOAD REDUCTION.........................................................................................................22 3.3.1. Reduced infiltration with controlled ventilation using ERV/HRV........................22

3.4 AC/HP UNIT IMPROVEMENTS.......................................................................................29 3.4.1. Frostless heat pump..............................................................................................29 3.4.2. ACs designed for climate regions.........................................................................30 3.4.3. Improved aerodynamic outdoor AC/HP units ......................................................33 3.4.4. Cold climate heat pump........................................................................................35

3.5 DISTRIBUTION SYSTEM IMPROVEMENTS .......................................................................37 3.5.1 Improved fan motors..............................................................................................37 3.5.2. Evaporator fans, housings and cabinet ................................................................41 3.5.3. Sealed ductwork....................................................................................................44

3.6 INTEGRATED APPLIANCES.............................................................................................47 3.6.1. Air conditioner with inline dehumidifier ..............................................................47 3.6.2 Integrated cooling, dehumidification, and ventilation ..........................................48

3.7 ALTERNATIVE APPROACHES TO PROVIDING HVAC FUNCTIONS..................................50 3.7.1 Ductless mini-split systems....................................................................................50 3.7.2 Dedicated dehumidification systems .....................................................................52

IV. REFERENCES ..........................................................................................................53

NEEP Emerging Technologies Page 1

I. INTRODUCTION

This task focused on the discovery, documentation, and analysis of emerging technologies for residential space conditioning, ventilation, and distribution systems.

This memo draws heavily on the ACEEE Emerging Energy-Savings Technologies and Practices for the Buildings Sector as of 2004 report (Sachs et al. 2004) and the ARTI System Optimization of Residential Ventilation, Space Conditioning, and Thermal Distribution report (Proctor 2005).

For this task we have adopted the ACEEE definition of an emerging technology as: “Technologies and practices that are either commercialized but have less than a 2% market share …, or that … are likely to be commercialized within five years.”

This memo consists of a brief description of each technology, its estimated cost, savings, and likelihood of success. Additional information is presented on the appropriate baseline and the readiness of the technology for market.

Concepts were originally suggested by members of the NEEP NASIO STAC committee and ranked by that committee for inclusion in the analysis.


II. TECHNOLOGY OVERVIEW

2.1 Technology List

There are abundant methods to improve HVAC systems. Many of them are enhanced by or enabled by other changes to the house (including thermal boundary, pressure boundary, direct heat gain reductions or gains, etc.). Some methods have been applied on a limited basis to a few homes. Other methods are used on commercial buildings where the size of the load is sufficient to justify higher cost solutions.

Table 2.1.1. Residential HVAC Emerging Technologies 1. Sizing and Matching Matching each component to work at peak efficiency

with the other components 2. Obtaining and Maintaining Designed Operation Self correcting air conditioners for refrigerant charge

and evaporator airflow 3. Load Reduction Reduced infiltration with ERV/HRV 4. AC/HP Improvements Frostless heat pump ACs designed for climate region Improved aerodynamic outdoor AC/HP units Cold climate heat pump

5. Distribution System Improvements Improved fan motors Evaporator fans, housings, and cabinets Leakproof duct systems 6. Integrated Appliances Air conditioner and inline dehumidifier Integrated cooling, dehumidification, and

ventilation 7. Alternative Approaches to Providing HVAC Functions Ductless mini-split systems Dedicated dehumidification system


2.2. Technology Summaries

2.2.1. Sizing and matching

The purpose of sizing system components is to obtain the optimum intersection of efficiency and cost.

Component matching

Manufacturers design their systems to least cost for a given level of reliability, durability, performance, and customer demand. This design process involves tradeoffs between many components to find an apparent optimum design. When the performance metric is narrowly defined or does not capture an important aspect, the results may not be optimized from that perspective (such as installed performance). The performance gaps are more likely when multiple pieces of equipment are selected and assembled by a contractor.

2.2.2. Obtaining and maintaining designed operation

Obtaining and maintaining designed operation/efficiency of an HVAC system can be accomplished by installing and maintaining the equipment within the manufacturers’ specified criteria. Ensuring the performance of units in the field is difficult.

Proper refrigerant charge

A common error in the installation of split-system equipment is neglecting the additional refrigerant required by the installed line set. Refrigerant mischarge continues through the life of the air conditioner, being altered by technician adjustments and leaks. This issue can be addressed through quality assurance procedures, machine design, or devices to detect and report refrigerant charge errors.

Indoor coil airflow

Startup technicians do not regularly check for sufficient airflow and the causes of low airflow are often history by the time of startup. Reductions in airflow reduce sensible and total capacity, but they increase latent capacity and reduce the fan watt draw. In some cases struggling to achieve higher indoor coil airflow for cooling may be counterproductive. Indoor coil airflow problems can be avoided by machine design to higher static pressures or devices to detect airflow problems and either signal the need for correction or make the correction.


2.2.3. Load Reduction

Load reductions can make the systems smaller, more compatible for multiple functions (such as cooling and ventilation) and easier to obtain optimized interactions (such as between ductwork sizing and air conditioner sizing).

Reduced infiltration with ERV/HRV

HRVs and ERVs are air-to-air heat exchangers that transfer energy from the exhaust stream to the incoming ventilation stream. HRVs and ERVs provide annual heating and cooling savings relative to any other system that supplies the same amount of ventilation. The savings potential is dependent on the amount of heating/cooling load that is attributable to ventilation.

2.2.4. AC/HP Improvements

Frostless heat pump

Heat pumps periodically run through a defrosting cycle to keep the outdoor coil free of obstruction. They system reverses the refrigerant flow, heating the outdoor coil and cooling the indoor coil. In order to maintain comfort electric resistance heat is added to the indoor air stream. The frostless heat pump adds electric resistance heat to the accumulator instead raising the condenser temperature slightly under conditions of high frost accumulation and to defrost when necessary.

ACs designed for climate regions

Sensible and latent loads vary from climate to climate. A potential method of AC optimization is to design region-specific air conditioners that are optimized for local conditions. Specific designs could produce the higher sensible heat ratios needed in the West and could produce high latent ratio machines needed for cost effective application in Eastern wet climates.

Improved aerodynamic outdoor AC/HP units

Improved condenser fan blade technology combined with better fan entrance and discharge conditions can reduce the fan motor watt draw. Units have been tested that reduce fan watt draw by 25% with a standard PSC motor.

Cold climate heat pump

Heat pumps are generally applied to warmer climates that have lesser heating load and warmer outdoor temperatures in the winter. The efficiency and effectiveness of an air-source heat pump drops off as the outside temperatures


drop. A cold climate heat pump is designed specifically to maintain higher capacities and efficiencies in climates with colder outdoor temperatures.

2.2.5. Distribution Systems

Sixty-three percent of housing in the U.S. utilizes forced-air distribution systems. The design and layout of these systems has a great effect on the comfort level of the home, as well as the energy efficiency of the system. Non-energy effects include pressure changes in the structure. These pressure imbalances can cause side effects such as backdrafting or moisture migration within the structure.

The air handler with its cabinet, fan, motor and heat exchangers is another part of the air distribution system. There is potential in to increase the aerodynamic efficiencies of common residential furnace air handlers.

Improved fan motors

Standard condenser and evaporator fan motors are PSC (permanent split capacitor) motors. The combined efficiency of the PSC motor, fan, and cabinet in terms of the work done external to the cabinet in a common furnace is 22% at high speed1 and 11% at low speed2. Higher efficiencies are available from brushless permanent magnet motors (BPM). The combined efficiency with a BPM motor in the same unit is 25.8% at high flow and 25.4% at low flow. The primary advantage of a BPM motor is the efficiency at low flows. There are a number of newer motors on the market or in development intended to compete with the BPM motor, including PSC motors that offer true variable speed capability at lower cost.

Evaporator fans, housings and cabinets

The combined fan/motor efficiency of the indoor blower is a primary limiting factor in unit efficiency. In order to deliver proper airflow under all of the reasonable installation and operating conditions, various compromises to efficiency are necessary. Indoor blower design has recently been the subject of innovation. General Electric built and tested a backwards-curved centrifugal blower with a smaller BPM motor. Trane Corporation is producing an air handler with a molded plastic fan housing capable of higher delivery efficiency within small air handler cabinets.

1 at 0.80 IWC external static. 2 at 0.40 IWC external static.


Leakproof duct systems

Duct losses are a major source of inefficiency in residential HVAC systems. The main contributors to duct losses are direct losses through leaks and conductive losses through duct surfaces. Reduced leakage joint and fitting designs are available that make connections more secure and have very low leakage.


2.2.6. Integrated Appliances

Air conditioner and inline dehumidifier

All common air conditioners provide some dehumidification when the return air relative humidity is high. In many climates, the dehumidification is not sufficient to meet the latent load of the home and indoor relative humidities rise to unacceptable levels. One method of providing additional dehumidification is to add a dehumidifier that utilizes the AC supply duct system to deliver the dehumidified air. One of the most efficient machines is the Ultra-Aire. It utilizes an air-to-air heat exchanger between the cool air leaving the evaporator and the warm return air just prior to its entering the evaporator. The result is increased dehumidification. This unit can be used to provide controlled ventilation as well.

Integrated cooling, dehumidification, and ventilation

The most common form of heating and cooling, all ventilation, and virtually all dehumidification utilize forced air. This makes integration attractive. One of the more promising designs utilizes an air-to-air heat exchanger in conjunction with ventilation and a standard air conditioner to provide higher levels of dehumidification than are available from the air conditioner alone.

2.2.7. Alternative Systems

Traditionally heating homes grew from providing heat in one location (fireplace, woodstove, stand alone heater, floor furnace) to central heating with air ducts, steam or water pipes. Heating or cooling a single location had the advantage of saving energy by not conditioning the entire home at once.

Alternative approaches to heating and cooling include heating and cooling a local area or providing each HVAC function with separate stand-alone equipment.

While HVAC systems increase in complexity to provide greater comfort at reduced cost, it may become necessary to split the tasks performed by the system into separate units. Some of the technology in this area started with commercial systems where savings in operating costs can quickly make up for initial investments. As costs of newer technology decreases however, applications in residential environments may become more prevalent.


Ductless mini-splits

One method to eliminate losses associated with ductwork is to simply not use ducts. Mini-split system air conditioners have evaporator/air handler units within each conditioned room. Multi-evaporator systems run the refrigerant from one outdoor unit to several indoor units. Benefits of these systems include inherent zoning capability (cooling or heating only the area that needs to be conditioned), greatly reduced airside losses, and quiet operation.

Dedicated dehumidification systems

A properly sized stand-alone dehumidifier can provide excellent latent capacity, but it also adds to the sensible load and can be noisy. The more sophisticated units have an internal air-to-air heat exchanger, provide quieter operation, and are more efficient at moisture removal.


III. DETAILED DESCRIPTIONS OF EMERGING

TECHNOLOGIES

3.1 Sizing and Matching

Purpose

The purpose of sizing system components is to obtain the optimum intersection of efficiency and cost. The theory is well known, but the barriers are many. In theory, sizing the air conditioner to just meet the loads of a home at design conditions will provide the most cost effective means of providing a nearly constant level of comfort. Providing an air distribution system that distributes the conditioned air to each room according to its load will provide uniform comfort throughout the structure, and if it is properly designed will integrate perfectly with the air handler to reduce the energy consumption for circulating the air. Matching the various components of the system: coils, compressor, refrigerant lines, cabinet, fan, motor, furnace heat exchanger, etc. will provide the optimum in comfort and low operating costs.

The theory runs headlong into the realities of the marketplace. Each component is likely to be mated with another component somewhat unlike the optimum design, and thus must be designed to perform adequately in a wide array of sub-optimum configurations.

3.1.1. Matching each component to work at peak efficiency with the other components

We want the system to have sufficient delivered capacity (latent and sensible) AND ALSO high efficiency. Given this desire, components need to be selected with energy consumption in mind. Essentially ACCA Manuals J and Manual D calculate loads and select components based on capacities, not on efficiency. If one presumes that the duct system is going to be inefficient, ACCA Manual J recognizes the additional load and includes that load in the calculations. The energy penalty for an inefficient duct system is hidden.

When design criteria include both capacity and energy efficiency, the process is more complex and is likely to require comparisons between many options.


Optimization is likely to require some iteration to find the most efficient combination.

The current selection methodology is a fairly linear process and is not applied by most contractors or design engineers. An iteration/optimization process would probably be a computer program to deal with time limitations. Such software would select all the components from a wide array of possibilities and work to minimize a variable (such as life cycle cost). Some of the selected combinations may be different from those in common use, which would cause resistance from contractors, builders, and designers.

3.1.2. Airflow Across the Heat Exchanger, Heat Exchanger Selection, Duct Design, Air Handler Selection

Even determining what the proper airflow is for a particular situation provides challenges. The more common simplifying assumptions hide the complexity and uncertainty in the process.

Any manufacturer’s data sheet will show that the capacity and efficiency of the unit increases as the evaporator airflow increases. In general, the data sheets are based on a static pressure of only 0.15 IWC (for a 3-ton unit) and the external static does not increase with increased flow. When viewing the manufacturers’ tables it is reasonable to conclude that if latent capacity is of small or little importance in the local climate, then higher airflow will be preferable. For example a Carrier 38EZG036-30 with CK5B042 coil shows a Sensible EER of 7.5 at 1050 cfm and 8.1 at 1350 cfm, an efficiency improvement that would produce a 7% savings.

The situation however is more complex. Each evaporator coil has its own pressure drop vs. airflow characteristic. Each air handler has its own flow capacity vs. external static pressure characteristic. Each duct system has its pressure drop vs. flow characteristic.

Table 3.1.1 contains figures generated by the Oak Ridge National Laboratory’s simulation program HPDM3 for a common SEER 12, 3-ton air conditioner. This table and the accompanying figures are based on external static pressures based on field data (0.50 Inches of Water). The field data show fan watt draws higher than assumed in the manufacturers’ tables. As airflow is increased, the

3 The HPDM is: “A widely used tool developed by DOE through Oak Ridge National Laboratory is the Heat Pump Design Model (Mark VI release). This tool simulates the steady-state cooling and heating performance of air-to-air heat pumps and air conditioners, enabling users to specify such key parameters as type of vapor compressor, type of heat exchanger, air conditions, air flows, and type of refrigerants.” (DOE 2004)


evaporator fan watt draw negates the increased capacities. This table and these figures show the EER, Sensible EER (EER x Sensible Heat Ratio), and Latent EER (EER x (1-Sensible Heat Ratio) associated with increasing evaporator airflow on a 3-ton air conditioner from 900 cfm to 1500 cfm by two methods.

Method #1 holds the duct resistance4 constant and uses increasing horsepower blower motors to overcome the increasing pressure drop in the duct system and within the air handler cabinet. Method #2 uses increasingly larger ducts to obtain the same airflow.

Figure 3.1.1 shows that if the duct system is not sized properly for the airflow, the sensible efficiency of the air conditioner drops as the airflow is increased. This figure also shows that the sensible efficiency improvements from increased airflow are very limited (peaking at 400 cfm per ton in this example) even when the ducts are resized for the higher flow.

Figure 3.1.1. Dry Climate -- Sensible Efficiency vs. Duct Sizing and Evaporator Airflow

4 Duct k Factor


In areas where latent capacity is of higher importance the total efficiency is a more important indicator. Figure 3.1.2 shows the decrease in efficiency as the airflow is increased above 300 cfm per ton. Low airflow however can produce problems such as iced coils and compressor failures.

Figure 3.1.2. Moist Climate -- Effect of Duct Sizing and Evaporator Airflow on Total Efficiency

In wet climates where a major portion of the air conditioner’s work is dehumidification, latent EER is the most important. Figure 3.1.3 shows how decreased airflow produces a major increase in latent efficiency

1

1.5

2

2.5

3

3.5

4

900 1050 1200 1350 1500

Airflow (cfm)

Lat

ent

EE

R

Ducts Sized to Higher Flows Ducts Not Resized

Recall that low airflow can produce iced coils and compressor failures.

Figure 3.1.3. Wet Climate -- Effect of Duct Sizing and Evaporator Airflow on Latent Efficiency


Table 3.1.1 explores the complexity of the design situation. Based on the manufacturer’s tables, a Carrier 38EXG unit would be predicted to have a 7% savings when the cfm is increased from 1050 to 1350. However Table 4.1.4 shows virtually no change in Sensible EER (7.007 to 7.012) even if the duct sizing is increased to compensate for the higher flow.

This table also makes it clear that having adequate duct size improves the efficiency of the air conditioner.

Table 3.1.1. Effect of Increased Evaporator Airflow

CFM 900 1050 1200 1350 1500

Method 15 External Static Pressure 0.367 0.500 0.653 0.827 1.020

Average Duct Diameter 9" 9" 9" 9" 9"

EER 10.255 9.806 9.101 8.272 7.383

SHR 0.668 0.695 0.725 0.758 0.793

Sensible EER 6.850 6.815 6.598 6.270 5.855

Latent EER 3.40 2.99 2.50 2.00 1.53

Method 25 External Static Pressure 0.367 0.367 0.367 0.367 0.367

Average Duct Diameter (approx.) 9" 9.3" 10" 10.4" 10.8"

EER 10.255 10.127 9.812 9.413 8.955

SHR 0.668 0.692 0.718 0.745 0.773

Sensible EER 6.85 7.007 7.045 7.012 6.922

Latent EER 3.40 3.12 2.77 2.40 2.03

Method 2 Savings 0% 3% 7% 12% 18%

Table 3.1.1 does not present the effects of airflow and duct surface area on the efficiency of the duct system.

5 Methods 1 and 2 assume: constant evaporator fan/motor combined efficiency, 95ºF condenser air entering temperature, 80ºF dry bulb return temperature, and 67ºF wet bulb return temperature.


Savings and Costs

The cost of a more comprehensive matching program including airflow, ducts, coils, furnaces, and outdoor AC units would be approximately $100 in labor. The potential additional costs associated with properly sized duct systems are approximately $50.

The potential savings in cooling exceed 25% and the potential savings in heating exceed 15%. Based on a NE residential space heating average expenditure of $682 per household and a space cooling expenditure of $107 per household6, the potential annual savings are:

Space heating $102.30

Space cooling $26.75

6 Energy Databook August 2005 DOE


3.2 Obtaining and Maintaining Designed Operation

Purpose

Obtaining and maintaining designed operation/efficiency of an HVAC system can be accomplished by installing and maintaining the equipment within the manufacturers’ specified criteria. Ensuring the performance of units in the field is difficult. The final assembly of the HVAC system is performed, not in a factory with highly effective quality assurance systems, but rather by one or more individuals generally working without an effective quality assurance system. Parameters known to suffer under these conditions include refrigerant charge and airflow.

3.2.1 Ensuring proper refrigerant charge

The majority of heat pumps and air conditioners are not installed properly. A common error in the installation of split-system equipment is neglecting the additional refrigerant required by the installed line set. Figure 3.2.1. shows this problem in new Phoenix Arizona homes.

0

1

2

3

4

5

6

7

8

9

10

50% 60% 70% 80% 90% 100% 110%

Charge - % of Manufacturers Specification

# of

Uni

ts

Mean 84% Std. Dev. 13% Minimum 55%

Maximum 107%

Charge Off by Amount of Needed Line Set Adjustment

Leakers when Installed

Figure 3.2.1 Refrigerant Charge in New Installations (Proctor 1997)

Refrigerant mischarge continues through the life of the air conditioner, being altered by technician adjustments and leaks.

The capacity and efficiency effects of incorrect charge have been measured in recent years on modern air conditioners. These laboratory tests have investigated


a significant range of refrigerant charge on the same machine with different metering devices (both fixed and adaptive). The effects are found to be similar between R-22 and R-410a. Figure 3.3.2 shows the efficiency responses of a R-22 SEER 12 air conditioner and a R-410a SEER 14 air conditioner with both short tube metering devices (Orifice) and thermostatic expansion valves (TXV).

Figure 3.2.2 Effect of Refrigerant Charge and Metering Device on Efficiency (Davis 2001))

The Davis test was performed by fitting the air conditioners with both types of metering devices as shown in Figure 3.2.3.

Figure 3.2.3 Method of Changing Metering Devices on AC Test (Davis 2001)


It has been suggested that the refrigerant charge issue on new AC and heat pump installations as well as on existing equipment can be addressed in a number of ways:

• Third party verification as in California 2001 Title 24 Standards,

• Charge verification through statistical analysis of data supplied by the startup technician

• Mitigation of incorrect charge effects in the machine design (through a TXV, electronic expansion valve, receiver, or accumulator), or

• Devices to detect incorrect charge and signal the need for correction

Costs and Savings

The costs of the above methodologies range from $50 to $400.

The average energy savings for air conditioner units initially diagnosed with incorrect charge and with the charge corrected is 10.5%. Correct charge also maintains the full capacity of the air conditioner, reduces compressor failures, and reduces warranty claims (both for charge related failures and misdiagnosis). In many cases these methods are used as an entry for larger energy savings measures.

Based on a NE average cooling cost of $107, the annual savings would be approximately $11.42

3.2.2. Ensuring adequate indoor coil airflow

The majority of heat pumps and air conditioners are installed with too little airflow through the inside coils. Startup technicians do not regularly check for sufficient airflow and the causes of low airflow are often history by the time of startup. Various studies show indoor coil airflow to be less than 350 cfm per ton on 44% to 90% of the units (average 70%) (Neme et al. 1999).

Low airflow is built in to the system due to a mismatch between the air handler capability and the restrictions to airflow throughout the system. The airflow degrades over time as the indoor coil picks up dirt, the blower wheel gets dirty, as register dampers are closed, and when higher arrestance filters are substituted for standard filters.

The capacity and efficiency effects of low airflow have been tested in laboratories including Texas A&M (Rodriguez et al. 1995), Pacific Gas and Electric Company (Davis 2001), and Florida Solar Energy Center (Parker et al. 1997). Figure 3.2.4 (Davis 2001) displays the results from one series of these tests.


70%

80%

90%

100%

110%

120%

40% 50% 60% 70% 80% 90% 100% 110% 120%

Fraction of Normal Airflow Rate (400 cfm/ton)

Fra

ctio

n o

f C

apac

ity

at N

orm

al A

irfl

ow

OrificeTXV

Sensible

Latent

Figure 3.2.4 Effect of Evaporator Airflow on Latent and Sensible Capacity

The indoor coil airflow issue is more complex than the refrigerant charge issue. Reductions in airflow reduce sensible and total capacity, but they increase latent capacity and reduce the fan watt draw. In some cases struggling to achieve higher indoor coil airflow for cooling may be counterproductive. Given the current state of air handler efficiency and standard duct system design, the improvements in capacity and efficiency from increased airflow across the indoor coil are extremely limited. This was discussed in Section 3.1 and is illustrated by Figure 3.2.5.

In Figure 3.2.5, the base fan watt draw is 510 watts per 1000 cfm (from field studies) for 350 cfm/ton (a little higher than field study numbers). There are two scenarios shown: Revised ducts (fan power and heat increase linearly with cfm) and Non-revised ducts (fan power and heat increase as the cube of cfm). This figure is similar to the information presented in Table 3.1.1. This figure is based upon data from Pacific Gas and Electric Company laboratory tests.


5

5.5

6

6.5

7

7.5

8

8.5

50% 60% 70% 80% 90% 100% 110% 120%

Percent of 400 cfm/ton

Sen

sib

le E

ER

Redesigned Ducts

Same Ducts

Figure 3.2.5. Airflow Optimization for Sensible AC Efficiency

It has been suggested that the indoor coil air flow issue could be addressed in any of the following ways:

• Mitigation of high static ducts in the machine design (higher efficiency fan/motor/cabinet design), or

• Third party verification of duct design as in California 2001 Title 24 Standards,

• The implementation of standards or incentives for low watts per cfm designs at given external static pressures,

• Third party verification of the watts per cfm as installed,

• Airflow verification through statistical analysis of data supplied by the startup technician

• Devices to detect airflow problems and signal the need for correction

Conclusions

The industry, regulators, and contractors should be very cautious in blanket increases in airflow as a means to higher efficiency, even in climates with low latent load. The current designs of air distribution systems (ducts, fittings, fan/motor efficiencies) are not conducive to significant increases in evaporator airflow increases.

For optimization in hot dry climates there needs to be a concentration on the net delivered EER. Increases in fan flow need to be achieved in combination with improved duct systems, and overall delivery efficiency. It is possible to provide


improvements in sensible EER through higher flows as long as any increases in watt draw are less than the effective watt reductions at the compressor for a given capacity.

A safe starting point is controlling the watts per cfm under defined flow and external static pressure situations.

Cost and Savings

The costs of the above methodologies range from $50 to $400.

Airflow optimization and confirmation is usually combined with refrigerant charge optimization.

Based on a NE average cooling cost of $107, the annual savings would be approximately $5.71


3.3 Load Reduction

Purpose

An integral aspect of many advanced HVAC strategies is the reduction of the cooling or heating load. Load reductions can make the systems smaller, more compatible for multiple functions (such as cooling and ventilation) and easier to obtain optimized interactions (such as between ductwork sizing and air conditioner sizing).

3.3.1. Reduced infiltration with controlled ventilation using ERV/HRV

Ventilation has been the neglected stepchild of the residential HVAC system. In the past it has been considered unnecessary to provide any ventilation (other than “natural ventilation” from infiltration and operable windows).

Natural ventilation, otherwise known as infiltration, is predominantly driven by the stack effect (due to temperature differences between the air inside the home and the outdoor air). Winds also drive natural ventilation. On a calm day with little temperature difference between inside and outside, natural ventilation approaches zero leaving a home under-ventilated. When the inside outside temperature differential is high (cold winter days and hot summer days) the average home is over-ventilated. At the times when the HVAC system is called upon to deliver the maximum cooling or heating, excessive ventilation adds significantly to the load.

It has long been advocated that homes be built sufficiently airtight that infiltration is small. “Build it tight and ventilate it right.”(Nisson and Dutt 1985). With such construction, the ventilation air can be controlled and always supplied in the proper quantity.

Methods

The science and practice of building a reasonably tight building envelope is relatively well known and is practiced in new construction in the Building America Program.

Balanced Ventilation Systems

The term balanced ventilation systems refers to systems that the outside air volume through the ventilation device is equal to the volume of exhaust air through the device. Such devices will not alter the inside/outside pressure differentials. Thus they have no effect on air entering or leaving through the building shell. Any combustion product drafting issues remain the same as in the


“natural” pressure state. This type of system is most often applied with an energy recovery or heat recovery ventilator. However, exchange of heat or energy (sensible heat and moisture) between the airstreams is not necessary for a balanced system.

Savings

Reduced Air Leakage In terms of reducing space conditioning costs, the first object would be to reduce the air leakage rate of the home. Take the example of a 2000 square feet three bedroom home with a “natural air change rate” of 0.70 air changes per hour (ACH) at maximum inside outside temperature differential. This house would be exchanging 233 cfm of air with outside. The ventilation need of this home based on ASHRAE 62.2 (2004) is only 100 cfm7.

Conditioning Ventilation Air The ventilation air will be conditioned whether the air is conditioned on the way in, or conditioned once it is in the structure. The heating, cooling, and dehumidification loads caused by infiltration and ventilation depend on both the air exchange rate and the difference between the inside and outside conditions (temperature and moisture content of air).

Holton and Beggs (2000) performed a series of ventilation experiments on a test home in a “Mixed Climate”. The annual heating cost for providing sufficient ventilation (0.35 ACH) to a home with a “natural air exchange rate” of 0.12 ACH from the experiments were from $174 to $360.

The supply only and exhaust only systems showed the expected highest heating ventilation costs and the HRV system showed the expected lowest heating ventilation cost.

HRV and ERV Advantages Because of the pressure effects of supply and exhaust only systems, a balanced system should be able to supply the same amount of ventilation air as unbalanced systems with as little as half the airflow through the fans. (Palmiter and Bond 1991). In the Holton Beggs experiment the balanced systems produced the same .35 ACH with 75% of the airflow needed for the unbalanced systems.

A balanced system requires an exhaust to maintain neutral pressure inside the home. With large temperature or humidity differentials between interior and outdoor conditions (i.e. during peak heating and cooling periods) much sensible energy can be lost in the exhaust stream in the winter and conversely much

7 62.2 is based on a default infiltration rate of 2 cfm per 100 square feet floor area. The standard for mechanical ventilation on top of that is 60 cfm for this example.


sensible and latent heat can be gained in the summer. Heat and energy recovery ventilators (HRVs and ERVs, respectively) are a means to prevent some of these losses.

HRVs and ERVs are air-to-air heat exchangers, commonly in a crossflow configuration, that transfer energy from the exhaust stream to the incoming ventilation stream.

HRVs and ERVs provide annual heating and cooling savings relative to any other system that supplies the same amount of ventilation. The potential for these recovery devices to save significant heating and cooling fuel is dependent on the amount of heating/cooling load that is attributable to ventilation. Tables 3.3.1 and 3.3.2 present savings analyses for Charlotte and Chicago.


Assumptions:

• hourly weather conditions – TMY2

• heating below 65ºF outside

• cooling above 80ºF and dehumidification above 71 grains of moisture in the summer

• winter indoor conditions 70ºF and 54 grains of moisture

• summer indoor conditions 75ºF and 66 grains of moisture

• average natural gas price $1.003 per therm

• average electrical price $0.0817 per kWh

• average dehumidifier efficiency 4 btu/kWh

• average furnace efficiency including duct losses in winter 60%

• average air conditioner efficiency including duct losses in summer 6 btu/kWh

• constant 60 cfm ventilation air (per ASHRAE 62.2)

• ventilation duct systems the same regardless of ventilation system used

• ventilation systems use equal efficiency fan/motor assemblies (.5 watts/cfm)

• HRV and ERV supply and exhaust 60 cfm

• supply only or exhaust only systems move 120 cfm into or out of the building to accomplish an additional 60 cfm of ventilation (contrary to ASHRAE 62.2 which makes no distinction between the flow rates between balanced and unbalanced systems)

• HRV and ERV are 70% efficient in energy exchange

• we are ignoring the fan heat, which is detrimental in the summer and beneficial in the winter

• the “open pipe” supply only system ducts outside air directly into the return plenum. uses a fan cycle controller and an ECM motor at half speed drawing .2 watts per cfm

• the “open pipe” system runs the air handler an additional 20% of the time to supply the ventilation

• winter latent load is calculated as if interior is maintained at 54 grains of moisture. This load is ignored in the remaining calculations.

Note:

• standard air conditioners are not able to provide the low sensible heat ratios required for the ventilation air alone. As sensible loads are decreased through improvements in the building shell, standard air conditioners will leave the houses overcooled (cold but not dehumidified).


Table 3.3.1 Heating, Cooling, and Fan Energy Costs for Ventilation in Charlotte, NC

Winter

Ventilation System ERV Exhaust/Supply Only Open Pipe

Sensible Load (btu) 7,143,857 7,143,857 7,143,857

Latent Load (btu) 4,212,393 4,212,393 4,212,393

Load Recovery (btu) 5,000,700 0 0

Heating Efficiency 0.60 0.60 0.60

Winter Gas Consumption (therms)

35.72 119.06 119.06

Gas Cost $35.83 $119.42 $119.42

Fan Watts 60 60 120

Fan Hours 4380 4380 876

Winter kWh 263 263 105

Electric Cost $22.89 $22.89 $9.16

Total Winter Cost $58.72 $142.31 $128.58

Summer

ERV Exhaust/Supply Only Pipe Only

Sensible Load (btu) 603,949 603,949 603,949

Latent Load (btu) 4,184,893 4,184,893 4,184,893

Sensible Heat Ratio 0.13 0.13 0.13

Load Recovery (btu) 3,352,189 0 0

Cooling Efficiency (EER) 8 8 8

Dehumidification Efficiency (EER)

4 4 4

Cooling/Dehumid. kWh 337 1,122 1,122

Cooling/D Cost $29.31 $97.70 $97.70

Fan Watts 60 60 120

Fan Hours 4380 4380 876

Fan kWh 263 263 105

Fan Cost $22.89 $22.89 $9.16

Total Summer Cost $52.20 $120.59 $106.86

Annual Cost $110.92 $262.90 $235.43


Table 3.3.2 Heating, Cooling, and Fan Energy Costs for Ventilation in Chicago, IL

Winter


Sensible Load 12,322,323 12,322,323 12,322,323

Latent Load 6,470,926 6,470,926 6,470,926

Load Recovery 8,625,626 0 0

Heating Efficiency 0.60 0.60 0.60

Winter Gas Consumption 61.61 205.37 205.37

Gas Cost $61.80 $205.99 $205.99

Fan Watts 60 60 120

Fan Hours 4380 4380 876

Winter kWh 263 263 105

Electric Cost $22.89 $22.89 $9.16

Total Winter Cost $84.69 $228.88 $215.14

Summer


Sensible Load 308,454 308,454 308,454

Latent Load 1,896,924 1,896,924 1,896,924

Sensible Heat Ratio 0.14 0.14 0.14

Load Recovery 1,543,765 0 0

Cooling Efficiency 8 8 8

Dehumidification Efficiency 4 4 4

Cooling/Dehumid kWh 154 513 513

Cooling/D Cost $13.40 $44.66 $44.66

Fan Watts 60 60 120

Fan Hours 4380 4380 876

Fan kWh 263 263 105

Fan Cost $22.89 $22.89 $9.16

Total Summer Cost $36.29 $67.55 $53.82

Annual Cost $120.98 $296.43 $268.96


Costs

The installed costs for an ERV or HRV run between $2500 and $3000.


3.4 AC/HP Unit Improvements

3.4.1. Frostless heat pump

Heat pumps periodically run through a defrosting cycle to keep the outdoor coil free of obstruction when the ambient temperature is below 40ºF. Defrosting occurs by reversing the cycle to heat the outdoor coil (and cool the indoor coil). The hot gas is discharged to the outdoor coil, condenses, travels to the metering device and is expanded in the indoor coil. The indoor coil picks up heat from the inside air (cooling it) which it delivers to the compressor. The heat removed from the inside air and the heat of compression ends up as heat discharged at the outdoor coil melting the frost. In order to compensate for the indoor cooling in the winter, electric resistance heaters are usually employed to reheat the indoor air.

A new technology developed at Oak Ridge National Laboratory (Mei et al. 2002) provides a reduction in frost accumulation as well as defrosting in a different manner – a resistance heater added to the accumulator. The accumulator electric resistance heat is added during the heating mode when frosting is a potential problem. Most of the additional heat is discharged into the inside air, increasing the delivery temperatures.

When defrosting is desired the cycle reverses as usual; however, rather than absorbing most of the defrost heat through the evaporator coil, electric resistance heat is added at the accumulator. The indoor fan is turned off during the defrost cycle reducing the need for electric resistance heat and saving the power for the fan

Figure 3.4.1. Electric Resistance Heater in Accumulator for Frostless Heat Pump

The system raises questions about the efficacy of increasing the outdoor coil temperature, compressor temperature and accumulator temperature. However, Mei et al. have tested this configuration in the laboratory and have projected significant savings from the reduction in the number and energy cost of defrost


cycles. Our initial analysis indicates that this is likely to be a better defrost mechanism than defrosting with the inside fan running.

Savings and Cost

The incremental cost for the heater and controls for this device is reasonably less than $100.

Assuming 1kW heat at the accumulator for defrost as opposed to 10kW at the inside airstream (and equal defrost time) Mei et al.’s analysis projects a defrost energy savings of 90% at all temperatures colder than 40ºF. At these temperatures the accumulator heater is on only for the defrost mode.

Between 40ºF and 35ºF, the accumulator heater is on continuously, assumed to eliminate frost, all frost cycles, and resulting in a capacity higher than the baseline unit.

At outdoor temperatures warmer than 35ºF the heat pump operated similar to the baseline.

Given these assumptions for Knoxville TN temperatures, the savings is 12.5%.

If the above analysis is modified to use the accumulator heater only in the defrost mode, the savings rise to 16%.

We suggest a savings closer to 6% is more likely. Even a 6% savings for a heat pump with consumption of 12,519 kWh per year (EPA Climate Region 2) would produce an annual $61 savings (electric rate of $0.0817 per kWh).

3.4.2. ACs designed for climate regions

Sensible and latent loads vary from region to region around the country. A potential method of AC optimization is to design region-specific air conditioners that are optimized for local conditions. For instance, the hot dry weather in southern California allows for the design of an AC that saves significantly on peak draw than a typical air conditioning unit. A prototype high efficiency unit was designed in a 1996 study from off-the-shelf components that saved 550 watts at peak and was estimated to save a customer between 11% and 20% on cooling costs per year (Proctor et al. 1996).

The needed sensible heat ratio (SHR) varies from hour to hour and region to region. A potential method of AC optimization is to design region-specific air conditioners optimized for a range of local conditions. For instance, homeowners from West Texas (out of the influence of the Gulf of Mexico moisture) to the


California coast live in a dry climate8. They generally only have to worry about how much the air conditioner lowers the dry bulb temperature.

For the rest of the United States, and for homes in particular western microclimates, homeowners have to worry about the amount of moisture the outside air brings into the home. What is needed in the hot moist climates is moisture removal. The summer ventilation and infiltration sensible heat ratios in many locations are below .20. Standard air conditioners are not up to the task of removing that much moisture without overcooling the air.

Essentially when the desired ratio of the sensible load to the total load of the structure (Sensible Load Ratio) does not match the operating Sensible Capacity Ratio of the air conditioner then either excess latent cooling or excess sensible cooling is happening. The excess is a loss.

Projects

Hot Dry Climates. A consortium of entities including: Proctor Engineering Group, Southern California Edison, Pacific Gas and Electric Company, California Energy Commission, and US DOE have undertaken a project to design, test, and assist into market an air conditioner with a primary design point of 115ºF outside, 80ºF return dry bulb and 63ºF wet bulb. This type of air conditioner is being designed to provide nearly 100% sensible capacity (as is most commonly needed in hot dry climates) with the ability to generate latent capacity when necessary. A point of concentration in this design is airflow through the indoor unit and duct system. Since high airflows produce increased sensible capacities, high airflow is desirable in this machine. The airflow is limited primarily by the large increases in fan motor watt draw as the flow is increased against the internal restrictions and external restrictions (duct system).

The design produced a 25% reduction in peak watt draw for same sized units.

Hot Wet Climates. Sensible cooling loads have dropped over the last 15 years. Insulation is more common, low solar heat gain roofs are available, and newer, high efficiency glass can block a major portion of the heat gain during the summer.

None of the above improvements has reduced the amount of moisture generated in the home or the amount of moisture entering the home with outside air. As the

8 The cities with drying climates are listed with 0 grains difference in ACCA Manual J7 Table 1. Cities in ACCA Manual J7 with wet climates are listed with substantially more than 0 grains difference in that table.


heat gain through walls, roofs, and windows is reduced, moisture removal becomes a larger and larger part of the cooling load.

Moisture buildup and moisture removal issues interact with the sizing issues.

In order to get any real moisture removal, the air conditioner must run long enough for the condensed water to run off the coil and down the condensate drain. For a coil that is starting dry, this can be as long as 10 to 20 minutes. The result is that a short run time—which is what larger air conditioners generally provide—fail to remove sufficient moisture in a wet climate. An air conditioner connected so the blower turns on and off with the compressor provides the most moisture removal. In addition, the moisture removal improves dramatically when the compressor runs longer. Smaller air conditioners will run longer and do a better job of removing moisture. The effect of running the blower all the time (an increasing practice), is dramatic as well—in a very different way. Under continuous blower operation, moisture removal is zero until the compressor is running over 13 minutes every time it comes on (see Figure 3.4.2 based on Henderson 1998). Most compressor runs are less than 10 minutes.

Moisture Removal with an Air Conditioner

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Continuous Blower

Figure 3.4.2. AC Moisture Removal as a Function of Compressor On-Time and Blower Controls


A consortium of entities including Florida Solar Energy Center has undertaken a project to design an air conditioner with substantially higher latent capacity as needed in hot humid climates.

Savings and Costs

Producing air conditioners that produce the ratio of sensible cooling to latent cooling required to keep the conditioned space in the comfort range without overcooling or over dehumidifying is estimated to reduce energy consumption between 10% and 35%. The savings are even greater in homes where dehumidifiers are being used to control humidity.

For an annual NE cooling cost of $107, a 25% energy consumption reduction is $26.75.

Such changes also hold great promise for reducing peak electrical demand.

The costs of the design improvements vary from $50 to $500.

3.4.3. Improved aerodynamic outdoor AC/HP units

Air handling efficiency is not only important at the air handler, but also at the outdoor coil. The typical outdoor heat exchanger matched with fan blade and single or dual-speed PSC motor leaves room for improvement.

Increasing condenser airflow without any changes in the coil, fan, or fan motor has an adverse effect. With increased airflow the compressor watt draw drops, the capacity increases, but, because of the increased fan power, the total kW draw increases. Increased airflow needs to be accompanied by increased fan/motor efficiency or lower resistance to airflow.

The top outlet of the condenser fan is essentially a free discharge covered by a fan guard. A diffuser at the condenser fan outlet improves the condenser airflow with little or no increase in watt draw.

Adding an inlet flow conditioner or an outlet diffuser increases the materials and labor costs. An outlet diffuser increases the height of the unit for shipping, unless it is shipped nested or flat, separate from the outdoor unit.


The outdoor fan draws a large volume of air at low static pressure. Axial fans are well suited to the high volume and low static pressure applications of the condenser fan. The typical outdoor fan/motor combination is a propeller with a permanent split capacitor motor. Measured baseline condenser fan power was 151 W and 333 W respectively for 3-ton and 5-ton units.

Higher efficiency combinations are potentially available including more efficient propeller fans and higher efficiency motors. The step beyond these fans is likely to be airfoil axial fans similar to those developed at Florida Solar Energy Center (Parker et al. 2005). Figure 3.4.3 displays the FSEC Fan and Condenser airflow design (courtesy FSEC).

Figure 3.4.3 High Efficiency Condenser Fan Design

Savings and Cost

The cost of an improved inlet flow conditioner, diffuser, and fan is in the range of $50 to $150.

An improvement in condenser fan/motor efficiency of 25% (e.g. 7.5% to 10%) results in small peak reductions. However the larger impact of higher airflow efficiency is the potential to increase airflow and improve the efficiency of the compressor due to the altered refrigerant inlet and outlet conditions.

For a NE annual AC energy expenditure of $107, a 5% energy consumption reduction is $5.35.

The energy savings in the heating mode for heat pumps could be substantial.


3.4.4. Cold climate heat pump

A single element of the HVAC system seldom has a constant efficiency. Controls have the potential to optimize the system to the current conditions.

One application has been demonstrated by the Cold Climate Heat Pump (Nyle Special Products, 2004) controls the operating mode of an air source heat pump based on condenser air entering temperatures and two staged heating calls from the thermostat. The operating modes are made up of these elements:

• Primary Compressor Low Capacity Mode

• Primary Compressor High Capacity Mode

• Secondary “Booster” Compressor

• An “Economizer” that bleeds a small amount of refrigerant through a metering device. The resultant cooling is used to further subcool the liquid refrigerant before the primary metering device and inject intermediate pressure vapor (vapor injection) between the Primary and Secondary compressors when the pressure differential between the evaporator and condenser is sufficient to make vapor injection advantageous (larger indoor outdoor temperature differentials).

Table 3.4.1 Operating Modes of the Cold Climate Heat Pump Evaporator Air Entering Temperatures Range (ºF)

Element < 10 ºF 10 to 20 ºF 20 to 34 ºF 34 to 57 ºF > 57 ºF

Primary Compressor – Low

Stage 1 Stage 1

Primary Compressor – High

Stage 1 Stage 1 Stage 2 Stage 1

Booster Compressor

Stage 1 Stage 1 Stage 2

Economizer Vapor Injection

Stage 1 Stage 2

Electric Resistance

Stage 2 Stage 2

This product is claimed to have 2.7 COP at 17ºF and 2.3 at 0ºF. The system has had a number of filed tests at utilities and the results of those tests should be evaluated.

There are issues concerning what company will produce the product (Smith, T. 2005).


Cost and Savings

The mature cost differential for this unit is estimated at $1500. The savings is estimated at 14%. For a heat pump with consumption of 12,519 kWh per year (EPA Climate Region 2) would produce an annual savings of $143.19.


3.5 Distribution System Improvements

Purpose

The efficiencies of conditioned air distribution systems are poor. There are losses due to conduction, leakage, and thermosyphoning. Typical duct systems lose 25 to 40 percent of the heating or cooling energy put out by the central furnace, heat pump, or air conditioner (Andrews 2001). Reducing these losses is one focus of distribution system improvements.

The air handler with its cabinet, fan, motor and heat exchangers is another part of the air distribution system. The aerodynamic efficiencies of common residential furnace air handlers are low. The average external static pressure (duct system, registers and grills, filter) is .50 IWC. With an average evaporator coil pressure drop of .25 IWC and an average watt draw of 510 watts per 1000 cfm (Proctor and Parker 2000), the aerodynamic efficiency is 17.5%9. Improvements in the cabinet, fan, motor, heat exchangers and duct systems can improve this efficiency. The U.S. Department of Energy (DOE) estimates that more than 14% of residential HVAC energy consumption can be attributed to air handling equipment.

Much more R&D effort is put into designing the air distribution systems of commercial applications—large engineered air handlers have efficiencies reaching 70%. This large discrepancy between residential and commercial systems reveals the extent of opportunities available for improving airflow in residential systems.

As efficiency improvements are made to the refrigerant side of the system, the outdoor fan and indoor blower become more important for power reduction.

For common new units working against (as opposed to with) a typical air distribution system, the fan and blower use between 15% and 20% of the total power. As the compression cycle is improved, cost-effective improvements are to be found in the fan and motor.

3.5.1 Improved fan motors

Condenser fan and evaporator fan motors in standard use are PSC (permanent split capacitor) motors. The efficiency of these motors varies between 60% and

9 in terms of work done outside the furnace cabinet


70% for evaporator fan motors and between 50% and 70% for condenser fan motors.

Higher efficiencies, above 80%, are possible with brushless permanent magnet motors (BPM). The BPM is a DC motor with a permanent magnet for the rotor. The brushes and commutator are replaced by an integrated circuit that electronically switches the stator winding polarities. The reversal rate is directly controlled at the motor, making the BPM motor inherently variable-speed. The best known of the BPM’s is the General Electric ECM™.

Traditionally, multi-speed PSC motors have used such technologies as alternate taps on the windings to produce multiple speeds. The lower speeds are less efficient than full speed. With BPMs, the efficiency is better at the lower speeds. Manufacturers use BPM motors on their highest efficiency product lines.

A test of a complete furnace that only changed the motor type is a good illustration of the differences between standard PSC and BPM motors. Figures 3.5.1 through 3.5.3 show the flow, watt draw and efficiency of the fan/motor combination for a Carrier 58CTA090 furnace with a standard evaporator fan (Robert Davis and Emanuel D’Albora 2005).

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Figures 3.5.1 and 3.5.2 ECM PSC Motor Comparisons in Same Application


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Figure 3.5.3 ECM vs. PSC Combined Fan/Motor Efficiency (External to the Cabinet) in the Same Application

There are a number of newer motors on the market or in development intended to compete with the ECM motor. These include permanent magnet motors from, a consortium of companies (Friesen Power, etc.) and McMillan Electric Company.

Friesen Power claims that these motors will be price competitive with ECMs.

The McMillan Electric Motor is expected to be less expensive than the ECM.


DynaMotors is producing a brushless variable speed motor claimed to cost 35% less than an ECM. It does not use a permanent magnet. In the single example for which we have data, the maximum motor efficiency is approximately 65%,

which is similar to a good PSC motor but less than an ECM. As shown in Figure 3.5.4, this motor draws substantially less power than a PSC when it is lightly loaded (at lower blower speed). This may be a desirable alternative to PSC motors where variable speed is desirable. The electrical switching is accomplished within the rotor using light beams.

10 INCH BLOWER • 48 FRAME MOTOR NOMINAL 1/2 HP AT 1100 RPM

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Figure 3.5.4 “DynaMotor” Watts vs. RPM

The efficiency of the indoor blower is more critical than the efficiency of the outdoor fan. When the efficiency of the blower is low not only must more energy be expended in delivering the proper airflow, but also all the energy goes into the air stream heating the air the air conditioner is trying to cool.

In application, there is a disturbing switch from automatic fan to continuous fan when an ECM furnace is installed. The net result of such a combination change is no savings.

Cost and Savings

The estimated incremental cost of an ECM motor in a mature market is $80.

The savings from improved fan motors is not limited to the reduced watt draw of the fan motor at the same fan airflow. The improved fan motors also make it possible to increase evaporator and condenser airflow when increased airflow will improve the efficiency of the unit under the operating conditions.

In the Davis and D’Albora (2005) side-by-side test, at 1500 cfm with an external static pressure of 0.45 IWC, the ECM motor drew 477 watts and the PSC motor drew 655 watts. The pure watt draw savings keeping the flows equal is 179 watts. For a location with 1500 equivalent run hours and $0.0817 per kWh average electrical price, the savings would be $21.81 per year.


The savings is entirely dependent on the application. In cases where a constant and known airflow is needed against a known external static pressure, the energy savings from an ECM motor over a PSC motor may be small because optimal selection of the PSC motor is possible. However when variable speeds are needed for heating, cooling, dehumidification, and ventilation, the ECM motor will show significant savings at the lower airflows.

Probably of greater importance is the variable speed capability of the ECM (or other variable speed motors). Given the variable speed the air conditioner can be “tuned” to provide the best performance for a given distribution system and given interior and exterior climate conditions. In some locations, increasing the latent capacity of the system by moving fewer cfm will be the most efficient method of producing comfort in the home. At other times, or in other locations, the latent capacity may be of little importance and increasing the airflow will produce the most efficient system. In essence there are times when the fan watt draw changes will be traded off with increased or reduced compressor watt draw or unit run time.

3.5.2. Evaporator fans, housings and cabinet

Fan efficiency is the percentage of shaft horsepower that the fan converts into air horsepower. Virtually all the residential air handler blowers are forward-curved centrifugal fans. The potential efficiency listed in the literature for forward curved centrifugal fans is 70% (Culham and Okrasa 2001). The efficiency of these fans generally increases with increased static pressure (lower airflow) at a fixed rpm (when operating outside the surge zone). It may be that these units are properly optimized for their standard application, however an analysis of two different diameters and 4 widths of Morrison centrifugal fans showed static efficiencies always in the 35% range10 (Morrison 1993).

The combined fan/motor efficiency of the indoor blower is a primary limiting factor in unit efficiency when high sensible heat ratios are needed. In order to achieve high sensible heat ratios efficiently the flow across the evaporator coil will need to increase. The flow increases are limited by power law increases in fan watt draw.

One important design consideration for the blower is that the air duct system resistance to airflow is unknowable until the final installation. In addition, the resistance to flow changes as the filter gets dirty, dampers and registers are closed, etc. In order to deliver proper airflow under all of the reasonable

10 2000 cfm and 1 IWC


installation and operating conditions, various compromises to efficiency are necessary. For example, the fan/motor assembly cannot be designed to achieve maximum efficiency at design conditions (particularly if those design conditions are as low as 0.10 IWC external static pressure). If it were, then at the common higher static pressures found in field installation would cause a rapid loss of airflow for a fan with a permanent split capacitor motor (PSC) and a potential for surging.

The potential efficiency11 of the forward curved centrifugal blower is 70 to 75 percent. Until recently the blower wheels and housings were highly standardized.

Indoor blower design has recently been the subject of innovation. General Electric, under a DOE grant, built and tested a backwards-curved centrifugal blower with a smaller ECM motor. Trane Corporation is producing an air handler with a molded plastic fan housing capable of higher delivery efficiency within small air handler cabinets.

Products

Proctor Engineering Group has tested the Trane Corporation fan assembly in its designed (optimized) location and in a prototype air handler. The fan housing provides improved efficiency in both applications.

The General Electric product (Wang and Wiegman 2001) achieved a 70% peak static efficiency. The design was created for inclusion in a 3-ton residential heat pump. When compared to a baseline system, the new design resulted in a 30-50% reduction in mechanical power requirements.

11 The fan efficiency is measured at the fan itself. The output is calculated based on the total pressure and airflow at the fan. The air handler efficiency, on the other hand uses the pressure gain across the air handler and the airflow. Since the pressure gain measured across the air handler is less than the total at the fan, the output and efficiencies are lower.


Figure 3.5.4 GE Fan with Rearward Inclined Blades Revised Housing, and Small ECM Motor

The study also demonstrated the importance of matching an integrated housing with the blower design. Table 3.5.1 shows the effects on static efficiency of different housing designs.

Table 3.5.1. Efficiency Levels for Changes in Blower, Housing, and Cabinet

Barriers to implementation include the costs of research and retooling for new designs. From an industry perspective, the incentive to create these new designs did not exist until the advent of stricter minimum SEER ratings.


Costs and Savings

An increase in fan efficiency from 35% to 45% with a PSC motor12 would result in a savings of $17.85 per year. As with the fan motor improvements, the most important aspect of fan efficiency improvement is the potential to use higher airflows to achieve higher overall efficiency as well as higher sensible heat ratio when appropriate.

The cost of improved cabinet and fan housing design is in the range of $0 to $50.

3.5.3. Sealed ductwork

Duct leakage is a major problem in both residential and commercial buildings. The amount of duct leakage, while variable from house to house is nearly always above 15% of air handler flow. Figure 3.5.5 shows the total measured leakage at .10 IWC compared to air handler flow

0%

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8%

10%

12%

14%

5% 15% 25% 35% 45% 55% 65% 75% >80%

CFM 25 / Nominal Airflow

% o

f S

amp

le

Figure 3.5.5. Duct Leakage in Existing Homes (CheckMe! 2001)

The effects of duct leakage depend on the inside and outside conditions, the location of the ducts, the flow through the air handler, and other factors. In a significant portion of the US housing stock duct leakage is sufficient to attract our attention.

12 based on Davis and D’Albora (2005) 1500 cfm with an external static pressure of 0.45 IWC, PSC motor draw 655 watts, a location with 1500 equivalent run hours and $0.0817 per kWh average electrical price


Duct losses are a major source of inefficiency in residential HVAC systems. The main contributors to duct losses are direct losses through leaks and conductive losses through duct surfaces. These situations occur when ductwork passes through an unconditioned space such as an attic or crawlspace. In these cases the energy is simply lost. Typically, a duct system can lose 25 to 40 percent of the heating or cooling energy delivered by the central furnace, heat pump, or air conditioner (Andrews 2001).

With heat pumps, the duct losses cause reduction in delivered capacity sufficient to bring in electric resistance heat, which has a COP = 1.

When working toward an optimized system, improvements in duct integrity allow the use of smaller air conditioners, smaller furnaces, smaller ducts, and smaller fan/motor assemblies.

Products

Multiple products address the duct leakage issue. These include hand applied duct sealants, aerosol sealants sprayed into the ducts, as well as reduced leakage joint and fitting designs.

The hand application of duct sealants in the residential arena was almost exclusively cloth backed duct tape until field observations and laboratory tests showed that the seals were failing in short order. Through training programs and regulation a substantial number of installations now use mastic to produce a more permanent seal.

Carrier-Aeroseal provides duct sealing that works by pressurizing the duct systems with sealant particles that lodge in the leaks and progressively seal them.


Proctor Engineering Group has developed a duct joining system that snaps the elements together forming a seal and mechanical connection. (See Figure 3.5.6.)

Figure 3.5.6. SnapDuct™ 1, 2, 3.

The authors have also tested ducts and fittings from Seal Tite Corporation and found them to leak less than half as much as standard ducts and fittings.

Savings and Costs

The cost of duct sealing at the time of installation is low (less than $100). The incremental cost of Snap Duct and tight duct fittings is $100.

Savings from duct leakage reductions can be estimated using ASHRAE Standard 15213. Sealing ducts from “normal practice” to reasonably achievable minimum leakage had a variable savings depending on duct location and climate. The average savings for hot climates with attic ducts is between 13% and 24%.

For an annual Northeast AC energy expenditure of $107, the 18% cooling energy consumption reduction is $19.26.

The heating efficiency improvement is less than the cooling efficiency improvement. For an average NE annual heating energy expenditure of $682 the savings would be 13% or $88.66

13 The calculations in 152 have been verified through field testing and monitoring.


3.6 Integrated Appliances

3.6.1. Air conditioner with inline dehumidifier

75

The Ultra-Aire dehumidifier manufactured by Therma-Stor LLC uses an air-to-air heat exchanger to bring the air entering the evaporator coil closer to its dew point temperature. This reduces the amount of work that goes into sensible cooling and increases the amount of moisture removal. This device is illustrated in Figures 3.6.1. and 3.6.2.

Figure 3.6.1. Dehumidification Enhancement with Evaporator Air-to-Air Heat Exchanger

Evaporator Coil

A/A Heat Exchanger Condenser Coil

Figure 3.6.2. Schematic of Dehumidification Enhancement


This unit uses the supply air ducts of a forced air system to distribute the dehumidified air throughout the home. The unit also provides outside ventilation mixed with the return air from the home.

In locations where latent load is high, this unit provides effective dehumidification without the use of an air conditioner to dehumidify. It is a very effective dehumidifier.

Savings and Costs

The savings associated with this option are very dependent on what portion of the cooling load is moisture removal. For areas with high moisture load the savings could be as much as 25% of the cooling load. For an annual Northeast cooling energy expenditure of $107, the savings for a 25% cooling energy consumption reduction is $26.75.

The installed cost of the unit is approximately $2000.

3.6.2 Integrated cooling, dehumidification, and ventilation

The most common form of heating and cooling, all ventilation, and virtually all dehumidification utilize forced air movement. This fact alone makes integrating these tasks potentially positive. The most common integration is a natural gas or propane furnace with an air conditioner. The air conditioner is a partially effective dehumidifier. Adding a duct from the outside to the return system will produce ventilation.

Filtration and heat/energy recovery have also been matched with the forced air heating and cooling system.

In general these systems are modular and various components added as desired by the HVAC contractor or builder. This often leads to mismatch of component systems, impaired performance, and complicated/misunderstood controls.

Most common dehumidifiers utilize a compressor and coils consistent with residential air conditioning. The primary difference (other than capacity) is that the dehumidifier discharges the heat back onto the inside air rather than outside the house. The addition of a reheat coil to a residential air conditioner would reduce the amount of sensible cooling while maintaining the same moisture removal. Because of the reduced sensible cooling, the air conditioner would run longer and more dehumidification would take place. The inefficiency of removing heat to put it back into the air stream is an obvious drawback.


Teasing additional dehumidification from a residential air conditioner usually consists of reducing the evaporator coil temperature by reducing evaporator airflow. This method is limited by the fact that water freezes at a 32 degrees F.

A system that provides the same dehumidification as illustrated in Figure 3.6.2 with the condenser coil moved to the outside air would provide similar dehumidification along with sensible cooling. This system is illustrated in Figure 3.6.3.

Figure 3.6.3. Schematic of Combined Ventilation with Sensible Cooling and Dehumidification

Savings and Costs

The savings associated with this option are dependent on what portion of the cooling load is moisture removal. In areas where the sensible cooling is a larger percentage or the load, this unit could have a savings of about the same as the pure dehumidification unit in Figure 3.6.2.(25% of the cooling load). For an annual Northeast cooling energy expenditure of $107, the savings for a 25% cooling energy consumption reduction is $26.75.

The incremental cost of the unit compared to a standard air conditioner is $500 to $1000.


3.7 Alternative Approaches to Providing HVAC Functions

Purpose

Traditionally heating homes grew from providing heat in one location (fireplace, woodstove, stand alone heater, floor furnace) to central heating with air ducts, steam or water pipes. Heating or cooling a single location had the advantage of saving energy by not conditioning the entire home at once.

Ventilation consisted of windows and doors while individual or area fans provided cooling. When central air conditioning began to get widespread use it was often added to the existing forced-air heating package. In some cases ventilation was added to the system through a return duct from outside the building. (This was sometimes intended to provide combustion air to the furnace.)

Alternative approaches to heating and cooling include:

• Reverting to heating and cooling a local area rather than the whole structure.

• Providing each HVAC function with separate stand-alone equipment.

3.7.1 Ductless mini-split systems

One method to eliminate losses associated with ductwork is to simply not use ducts. Mini-split system air conditioners have evaporator/air handler units within each conditioned room. Multi-evaporator systems run the refrigerant from one outdoor unit to several indoor units. These systems are most commonly used in multifamily housing applications or retrofit applications in which there is insufficient space to install ductwork.

Figure 3.7.1. Mini-split System Layout (Mitsubishi Electric)


Benefits of these systems include inherent zoning capability (cooling or heating only the area that needs to be conditioned), greatly reduced airside losses, and quiet operation. Ductless systems are considered a niche market, with an estimated volume of 100,000 units per year in North America.

Savings and Costs

The main drawback of mini-split systems is their cost. The systems cost approximately $1200 more than central systems. However, this does not include the cost of ductwork; therefore, in new construction, mini-splits will tend to be more cost-effective. Qualified installers and service technicians for mini-splits are more difficult to find than central AC installers. Many contractors earn a larger return on ductwork installation so they may be more reluctant to push sales of mini-splits except in cases where ducts are not feasible.

From a technical standpoint, Andrews (2001) provided a first-order analysis of the thermodynamic effects of increased refrigerant line lengths, with the results applicable to both mini-splits and central ACs with refrigerant lines exceeding 25 feet. The purpose of the study was to provide input for a proposed method of evaluating refrigerant distribution system efficiency. Total efficiency impacts from increased refrigerant tube length were:

• For cooling mode, total efficiency impacts from temperature drop and rise in the liquid and suction lines, respectively, and pressure drops in both lines ranges from a 0.5% reduction in efficiency per 10 feet of added length for a 0.5” OD tube to a 0.7% gain in efficiency for a 1.125” OD tube.

• For heating mode, total efficiency change for temperature and pressure drops in the liquid and discharge lines amounts to a 0.7-0.9% loss per 10 feet of added length.

The effects of added line length are small in comparison to savings associated from elimination of airside ducting. Duct losses can account for more than 30% of energy consumption for space conditioning, especially in cases where ductwork is located in an unconditioned space such as an attic.

The additional potential savings lies in providing cooling or heating only where it is needed. Mini-splits have this capability. The savings from a mini-split are estimated to be 30% in heating and cooling. For Northeast cooling this would be $32.10 annually. For a heat pump with consumption of 12,519 kWh per year (EPA Climate Region 2) would produce an annual savings of $306.84.

Currently, because of the added cost, many contractors view this technology as a “last-resort”. However, its benefits over central ACs may best be seen in new


construction when costs of installing ductwork can be included in the comparison of mini-splits to standard central ACs.

3.7.2 Dedicated dehumidification systems

Building Science Corporation (Rudd et al. 2003) field-tested the performance of stand-alone dehumidifiers against other systems (ERV, two speed AC with low fan speed for dehumidification, etc.). The test showed that the stand-alone dehumidifiers did a much better job of maintaining proper indoor humidity than the other systems tested. The results are displayed in Figure 3.7.2. The stand-alone dehumidifies nearly eliminated indoor relative humidity excursions above 60% Rh.

Figure 3.7.2. Humidity Control with Stand-Alone Dehumidifiers

A properly sized stand-alone dehumidifier can provide excellent latent capacity, but it also adds to the sensible load and can be noisy.

Savings and Costs

The savings from a stand-alone dehumidifier are dependent on the latent load. If a home has a high latent load, a standard air conditioner will not be capable of removing the moisture without overcooling the interior. We estimate the savings as 30% under those circumstances, cooling savings would be $32.10 annually.

The cost of a stand-alone dehumidifier varies from $300 to $1000.


IV. REFERENCES

[CMHC] Canadian Mortgage and Housing Corporation. 1993. Efficient and Effective Residential Air Handling Devices, Final Report. Prepared by Allen Associates with Browser Technical, Geddes Enterprises, Brian Woods, and Ontario Hydro for Canada Mortgage and Housing Corporation, Ottawa, Ontario, Canada.

[EREC] “EREC Brief: Ductless, Mini Split-System Air-Conditioners and Heat Pumps.” 2002. Available online: http://www.eere.energy.gov/consumerinfo/refbriefs/ad3.html.

[ACCA] Manual J, Manual D, Manual S. Air Conditioning Contractors of America, 1513 16th Street, N.W., Washington, DC 20036. www.ACCA.org

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www.aircycler.com


Benefits

Field

Benefits of H

Prepa

Northeast Energ

Appendix C of HVAC Contractor

Training: Research Results

VAC Contractor Training

red for STAC Project

By y Efficiency Partnerships, Inc. February 2006

INTRODUCTION Increasingly, residential HVAC programs are focusing their efforts on ensuring that high efficiency equipment is properly installed. Programs require HVAC contractors to be trained and certified in “quality installation techniques” in order to ensure that all of the benefits of high efficiency equipment are realized. Certification is a strategy used in many professions to document that someone has successfully completed a training program. It sends a market signal to customers and competitors about which professionals have documented skill in their field. With the emergence of energy efficiency programs that promote efficient HVAC equipment in the Northeast, the number of certified installers is increasing (Pettit, personal communication). However, to date, the energy efficiency-related impacts of training and certification on the quality of HVAC installations have not been systematically measured. The purpose of this research task was to investigate and measure the impacts of training and certification on recent HVAC installations, and to recommend possible modifications to current training approaches in order to increase customer benefits and cost-effectiveness. Specific research questions to be addressed include:

• Are there significant differences in system performance between new and existing homes?

• Are there differences in system performance between installations done by contractors with and without training and certification?

• What are the costs and benefits of installer training? • How can the savings and cost effectiveness of current training activities be

improved? SUMMARY FINDINGS AND RECOMMENDATIONS There were no statistically significant differences between installations in new and existing construction or by certified and uncertified contractors. Findings of this study were consistent with recent baseline studies in that the quality of the majority of the central air conditioning system installations was inadequate. Results of this study imply that contractor training and certification alone will not produce the energy efficiency benefits that are technically achievable from proper installation. Anecdotal evidence and market research findings indicate that many contractors receive some level of training on HVAC system installation. While many say they know what constitutes quality installation, various factors are barriers to quality installation. That said, even though systems are typically oversized, have insufficient airflow and leaky ducts, there is some anecdotal evidence that the degree of oversizing and leakage has decreased over time. Recommendations are that energy efficiency programs recognize that training and certification are necessary but not sufficient to achieve energy efficiency benefits. Comprehensive training that includes field practice by approved organizations should

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continue to be promoted. Meanwhile, programs should also adopt inspection, testing and third party verification as part of energy efficiency program design. In addition, increased code official compliance and education and customer education are needed. Another strategy that program administrators should consider to reduce energy losses from poor installation quality is to explore promoting emerging technologies that avoid installation concerns, for example ductless mini-split systems as an alternative to high efficiency central air conditioning systems. BACKGROUND Opportunities for Training and Certification Anecdotal evidence and market research findings indicate that many contractors receive some level of training on HVAC system installation from a variety of sources. Many contractors say they know what constitutes quality installation. In practice, the business-as-usual culture and other barriers limit the quality of actual installations in the field. There is anecdotal evidence of a gradual trend toward improved installation. For example, while AC systems in New Jersey are typically oversized with insufficient airflow and leaky ducts, the degree of oversizing and leakage has decreased over time (Ambrosio, personal communication). Some training on HVAC system installation and design is available from manufacturers and distributors, as well as from technical schools. In addition, on-the-job experience is a significant source of training. Several organizations are responding to the need for training on HVAC installation, including diagnostic procedures and HVAC system design. They have developed “best practices” guidelines and curricula. Such organizations include North American Technician Excellence, Inc. (NATE), the Eastern Heating and Cooling Council (EHCC), and Building Performance Institute (BPI).

NATE is an independent, not-for-profit national organization dedicated to promoting excellence in the installation and service of HVAC/R equipment by recognizing high-quality industry technicians through voluntary testing and certification. Other organizations train contractors; NATE tests. It is the leading certification program for technicians in the heating, ventilation, air-conditioning, and refrigeration (HVAC/R) industry. NATE certification provides a national standard for excellence in the HVAC/R industry1, and it enjoys widespread support from industry leaders. It is the only test supported by the entire industry, and it is endorsed by the Department of Energy and the Environmental Protection Administration.

EHCC is a non-profit educational training organization based in New Jersey and operating nationally for over a decade. Its mission is “to provide HVAC contractors and consumers with education and training, resulting in an increase in the installation of properly designed and installed, high efficiency heating and cooling systems” (www.eh-cc.org). The training curriculum for HVAC contractors ranges from the fundamentals of

1 Certification is offered in five areas: air conditioning, air distribution, heat pumps, gas heating, and oil heating.

3

electricity to NATE certification review courses. EHCC’s members include trade sponsors (utilities and manufacturers), associates (HVAC contractors), and trade allies (businesses that relate to the industry).

BPI, based in New York and currently expanding to other states, is another organization dedicated to promoting excellence in building contracting using a trade-based certification process. BPI sets the standards and administers certification of technicians and accreditation of companies. Remodelers, inspectors, builders, insulation contractors, heating, and cooling contractors are only a few of the trades that can benefit from building performance certification.

While training and certification are important contributors to efforts to transform the market for HVAC installation, it is important to note that the process is gradual, as these are voluntary and require investments of time and money by firms and individuals. Currently the EHCC website identifies 64 EHCC-recognized firms in the mid-Atlantic (New Jersey, New York and Pennsylvania), and 132 other companies that “employ NATE-certified contractors.”

Benefits of Quality Installation Criteria defining quality installation include proper system sizing, proper refrigerant charge, proper system airflow, and properly sealed duct systems. Baseline studies, anecdotal evidence, and modeling studies have documented the fact that these are necessary to reap all of the benefits of installing high efficiency HVAC equipment. As shown below, the following benefits of “quality installation” can be expected in the Northeast: Table 1. Estimated Benefits of Quality HVAC Installation Practices in the Northeast Installation Practice Energy Savings (% of annual consumption) Proper sizing 5% Proper charge and Airflow 15% Sealed ducts 13% of heating and 18% of cooling Source: John Proctor, 2005 Features of Northeast HVAC Programs Proper installation is a key feature of residential HVAC programs in New Jersey, New York and New England that promote efficient central air conditioning systems. Contractor training and certification are also important aspects of these programs. In the Northeast, New York and New Jersey have the most extensive experience with including training and certification on installation as part of residential HVAC energy efficiency promotions.

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The cornerstone of NYSERDA’s Home Performance with ENERGY STAR Program is a highly trained infrastructure of Participating Contractors. One of the prerequisites to participation in the program is company accreditation by the Building Performance Institute (BPI). BPI offers four different certifications: Building Analyst-1, Shell, Heating, and Cooling and Heat Pumps. Training prepares contractors for the certification tests. Training is currently provided across New York by the Onondaga Cortland Madison counties Board of Cooperational Education Service (OCM BOCES), and in the future it will be provided by community colleges in New York. NYSERDA also offers related training and continuing education sessions in conjunction with the Building Performance Contractors Association of New York State, semiannual Program Action Committee meetings, and an annual Affordable Comfort Inc. conference. All levels of training and BPI certification for New York firms are reimbursed at a rate of 75% by NYSERDA. NYSERDA began recruiting Participating Contractors in the spring of 2002. To date, there are 100 in the program and 90 in the pipeline - trained and preparing for certification. Training and certification of HVAC installers is part of the New Jersey Residential Gas & Electric HVAC Program’s long term goal of making “properly designed and installed energy-efficient HVAC equipment ... the market standard.” In 2005, the Clean Energy Council program implementation includes provision of “support for training of HVAC technicians on ACCA Manual J load calculations, proper refrigerant charging and airflow, technical material that must be understood to pass the NATE certification tests, proper duct sealing, duct design using ACCA Manual D, ENERGY STAR sales techniques, and/or other substantial forms of training that are directly related to the promotion of energy efficiency and quality equipment installation.” The program goals for 2005 included “training at least 500 HVAC technicians” on quality equipment installation. “Any training conducted using the same curricula provided by the program, including training provided by industry allies, shall count toward the goal. The goals also included adding “200 New Jersey HVAC technicians to the list of those who are certified by NATE.” In 2003, the program requirements included that firms with at least 50% of their technicians holding NATE certification were required to submit Manual J sizing calculation and signed certification of proper charge and airflow in order to qualify for customer incentives on efficient heating and cooling equipment. In 2005, that requirement was changed to HVAC firms that have at least 75% of their technicians holding NATE certification shall be required to submit only the Manual J sizing calculation and signed certification of proper charge and airflow. (Clean Energy Program Energy Efficiency Programs, June 8, 2005). RESEARCH PLAN AND METHODOLOGY Research Plan The essence of the research plan is to collect quantitative information from on-site assessments of recent central air conditioning installations from two samples of homes—

5

one with systems installed by trained/certified installers and one with systems installed by a not trained/uncertified group—and to compare results obtained from the two groups. Customer recruitment has to meet several requirements. In particular, the installation has to be recent, within less than two years. The customer names have to be tied to researchable contractor contact information so that two distinct samples can be identified: trained/certified and not trained/uncertified. For several reasons, including budget as well as ensuring consistency in climate, construction practices, and consistency in the definition of certified and uncertified contractors, the onsite assessments will be geographically clustered. Eligible customers will be contacted by letter and follow up phone calls. Participating customers will receive an incentive payment after completion of the onsite assessment. The sample quota goals are a minimum of 68 completed onsite assessments of homes: 34 trained/certified, and 34 untrained/uncertified. This size provides 13 percent precision at the 90 percent confidence level. The budget provides for 76 site assessments, allowing for contingencies in the event that some of the onsite data will be inappropriate. Onsite data collection shall include items listed in Table 2. Onsite assessments will be conducted during the cooling season, in temperatures over 65 degrees, when air conditioning performance can be measured. A small technical team will be responsible for the assessments. This will ensure consistency in observations. Results of the site assessments will not be shared with the customers.

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Table 2a. On Site Data Collection Protocol

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Table 2b. Protocol for Diagnosing Refrigerant Charge

10

Methodology Construction of Sample Frame. Customer names were obtained by requesting and obtaining manufacturer warranty card information from sales of recent central air conditioning system installations to customers in New Jersey2. For those cases in which the HVAC contracting firms were identified, the firms were cross-checked against a membership database provided by the EHCC. This database identifies and classifies HVAC contractors according to participation in training and certification activities. We classified firms according to the level of training and certification in their staff, based on information provided in the database, and ranked them on a scale from 1 to 8, most trained/certified to least. Firms in which over 75% of staff are NATE-certified were ranked as most trained/certified. Firms without NATE certification and that had not participated in at most one seminar or course were ranked least trained/not certified. The two sample frames were constructed using this information: the trained/certified group included all rank 1 firms; the uncertified group included rank 7 and 8 firms. This approach was developed because participation data from NYSERDA and New Jersey programs either were unavailable or inadequate for our needs during the study period. Benefits of this approach are that it enhanced our ability to cluster the locations and to maintain consistency in our classification scheme. Drawbacks are that we were restricted to the one manufacturer who cooperated, and that we were unable to take advantage of additional information about the HVAC contractors that efficiency programs may have. Because of the limited sample frame and challenges of recruitment, it was not possible to ensure a balanced distribution of new and existing construction in the two samples. Similarly, it was not possible to ensure a balanced distribution of participants in utility HVAC rebate programs. To increase the likelihood of success of recruitment in New Jersey, we doubled the customer incentive for this task to $200 per completed onsite assessment. Blind Study. To eliminate the introduction of bias into the onsite data collection process, the customer recruitment, scheduling and onsite assessments were blind. The Conservation Services Group staff responsible for recruitment, scheduling and assessments did not know whether customers were in the trained/certified or not trained/not certified group. 3 Final Sample. Two teams of Conservation Services Group field staff completed visits to 76 sites between June and August, 2005. Proctor Engineering Proctor Engineering Group (PEG) analyzed data on 76 air conditioner installations in New Jersey. Of these, 72 assessments passed the quality control review. As shown in Table 3, the distribution of the final sample included 37 and 35 certified and not certified sites, respectively. Due to the challenges of recruiting, it was not possible to achieve balance in the sample with respect to new construction, rebated equipment, and efficiency levels of air

2 Information was requested from multiple manufactures; one provided the information. 3 The CSG staff were provided the model numbers of the AC systems they were to assess, as some homes had multiple systems; in cases where there were multiple new installations from the same HVAC contractor, only one system from each home was assessed.

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conditioning systems installed, as shown in Tables 3 through 5. Roughly one-third of the homes in the total sample were new construction. The majority of the new construction sites were also in the certified group. Roughly one fourth of the homes in the total sample had received a utility rebate for purchase of an energy efficient air conditioner, heat pump or furnace. The majority of the rebated equipment was installed in existing homes. The central air conditioners installed ranged from SEER 8 to SEER 15. The not-certified group has a slightly larger proportion of higher efficiency equipment . Table 3. Sample of On-Sites, by Certification and Construction Type

Certified Not Certified TotalExisting Construction 14 32 46 New Construction 23 3 26 n 37 35 72

Table 4. Sample of On-Sites by SEER of Central AC System SEER Certified Not CertifiedMin 8 7.1 Mean 10.8 12 Median 10 12.4 Mode 10 13 Max 13.4 15.5 Table 5. Sample of On-Sites by HVAC Rebates Received Certified Not Certified Total Rebate Received (all existing construction)4 3 14 17 RESULTS As shown in Table 6, the majority of customers were satisfied with their HVAC contractor and with their system installation. However, the majority of the homes in the sample failed to meet the criterion of “quality installation.” Only 20% of the systems (excluding those that had been serviced since installation) had the correct refrigerant charge and roughly one-third of all installations had duct sealing that was adequate. Figure 1 illustrates that close to 50% of the systems in the certified and not-certified groups had lower than recommended airflow (under 400 cfm), while Table 10 shows that, overall, systems were oversized by 20%.

4 Rebates received in 2003 – 2004. Includes some rebates for heating systems.

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Table 6. Comparison of Results of Assessments of Installation by Certified and Not Certified Installers

House Type Installer Sample

New Existing Certified Not Certified

n 26 46 35 37

Correct Charge5 22% 15% 24% 17% 20%

Is Customer Satisfied with System Rating?

81 % Satisfied 82 % Satisfied 78% Satisfied 86% Satisfied 83 %Satisfied

Is Customer Satisfied with Installer? 61% Satisfied 82% Satisfied 67% Satisfied 85% Satisfied 76% Satisfied Ducts Sealed 42% 33% 56% 16% 36% Duct Sealing Quality 26% Good

4% Fair 70% Poor

20% Good 16% Fair 64% Poor




10% Significance level

Furthermore, this study found that there is no statistically significant difference in installation quality , specifically charge and airflow, between the certified and not-certified groups of installers at the 90 % confidence level. Significant differences between certified and not-certified groups with respect to duct sealing.

Many of the installation problems noted in this sample are common problems in air conditioner installations. For example, 49% of these air conditioners had insufficient air flow across the indoor coil, with little difference between those in the certified and not-certified groups. The units installed by certified installers averaged 347 cfm per ton compared to a “standard” of 400 cfm per ton. The not-certified installer group has airflow averaging 368 cfm per ton. Similarly, there was little difference between groups with respect to refrigerant charge. Twenty-four percent of the units installed by certified installers had the correct amount of refrigerant charge, and 17% of the units installed by the not-certified installer group had the correct amount of refrigerant charge.

Oversizing was present in the certified and not-certified installer groups, in existing and new construction. The only measure with a statistically significant difference between certified and not-certified installers was duct leakage. Based on a visual observation, it appears the certified installers do a better job of sealing the duct systems.

5 Only Systems that have not been serviced since installation are included. Twenty-two percent of the units had been serviced since installation. When systems that have been serviced are included: New 16%; Existing 27% ; Certified 26%; Not Certified 18%

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Figure 1. Distribution of measurements of airflow across the indoor coil in the certified and non-certified groups.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

100 200 300 400 500 550+ 600

CFM/Ton

% o

f S

amp

le

Certified

Non-Certified

Table 7. Airflow: Mean CFM/ton (400 CFM/ton is proper airflow) Certified (n) Not Certified (n) Total (n)New Construction 345 (23) 347 (21) 346 (44) Existing Construction 339 (12) 359 (16) 353 (38) Total 343 (35) 369 (37) 356 (72) t 1.27 P>t 0.2 Table 8. Refrigerant Charge: Percent of Homes with Correct Charge Certified (n) Not Certified (n) Total (n) New Construction 26% (23) 33% (3) 27%(26) Existing Construction 25% (12) 13% (32) 16% (44)Total 26% (35) 18% (35) 21% (70)t -.86 P>t 0.4

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Table 9a. Duct Sealing: Percent of Ductwork Sealed - Including Duct Tape Certified (n) Not Certified (n) Total (n)New Construction 59%(20) 84%(7) 52%(27)Existing Construction 54% (12) 6% (25) 22%(37)Total 58% (32) 14% (32) 35%(64)t -4.30 P>t 0 Table 10. Sizing Relative to Manual J: Mean Percent of Manual J Certified (n) Not Certified (n) Total 6(n) New Construction 133 % (19) 115 % (6) 122 % (25)Existing Construction 108 % (12) 118 % (29) 115 % (41)Total 125 % (31) 116 % (35) 120 % (66)t -1.006 P>t 0.3 Table 11. Comparison of Installation Quality Indicators in Rebate and Non-Rebate Participants Airflow

Mean CFM/Ton (n)

% Homes With Correct Refrigerant Charge (n)

Mean % of Manual J Sizing (n)

Rebate Participants

351 (18) 17% (18) 117% (15)

Non-Rebate 358 (54) 23% (44) 121% (51) SUMMARY AND RECOMMENDATIONS Findings of this study were consistent with recent baseline studies in the Northeast, in that that the quality of the majority of the central AC installations was inadequate. There were no statistically significant differences7 between installations in new and existing construction or by certified and uncertified contractors, with respect to sizing, airflow, or refrigerant charge at the 90% confidence level. The quality of duct sealing was higher among certified contractors; this difference was significant at the 99% confidence level. However, even the higher quality duct sealing was not compliant with building code, since duct tape rather than mastic was used in many cases.

6 Fifteen sites with multiple air conditioners were excluded from the Manual J analysis and four sites (existing construction) that were excluded from previous analyses due to other data quality issues are included in this analysis. 7 No statistically significant differences existed at the 90% confidence level.

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Anecdotal evidence and market research findings indicate that many contractors receive some level of training on HVAC system installation. Similarly, many are informed about what constitutes quality installation, although the business-as-usual culture prevents quality installation from being implemented in the field. For example, while systems are oversized and have insufficient airflow and improper refrigerant charge, the degree of oversizing and poor tuning has decreased over time. Recommendations are that training should be considered necessary but not sufficient to achieve energy efficiency benefits. Comprehensive training that includes field practice by approved organizations should continue to be promoted. Programs should include inspection, testing and third party verification as part of energy efficiency program design. In addition, increased code official compliance and education and customer education are needed.

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Appendix D

Field Performance of High Efficiency Heating Equipment

03-STAC-01

Heating Unit Monitoring Summary Report

Prepared for:

Northeast Energy Efficiency Partnership

5 Militia Drive Lexington, Massachusetts 02421-4713

Project Manager: Elizabeth Titus

March 2, 2006

Prepared by:

Proctor Engineering Group, Ltd.

418 Mission Ave. San Rafael, CA 94901

(415) 541-2480 [email protected]

Contributors:

Abram Conant Gabe Cohn

John Proctor, P.E.

SITE P HEATING

Site P is a 1620 square foot, 2 story cape style modular house built in 2002. The house is relatively tight, with 3.9 air changes per hour (ACH 50). A heat recovery ventilator introduces outside air into the return duct at a rate equal to 17% of the total return airflow. The furnace is located in the full walkout basement and the ductwork is insulated. The furnace is a high efficiency two-stage propane unit rated at 80,000 BTU/h input at high fire. The air handler is equipped with a variable speed ½ Hp ECM motor.

Table P-1: Site P Summary


House Size (square feet) 1620

Year Built 2002

Furnace / Air Handler Location basement

Manual J Heating Load 20,701

Infiltration Air Changes per Hour (ACH50) 3.9

Air to Air Heat Exchanger Flow (% of total airflow) 17%


Rated AFUE 91

Low Fire Input (BTU/h) 52,000

High Fire Input (BTU/h) 80,000

Rated Temp Rise (deg F) 35 - 65

Fan Motor Hp 1/2 Hp

Fan Motor Type ECM


Mean Indoor Temperature (deg F) 67.4

Run Time at Bin of Highest Use (min) 6.2

% of Time on High Fire 0%

Seasonal COP (TMY-2) 0.59

Seasonal Gas Energy Use (Therms) 724

Seasonal Electrical Energy Use (kW) 302

The thermostat operated at a single setting, maintaining an average indoor temperature (measured at the thermostat) of 67.4°F. Cycles were short, only 6.2 minutes on average at the temperature bin of greatest use. The furnace never ran at high fire.

NASEO-STAC Monitoring Analysis P Heat 1 Proctor Engineering Group, Ltd.

Monitoring results

Table P-2: Site P Furnace Monitoring Summary

TD Bin (deg F) 0 - 5 5 - 10 10 - 15 15 - 20 20 - 25 25 - 30 30 - 35 35 - 40 40 - 45 45 - 50 50 - 55 55 - 60 60 - 65

# of ON Cycles 12 49 90 295 674 1135 1128 891 537 311 259 190 68

Cycle Mean Efficiency 0.567 0.567 0.568 0.573 0.581 0.591 0.597 0.609 0.612 0.617 0.620 0.626 0.625

End of Cycle Efficiency 0.606 0.606 0.599 0.594 0.590 0.587 0.587 0.596 0.599 0.607 0.615 0.623 0.625

Run Time (min) 6.5 6.5 6.4 6.4 6.3 6.2 6.2 6.4 6.6 7.0 7.6 8.3 8.9

Off Time (min) 109.3 89.2 80.4 38.9 30.7 21.4 16.0 12.1 10.3 9.4 8.4 7.2 6.0

Cycle Mean Net Capacity (BTU/h) 25,612 25,589 25,561 25,721 26,056 26,426 26,650 27,335 27,578 28,109 28,559 29,196 29,396

Cycle Mean Electrical Power Draw (W) 190.2 189.9 190.3 188.8 187.9 185.3 185.1 183.3 183.2 182.6 181.8 180.3 180.9

Mean Hourly Heat Load (BTU/h) 1,437 1,744 1,882 3,609 4,427 5,963 7,445 9,438 10,758 12,040 13,550 15,595 17,468

Mean Hourly Electrical Energy Use (W*h/h) 10.7 12.9 14.0 26.5 31.9 41.8 51.7 63.3 71.5 78.2 86.3 96.3 107.5


Values in Table P-2 were calculated as follows:

• Cycles are defined as the fan cycle. Cycles start when the fan turns on (slightly after the gas turns on) and end when the fan turns off (1-2 minutes after the gas turns off). Cycle means are the mean value across the entire cycle (including the “tail” when only the fan runs). Gas input prior to the start of the fan cycle is captured and included in the cycle efficiency.

• End of cycle conditions are captured when the gas turns off.

• Efficiency is defined as gross capacity/gas input. Fan motor heat is not included in gross capacity.

Efficiency

Figure P-1: Site P Furnace Efficiency

Site PFurnace Efficiency

0.53

0.55

0.57

0.59

0.61

0.63

0.65

0 10 20 30 40 50 60 70

Tinside-Toutside (deg F)

Fu

rnac

e O

utp

ut/

Inp

ut

0

5

10

15

20

25

30

Cyc

le T

ime

(min

)

Cycle Eff iciency

End of Cycle Eff iciency

Run Time (Fan)

Off Time

End of cycle efficiency was primarily dependant upon run time. Short heating cycles were detrimental to efficiency. Run times were not long enough for the furnace to reach steady state. End of cycle efficiency at the temperature differential bin of highest use was only 59%. Run time and end of cycle efficiency were lowest between 25 and 35°F inside outside temperature differential, where use was highest.

Cycle mean efficiency was closely related to off time between cycles. This may be due to the furnace cooling down between cycles when the off time is large.

At temperature differential greater than 25°F, cycle mean efficiency exceeded end of cycle efficiency. We hypothesize this is due to the “tail” of the cycle (continued air handler operation for 1 to 2 minutes after gas input has ceased). Cycle efficiency captures both the gas input before the fan turns on and heat output after the gas turns off. Heat is delivered with no gas input for 1


to 2 minute out of the typical 6 minute cycle, increasing overall cycle efficiency. This effect is greatest when both run time and off time are small. At low temperature differential, when off time is very large, heat input required to heat up the furnace outweighs the ‘free’ heat gained at the end of the cycle, resulting in cycle mean efficiency lower than end of cycle efficiency. At higher temperature differential, when off time is small, the furnace remains warm from the previous cycle and cycle mean efficiency exceeds end of cycle efficiency. At very high temperature differential, run time increases and end of cycle efficiency approaches cycle mean efficiency.

Heating Load

Figure P-2: Site P Heating Load

Site P Heating Load

y = 307.14x - 2323.2

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

0 10 20 30 40 50 60 70

Tinside-Toutside (Deg F)

BT

U/h

Heating Load @ TD=55 deg FMJ7 = 20,701 BTU/h

Actual = 14,570 BTUh (70.4% MJ7)

Manual J7 predicted a heating load of 20,701 BTU/h at the design temperature differential of 55°F. The measured heating load at 55°F temperature differential was 14,570 BTU/h, 70.4% of Manual J7. This furnace is sized 352% of MJ7, and is even more oversized relative to the actual heating load. As a result, it ran short cycles, and never operated at high speed.

Seasonal performance

Seasonal efficiency and energy use were calculated using TMY-2 temperature bins for Hartford, CT, for indoor temperature of 70°F. Hartford was selected due to proximity, similar latitude, and similar distance inland.

1% of the TMY-2 seasonal hours were at temperature differential greater than occurred during monitoring. To calculate performance at these bins, the following assumptions were made based on observed trends.

• Cycle mean watt draw is constant at high temperature differential

• Cycle mean gas input is a linear function of temperature differential (figure P-3).


• Cycle efficiency is a linear function of temperature differential (figure P-3)

• Run fraction is a linear function of temperature differential (figure P-3)

Results: • Seasonal efficiency = 0.59

• Seasonal Electrical Use kWh = 302

• Seasonal Gas Use (Therms) = 7241

Seasonal efficiency of 0.59 was well short of the AFUE of 0.91. It is likely that lower efficiency was largely due to severe oversizing that resulted in short run times. The furnace never ran long enough to reach steady state. Figure P-3: Linear Fit Assumptions for Seasonal Calculations

Site PCycle Efficiency

y = 0.0007x + 0.5823

0.56

0.57

0.58

0.59

0.60

0.61

0.62

0.63

0 10 20 30 40 50 60 70

TD (deg F)

Eff

icie

ncy

Site PRun Fraction

y = 0.0106x - 0.0655

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0 10 20 30 40 50 60 70

TD (deg F)

Ru

n F

ract

ion

Site P Gas y = 108.42x + 39424

43000

43500

44000

44500

45000

45500

46000

46500

0 10 20 30 40 50 60 70

TD (deg F)

BT

Uh

Inp

ut

Values displayed in figure P-3 include the tail of the cycle, where the fan continues to run after the gas has turned off. Cycle means are the average across the entire cycle, including the tail.

1 The average propane heating consumption for the Mid Atlantic Census Division is 636 therms for an average 1923 square foot home. (Energy Information Agency 2001 Residential Energy Consumption Survey)


Uncertainty

Sources of uncertainty in the analysis include gas input, airflow, air temperature measurement, and electrical power measurement. Confidence in temperature rise and electrical power measurements is high. Gas input and airflow measurements are the largest sources of uncertainty.

Estimated supply and return air temperature measurement accuracy is ± 1°F.

Electrical power was measured with Ohio Semitronics watt*hour transducer rated as accurate to 2%.

Gas input was assumed equal to the manufacturer’s rating for BTU/h input.

Airflow was measured with Energy Conservatory’s True Flow® flow grid. The flow grid is rated as accurate to within 8%.

We estimate the confidence interval in the output and efficiency statistics at about ±10%.

Conclusions

The part load and end of cycle efficiencies of this furnace were substantially below the rated AFUE.

The extreme oversizing of this furnace compared to Manual J7 was responsible for the furnace never operating at high.

The actual heating load at design conditions was 70% of Manual J7 estimate.

In spite of the fact this home is smaller than the average home in the Mid Atlantic Census Division it is projected to use 14% more heating propane than the average home in a normal year.

The ECM motor on the furnace is projected to use just 302 kWh per heating season.


SITE S HEATING

Site S is a 2375 square foot, 2 story cape style house built in 2000. It is Energy Star rated. The house is relatively tight, with 2.8 air changes per hour (ACH 50). A heat recovery ventilator introduces outside air into the return duct at a rate equal to 12% of the total return airflow. The furnace is located in the full basement and the ductwork is insulated. The furnace is a high efficiency two-stage propane unit rated at 80,000 BTU/h input at high fire. The air handler is equipped with a variable speed 1 Hp ECM motor. The house is also heated by a 4 ton, two speed heat pump and a wood stove. The furnace and the heat pump were both monitored.

Table S-1: Site S Summary



Year Built 2000



Air Changes per Hour (ACH50) 2.8

Air to Air Heat Exchanger Flow (% of total airflow) 12%

Furnace Monitoring

Table S-2: Site S Furnace Summary


Rated AFUE 0.941



Rated Low Fire Temp Rise (deg F) 50-80

Rated High Fire Temp Rise (deg F) 35-65

Fan Motor Hp 1 Hp

Fan Motor Type ECM



Run Time at TD Bin of Highest Use (min) 13.0


Seasonal (TMY-2) Efficiency 0.79



NASEO-STAC Monitoring Analysis S Heat 1 Proctor Engineering Group, Ltd.

The thermostat operated at a single setting, maintaining an average indoor temperature (measured at the thermostat) of 69.5°F. The furnace was used at outside temperatures lower than about 35 °F, while the heat pump was used at warmer outside temperatures. The wood stove was used frequently at all conditions.

Furnace cycles were typically less than 20 minutes, even at high temperature differential, and averaged 13 minutes at the temperature differential bin of highest use. The furnace ran at high fire 5% of the time.

Furnace Monitoring Results

Table S-3: Site S Furnace Monitoring Summary

TD Bin (deg F) 25 - 30 30 - 35 35 - 40 40 - 45 45 - 50 50 - 55 55 - 60 60 - 65 65 - 70

# of ON Cycles 46 337 174 174 110 55 72 79 28

Cycle Mean Efficiency 0.777 0.785 0.795 0.792 0.791 0.792 0.798 0.812 0.789

End of Cycle Efficiency (LO Fire) 0.790 0.773 0.793 0.802 0.786 0.790 0.814 0.827 0.779

Run Time (min) 13.9 13.0 14.5 15.3 15.4 14.7 16.1 16.1 18.5

Off Time (min) 25.5 29.1 34.4 32.9 32.4 47.1 37.0 27.4 16.5

Cycle Mean Net Capacity (BTU/h) 31,805 31,442 32,643 33,275 34,130 32,300 35,704 35,745 39,460

Cycle Mean Electrical Power Draw (W) 126.5 128.6 126.6 139.2 162.4 130.5 178.0 161.0 235.4

Mean Hourly Heat Load (BTU/h) 11,224 9,724 9,692 10,560 10,992 7,694 10,848 13,234 20,852

Mean Hourly Electrical Energy Use (W*h/h) 44.6 39.8 37.6 44.2 52.3 31.1 54.1 59.6 124.4

Values in Table S-3 were calculated as follows:

• Cycles are defined as the fan cycle. Cycles start when the fan turns on (slightly before the gas turns on) and end when the fan turns off (2-3 minutes after the gas turns off). Cycle means are the mean value across the entire cycle including the fan only “tail”.



• End of cycle efficiency was only calculated at low fire. There were insufficient high fire cycles for analysis.

• Hourly heat load and electrical energy use represent furnace use only. Heat pump and wood stove use are not included.


Furnace Efficiency

Figure S-1: Site S Furnace Efficiency vs. Temperature Differential

Site SFurnace Efficiency

0.75

0.76

0.77

0.78

0.79

0.80

0.81

0.82

0.83

0.84

20 30 40 50 60 70


Fu

rnac

e O

utp

ut/

Inp

ut

0

10

20

30

40

50

60

Cyc

le T

ime

(min

)

Cycle Eff iciencyEnd of Cycle Eff iciency (Low Fire)Run TimeOff Time

Run time and off time within each temperature differential bin vary greatly due to wood stove use. Efficiency does not correlate to temperature differential because of the cycle time variation.

Furnace end of cycle efficiency relative to run time is shown in figure S-2. Only low fire cycles are shown because there were insufficient high fire cycles for analysis. Efficiency increases with increasing run time throughout the entire range of cycle lengths, indicating that even the longest cycles are not long enough for the furnace to reach steady state.

Figure S-2: Site S Furnace Efficiency vs. Run Time

Site S Low FireEnd of Cycle Furnace Efficiency

0.70

0.72

0.74

0.76

0.78

0.80

0.82

0.84

0.86

5 7 9 11 13 15 1Run Time (min)

Fu

rnac

e O

utp

ut/

Inp

ut

7


Heating Load

Figure S-3: Site P Furnace Heating Load

Site S Heating Load(Furnace Only)

0

5000

10000

15000

20000

25000

0 10 20 30 40 50 60 70


BT

U/h

Figure S-3 shows heat supplied by the furnace. The furnace was only used at temperature differential above about 25 °F. It was not possible to calculate the actual heating load for this house because much of the heat is supplied by the wood stove.


Seasonal efficiency and energy use were calculated using TMY-2 temperature bins for Hartford, CT, for indoor temperature of 70°F. Hartford was selected due to proximity, similar latitude, and similar distance inland.

Seasonal analysis does not include furnace use at temperature differential less than 25 °F because the furnace was not operated at low TD. This makes it impossible to project what the seasonal consumptions and efficiency would be for a normal heating season with only the furnace operating.

0.3% of the TMY-2 seasonal hours were at temperature differential greater than occurred during monitoring. To calculate performance at these bins, the following assumptions were made based on observed trends.

• Cycle mean watt draw, gas input, efficiency, and run fraction were assumed equal to the value at the highest measured TD bin. There were no distinguishable trends for these values due to erratic run times attributed to wood stove use. These bins contain only 23 hours.

Results:

• Part-Seasonal efficiency = 0.79

• Part-Seasonal Electrical Use kWh = 158

• Part-Seasonal Gas Use (Therms) = 465


Heat Pump Monitoring

Table S-4: Site S Heat Pump Summary

Heat Pump Specifications Speed Temp*

42,500 High High

28,600 High Low

24,000 Low High Rated Capacity (BTUh)

15,000 Low Low

2.94 High High

2.44 High Low

3.32 Low High Rated COP

2.02 Low Low

HSPF 8.3

Heat Pump Operating Characteristics


Run Time at Tout Bin of Highest Use (min) 15.5

% of Time on High Speed 1%

Seasonal (TMY-2) COP 2.90


* High temperature heating standard is 70 °F indoor dry bulb, 47 °F outdoor dry bulb, 43 °F outdoor wet bulb. Low temperature heating standard is 70 °F indoor dry bulb, 17 °F outdoor dry bulb, 15 °F outdoor wet bulb.

The thermostat operated at a single setting, maintaining an average indoor temperature (measured at the thermostat) of 69.5°F. The heat pump was used at outside temperatures warmer than about 35 °F, while the furnace was used at colder outside temperatures. The wood stove was used frequently at all conditions.

Heat pump cycles were typically less than 20 minutes, and averaged 15.5 minutes at the outside temperature bin of highest use. The heat pump ran at high speed only 1% of the time.


Heat Pump Monitoring Results

Table S-5: Site S Heat Pump Monitoring Summary

Tout Bin (deg F) 35 - 40 40 - 45 45 - 50 50 - 55 55 - 60 60 - 65 65 - 70

Toutside (deg F) 38.5 42.6 47.2 52.3 57.3 61.3 67.0

Tinside (deg F) 69.1 69.1 69.3 69.2 69.2 69.1 69.2

Treturn (deg F) 65.5 65.7 66.1 66.7 66.8 66.9 67.1

# of ON Cycles 82 278 178 105 47 23 6

Run Time (min) 17.3 15.4 13.7 13.2 12.0 9.7 8.8

Off Time (min) 30.2 23.3 34.6 65.3 74.8 89.9 63.6

End of Cycle Net Capacity (BTU/h) 18,667 20,212 21,613 23,232 25,137 26,230 26,597

Mfg Spec Net Capacity (BTU/h) 20,843 22,556 24,493 26,752 29,139 31,063 34,127

End of Cycle Compressor Power (W) 1816 1864 1917 1991 2073 2125 2190

Mfg Spec Compressor Power (W) 1718 1785 1864 1957 2049 2124 2239

End of Cycle COP 2.63 2.79 2.91 3.02 3.15 3.22 3.13

Mfg Spec COP 3.09 3.23 3.38 3.53 3.69 3.81 3.94

Cycle Mean Net Capacity (BTU/h) 16,450 17,050 17,926 19,007 20,646 20,833 19,888

Cycle Mean Compressor Power (W) 1635 1634 1663 1685 1747 1700 1625

Cycle Mean Fan Power (W) 243 248 247 248 251 238 236

Cycle Mean COP 2.57 2.66 2.75 2.89 3.03 3.16 3.13

Mean Hourly Heat Load (BTU/h) 5,987 6,782 5,076 3,203 2,858 2,035 2,415

Mean Hourly Energy Use (W*h/h) 683.4 748.6 541.1 325.6 276.6 189.3 226.0

Values in Table S-5 were calculated as follows:

• Values are tabulated against outside temperature bins rather than temperature differential bins because heat pump performance is a function of outside temperature.

• Cycles are defined as the fan cycle. Cycles start when the fan turns on (same time the compressor turns on) and end when the fan turns off (1-2 minutes after the compressor turns off). Cycle means are the mean value across the entire cycle, including the portion of the cycle when the fan is running and the compressor is off.

• End of cycle conditions are captured when the compressor turns off.

• COP is defined as net capacity/net electrical input. Fan motor heat is included in net capacity.

• Manufacturer’s specifications were modeled as a function of outside temperature, return air temperature, and airflow. The models were applied to the measured outside temperature, return air temperature, and airflow to calculate manufacturer specifications.

• Manufacturer’s specifications for net capacity and COP are adjusted to reflect the actual measured air handler power draw rather than the standard 365 W/1000 CFM.


• End of cycle values were only tabulated for low speed. There were insufficient high speed cycles for analysis.

• Defrost cycles were infrequent and were excluded from the analysis.

• Hourly heat load and electrical energy use represent heat pump use only. Furnace and wood stove use are not included.

Heat Pump Performance

Figure S-4: Site S Heat Pump Capacity vs. Outside Temperature

Site S Heat PumpLow Speed Capacity

10000

15000

20000

25000

30000

35000

40000

35 40 45 50 55 60 65 70

Toutside (deg F)

Cap

acit

y (B

TU

/h)

Cycle Capacity

End of Cycle Capacity

Mfg. Spec. Capacity

Figure S-5: Site S Heat Pump Compressor Power vs. Outside Temperature

Site S Heat PumpLow Speed Compressor Power

1000

1200

1400

1600

1800

2000

2200

2400

35 40 45 50 55 60 65 70

Toutside (deg F)

Co

mp

ress

or

Po

wer

(W

)

Cycle Compressor Pow er

End of Cycle Compressor Pow er

Mfg. Spec. Compressor Pow er


Figure S-6: Site S Heat Pump COP vs. Outside Temperature

Site S Heat PumpLow Speed COP

2

2.5

3

3.5

4

4.5

35 40 45 50 55 60 65 70

Toutside (deg F)

CO

P

0

5

10

15

20

Ru

n T

ime

(min

)

Cycle COPEnd of Cycle COPMfg. Spec. COPRun Time

Figures S-4-6 show heat pump capacity, compressor power, and COP vs. outside temperature. Heat pump performance is a function of airflow, outside temperature, and return air temperature. Return air temperature changed with outside temperature because outside air was introduced into the return duct through the heat recovery ventilator. At the high-temperature heating standard of 47 °F outside, average return air temperature was 66 °F. The heat pump was not operated at temperatures colder than 35 °F and could not be evaluated at the low-temperature heating standard.

Measured capacity was lower than the manufacturer’s specification. End of cycle net capacity at 47 °F outside, 66 °F return was 88.2% of the manufacturer’s specified value.

Compressor power matched the manufacturer’s specification closely. End of cycle compressor power at 47 °F outside, 66 °F return was 102.8% of the manufacturer’s specified value.

Measured COP was lower than the manufacturer’s specification. End of cycle COP at 47 °F outside, 66 °F return was 86.1% of the manufacturer’s specified value.

End of cycle COP and efficiency were closer to the manufacturer’s specification at cold outside temperatures where average run time was longer. Average run time at 47 °F outside, 66 °F return was 13.7 minutes.


Heating Load

Figure S-7: Site P Heat Pump Heating Load

Site S Heating Load(Heat Pump Only)

0

1000

2000

3000

4000

5000

6000

7000

0 10 20 30


BT

U/h

40

Figure S-7 shows heat supplied by the heat pump vs. temperature differential. The heat pump was not used at temperature differential higher than about 35 °F. It is not possible to calculate the actual heating load for this house because much of the heat is supplied by the wood stove.


Part-Seasonal efficiency and energy use were calculated using TMY-2 temperature bins for Hartford, CT. Hartford was selected due to proximity, similar latitude, and similar distance inland.

Part-Seasonal analysis does not include heat pump use at outside temperature less than 35 °F because the heat pump was not operated at low temperatures.

Results:

• Part-Seasonal COP = 2.90

• Part-Seasonal Electrical Use kWh = 2007


Uncertainty







Heating load and seasonal performance have a high level of uncertainty at this site due to wood stove use.

Conclusions

The part load and end of cycle efficiencies of the furnace were below the rated AFUE.

The part load and end of cycle efficiencies of the heat pump were below the ratings for this unit.


SITE T HEATING

Site T is a 1900 square foot, 2 story Tudor style house built in the 1940s. A 650 square foot addition was built in 2004. The house is average tightness, with 5.5 air changes per hour (ACH 50). The furnace is located in the full basement and the ductwork is not insulated. The furnace is a high efficiency two-stage unit rated at 88,000 BTU/h input at high fire. The air handler is equipped with a variable speed 1 Hp ECM motor.

Table T-1: Site T Summary



Year Built 1940s


Manual J Heating Load 30594


Air to Air Heat Exchanger Flow (% of total airflow) none


Rated AFUE 0.943

Low Fire Input (BTU/h) 60000

High Fire Input (BTU/h) 88000



Fan Motor Hp 1 Hp

Fan Motor Type ECM



Run Time at Bin of Highest Use (min) 16.5


Seasonal (TMY-2) Efficiency (TMY-2) 0.68



NASEO-STAC Monitoring Analysis T Heat 1 Proctor Engineering Group, Ltd.

The programmable thermostat operated at multiple temperature settings ranging from 68 to 73°F (Figure T-1). The program adjusted thermostat setting by time of day and by day of week. Analysis includes the predominant thermostat setting, and excludes the first hour of transition from a different setting. Average indoor temperature at the predominant thermostat setting was 69.3°F.

Run times at the predominant thermostat setting were typically less than 25 minutes and averaged 16.5 minutes at the temperature differential bin of highest use. The furnace ran at high fire 8% of the time, mainly during transition between thermostat settings.

Figure T-1: Site T Thermostat Settings

Site T Inside Temp by Hour

Tin

sid

e (

deg F

)

Hour0 400 800 1200 1600 2000 2400

65

70

75

Inside temperature was measured at the thermostat.


Monitoring results

Table T-2: Site T Furnace Monitoring Summary

TD Bin (deg F)* 0 - 5 5 - 10 10 - 15 15 - 20 20 - 25 25 - 30 30 - 35 35 - 40 40 - 45 45 - 50 50 - 55 55 - 60

# of ON Cycles 3 6 28 58 122 183 189 128 88 52 23 13

Cycle Mean Efficiency 0.659 0.659 0.661 0.664 0.670 0.682 0.681 0.688 0.696 0.694 0.705 0.709

End of Cycle Efficiency (LO Fire) 0.701 0.703 0.702 0.704 0.708 0.715 0.714 0.717 0.723 0.717 0.729 0.728

Run Time (min) 13.1 13.7 14.8 15.8 15.6 15.8 16.5 18.0 19.3 20.8 21.7 23.9

Off Time (min) 141.8 118.8 124.9 82.2 57.2 50.3 35.2 30.3 24.5 23.7 18.0

Cycle Mean Net Capacity (BTU/h) 37,368 37,806 38,069 38,565 38,677 39,381 39,447 40,014 40,562 40,580 41,234 41,639

Cycle Mean Electrical Power Draw (W) 210.5 223.2 225.5 224.3 208.8 189.4 195.7 187.9 176.3 187.8 164.1 172.3

Mean Hourly Heat Load (BTU/h) 3,330 4,223 4,333 6,158 8,517 9,769 13,504 15,768 18,657 19,696 23,744

Mean Hourly Electrical Energy Use (W*h/h) 19.7 25.0 25.2 33.2 41.0 48.5 63.4 68.5 86.3 78.4 98.2

* TD = inside-outside temperature differential


Values in Table T-2 were calculated as follows:

• Cycles are defined as the fan cycle. Cycles start when the fan turns on (slightly after the gas turns on) and end when the fan turns off (2-3 minutes after the gas turns off). Cycle means are the mean value across the entire cycle, including the fan only “tail”. Gas input prior to the start of the fan cycle is captured and included in the cycle efficiency.



• End of cycle efficiency is listed for low fire cycles only. There were insufficient high fire cycles at the predominant thermostat setting to tabulate vs. TD bin.

Efficiency

Figure T-2: Site T Furnace Efficiency

Site TEfficiency vs TD

0.65

0.66

0.67

0.68

0.69

0.70

0.71

0.72

0.73

0.74

0 10 20 30 40 50 60


Fu

rnac

e O

utp

ut/

Inp

ut

0

10

20

30

40

50

60

Cyc

le T

ime

(min

)

Cycle Eff iciency

End of Cycle Eff iciency (LO)

Run Time

Off Time

End of cycle and cycle mean efficiency increased with increasing temperature differential. Cycle efficiency was lower than end of cycle efficiency at all conditions, but the difference was larger at low temperature differential when run time was short and off time between cycles was very long.


Heating Load

Figure T-3: Site T Heating Load

Site T Heating Load

y = 488.6x - 5150.2

0

5000

10000

15000

20000

25000

0 10 20 30 40 50 6


BT

Uh

0

Heat Load @ TD=55:MJ7 = 30,594 BTUh

Actual = 21,723 BTUh (71.0% MJ7)

Manual J7 predicted a heating load of 30,594 BTU/h at the design temperature differential of 55°F. The measured heating load at 55°F temperature differential was 30,594 BTU/h, 71.0% of Manual J7. This furnace is sized 260% of MJ7, and is even more oversized relative to the actual heating load.


Seasonal efficiency and energy use were calculated using TMY-2 temperature bins for Newark, NJ, for indoor temperature of 70°F. Newark was selected due to proximity and similarity to this site.


• Cycle mean watt draw is constant at high temperature differential

• Cycle mean gas input is a linear function of temperature differential (figure T-4)

• Cycle efficiency is a linear function of temperature differential (figure T-4)

• Run fraction is a linear function of temperature differential (figure T-4)


Results:

• Seasonal efficiency = 0.68

• Seasonal Electrical Use (kWh) = 313

• Seasonal Gas Use (Therms) = 937 2

Seasonal efficiency of 0.68 was well below the AFUE rating of 0.943. Figure T-4: Linear Fit Assumptions for Seasonal Calculations

Site TCycle Efficiency

y = 0.001x + 0.6488

0.65

0.66

0.67

0.68

0.69

0.70

0.71

0.72

0 10 20 30 40 50 60TD

Fu

rnac

e O

utp

ut/

Inp

ut

Site TRun Fraction

y = 0.0119x - 0.1185

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0 10 20 30 40 50 60TD

Ru

n F

ract

ion

Site TGas Input

y = 38.769x + 55731

55000

55500

56000

56500

57000

57500

58000

58500

0 10 20 30 40 50 60TD (deg F)

BT

Uh

Values displayed in figure T-4 include the tail of the cycle, where the fan continues to run after the gas has turned off. Cycle means are the average across the entire cycle including high fire, low fire, and the tail.

2 The average natural gas heating consumption for the Mid Atlantic Census Division is 659 therms for an average 1809 square foot home. (Energy Information Agency 2001 Residential Energy Consumption Survey)


Uncertainty

Sources of uncertainty in the analysis include gas input, airflow, air temperature measurement, and electrical power measurement. Confidence in temperature rise and electrical power measurements is high. Airflow measurement is the largest source of uncertainty.






Conclusions


The oversizing of this furnace compared to Manual J7 was responsible for the furnace rarely operating at high except when the thermostat was reset to a higher temperature.

The actual heating load at design conditions was 71% of Manual J7 estimate.

This home is 5% larger than the average home in the Mid Atlantic Census Division, yet it is projected to use 42% more heating natural gas than the average home in a normal year if it were operated at a constant thermostat setting of 69 degrees F.

The ECM motor on the furnace is projected to use just 313 kWh per heating season.


SITE W HEATING

Site W is a 2300 square foot, 2 story colonial style house built in the 1970s. The house is leaky, with 12.7 air changes per hour (ACH 50). The furnace is located in the basement and the ductwork is not insulated. The furnace is a high efficiency two-stage unit rated at 80,000 BTU/h input at high fire. The air handler is equipped with a variable speed 1 Hp ECM motor.

Table W-1: Site W Summary



Year Built 1970s




Air to Air Heat Exchanger Flow (% of total airflow) none


Rated AFUE 0.941





Fan Motor Hp 1 Hp

Fan Motor Type ECM



Run Time at TD Bin of Highest Use (min) 48.5


Seasonal (TMY-2) Efficiency 0.67



NASEO-STAC Monitoring Analysis W Heat 1 Proctor Engineering Group, Ltd.

The thermostat operated at one setting during the day, and a lower setting at night (Figure W-1). Analysis was performed at the daytime thermostat setting. The first hour of transition from the lower night setting was excluded. Average indoor temperature at the predominant thermostat setting was 65.9 °F.

Average run time at the predominant thermostat setting ranged from 24 minutes to more than 3 hours. The furnace operated on high fire 16% of the time.

The air handler operated continuously throughout monitoring.

Figure W-1: Site W Thermostat Settings

Site W Inside Temp by Hour

Tin

sid

e (

deg F

)

Hour0 400 800 1200 1600 2000 2400

56

58

60

62

64

66

68

70

Inside temperature was measured at the thermostat.


Monitoring results

Table W-2: Site W Furnace Monitoring Summary

TD Bin (deg F) 0 - 5 5 - 10 10 - 15 15 - 20 20 - 25 25 - 30 30 - 35 35 - 40 40 - 45 45 - 50

# of ON Cycles 22 60 125 223 289 196 85 39 18 1

Run Time (min) 24.3 26.5 29.8 35.5 48.5 65.3 102.0 126.0 192.0 165.2

Off Time (min) 148.4 129.8 86.9 55.5 41.7 29.9 25.9 22.1 23.2 16.4

Cycle Mean Efficiency 0.650 0.652 0.654 0.655 0.653 0.648 0.665 0.677 0.711 0.749

End of Cycle Efficiency (Low Fire) 0.622 0.633 0.630 0.631 0.632 0.624 0.624 0.629 0.625 0.570

End of Cycle Efficiency (High Fire) 0.853 0.764 0.788 0.775 0.760 0.746 0.744 0.757 0.760 0.773

Gas Cycle Mean Net Capacity (BTU/h) 31,821 32,381 31,754 32,015 32,931 33,626 36,512 38,390 43,855 55,119

Fan Only Cycle Mean Net Capacity (BTU/h) 1,255 1,789 2,729 3,028 3,467 4,461 5,702 6,996 5,525 6,115

Gas Cycle Mean Electrical Power Draw (W) 131.1 123.5 129.6 142.5 150.8 164.0 193.2 227.1 295.2 502.3

Fan Only Cycle Mean Electrical Power Draw (W) 80.8 82.8 78.2 82.9 82.4 77.7 89.9 108.6 119.2 101.5

Mean Hourly Heat Load (BTU/h) 5,559 6,976 10,142 14,344 19,306 24,467 30,282 33,713 39,721 50,699

Mean Hourly Electrical Energy Use (W*h/h) 87.9 89.7 91.3 106.2 119.1 136.9 172.3 209.4 276.2 466.1


Values in Table W-2 were calculated as follows:

• Cycles are defined as the gas cycle. Cycles start when the gas valve opens and end when the gas valve closes. Cycle means are the mean value across the entire cycle. Cycles were not defined as the fan cycle, as at other sites, because the air handler fan operates continuously at site W.

• Cycle mean capacity and electrical power draw for the fan-only cycles were calculated. Fan-only cycle capacity captures the heat gained from the hot furnace after the end of the gas cycle.



• Cycle efficiency includes the heat gained during fan-only operation after the gas valve has closed. The additional heat gain averages 1930 BTU.

• Mean hourly heat load includes heat provided during both gas and fan-only cycles.

Efficiency

Figure W-2: Site W Furnace Efficiency

Site WFurnace Efficiency

0.50

0.55

0.60

0.65

0.70

0.75

0.80

0 10 20 30 40 50


Fu

rnac

e O

utp

ut/

Inp

ut

Cycle Eff iciency

End of Cycle Eff iciency (Low Fire)

End of Cycle Eff iciency (High Fire)

Cycle efficiency shown in figure W-2 is the gas cycle efficiency which includes heat gained during fan-only operation after the gas valve has closed.

This furnace is more efficient at high fire than at low fire. Cycle efficiency increases at high temperature differential as the furnace operates at high fire more.

End of cycle efficiency does not change relative to temperature differential. Cycle length is sufficient to reach steady state at all conditions.


Heating Load

Figure W-3: Site W Heating Load

Site W Heating Load

y = 1027.5x - 3654.5R2 = 0.9966

0

10000

20000

30000

40000

50000

60000

0 10 20 30 40 5


BT

Uh

0

Heat Load @ TD=56:MJ7 = 49,709 BTUh

Actual = 53,886 BTUh (108.4% MJ7)

The heating load calculation captures all heat provided during both the gas cycle and the fan-only cycle. Fan motor heat is included in the calculation.

Manual J7 predicted a heating load of 49,709 BTU/h at the design temperature differential of 56°F. The measured heating load at 56°F temperature differential was 53,886 BTU/h, 108.4% of Manual J7. This furnace is sized 151% of MJ7, and 140% of the actual heating load. The furnace ran long cycles at high temperature differential, but only operated at high fire 16% of the time.


Seasonal efficiency and energy use were calculated using TMY-2 temperature bins for Newark, NJ, for indoor temperature of 70°F. Newark was selected due to proximity and similarity to this site.


• Cycle mean watt draw approaches high fire steady state watt draw at high temperature differential. A linear fit was assumed between the highest measured TD bin and the maximum TD bin.

• Cycle mean gas input approaches high fire steady state gas input at high temperature differential. A linear fit was assumed between the highest measured TD bin and the maximum TD bin.


• Cycle efficiency approaches high fire steady state efficiency at high temperature differential. A linear fit was assumed between the highest measured TD bin and the maximum TD bin.

• Run fraction is assumed to reach .95 at the highest temperature differential bin. A linear fit was assumed between the highest measured TD bin and the maximum TD bin.

Figure W-4: Assumptions for Seasonal Calculations

Site WFan Power

0

100

200

300

400

500

600

700

0 10 20 30 40 50 60 70 80

TD (deg F)

W

Assumed Max

Measured

Site WGas Input

4000045000

500005500060000

650007000075000

8000085000

0 10 20 30 40 50 60 70 80

TD (deg F)

BT

Uh

Assumed Max

Measured

Site WCycle Efficiency

0.600.620.640.660.680.700.720.740.760.78

0 10 20 30 40 50 60 70 80

TD

Fu

rnac

e O

utp

ut/

Inp

ut

Assumed Max

Measured

Site WRun Fraction

0

0.2

0.4

0.6

0.8

1

0 10 20 30 40 50 60 70TD

Ru

n F

ract

ion

Assumed Max

Measured

Figure W-4 notes:

• Fan power includes fan-only operation when the furnace is off.

• Cycle efficiency includes the heat gained during fan-only operation after the furnace has turned off. Cycle efficiency is gross heating capacity/gas input. Fan motor heat is not included in gross capacity.


Results:

• Seasonal efficiency = 0.67

• Seasonal Electrical Use kWh = 1023

• Seasonal Gas Use (Therms) = 20063

The season was defined as September-May. A combination of furnace and fan-only operation was assumed for inside-outside temperature differential > 0, while fan-only operation was assumed at temperature differential < 0. Continuous fan-only operation from June – August would consume an additional 200 kWh.

Seasonal efficiency of 0.67 was lower than the rated AFUE of 0.94. This furnace was more efficient at high fire but ran at low fire 84% of the time.

Continuous fan operation contributes to high seasonal electrical energy use. The air handler draws 80 – 100 Watts when the heat is off.

Uncertainty







Conclusions


This furnace is only modestly oversized compared to Manual J7. The furnace actually ran on high fire 16% of the time.

3 The average natural gas heating consumption for the Mid Atlantic Census Division is 659 therms for an average 1809 square foot home. (Energy Information Agency 2001 Residential Energy Consumption Survey)


The actual heating load at design conditions was 108% of Manual J7 estimate so the furnace was actually oversized by 40% of the actual heating load.

This home is 27% larger than the average home in the Mid Atlantic Census Division, yet it is projected to use 200% more heating natural gas than the average home in a normal year if it were operated at a constant thermostat setting of 66 degrees F. The high gas consumption compared to average, as well as the high air exchange rate and the higher than Manual J load point out that this house has some significant problems. This is mitigated somewhat by the low thermostat setting.

The ECM motor on the furnace is projected to use 1223 kWh during the year due to the continuous operation of the fan. This is very close to the average 1295 kWh per year found in the Wisconsin study of continuously operating ECM furnace fans (Scott Pigg 2003).


Appendix E Part 1 of 4

Duct Sealing Market Research and Program Design Strategy

03-STAC-01

Summary of Residential Duct Sealing Energy Efficiency

Programs and California Building Energy Code Duct Sealing Strategy

Prepared for STAC Project by Northeast Energy Efficiency Partnerships

February 2006

I Residential Duct Sealing Energy Efficiency Programs A. Duct Retrofit Programs Utility: Florida Power and Light Service Territory Florida Program Name: Duct System Test and Repair ENERGYSTAR: Annual Budget: Implemented: 1992

Source: Southwest Energy Efficiency Project, Policies and Programs for Saving Energy through Enhanced Duct Systems, Prepared for U.S. Department of Energy Building America Program by Larry Kinney, April 2005.

Program Description: Customers schedule an FPL Energy Expert to perform a Duct System Test to determine if their ducts are sealed properly and if repairs need to be made. Customers receive a complete report of the repairs needed and a list of independent contractors qualified to make the repairs.

Incentives: Pay $30 for the first air handler and $15 for each additional air handler.

Financing: • Up to $154/central A/C unit for single-family detached homes.

• $57 for single family attached homes • $65 for manufactured and mobile homes.

Participation Data: Field Support: training? Barriers: Marketing: Further Information: Miguel Lasaga, Program Manager

[email protected] Strengths • More than one contractor, however, unclear as to

their training. Weaknesses • Only existing homes

• Limited marketing

Sponsor: Progress Energy Service Territory: Florida Program Name: Duct Check Implemented: 1991 ENERGYSTAR: Not associated Budget: 2004 actual amount spent: $489,215.40 (Fish, 2005) Program Description: In order for customers to be eligible for the duct check

program they must complete the following: 1.Complete a Home Energy Check (free to customer) 2. Have centrally ducted electric cooling and electric heat in your home 3. Have a participating Progress Energy duct repair contractor perform work

Incentives: Duct Test: •Progress Energy pays 50 percent of test cost up to $30 for the first unit tested •Progress Energy pays 50 percent of test cost up to $20 for each additional unit at same address Duct Repair: •Progress Energy pays 50 percent of the repair cost up to a maximum of $100 per unit for homes with ducted electric heat •Progress Energy pays 25 percent of the repair cost up to a maximum of $50 per unit for homes with nonducted electric heat Supplemental Bonus: •Customers can receive an additional credit on their electric bill when they install a high-efficiency heat pump and participate in Progress Energy's Insulation or Duct Check programs within 90 days. This bonus is in addition to the incentives offered with the Heat Pump Check, the Duct Check and the Insulation Check.

Participation Data: Approximately 70% of customers have the duct repair work done

Energy Savings: One residential duct repair job = 1 kW demand savings and 585 kWh/year energy savings (Kinney, 2005)

Field Support: training? Yes: only licensed contractors are eligible. Progress Energy offers a training program which covers all aspects of the duct check process. Progress Energy then provides work for them and the contractors are then left to provide deliverables to the customer. (Fish, 2005)

Barriers: Investing in repairs Marketing: Duct repair is marketed through Home Energy Audits.

Contractors discuss potential savings with the homeowner when they find leaks. The home audits are marketed through, website, bill inserts, phone hotlines, and general fliers. (Fish,

2005) Further Information: Guy Fish, Program Manager

Phone: 352-694-8573 Email: [email protected]

Strengths • Good marketing outreach • More than one contractor and Progress Energy provides a

training program Weaknesses • Only for existing homes Sponsor: Tampa Electric Company Service Territory: Florida Program Name: Ductworks Implemented: 1992 ENERGYSTAR Budget: Program Description: Customers can sign up online for the Ductwork program to

have contractor come out to inspect their home. Incentives: $79 to seal all leaks, seams and penetrations (Tampa Electric

Company picks up the rest (usually $168). Will replace one flex duct up to 25 ft.

Participation Data: Over 13 years: 43,000 retrofit duct jobs (8% customer base) Averages approximately 3,000 jobs/year

Energy Savings: • 0.45 kW peak reduction in summer • 0.39 kW peak reduction in winter • 988 kWh annual customer electric savings (customers pay

8.7 cents/kWh plus taxes so payback is less than 1 year) (Kinney, 2005)

Field Support: training? Barriers: Marketing: Further Information: Tim Richardson, Regulatory Department

Phone: 813-228-1111 Strengths Weaknesses Sponsor: Sacramento Municipal Utility District (SMUD) Service Territory: California Program Name: Aerosol Duct Sealing Program Implemented: 1999

Plan to continue in 2006 at least. Program may open up to other methods of sealing, as long as they meet certain requirements such as measured leakage before and after. The

program may increase in participation if SMUD makes rebates/financing available to customers/contractors who are sealing ducts pursuant to CA's revised Title 24 Building Energy Efficiency Standards, effective October 2005. It requires duct sealing, measured and verified, for most HVAC replacements. (Kallett, 2005)

ENERGYSTAR No but has similar specs Budget: The 2005 budget includes 250 jobs at $300/rebate plus 1,000

diagnostics at $50 each. Aeroseal duct sealing is part of the Equipment Efficiency Program, which offers rebates and/or SMUD financing for a bunch of measures. As there is staff, marketing, and overhead common to this program, it is difficult to break out those costs for just the Aerosol duct sealing component. (Kallett, 2005)

Program Description: Customers can opt to have an audit of ducts which measures the pressure differences between the conditioned envelope and outside under different scenarios. If duct remediation is found to be cost-effective, customers are given a work proposal. Customers can then choose from 5 approved contractors.

Incentives: SMUD pays $50 of $75 of a detailed duct audit and pays $300 towards the cost of duct sealing and insulating if audit shows over 15% loss of HVAC rated air flow. (Kinney, 2005)

Financing: SMUD provides reasonable rates to customers Participation: Roughly 75% of homes examined required retrofit work,

closure rates are about 25% (Kinney, 2005) • 1999: 225 jobs • 2000: 903 jobs • 2001: 646 jobs • 2002: 236 jobs • 2003: 228 jobs • 2004: 242 jobs • 2005: 250 jobs projected (Kallett, 2005)

Energy Savings: • 0.5 kW summer peak demand reduction per job • 690 kWh annual electric savings per job (about 20%) (Kinney, 2005)

Field Support: training? Contractor training conducted by the Carrier Corporation/Aeroseal. SMUD maintains frequent communication with their contractors. (Kallett, 2005)

Barriers: Initial cost (roughly $1,200); customers' lack of knowledge as to the extent or importance of leakage to their energy costs and comfort. (Kinney, 2005)

Marketing: Bill inserts and bill return envelopes; direct mail to households with high bills; occasional home shows. Additionally, participating contractors do their own

marketing, such as calling customers in their own databases. Further Information: Rick Kallett, Customer Strategy, SMUD

Phone: 916-732-5477 e-mail: [email protected]

Strengths • Utilizes more than 1 contractor (offer 5) • Contractor training is provided • Wide variety of marketing, and contractors do additional

marketing Weaknesses • Only involves existing homes Sponsor: Austin Energy Service Territory: Texas Program Name: Duct Diagnostic and Sealing Implemented: 2001, plan on continuing ENERGYSTAR: Yes they’re partnered Budget: $160,000 Eligibility: • You must be an Austin Energy electric customer.

• The property owner must apply for the program. • You must have an existing central air conditioner or heat

pump. Program Description: Customers pay $50 per air conditioning system to receive a

diagnostic test of the home and a complete report that details: • If ducts have significant leaks • If each room is receiving sufficient air flow and properly cooled air • If unsafe carbon monoxide is being drawn into the home • If return air vents are taking in sufficient air • If return air vents are drawing in unconditioned air, introducing allergens into the home

Incentives: Duct Sealing Improvement Rebate Amount

Duct Sealing

Homes 1000 sq. ft and under $200

Homes over 1000 sq. ft. $.20/square foot

Homes over 1000 sq. ft. replacing over 50% of duct system

$.10/square foot

Duct Replacement with Duct Damper

$1.50/linear foot

Other Duct Improvements: Modification for Return Air,

Additional Return Air Ducts, Enlarging Supply Plenum

$100 first system; $50 per additional system

**Maximum rebate is 50% of total cost of improvements, not to exceed $750

Field Support: training? Provide air balancing training through National Balancing Institute and we have in house training staff for participating contractors. They currently have 6 contractors and another 3 that want in the program

Barriers: The hardest part is to get contractors interested in staffing up for these types of programs and investing in equipment. We feel we have been quite successful in this.

Participation: Our fiscal year runs from Oct-Sept. 2001-2002 = 367 homes 2002-2003 = 319 homes 2003-2004 = 251 homes Current year 2004-2005 = 147 homes to date.

Energy Savings: Marketing: Direct Mailing, Billing insert letters, Company Web site Further Information: Mike Thomas

Duct Diagnostic and Sealing Program 512-482-5317 Email: [email protected]

Strengths • Already have 6 contractors and are acquiring more. • Have in house training for contractors

Weaknesses • Only applies to existing homes • Could provide more variety in marketing

Sponsor: Energy Trust of Oregon Service Territory: Oregon Program Name: Duct Sealing and Duct Insulation Implemented: 2003

No plans to end the program. It may end up being combined with heat pumps and other measures

ENERGYSTAR: Similar specs. ENERGY STAR has told ETO that they may use their label on products if they want.

Budget: 19 Million/year for entire program Program Description: A leakage test is required and then duct sealing must be

performed by an Energy Trust of Oregon trade ally contractor who is certified to seal ducts according to program specifications.

Incentives: Duct Insulation: • Electrically heated homes: $200 • Gas heated homes: $100

Duct sealing: • Electrically heated homes: $200 • Gas heated homes: $100

Air sealing: • Electrically heated homes: For a limited time only -

up to $300 ($30 per 200 CFM reduction, not to exceed $300) Offer good through June 30, 2005.

• Gas heated homes: Up to $200 ($15 per 200 CFM reduction, not to exceed $200)

Oregon State Energy Tax Credit: • 25% of job up to $250

Participation: About 125 mobile homes/month Field Support: training? Contractors must be trained and certified by the Oregon

Department of Energy. Contractors are in contract with the ETO. Going forward they will be working with CSG and the North American Technical Excellence board and Energy Star Contractors.

Barriers: Energy Savings: About 800 kWh per mobile home is the deemed value. Going

forward they will implement the CSG home energy check to obtain more specific numbers

Marketing: Media. Have used morning show spots to highlight duct leakage which gave a boost to the contractors.

Further Information: Diane Ferington, Program Manager Phone: 503-445-7621 Email: [email protected]

Strengths • Require contractor training • Program for both electric and gas homes • Use extensive media marketing through TV spots

Weaknesses • Only for existing homes Sponsor: Blachly-Lane Service Territory: Oregon Program Name: Energy Efficiency Rebate Program Implemented: ENERGYSTAR: Budget: Program Description: Qualified homes can receive a PTCS (Performance Tested

Comfort Systems) is a program designed to test and seal duct systems to reduce energy consumption and improve home comfort levels. Certified contractors perform this service.

Incentives: New homes with HVAC systems (forced air systems) may qualify for PTCS Duct Test & Seal - $200 incentive

Participation: Field Support: training? Barriers: Energy Savings: Marketing:

Further Information: Phone: 541-688-8711 Sponsor: NYSERDA Service Territory: New York Program Name: Home Performance with ENERGY STAR® Implemented: 2000 pilot began. 2002 program moved beyond pilot ENERGYSTAR: Yes Budget: Approximately $2 m/yr in administration and management,

$1.5 m/yr in marketing, $2.5 m/yr in incentives Program Description: A (BPI) certified Home Performance contractor will inspect

your home and provide a proposal for energy improvements. The contractor that provides the home assessment will also install the energy efficiency measures. Contractors are encouraged to apply the “house as a system” approach by using a host of measures to improve the overall efficiency of the house. Specific to duct testing, the contractor will test your home for air leakage using a blower door.

Incentives to homeowner:

1) Low-interest ENERGY STAR Financing is offered through the Home Performance with ENERGY STAR program. • The limit on the loan is $15,000 or $20,000, depending on

your credit score. • You can select a term of 3, 5, 7 or 10 years. • Financing is available to owner-occupied 1- or 2-family

homes. 2) Energy $mart Loans are offered through a number of participating New York State banks. • This is a secured loan. • NYSERDA buys down your interest rate by 4% for up to

10 years. 3) If you choose not to use either ENERGY STAR Financing or the New York Energy $mart Loan Fund, you may be eligible to receive 10% of the cost of eligible energy efficiency improvements, up to a maximum incentive of $2,000, directly from NYSERDA

Incentives to contractor: • 75% of the cost of training will be covered in the first year.

• Incentives are available to contractors who work with others outside their trade (ex. heating contractors to include insulation contractors in their proposal).

Participation: 3,000 jobs/year and growing Energy Savings: Total for all electricity saving measures:

• 2,243,517 KWh savings • 941.93 program reported on-peak KW reduction

Field Support: training? The program assists contactors in becoming accredited and certified by BPI through incentives. Currently over 120

contractors are active in the program and approximately 40 of those have changed the way they do business to reflect the ideals of the program.

Barriers: • Most contractors don’t have the technology and training. • It is difficult to get contractors of different trades (ex.

heating and insulation) to work together. • Contractors can be turned off by program requirements

such as: submitting paperwork and being subjected to inspection check-ups.

Marketing: • Some contractors are marketing home energy saving services through media outlets.

• NYSERDA has an extensive marketing program ($1.5 m/year budget) and uses mass media outlets such as newspaper, TV and radio.

Further information: Mark Dyen [email protected] 508-836-9500 ext. 3215

Strengths The program has had great success with contractors. Several have expanded their businesses to incorporate more than one trade and now use computer analysis to calculate home energy savings.

Weaknesses Sponsor: Connecticut Light and Power (CL&P) Service Territory: Connecticut Program Name: Pilot Duct Sealing Program Implemented: Planned start date is January 2006 Budget: Approximately $1 Million Program Description: As part of this innovative pilot, crews will use duct mastic (a

sealer) and a new poly-butyl rubber adhesive to seal exposed ducts in homes with central air conditioning. Treatment of duct boots and register connections will be a prescriptive element of the pilot. Testing and random verification will take place to verify the savings. In addition to sealing ducts, the crews will install other energy-efficient measures (i.e. CFL bulbs) and customers will be encouraged to install other energy-efficient measures that will be identified during the visit.


Free duct sealing

Incentives to contractor: Incentives to complete duct testing. Bids are going out to contractors and they will give CL&P 3 prices: 1 – how much it will cost to visit the house; 2 – how much to do data collection, and replace bulbs and leave; and 3 - how much would the cost be per cfm reduction in the leaky ducts.

Energy Savings: The goal is to achieve 1 MW in savings

Field Support: training? No Marketing: Pilot program – currently sending bids out to contractors Further information: Joe Swift

Connecticut Light and Power [email protected]

Sponsor: Imperial Irrigation District (IID) Service Territory: Imperial County, Riverside County, San Diego County, CA Program Name: IID Energy CheckMe!® for Residential Air Conditioners and

Ducts Implemented: November 2004 Budget: $250,000 Program Description: Contractors trained by Proctor Engineering conduct duct

system testing at residences. Contractors will then sell a job to the customer, typically if the duct leakage is above 20% (this is due to a requirement that duct leakage be reduced by at least 14%).


Customers can save up to $100 on the cost of duct system improvements.

Incentives to contractor: • Free training Participation: • The program currently has 10 contracting companies

signed up to be part of the program. (only 25-30 contractors in the IID district)

• 158 duct jobs have been completed as of August 5, 2005. The goal is to have 700 jobs by the end of the year.

Energy Savings: Use deemed savings Field Support: training? Proctor Engineering recruits contractors and trains them

onsite. Contractors participate in a 3 day that combines classroom and on-the-job training. At the end of the program the contractor must complete 6 jobs within 2 weeks in order to pass. The program training size is limited to 4 contractors per session to assure hands-on learning.

Barriers: • Hard to convince homeowners to spend money on duct sealing. The IID district is not exceptionally wealthy and it is hard for the residents to cover up-front costs.

• Weather is also an issue: duct sealing/replacement jobs can’t be completed from late May to Sept. due to extreme heat.

Marketing: • In the past IID used bill stuffing, newspaper adds and bill boards for general air conditioning work. It was then left up to the contractor to sell the duct work.

• In the fall, IID will start marketing specifically for duct sealing.

Further information: Tom Downey, Sr. Program Manager

Proctor Engineering Group 418 Mission Avenue San Rafael, CA 94901 Phone (415) 451-2480 [email protected]

Strengths • Utility is willing to advertise for this program. • Great success with contractors – by the end of the year the

program will have approximately ½ the contractors in the IID service territory trained and capable of completing jobs.

Weaknesses • Program has trouble convincing homeowners to complete duct work. IID is working on an incentive program to address this issue.

Sponsor: Georgia Interfaith Power and Light (GIPL) Service Territory: Atlanta, GA Program Name: GIPL Duct Sealing Program Implemented: 2006 - 2007 Budget: Program Description: This program is offered in conjunction with Georgia Power

and Southface Energy Institute which deliver energy efficiency services in a Home Performance with ENERGY STAR program. Southface certifies contractors to conduct home assessments. GIPL receives a payment from Georgia Power for each customer served. GIPL serves as an aggregator – marketing the home assessments to congregations and negotiating group discounts for home assessments by certified contractors. The average full cost of an assessment is $350. Group discounts have been negotiated in which contractors will assess 10 homes at $250 per home.


• There are no formal incentives, but contractors often subtract the cost of the initial assessment from the cost of any improvements resulting from the assessment.

• Federal tax incentives may cover part of the cost of repair. Incentives to contractor: • Marketing assistance Participation: • The program currently has 3 certified contractors and

more are expected to become certified. Energy Savings: Field Support: training? Southface Energy Institute certifies contractors to participate

in their Home Performance with ENERGY STAR Program. Barriers: • Customers have limited awareness of the benefits of duct

sealing. In one effort to overcome this barrier, GIPL plans to seal ducts in congregation leaders’ homes.

• Up front cost of duct repair can be $1,000 – $2,000. Marketing: • GIPL includes the Duct Sealing Program in a menu of

activities offered through Power Lite, a program that is marketed to congregations by a GIPL committee. GIPL is negotiating with leaders in congregations to have duct sealing demonstration homes to assist with marketing.

Further information: Katy Hinman, Executive Director GIPL [email protected]

Strengths • Utility, Southface, and GIPL work in partnership to leverage resources and marketing outreach and contacts.

Weaknesses • Program is a pilot in start-up phase, too soon to determine effectiveness at market transformation.

B. Mobile Home Programs Sponsor: Eugene Water and Electric Board (EWEB) Service Territory: Oregon Program Name: Comfort Seal Implemented: 1996

No sunset ENERGYSTAR: No - Follows Oregon state specs in order for customers to

qualify for tax credit. Budget: Duct program is combined with heat pump maintenance.

Combined expenditures typically run $150,000/year including labor. About 2/3 or the cost goes to the duct program.

Program Description: When customers call EWEB for service, Energy Specialists determine what type of heating they have and whether any work has been done in the past. If it all matches up a EWEB inspector will go out and determine whether there are duct leaks. If so, the inspector will give them information on the savings and refer them to a certified EWEB contractor.

Incentives: • EWEB offers free inspections. They have a bid/contract with 1 contractor who has a set rate of $650/home. Of this EWEB will pay $350. In addition, customers can qualify for a 25% state tax credit (or $75). So customer typically pays about $225.

• EWEB will also pay full cost for qualifying low-income customers.

Participation: 2,100 to 3,000 mobile homes have already used program. Current levels are around 50 mobile homes/year (Kinney, 2005) and 25 site-built homes per year (Lorenzen, 2005)

Energy Savings: 10% savings • 1,500 to 1,700 kWh per year for homes with electric

resistance heaters • 1,000 kWh per year for homes with heat pumps

Field Support: training? Contractors whom EWEB hire are certified. Barriers: Perception of savings. Duct leakage isn’t visible in the same

way double pained windows are and therefore customers don’t see the potential savings.

Marketing: Direct marketing. Further Information: Bob Lorenzen, DSM Programs Manager

Phone: 541-341-1837 Email: [email protected]

Strengths Weaknesses • Only for existing homes

• Doesn’t provide training C. New Homes Programs Sponsor: Tuscon Electric Power Program (TEP) Service Territory: Arizona Program Name: Guarantee Home Program Implemented: ENERGYSTAR: Budget: Program Description: New home construction program which includes duct sealing

(less than 3% of the conditioned floor area leakage in cubic ft/minute of flow at 25 pascals) properly installed insulation, and envelope sealing (less than 0.3 natural air changes/hour), correct HVAC sizing and pressure balancing, also fresh air ventilation which slightly pressurized tight envelopes.

Incentives: TEP offers incentives to builders to offset additional building costs and advertising. Also owners of Guaranteed Homes qualify for TEP’s lowest rate (rate 201) can save up to 22% annually. Rate R201 stays with the home forever. So even if a home is sold the new homeowner gets the benefit of a lower electric rate with R201. TEP’s rates are also frozen through 2008 for a long term savings on your bill.

Participation: Field Support: training? Barriers: Energy Savings: Marketing: Radio, TV, newspaper, bill stuffers, internets and on-sites

sales material Further Information: Phone: 520-884-3616

Email: [email protected] Strengths • Extensive marketing campaign Weaknesses • Only for new homes

II Building Energy Code Strategy to Address Duct Sealing: 2005 California Title 24 Requirements All new buildings in California must meet the standards contained in Title 24, Part 6 of the California Code of Regulations. All new construction must comply with the Standards in effect on the date a building permit application is made (not when the building permit is issued). The sealing methods for the Title 24 requirements are the same as those for the Imperial Irrigation District’s (IID) program. The testing requirements are also similar to IID and PG&E. One strength of this program is the testing requirements. Title 24 requires that a HERS rater inspects 1 in 7 sites for compliance. However, this will only be effective in assuring compliance to new construction. Builders are required to obtain a building permit for new construction and therefore will have to comply with Title 24 in order to receive the permit. For retrofit jobs, this is not the case and it is unclear as to whether Title 24 sealing requirements will be met. This is something that needs to be addressed by the State of California. The full code can be found on the California Energy Commission website: http://www.energy.ca.gov/title24/ .

5755 N. 11th StreePhone: (703) 241-38

www.nexusma

Duct Sealing Market Re

Focus Gr

Appendix E

Part 2 of 4

search and Program Design Strategy

oup Summary Results

03-STAC-01

t, Arlington, VA 22205 80 Fax: (703) 241-3897 rketresearch.com

5755 N. 11th Street, Arlington, VA 22205 Phone: (703) 241-3880 Fax: (703) 241-3897

www.nexusmarketresearch.com

MEMORANDUM

Date: October 17, 2005

To: Elizabeth Titus, NEEP

From: Tim Pettit, NMR

Re: Tabulation of Written Responses and Reaction to Albany Focus Group

On October 5, 2005, NMR moderated a focus group consisting of 10 HVAC installation professionals at Markette Research’s focus group facility in Clifton Park, NY. Five focus group participants were recruited from the Yellow Pages and five from NYSERDA’s in-house list of participating HVAC contractors in the Home Performance with ENERGY STAR program. Upon arrival participants completed a brief questionnaire, followed by introductions, and a discussion of marketing and installation techniques. During the second half of the focus group, the participants viewed a video on duct sealing techniques, were presented with three sample duct sealing program scenarios, were asked to score those duct sealing program scenarios according to various program attributes, and then discussed their responses.

Supplementary to the STAC deliverables of a video tape and discussion guide for this Task (Task #6), NMR is submitting this brief memorandum on this focus group.

Pre-focus Group Questionnaire Summary Highlights of participant responses to the Pre-Focus Group Questionnaire are as follows:

All participants install HVAC systems, and at least six perform duct testing and sealing services.

Participants represented companies ranging from one to over 100 employees, with five firms having greater than 25 employees.

HVAC equipment manufacturers represented include the largest firms (Carrier and Bryant, Goodman, Trane, Lennox, Rheem-Ruud, and York) as well as other smaller brands. At least five install boiler units as well. Very few belong to preferred dealer networks.

The five contractors recruited from the in-house NYSERDA list are BPI certified for heating, two are BPI certified for air conditioning, and two technicians are NATE certified. Few contractors have any other affiliation.

Of the six contractors who install ducts, four contractors use ACCA Manual D. Eight contractors claim to seal the duct work they install; seven claim to use

mastic as one method for sealing ducts. When asked what level of duct leakage is common in an existing duct system, two

participants did not know, six participants claim levels above 20%, one claims 15%, and one claims 10%.

When asked what level of duct leakage is acceptable, two participants did not know, six say less than 10%, and two say less than 15%.

Reaction to Video Review and Summary of Observer Notes This section summarizes my reaction to a video review of the focus group, supplemented by notes taken during the focus group by Brian Atchinson of NYSERDA and Elizabeth Titus of NEEP Marketing and Installation Practices The majority of the group was aware of NYSERDA’s programs prior to attending

the focus group. There is some specialization among contractors – existing homes and retrofits

only, for example; only add-ons, another example. Consistent with previous studies, participants believe customers go with their

recommendation the majority of the time, after achieving a comfort level with the sales representative. Selling the high efficiency systems is not generally a problem, within the NYSERDA or outside of the program. One admittedly new and young contractor offers many options to prevent from being undersold by competition.

Selling high efficiency oil equipment is difficult because the price increment is so high given the added efficiency.

Manufacturers provide basic advertising support; distributors provide no support. Participants report that equipment oversizing is common. One participant

comments that contractors didn’t have sizing tools 15 years ago; others seem to agree.

For installing duct work, respondents comment that builders don’t care; architects tend to specify ductwork frequently.

Most participants test air flow only rarely if at all. Few have flow hoods but seven have duct blasters. Participants say they are not practical on old or very large houses. The cost of purchasing the duct blaster was not a barrier.

Only one participant was aware of NY code (2003 revision) specifics for retrofitting and sealing.

Almost all participants state they seal any ducts they install and replace and any ducts that are easily accessible.

To seal ducts, participants say it depends on the application but all prefer mastic. They also state that 10 years ago nobody used mastic; now it is common and preferred.

Participants who install duct work make most of it onsite, and purchase it sometimes.

Participants use flexible duct work because it is necessary, but admit it does not perform as well.

Several participants believe the pre-manufactured swivel joints and boots are not of good quality compared to older products.

Comments on Duct Sealing Video As a side comment, three participants question the need to seal the insulated liner

or duct wrap with mastic.


Comments on Program Scenarios before Scoring One participant is aware of CA Title 24 that requires duct sealing to performance

standards. Code Change Scenario As shown in Table 1, focus group participants tend to disagree with statements that their training needs will be met (Statement #3) and that purchasing the duct blaster represents a barrier (Statement #10) in the Code Change Scenario. Participants express a weak consensus that the program offers clear and verifiable standards (Statement #1), will be effective in new construction jobs (Statement #4), added business opportunities during slow seasons (Statement #6), and would be a tough sell to customers (Statement #7).

Table 1: Participant Responses to a Code Change Scenario1

Evaluated Statements

Strongly or

Somewhat Agree

Neither Agree

nor Disagree

Strongly or

Somewhat Disagree

1. This program offers clear verifiable standards, so that my work will be held to the same standard as my competition. 6 1 3 2. The paperwork and inspection processes sound reasonable to me. 2 3 5 3. My training needs to participate in this program will be adequately addressed. 2 1 7 4. This program will be effective in new construction jobs and first-time installations into existing buildings. 6 1 3 5. This program will work well for retrofit jobs. 3 2 5 6. This program will benefit me by giving me added business during slow seasons.

1 3 6 7. This program would be a tough sell to my customers. 6 1 3 8. This program gives me a good way to differentiate myself from the competition based on quality service. 5 2 3 9. I think my customers would favor a program like this and take advantage of it. 3 2 5 10. Since the Duct Blaster [or other equivalent] equipment to perform this service adequately will cost up to $1800, this program will cost me more in equipment than I can recover. 1 2 7

1 The Code Change Scenario would require duct sealing through code on all installations where existing systems leaking in excess of 25% of total system airflow (either nominal based on 400 cfm/ton or measured as a percentage of fan flow at 25 pascals) must be sealed to achieve a leakage rate of 15%. For new construction or new installations on existing homes the duct system must be sealed to less than 15%.


Highlights from the discussion on the Code Change Scenario include the following: Participants report no slow seasons and argue that duct sealing services—as a way

to conduct business during slow seasons—is irrelevant. The group was split with many participants citing concerns with the inspection

and paperwork process relating to how code officials interpret and enforce the code; however, participants also believe the code change would offer clear verifiable standards.

Participants view duct sealing for new construction and retrofit jobs very differently. While participants are not necessarily concerned with the demolition in a retrofit duct sealing job, they believe their customers would not appreciate it. Moreover, several participants note that it is unclear in old houses what they will find until they start trying to improve air flow, such as open cavities used for air passage, or co-located supply and return ducts. Therefore, the bidding process becomes expensive for contractors not only due to the structural uncertainty of the house but also because of the labor intensiveness of the pre-bid airflow testing. Contractors do not find it worth their while to try to sell duct sealing in existing homes because they do not expect it to be profit-making activity in many cases.

The code change scenario offers little opportunity for differentiation except from very low-end contractors who wouldn’t pull a permit anyway.


Premium Service Scenario As shown in Table 2, focus group participants, tend to agree with statements that program offers clear and verifiable standards (Statement #1), will be effective in new construction jobs (Statement #4), and would give them a way to differentiate themselves from the competition (Statement #8) in the Premium Service Scenario. Participants express a weak consensus that their training needs will be met (Statement #3), the program will work in retrofit jobs (Statement #5), the program would not be a tough sell to customers (Statement #7), their customers would take advantage of a program like this (Statement #9), and purchasing the duct blaster represents a barrier (Statement #10).

Table 2: Participant Responses to a Premium Service Scenario2


Strongly or

Somewhat Agree

Neither Agree

nor Disagree

Strongly or

Somewhat Disagree



2 The Premium Service Scenario would create a new service (HVAC efficiency upgrade) that includes duct sealing through contractor training and various incentives to the customer and contractor. For all installations where existing systems leak in excess of 25% of total system airflow (either nominal based on 400 cfm/ton or measured as a percentage of fan flow at 25 pascals), ducts must be sealed to achieve a leakage rate of 15%. For new construction or new installations on existing homes the duct system must be sealed to less than 15%.


Highlights from the discussion on the Premium Service Scenario include the following: The logistical process of the telephone verification system is widely disliked.

Participants do not like the idea of waiting to call, possibly being placed on hold, getting a cellphone signal, or holding up other work to do so, among other comments. The participants had little or no experience with the CheckMe tool.

One participant is unclear with respect to how this service would differ from what is already in HP with ENERGY STAR, other than the paperwork.

Most participants think the training offered to program participants is an incentive; however, one participant questions whether the training will be of sufficient quality to be worthwhile—especially if implemented through BOCES. Others comment that most training is done on the job.

Builder buy-in/participation could be a barrier, especially with a premium service scenario.


Add-on Service Scenario As shown in Table 3, focus group participants, tend to agree with statements that program offers clear and verifiable standards (Statement #1), will be effective in new construction jobs (Statement #4), would not be a tough sell to customers (Statement #7), and would give them a way to differentiate themselves from the competition (Statement #8) in the Add-on Service Scenario. Participants express a weak consensus that their training needs will be met (Statement #3) and that purchasing the duct blaster represents a barrier (Statement #10).

Table 3: Participant Responses to an Add-on Service Scenario3


Strongly or

Somewhat Agree

Neither Agree

nor Disagree

Strongly or

Somewhat Disagree



3 The Add-on Service Scenario would include duct sealing with another related service covered under an existing program through contractor training and various incentives to the customer and contractor. For all installations where existing systems leak in excess of 25% of total system airflow (either nominal based on 400 cfm/ton or measured as a percentage of fan flow at 25 pascals), ducts must be sealed to achieve a leakage rate of 15%. For new construction or new installations on existing homes the duct system must be sealed to less than 15%.


Highlights from the discussion of the Add-on Service Scenario include the following: Participant responses were not completely reviewed in the Add-on Service

Scenario. Many respondents feel the scenario is too similar to the Premium Service

Scenario. NATE is cited by one contractor (and others nodded in some agreement) as a real

benefit to their own marketing efforts and the incentive to become certified. Participants generally preferred the Add-on Service Scenario over other scenarios,

in part due to the NATE certification requirement and incentive, and due to the comprehensive nature of the installation service.


Open Discussion Participants emphasize the need to differentiate program applications between

new construction and retrofit applications. For example, the group generally feels that 5% leakage is realistic from a new construction duct installation, but a higher standard (higher than 15%) is appropriate for existing housing.

More customer education on duct sealing is needed; most customers see comfort as a balancing issue, not a duct sealing issue.

Several participants argue that duct sealing can be performed, and is being performed, without duct blasters.

Some contractors will not participate in a duct sealing scenario regardless of the incentive, saying it is not profitable.

Customer awareness of the value of duct sealing is low and hard to implement unless it is required and comprehensively addressed. With more marketing of duct sealing, people will call.

When asked about labeling a sealed duct system, such as ENERGY STAR, most participants did not respond strongly either way. One participant thinks an ENERGY STAR label for a sealed duct system may be helpful for higher income and educated consumers; another indicated that any label will help because people understand them.

Some participants know each other through NYSERDA’s program; however, by the end of the focus group the participants generally believe the group is of higher quality contractors.

Word of mouth is a major marketing strategy for contractors. Only one participant is aware of the ENERGY STAR duct leakage specification. Most consumers are not aware of duct leakage issues, nor do they care. Many

participants feel they can sell duct sealing, but the cost and hassle are hard to justify. Therefore consumer education is important.


Appendix E

Part 3 of 4 Duct Sealing Market Research and Program Design Strategy

03-STAC-01

Focus Group Discussion Guide—Duct Sealing

Prepared by:

Nexus Market Research, Inc. NMR #1084

Wednesday, October 5, 2005

FOCUS GROUP DISCUSSION GUIDE Collateral Materials (Included as Attachments)

1. Pre-discussion questionnaire 2. Scorecards for duct scenarios

DO NOT SHOW TO FOCUS GROUP PARTICIPANTS

Pre-discussion Questionnaire Ask Focus Group participants to complete brief questionnaire to collect firmographic data. Collect questionnaires before beginning focus group.

Introduction 5 minutes Brief introductions, introduce sponsor of focus group research as NYSERDA, remind participants the

focus group will last 90 minutes, review rules of focus group itemized in questionnaire:

1. Please respect the moderator and my efforts to complete this on time and to keep discussion focused on the topic.

2. Please refrain from side conversations. We are interested in your contribution during this and cannot record those contributions from side conversations.

3. Please respect each other. One person speaks at a time. 4. Please answer the questions as asked. If you do not understand a question, request a

clarification. Present the topic of discussion: “We would like to discuss market trends in the HVAC industry and

installation practices.” [IF ASKED FOR CLARIFICATION, DESCRIBE AS “INSTALLATION PRACTICES ESPECIALLY RELATED TO ENERGY EFFICIENCY”—DO NOT INTRODUCE DUCT SEALING YET]

Do any of your firms participate in NYSERDA or other energy efficiency programs? What about

ENERGY STAR Homes or Home Performance with ENERGY STAR?

BRIEF BACKGROUNDER ON NYSERDA [FROM WEB SITE]

The New York State Energy Research and Development Authority (NYSERDA) is a public benefit corporation created in 1975 by the New York State Legislature. NYSERDA administers the New York Energy $martSM program, which is designed to support certain public benefit programs during the transition to a more competitive electricity market, including Home Performance with ENERGY STAR and ENERGY STAR Homes. Some 2,700 projects in 40 programs are funded by a charge on the electricity transmitted and distributed by the State's investor-owned utilities. The New York Energy $martSM program provides energy efficiency services, including those directed at the low-income sector, research and development, and environmental protection activities.

Marketing Services 10 minutes In competing for jobs, how do you try to differentiate yourself from competitors?

Cost Quality of product versus quality of installation [PROBE QUALITY OF INSTALLATION] Experience/reputation Responsiveness/timeliness Energy efficiency. [IF ENERGY EFFICIENCY] which benefits? [PROBE: energy/cost savings,

thermal comfort, acoustic comfort, performance testing, durability, health/indoor air quality, environmental benefits, resale value, duct sealing]

What would it take to make energy efficiency more important? [PROBE: Increase in energy prices—

ask if recent price increases are enough to make this happen; Slowdown in economy, changes in interest rates, other?] What might you emphasize more or less?

How do you feel about the support you been given in promoting energy efficiency within the industry

(manufacturers, utilities, governing bodies). What could be done to help make marketing energy efficiency easier?

Relative to your competition, how quickly do you begin offering new and innovative products or

services? What are some other new services that you think you added? Why did you start offering it?

Process for Specifying HVAC System and Ductwork 20 minutes Who specifies the HVAC system, its size, and the way it is installed?

Your firm Distributor/vendor Builder Architect Homeowner Other

Who specifies the duct system and the way it is installed [flexible or sheet metal, duct tape or mastic, layout and configuration, Manual D]? Who influences? Does this vary by type of home? [single-family vs. multifamily; spec vs. custom]

Your firm Distributor/vendor Builder Architect Homeowner Other

What method do you typically use to decide on the size, configuration, and layout of ductwork in residential new construction? [PROBE: rules of thumb, software, simple calculations, ACCA Manual D?] How often do builders ask for a specific method of ductwork sizing, configuration, and layout? Which method?

What method do you typically use to measure proper airflow to individual rooms? [PROBE: feel output at the register; use flow hood; use hot-wire anemometer] How often do builders ask for a specific method of measuring proper airflow to individual rooms? Which method?

Do you use any installation techniques that make the home more efficient or comfortable? [IF NO]

Why not? [IF YES] What installation techniques do you use to make the home more efficient or comfortable? [PROBE: jump ducts, minimizing turns, etc.]

What are the main barriers to your doing the best possible job on the ductwork for each house?

[PROBE: employee skill levels, employee turnover] How do you try to overcome these barriers? What could the builder or other subcontractors do to avoid/minimize those problems? The frame presumably goes up before you start working. Does the frame ever get in the way of installing efficient ducts and doing so in the most efficient way? How can this be overcome? Are there any other ways in which the order of subcontractors’ work can cause issues with efficiency?]

Does anyone provide a duct sealing service? [IF YES] What do you typically do? What do you

typically use for sealing ducts? [PROBE: duct tape; mastic—meets UL 181 requirements?; NY State energy code]

Where do you manufacturer or purchase your duct runs or ducting materials? Do you purchase them,

manufacture the ducts yourself? At your shop or onsite? Do you use flexible ducts? Do you think flexible ductwork performs as well as metal duct work? Does the quality of the boots or swivel joints you can purchase vary by manufacturer? How so?

Presentation of Duct Sealing Program Options 25 minutes For the remainder of this focus group session, I’d like to discuss duct sealing services. First I want to

present some information on duct sealing basics. POWERPOINT PRESENTATION/VIDEO OF DUCT SEALING BASICS As you are aware, NYSERDA offers many different energy efficiency programs including programs to

support residential heating and cooling equipment efficiency. I’d like to present three different duct sealing program scenarios, and I would like you to individually score them.

POWERPOINT PRESENTATION OF DUCT SEALING PROGRAMS

1) SLIDE 1: Code Change Scenario, requiring duct sealing through code on all installations. Your local codes have changed so that all duct systems for newly constructed homes or major renovations must be sealed. For replacing equipment on existing duct work, systems leaking in excess of 20% must be sealed to achieve a leakage rate of 10%. In new construction the duct system must be sealed to less than 10%. Before installing any new or existing system, you will need to include plans for testing ductwork and measuring duct leakage, and code inspections may include testing and verification of adequate duct sealing. Failure to achieve an adequate level of duct leakage will result in failure to pass inspection, and delay potential customer payments. In such a code change scenario, this would not include any training or incentives.

Tim Pettit

Of total airflow? Is this unit consistent with and better than existing NY State Code or IID performance standards?

cnash

Sticky Note

Completed set by cnash

cnash

Sticky Note

Marked set by cnash

2) SLIDE 2: Premium Service Scenario, creating a new service (HVAC efficiency upgrade) that includes duct sealing.

You are offered incentives to test and seal ductwork:

• Incentive to the contractor for testing duct leakage and providing information to customer.

• Incentive to the customer for satisfactory completion of the duct sealing work.

• Incentive to the contractor for satisfactory completion of the duct sealing work.

• Free three-day training required for contractors on duct sealing techniques to be eligible for the incentive program.

To ensure quality of services, contractors would be required to call a dedicated call center while performing the service, providing specific testing and performance measurements to verify the duct system is adequately sealed.

All jobs are subject to independent testing and verification. Ten percent of all rebated systems will be independently tested and verified. Failed systems result in penalties to the contractor.

3) SLIDE 3: Add-on Service Scenario. Including duct sealing with another related service covered under an existing program.

You are offered incentives to test and seal duct work while installing high-efficiency CAC or furnace equipment that provides incentives to both the customer and contractor.

• The customer will receive an incentive for each 90+ furnace, 14+ SEER CAC or ASHP system he/she has installed by a NATE-certified contractor for systems sized by ACCA procedures

• Contractors receive incentive to become NATE certified (covering the training and examination costs).



All jobs are subject to independent testing and verification. Ten percent of all rebated systems will be independently tested and verified. Failed systems would not receive an incentive payment.

SLIDE 4: SUMMARY SLIDE OF ALL THREE PROGRAM SCENARIO TITLES. ISSUE SCORECARDS. Please score the three Duct Sealing Program Scenarios according to the instructions on your scorecard in front of you. As indicated by the instructions, please rate each of the programs according to the features identified below on a scale of zero to ten, where zero represents a feature with no value to you at all, and ten represents a feature that you would value very much.

Discussion of Duct Sealing Program Scenarios 35 minutes Now I’d like to ask each of you individually about how you scored the three program scenarios and why. [BEGIN WITH PARTICIPANTS OUT OF ORDER. PROBE THE FOLLOWING Costs of participation to contractor and consumer Levels of incentives for providing service Appropriate levels of duct leakage for tightness and leakiness Likelihood of achieving reduced duct leakage Attractiveness of participating Barriers to participate (e.g., profitability, training, paperwork, inspections, certification) Effort to participate Likelihood to participate Training interest, topics to address, levels of incentive to train]

Now I’d like to open the discussion up generally, what other thoughts do you have on these potential

programs. [PROBE THE FOLLOWING Costs of participation to contractor and consumer Levels of incentives for providing service Appropriate levels of duct leakage for tightness and leakiness Likelihood of achieving reduced duct leakage Attractiveness of participating Barriers to participate (e.g., profitability, training, paperwork, inspections, certification) Effort to participate Likelihood to participate Training interest, topics to address, levels of incentive to train]

Finally, which program do you prefer? Why? If you could design a program from different elements of

these three programs, what features would you combine? Why? What features would you drop? Why?

Thank You and Close Discussion

Attachment 1 Pre-Focus Group Questionnaire STAC-Task 6 Thank you for participating in tonight’s focus group. Tonight, we’re interested in your perspective on HVAC installation practices. For your cordial participation, we will compensate you $100. This focus group will last approximately 90 minutes, and we hope you will find it stimulating and gratifying. Please note the following basic rules for the focus group:

5. Please respect the moderator and my efforts to complete this on time and to keep discussion focused on the topic.

6. Please refrain from side conversations. We are interested in your contribution during this and cannot record those contributions from side conversations.

7. Please respect each other. One person speaks at a time. Please complete the following information in case of any follow up questions. This information will remain confidential:

1. Name: ______________________________________________________ 2. Company: ______________________________________________________

3. Town and zip code: ______________________________________________________

4. Office phone: ______________________________________________________

5. Email (if any): ______________________________________________________

Please complete the following information about your general business practices: GB1. Which of the following services does your company provide? Circle any that apply.

1. Selling heating and cooling equipment 2. Installing heating and cooling equipment

3. Servicing and maintaining heating and cooling equipment

4. Installing duct systems in new construction or retrofit applications

5. Performing duct testing and sealing services

6. Distributing heating/cooling equipment to other companies

GB2. How many total employees are in your office? Number of employees = _____________

How many employees in each of the following categories do you have? Please fill in a number for each so that the sum of all categories equals the total above. Use decimals (.75 OR .5) for part-time duties.

# Employees 1. HVAC Installers ____________________________________________________ 2. HVAC Service Technicians ___________________________________________

3. HVAC Sales People _________________________________________________

4. Office Manager _____________________________________________________

5. Bookkeeper ______________________________________________________

6. Receptionist ______________________________________________________

7. OTHER: Please describe:[__________________]__________________________

8. OTHER: Please describe: [__________________] _________________________

Please add column to verify total:_____________________________________________

GB3. What equipment brands do you generally install? Please circle from table and indicate whether it is a furnace or CAC unit.

Manufacturer Equipment Types Adams Manufacturing Company Furnaces Airco Furnaces Amana Refrigeration Incorporated CAC or Furnaces American Standard Companies Inc CAC or Furnaces Armstrong Air Conditioning Inc. CAC or Furnaces Bryant CAC or Furnaces Carrier Corporation CAC or Furnaces

Coleman CAC or Furnaces Day and Night CAC or Furnaces Daikin U.S. Corporation CAC Dornback Furnace Division Furnaces ECR International Furnaces Excel Comfort Systems, Inc. Furnaces Freus, Incorporated CAC Goettl Air Conditioning Incorporated CAC Goodman Manufacturing CAC or Furnaces Heil CAC or Furnaces Heat Controller Inc. Furnaces International Comfort Products (ICP) CAC or Furnaces Lennox Industries Incorporated CAC or Furnaces NORDYNE CAC or Furnaces

Payne CAC or Furnaces Nyle Special Products LLC CAC Olsen Furnaces Rheem-Ruud Manufacturing CAC or Furnaces Sears Roebuck and Company CAC Texas Furnace, LLC Furnaces The Trane Company CAC or Furnaces Thermo Products, LLC CAC or Furnaces Whirlpool Corporation CAC or Furnaces Xenon Heating and Air Conditioning CAC or Furnaces York International Corp. UPG CAC or Furnaces

1. (Other [SPECIFY: ___________________________________________________ ]) 2. (Other [SPECIFY: ___________________________________________________ ])

GB4. If your firm holds any status with, or membership to, any preferred dealer networks for the equipment you sell, please circle all that apply?


1. My firm does not belong to any preferred dealer networks. 2. (Other [SPECIFY: ____________________________________________________ ])

3. (Other [SPECIFY: ____________________________________________________ ])

4. I don’t know if firm belongs to any preferred dealer networks

GB5. Is your company a member of ACCA, or the Air Conditioning Contractors of America?

1 Yes 2 No Why not? ______________________________________________________ 3 Don’t know

GB6. Is your company a member of SMACNA, or the Sheet Metal and Air Conditioning Contractors’ National Association?

1 Yes 2 No Why not? ______________________________________________________ 3 Don’t know

GB7. Is your company a member of ASHRAE, or the American Society of Heating, Refrigerating and

Air-Conditioning Engineers? 1 Yes 2 No Why not? ______________________________________________________ 3 Don’t know

GB8. Is your company a member of RSES, or the Refrigeration Service Engineers Society? 1 Yes 2 No Why not? ______________________________________________________ 3 Don’t know

GB9. Are you certified by NATE, or the National Association for Technician Excellence? 1 Yes 2 No Why not? ______________________________________________________ 3 Don’t know

GB10 Who administered your NATE training and examination? ________________________ ______________________________________________________________________________ GB11 What percent of your company’s technicians are NATE certified? _________________ %

Please answer the following questions for new construction or first time installation jobs. IP1. How does your firm decide on the size, configuration, and layout of duct work in RESIDENTIAL

jobs? Please select one response

1 Rules of thumb 2 ACCA Manual D 3 Software program 4 Other method 5 Where the ductwork fits If you use any rules of thumb, what is the rule of thumb you use?

IP2. Does your firm have equipment to measure proper airflow through ductwork to individual rooms of a home such as..? Please select all that apply

1. Flow hoods 2. Hot-wire anemometers.

3. Duct blasters

4 Other equipment 5 None of the above equipment

6 Don’t know

IP3. Does your firm seal the ductwork that you install?

1. Yes [PLEASE CONTINUE TO IP4] 2. No [PLEASE SKIP TO IP5]

3. Don’t know [PLEASE SKIP TO IP5]

IP4. How does your firm seal the ductwork that you install? Please select all that apply 1. Duct tape 2. UL 181 approved tapes.

3. Mastic

4. Other 5. None of the above equipment

6. Don’t know

IP5. What do you think is common for duct leakage in an existing duct system (as a percentage of the total unit airflow)?

1. Enter percent and be as specific as you can): % 2. Don’t know

IP6. What amount of duct leakage do you consider acceptable (as a percentage of the total unit airflow)?

1. Enter percent and be as specific as you can): % 2. Don’t know

IP7. On installations where you are installing a CAC and Furnace, do you use the CAC manufacturers coil or do you use an aftermarket coil? [SELECT ONE RESPONSE]

1. Manufacturer’s coil. Why do you prefer it? 2. Aftermarket coil. Why do you prefer it?

IP8. On a scale of 0 to 10, where 0 is extremely slowly and 10 is extremely quickly, relative to your competition, how quickly do you begin offering new and innovative products or services? Please circle the number on the scale below Extremely Extremely Slowly quickly

0 1 2 3 4 5 6 7 8 9 10

Thank you again, for participating. We will begin the focus group shortly.

Attachment 2 Focus Group Program Scenario Scorecard

1) Code Change Scenario, requiring duct sealing through code on all installations. Your local codes have changed so that all duct systems for newly constructed homes or major renovations must be sealed. For replacing equipment on existing duct work, systems leaking in excess of 20% must be sealed to achieve a leakage rate of 10%. In new construction the duct system must be sealed to less than 10%. Before installing any new or existing system, you will need to include plans for testing ductwork and measuring duct leakage, and code inspections may include testing and verification of adequate duct sealing. Failure to achieve an adequate level of duct leakage will result in failure to pass inspection, and delay potential customer payments. In such a code change scenario, this would not include any training or incentives.

2) Premium Service Scenario, creating a new service (HVAC efficiency upgrade) that includes duct sealing.

You are offered incentives to test and seal ductwork:

• Incentive to the contractor for testing duct leakage and providing information to customer.


• Incentive to the contractor for satisfactory completion of the duct sealing work.


To ensure quality of services, contractors would be required to call a dedicated call center while performing the service, providing specific testing and performance measurements to verify the duct system is adequately sealed.

All jobs are subject to independent testing and verification. Ten percent of all rebated systems will be independently tested and verified. Failed systems result in penalties to the contractor.

3) Add-on Service Scenario. Including duct sealing with another related service covered under an existing program.

You are offered incentives to test and seal duct work while installing high-efficiency CAC or furnace equipment that provides incentives to both the customer and contractor.

• The customer will receive an incentive for each 90+ furnace, 14+ SEER CAC or ASHP system he/she has installed by a NATE-certified contractor for systems sized by ACCA procedures

• Contractors receive incentive to become NATE certified (covering the training and examination costs).



All jobs are subject to independent testing and verification. Ten percent of all rebated systems will be independently tested and verified. Failed systems would not receive an incentive payment.

Tim Pettit

Of total airflow? What is NY State Code and IID performance standards?

Name:

Company: ______________________________________________________ For each of the three program scenarios, please rate each of the statements in the table below by inserting the number (from one through five) that corresponds to the following scale:

1. Strongly disagree 2. Somewhat disagree 3. Neither agree nor disagree 4. Somewhat agree 5. Strongly agree

Duct Sealing Program Scorecard

Statement Code Change Scenario

Premium Service

Scenario

Add-on Service

Scenario This program offers clear verifiable standards, so that my work will be held to the same standard as my competition.

The paperwork and inspection processes sound reasonable to me.

My training needs to participate in this program will be adequately addressed.

This program will be effective in new construction jobs and first-time installations into existing buildings.

This program will work well for retrofit jobs.

This program will benefit me by giving me added business during slow seasons.

This program would be a tough sell to my customers.

This program gives me a good way to differentiate myself from the competition based on quality service.

I think my customers would favor a program like this and take advantage of it.

Since the Duct Blaster [or other equivalent] equipment to perform this service adequately will cost up to $1800, this program will cost me more in equipment than I can recover.

Tim Pettit

Will randomize order in final scorecards such that no participant answers them in the same order.

Appendix E Part 4 of 4

Duct Sealing Market Research and Program Design Strategy03-STAC-01

Market Research and

Market-Based Program Strategy for Saving Energy through Enhanced Duct Systems

Prepared for STAC Project Task 6 By

Northeast Energy Efficiency Partnerships, Inc. February 2006

INTRODUCTION AND SUMMARY Duct sealing is an important but challenging component of a strategy to increase overall HVAC energy efficiency in residential buildings in the Northeast. Based on a review of literature and existing duct sealing programs combined with market research and field research, we find the following:

Program Features. Key features of the recommended market-based program strategy include: Verifiable and enforced performance criteria; a comprehensive incentive structure that allows contractors to address nearly every system that has potential in both new construction and existing homes; hands-on in-field training for contractors; building energy code requirements that define measurable standardized minimum acceptable performance expectations for duct sealing in new HVAC installations.

Barriers. Key barriers to increasing duct sealing in new and existing homes are: lack of customer demand; lack of customer understanding of the problems or benefits; up-front investment required by customer or builder in new installations; difficulty and expense involved in accessing existing ducts needing repair; and absence of clear, appropriate, measurable performance requirements and mechanisms to ensure quality duct installation. Under these conditions, HVAC contractors have little or no incentive to market duct sealing to customers, or to go beyond business as usual installation practices for typical projects.

Opportunities. Several key opportunities exist that can help frame a strategy to transform the market for duct sealing. These include the fact that training and tools for duct sealing are becoming increasingly available to HVAC contractors, through trade associations and through the early efforts of efficiency program administrators in the Northeast to increase duct sealing as a way of achieving energy savings. While these are neither consistent nor comprehensive, they are a good start. In addition, the recent increase in fuel prices presents an opportunity to raise customer awareness about the benefits of duct sealing; they also increase the value of duct sealing to program administrators. Preliminary estimates indicate that energy savings from duct sealing in the Northeast can be as much as 13% of annual heating consumption and 18% of cooling energy consumption. Furthermore, a model program approach to address duct sealing market transformation exists, namely strategy adopted in California of combining efficiency programs that target duct sealing with the introduction of building energy code that includes measurable performance criteria and a quality assurance process.

Goals of a Duct Sealing Program Strategy. The proposed market-based duct sealing program strategy transformation plan sets forth the following goals:

• Make properly sealed ducts the norm in the residential housing sector; and

• Encourage tight duct sealing that optimizes energy and peak savings.

1

MARKET FOR DUCT SEALING Baseline Conditions The need for duct sealing residential homes in the Northeast is widespread, cutting across new and existing construction. Baseline studies, field research and anecdotal information confirm that this need exists throughout New England states, New York and New Jersey. The main contributors to duct losses are direct losses through leaks, conductive losses through duct surfaces, and losses created by systems imbalances related to overall duct design. These situations occur when ductwork passes through an unconditioned space such as an attic or crawlspace. Typically a duct system can lose 24 to 40 percent of the heating or cooling energy delivered by the furnace, heat pump, or air conditioner (Andrews 2001). For example, a 2002 study of homes in Massachusetts, Connecticut and Rhode Island with recent central air conditioning installations found half of the sites had high return duct leakage and three quarters of the sites had high supply duct leakage (RLW, p.21). A 2005 Massachusetts study that assessed the quality of new residential construction found that most (84%) of the homes in the sample have duct leakage rates above the EPA requirement of six or less CFM25/100 sq.ft1. for ENERGY STAR certification and 75% of the homes in the sample were above 10 CFM25/100 sq. ft. Overall, duct leakage ranged from 0 to 76 CFM25/100 sq. ft.. Moreover, over 90% of the homes had ducts in unconditioned space. (Nexus Market Research, Inc. and Dorothy Conant, February 26, 2006). The new EPA duct leakage requirement for ENERGY STAR homes helps put these findings in perspective:

“Ducts must be sealed and tested to be <6 cfm to outdoors/100 sq ft of conditioned floor area, as determined and documented by a RESNET-certified rater using a RESNET-approved testing protocol or through an equivalent ASTM-approved testing protocol. Duct leakage testing can be waived if all ducts and air handling equipment are located in conditioned space (i.e. within the home’s air and thermal barriers) AND the envelope leakage has been tested to be <3 ACH502 OR < 0.25 CFM50 per sq. ft. of the building envelope.” (Energy Star Qualified Homes National Performance Path Requirements: http://www.energystar.gov/ia/partners/bldrs_lenders_raters/downloads/Perf_Path_Fianl_100605.pdf)

The EPA requirement acknowledges that the building envelope and ducts both influence HVAC system efficiency. Builders do not necessarily treat these as related parts of a system. Builders who address air sealing may ignore duct sealing and vice versa. For example, sixty percent of the homes in the Massachusetts study met neither the duct leakage nor the air infiltration requirement. For most homes in the 2005 Massachusetts study, there was no relationship between air infiltration and duct leakage levels.

1 CFM25 refers to cubic feet per minute at 25 Pascals of pressure. 2 ACH50 refers to air changes per hour at 50 Pascals of pressure.

2

A 2004 study found that in the average new home built on Long Island, 30% of system airflow is leaked to the outdoors; total duct leakage was higher. Similarly in New Jersey, the 2001 New Jersey New Construction Baseline Study found that only 8% of homes in the state had obvious attempts at sealing joints and key leakage points, and most of those used inadequate sealing methods such as duct tape. Furthermore, in the average New Jersey home with central air conditioning, 34% of system airflow is leaked to the outdoors; total duct leakage as a percent of airflow is higher than that (Xenergy, September 2001). More recently, our 2005 field assessment of a sample of 72 homes with less than two year old central air conditioning installations in New Jersey included a visual inspection of ductwork. It found that the majority of all sealing was performed with tape, not mastic, and it suggests that there is significant duct leakage in new and existing homes. The quality of duct sealing was characterized as “poor” in sixty-seven percent of the homes. Based on visual inspection, the study found significantly different (higher) duct sealing quality in the group of homes treated by HVAC firms with NATE-certified installers3. Building energy code requirements for duct sealing help put these findings in perspective. Building energy codes in the Northeast require duct sealing in new homes or when new duct systems are installed. The 2003 revision of the New York code is somewhat unusual, compared to other states, in that it explicitly addresses “substantial renovation”. If 50% or more of a system or subsystem is replaced, the part that is replaced must meet code for the new building (Article 11 of New York State Energy Law). While not all states follow the 2003 IECC4, the following language is typical of the building energy code requirements in Northeast states:

503.3.3.4.3 Sealing required. All joints, longitudinal and transverse seams, and connections in ductwork, shall be securely fastened and sealed with welds, gaskets, mastics (adhesives), mastic-plus-embedded-fabric systems or tapes. Tapes and mastics used to seal ductwork shall be listed and labeled in accordance with UL 181A or UL 181B. Duct connections to flanges of air distribution system equipment shall be sealed and mechanically fastened. Unlisted duct tape is not permitted as a sealant on any metal ducts. (SECTION 503, BUILDING MECHANICAL SYSTEMS AND EQUIPMENT, 2003 IECC)

In summary, research suggests that air-tight duct sealing is not the norm in new construction or retrofit in the region. Furthermore, many homes’ duct systems are not in full compliance with their states’ building energy codes. HVAC Contractor Knowledge and Awareness. Market research completed in 2005 to characterize HVAC contractors’ knowledge, training, and practices related to duct sealing confirms what has been observed in the field, that some contractors have the ability to

3 In this study a disproportionate number of homes treated by NATE-certified installers were new construction. 4 New York is in the process of updating to the 2004 IECC code with some state modifications. Maine, Connecticut and Rhode Island use the 2003 IECC. New Hampshire and Massachusetts use the 2000 IECC. New Jersey uses the 1995 Model Energy Code.

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meet code and above code ENERGY STAR specifications, but that this is not the norm. Market research included a telephone survey with a sample of HVAC contractors in the Northeast as well as a focus group with ten HVAC installation professionals in Clifton Park, New York.5 Detailed summaries of the survey and focus group results are in the Appendix to this report. The telephone survey addressed a range of HVAC issues, including a series of questions on duct sealing installation practices. The focus group discussed duct sealing market and installation techniques as well as a review of duct sealing program design scenarios. The findings from the research confirmed many observations provided by industry experts (Neme, personal communication; Parlapiano, personal communication). Thus, HVAC contractors in the Northeast are be characterized as follows. Specialization. The focus group confirmed that there is some specialization among contractors; some work exclusively on existing homes and retrofits; some only work on building additions, or only on new construction. Duct Layout. HVAC contractors are typically responsible for duct layout in new construction. (Seventeen percent of those surveyed said architects or engineers were responsible (2005 Market Characterization survey). Most HVAC contractors (93% in the survey and 60% of those in the focus group) say they rely on ACCA Manual D to decide duct layout in residential new construction. Twenty percent in the survey also reported that they rely on the “rule of thumb.” It is important to note that while awareness of proper design practice is high, evidence from various sources suggests that proper design is not the common practice. Airflow. Many HVAC contractors have equipment to measure airflow through ductwork, including flow hoods, anemometers or duct blasters. Fifty percent of those in the Market Characterization survey have flow hoods and/or anemometers and fifteen percent of the HVAC contractors in the Market Characterization survey have duct blasters. However, anecdotal evidence suggests a much lower percentage have duct blasters (Neme, personal communication). Of the contractors who have equipment, most (81% surveyed) say they use it at least occasionally. In the focus group, several participants argued that duct sealing can be performed and is being performed without duct blasters, which supports the hypothesis that business as usual practice does not include pre- and post measurement. Eighty percent of the HVAC contractors surveyed said an acceptable level of duct leakage is less than or equal to 7%. Half of the contractors in the New York focus group said in an existing duct system, duct leakage of at least 20% of airflow is typical. All of the participants stressed the fact that acceptable duct leakage levels vary with existing and new construction, and they noted that some architectural designs are quirky and can make adhering to duct sealing standards difficult if not impossible. Awareness of code requirements, ENERGY STAR specification, energy efficiency programs. Based on the focus group responses, awareness of duct sealing requirements beyond conventional building code requirements is limited. While all participants in the focus group had a general awareness of New York building code requirements, only one of 10 participants was very aware of requirements, including the NY 2003 building code

5 Half of the focus group participants participate in the NYSERDA Home Performance with ENERGY STAR program.

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revision for retrofitting and sealing, the recent California Title 24 Building Code requirement for duct sealing, and the ENERGY STAR duct leakage specification. The majority of the participants were familiar with the NYSERDA Home Performance with ENERGY STAR program. Demand and Supply of Duct Repair and Sealing. While most (78%) of the HVAC contractors surveyed say they offer duct repair or duct sealing services, a majority of the contractors note there is little or no customer demand for duct maintenance and repair services. Fifty-five percent of the HVAC contractors surveyed reported customers “rarely or never” ask for these services. There is little geographic variation in this result. Focus group participants noted that most customers see comfort as a “balancing” issue, not as a duct sealing issue. These observations are supported by findings from this study’s field research that found that the large majority of customers in the study reported they were “satisfied” with their central air conditioning system, despite the fact that on-site assessments revealed “poor” duct sealing and other improper equipment installation issues in a majority of the homes that were assessed. Some participants in the focus group felt that providing duct sealing services was not sufficiently profitable to entice them to participate in an efficiency program or to expand their current business model. All participants in the focus group felt that duct sealing was not a viable strategy for filling their slow season – in part because they do not have a slow season, in part because the “cost and hassle” of marketing duct sealing are hard to justify. Marketing Duct Sealing. Word of mouth is the major market strategy for contractors for any service, including duct sealing. Participants in the focus group welcome training and NATE certification as a benefit to their own marketing efforts. They generally did not see ENERGY STAR branding of a sealed duct system as a strong marketing asset, except to higher income customers. Other HVAC Services. Roughly one-third of the HVAC contractors surveyed offer other services such as humidifiers, air cleaners and light purifiers. Most contractors surveyed (81%) do not offer duct cleaning; many feel it is either not necessary or not profitable. Potential Market Target markets for duct sealing could include all of the following: new construction, homes requiring replacements of existing air conditioning or hot air furnaces, and new installations of central air conditioning or ducted heating systems in existing homes. It is also possible that many customers with existing ducted HVAC equipment who are interested in reducing heating and cooling costs can benefit from some duct sealing in areas where ducts are exposed, or by use of techniques that seal ducts from the inside. Under this assumption, in the Northeast, the target market could include over 60% of existing homes and an even higher percentage of new construction (70% in Massachusetts). VALUE OF DUCT SEALING Although evaluation results from the Northeast on energy savings from duct sealing are not yet available, studies indicate that the energy savings can be significant. Duct sealing savings vary depending on duct location and climate; virtually all of the efficiency

5

programs that have addressed duct sealing are outside of the Northeast. Estimates developed for the Northeast based on assumptions of leakage reduced from “normal practice” to “reasonably achievable minimum leakage” are savings of 18% of cooling consumption and 13% of heating consumption (Proctor, Emerging Technologies Report, 2005). Savings assumptions from program administrators in New England who are introducing duct sealing programs in 2006 are shown in the table below. Additional description of the programs is available in the review of existing duct sealing programs in the Appendix. Table 1. Duct Sealing Program Annual Energy and Demand Savings and Costs per Home in the Northeast State Program Type Therms kWh KW Costs Source CT Retrofit Pilot6 66.6 96 0.17 $375 Swift, 2006 MA New Construction 94.2 360 0.3 n/a Blake, 2006 Little information is available on the contractor costs of providing duct sealing that includes pre- and post- ductblasting and compliance with a quality assurance procedure. Preliminary estimates in the Northeast range from $300 to $1500 per home; estimates of the administrative overhead range from 20 to 40% of the total cost. Rebate amounts offered by duct sealing programs in other parts of the U.S. fall within this range. The cost of duct sealing at the time of installation is relatively low compared to duct repair; one estimate is under $100 (Proctor, 2005). It is difficult to characterize costs because duct installation and repair is a mixture of art and science. As noted by Andrews, “the choice of materials and techniques for installing ducts is limited only by what whoever is making the decision is willing to consider. Duct repair options are more constrained. You have to work with what is in front of you”. (Andrews, 2001, Volume 6,p. 1) Repair of leaky ducts can involve repairing large leaks found during inspection as well as finding and repairing other smaller leaks. Finding and accessing the leaks is often a large part of the challenge, and expense. Furthermore, multiple products address the duct leakage issue. These include hand applied duct sealants, aerosol sealants sprayed into the ducts, as well as reduced leakage joint and fitting designs. EXISTING DUCT SEALING PROGRAMS Experience with existing duct sealing programs is concentrated in the Southern and Northwestern states. A survey of current duct sealing programs is included in the Appendix. Some programs emerged in Florida in the early 1990’s. More recently Georgia, Texas, Arizona, Oregon, California, and New York introduced programs. Virtually all of the programs provide incentive payments to defray customer and/or contractor costs. Some (Connecticut for example) offer free duct sealing to customers or free contractor training (Texas, San Diego County). Many provide training for HVAC contractors. Two programs partner with the federal ENERGY STAR program (Texas,

6 Based on assumptions of an average 100 CFM25 reduction per home; peak savings estimated based on 500 run hours and a 90% coincident peak factor.

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New York State Energy Development Authority), and at least two have duct sealing performance requirements similar to the ENERGY STAR requirements (Sacramento California, Oregon). Most of the programs use conventional marketing including stuffers and mass media outlets, as well as relying on contractors for marketing. One unique community-oriented word-of-mouth based marketing strategy used in a pilot program by Georgia Interfaith Power and Light and the Georgia Power Company is to recruit customers in church congregations. (Hinman, personal communication). Most programs specialize in serving either new construction or duct repair in existing homes, or in one case, the mobile home markets. Given that contractors tend to specialize in one market and that the programs restrict participation to trained contractors, opportunities to increase the supply of trained HVAC contractors are somewhat limited. An analysis of the energy and demand impacts from over 2000 participants in three different duct sealing program designs found that the largest energy savings and peak reductions came from the program with a performance standard that required leakage reduction to be reduced by 14% of unit nominal airflow (400 cfm per ton), a threshold that was high enough for cost effectiveness yet low enough so that 90% of the systems could be sealed to meet the standards. Other program designs encouraged cherry picking or restricted the level of sealing that was done. The study recommended that contractor incentive levels should be tied to energy savings. In particular, it recommended a two-level incentive structure as a way to allow contractors to address a large number of systems and encourage contractors to maximize sealing on systems that can be sealed beyond the threshold level. (Proctor, IEPEC 2005) The approach to duct sealing found in California is noteworthy and unique among states because it includes multiple strategies. Beginning October 1, 2005, under Title 24 of the California building energy code, a home’s ducts must be tested for leaks when a central air conditioner or furnace is installed or replaced. Ducts that leak 15 percent or more must be repaired to reduce the leaks7. Under the Prescriptive Compliance Approach, every custom home and every seventh production home must be tested by a HERS rater. After the job is complete, the homeowner chooses whether to have an approved third-party field verifier check to make sure the ducts testing and sealing were done properly or to have the home included in a random sample where one in seven duct systems are checked. Under the Prescriptive Compliance Method ducts must be sealed in all climate zones. Under the Performance Compliance Method, the builder may make credit by “trading-off” between the building envelop, water heating and space conditioning, but will probably find that duct sealing is the most cost effective measure. (http: www.title24energy.com/title24_testing.php) Strengths of Title 24 are that it provides measurable standards and includes a quality assurance component to duct sealing in new construction and equipment replacement. In addition to Title 24 there are several energy efficiency programs that address some of the barriers to establishment of a duct sealing market. The Sacramento Municipal District

7 The mandatory requirements for duct systems include: UL 181 approved tapes and sealants; no duct tape without mastic and a draw band; building cavities cannot convey conditioned air; plenum insulation must have a R4.2 resistance factor; ducts must be supported every four inches to reduce sagging.

7

2006 Air Conditioner and Heat Pump Program, for example, offers incentives to contractors for duct sealing based on measurable criteria and includes a verification requirement. In summary, California provides examples of a strategy that combines the market pull of efficiency programs that provide incentives to contractors to provide duct sealing as a remediation service with the market push of a new building energy code that includes both measurable performance criteria and a quality assurance process for duct sealing in new construction and remodeling projects. BARRIERS AND OPPORTUNITIES RELATED TO MARKET-BASED DUCT SEALING PROGRAMS IN THE NORTHEAST While the potential market for duct sealing is large, current opportunities to deliver quality duct sealing are limited, for many varied reasons. A successful market-based duct sealing program must address several barriers. These include customers’ lack of information, their lack of understanding that comfort humidity issues may be related to duct leakage, lack of a clearly defined product that customers can understand such as including measurable performance criteria, as well as customers’ inability to identify contractors with the proper equipment and expertise. In addition, customer up-front investment is a barrier. Lack of adequate training and certification of HVAC contractors is another barrier. Market research suggests that the majority of HVAC contractors are somewhat knowledgeable about duct sealing but not specifically trained and certified on duct sealing. Moreover, those who are trained and certified do not necessarily apply their training in the field. Because the residential HVAC business is a low-bid business, HVAC contractors see little opportunity for profit from investing extra time, staff, paperwork or training on duct sealing. Furthermore, duct sealing is not typically a stand alone activity. More commonly, when it is done, it is done in combination with other services. (Thomas, personal communication) Another barrier is that there is no quality assurance process in place to ensure that duct sealing is done properly. As indicated by various field studies, building codes have not proved sufficient to ensure proper duct sealing in these markets. Building code requirements in the Northeast only address the new construction and remodeling part of the target market for duct sealing. From a strategic perspective, the growing interest in duct sealing among efficiency program administrators in the Northeast, and the ENERGY STAR specification for duct sealing, are both opportunities and barriers. Utility incentives and “branding” of duct sealing can assist contractors in delivering and marketing duct sealing, but the variety of programs and program requirements sends confusing signals and adds to the “cost and hassle” concerns of contractors. While performance requirements are common and often necessary for implementation of efficiency programs, flexibility is needed to capture a significant portion of the potential market. The Massachusetts residential new

8

construction program, for example, now offers tiers of duct sealing requirements which enlarges its target market. High fuel costs are an opportunity in the sense that they can help generate customer interest and awareness of energy savings; they also increase the value of the savings to utilities. Finally, recent increases in the availability of training and certification of HVAC contractors on installation issues by utilities and trade organizations are an opportunity, as these can be leveraged by a market-based duct sealing program. MARKET RESEARCH ON DUCT SEALING PROGRAM DESIGN Based on review of existing programs and analysis of the market, three core program design scenarios for the delivery of market-based duct sealing programs were identified, and HVAC contractor reactions to these scenarios were tested in the focus group in Clifton, New York. Performance standards for the three scenarios were held constant. The scenarios included: Code Change. Local building codes are changed so that all duct systems for newly constructed homes or major renovations must be sealed. For replacing equipment on existing duct work, systems leaking in excess of 20% must be sealed to less than XX % of total airflow. Before installing any new or existing system, a contractor must include plans for testing ductwork and measuring duct leakage. Code inspections may include testing and verification of adequate duct sealing, and failure to achieve an adequate level of duct sealing will result in failure to pass code inspection. Premium Service Program. Financial incentives are offered for testing and sealing ductwork. This includes payment to the contractor upon testing duct leakage and providing test results to the customer; payment to the customer upon satisfactory completion of duct sealing; payment to the contractor for satisfactory completion of duct sealing. In addition, participating contractors will be required to attend a three-day training on duct sealing techniques. To ensure quality of service delivered, contractors will be required to call a dedicated call center and report on specific testing and performance measurements to verify that the duct system is adequately sealed. All jobs will be subject to independent testing and verification. Ten percent of all rebated systems will be independently tested and verified. Failed systems result in penalties to the contractor. Add-On to HVAC Installation Program. Duct sealing services will be added on to existing energy efficiency program or programs, such as incentives to purchase high efficiency furnaces or central AC systems, or energy audits of existing homes, for example. Financial incentives are offered to the customer and contractor. Requirements for the contractor are similar to those in the premium service scenario – requirement of free training to participate. All jobs will be subject to similar independent testing and verification. The contractor receives an incentive to become NATE certified that covers

9

the training and exam costs. The customer receives an incentive payment for each high efficiency furnace, central AC or heat pump system that is installed by a NATE-certified contractor and sized by ACCA procedures. The customer receives an incentive for satisfactory completion of the duct sealing work as well. Participants in the focus group scored each scenario based on their perceptions of the scenarios’ strengths and weaknesses, by rating a set of statements on a scale of 1 to 5, strongly agree to strongly disagree. Further details of the focus group research are included in the Appendix. The table below reports results of an analysis in which the scores from the participants were tallied, grouped according to program attributes, and “grades” were calculated as the ratio of number of participants who agreed/number of participants who disagreed with statements. Thus a score of 1 indicates opinions are equally divided, and a positive score indicates general agreement with a statement or set of statements. Table 2.a. Set of Program Attributes Evaluated by Focus Group Benefits

• This program offers clear verifiable standards so that my work will be held to the same standard as my competition.

• This program will give me added business during slow seasons. • This program gives me a good way to differentiate myself from the competition. • I think my customers would take advantage of this program.

Costs • Paperwork and inspection process sound reasonable to me. • My training needs will be adequately addressed. • This program would be a tough sell to customers. • This program will cost me more in equipment than I can recover.

Applications • This program will be effective in new construction and first-time installations. • This program will work well for retrofits.

Table 2.b Focus Group Results: Summary Scores by Scenario Attributes Code Premium Add-On Contractor Benefits 0.7 1.7 1.9 Contractor Cost 0.9 2.6 2.9 Effective for: New Construction 2.0 7.0 8.0 Retrofit 0.6 3.0 2.5 Overall Grade 0.7 1.7 1.9 Note: Score = Total of Respondents who “Agree”/Total “Disagree” In summary, the results of the focus group indicate that the participants preferred incentive programs to code change as a program approach. Discussion revealed that a

10

major concern was inconsistency of code enforcement by code officials. Also, the incentive programs are more likely to serve a larger variety of customers (new construction and retrofit). These results imply that elements of a program design that will be successful from contractors’ perspective should include:

• Clear verifiable performance standards; • Different criteria for new and retrofit applications; • Customer education; • Marketing support for contractors; • Recognition that in current practice duct sealing competes with the installation

season, most training is on-the-job, and that code change as a stand-alone strategy restricts the target market and energy savings potential from duct sealing unnecessarily.

PLAN FOR DUCT SEALING PROGRAM Strategies and Goals The fundamental goal of this program will be to create a residential duct sealing market in the Northeast to one where quality installations or repairs are standard practice. Making properly sealed ducts the norm in the residential housing sector will be expected to generate substantial energy and peak demand savings.

Program Features The program combines lessons learned from the analysis of existing programs. Key features of the recommended market-based program strategy include:

• Verifiable and enforced performance criteria; • A comprehensive incentive structure that allows contractors to address nearly

every system that has potential in both new construction and existing homes; • Hands-on in-field training for contractors; • Leveraging other national efforts, including quality installation specifications

developed by ACCA and the national Energy Star Homes program criteria and Energy Star duct sealing specifications.

• Building energy code requirements that define measurable standardized minimum acceptable performance criteria for duct sealing in new HVAC installations.

To be successful in transforming the market, the program will need to address all the market barriers to duct sealing. Given the diverse nature of the barriers and the large potential target audience, the program will have several components that are described below.

Verifiable Performance Criteria and Comprehensive Incentive Structure Table 3 identifies the performance criteria and incentive structures developed for three categories of potential duct sealing customers: ENERGY STAR Homes program participants, customers with new duct installations, and customers with existing ductwork in need of repair and sealing. These requirements are intended to reinforce customer education and provide incentives for contractors. Additional incentives to raise the skill

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level of HVAC contractors and to assist with marketing and customer education are also provided.

Table 3. Summary of Proposed Performance Criteria and Incentives

Target Audiences:

ENERGY STAR Homes

New Ductwork Duct Repair


Customer Incentive



Customer Incentive


Base $50 towards audit measuring of pre-treatment CFM

$.50/CFM

Reduction for documented treatment

Tier 1 Minimum of 6 CFM to outdoors per 100 sq ft of conditioned space

Minimum of 6 CFM to outdoors per 100 sq ft of conditioned space



Reduce by 50% or achieve <20% of system air flow



Tier 2 Minimum of 4 CFM to outdoors per 100 sq ft of conditioned space

Minimum of 4 CFM to outdoors per 100 sq ft of conditioned space



Reduce by 67% or achieve ENERGY STAR duct sealing criteria of 10% of total system leakage.8



Contractor Incentives to Support Training and Marketing • Any participating contractor who successfully completes the training and

certification qualifies for a partial rebate on the purchase of duct measurement equipment (e.g. a Duct Blaster).

8 Supply and return leakage divided by fan flow should be no more than 10% or 40 cfm/ton. www.energystar.gov/ia/products

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• Participating HVAC Contractors who successfully complete a minimum threshold number of jobs in a year will be entered into a drawing for a prize.

• Contractors who measure whole house leakage and submit documentation of the test results to the customer and program administrator will receive an incentive to help defray the cost of the test. This is a first step in educating customers about the possible interactions of duct leakage and house leakage and the impact of house leakage on the performance of HVAC equipment. It will provide customers and program administrators with information that can assist in identifying and prioritizing additional energy efficiency opportunities.

Contractor Training and Certification

Participating contractors are required to successfully complete an approved training program that includes infield practice. If contractors have previous training that covers the training program content, they must demonstrate completion of that training (e.g. certification) and be observed in the field prior to participation.

Referral/Marketing Program administrators will market the duct sealing services, and post lists of certified participating contractors on a web site.

Quality Assurance Contractors must submit documentation of pre- (retrofit) and post-duct sealing tests prior to receiving rebates. Independent testing and random verification of some sample of all jobs will take place. For example, the NYSERDA Home Performance program requires independent quality assurance technicians check the first three jobs of every participating contractor. After that, they inspect 15% of all the jobs completed. Customers can also request inspections. The test results are included in quarterly reports (Mark Dyen, personal communication). Failure in the testing and verification will result in penalties to the contractor.

Delivery These duct sealing provisions may be offered as one or more stand alone programs or as components of a building performance program and/or an efficient equipment program, depending on the portfolio and needs of individual program administrators. Economies of scale are available by providing training to contractors and independent verification and testing as services to all possible target audiences.

Building Energy Code Upgrade The incentive and performance criteria recommended to increase duct sealing is a strategy to build a market. Adopting a longer term perspective, program administrators have the opportunity to help increase opportunities for duct sealing through building code upgrades. The combination of California Title 24 building energy code experience combined with evaluation results from current and future Northeast duct sealing efforts could serve as inputs to recommendations for building code change at the national level. Program administrators can identify and begin to work with an appropriate organization, such as the Alliance to Save Energy Building Code Assistance Project, on this issue. The next opportunities for updates

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of the International Construction Code are three and six years in the future, March 2009 and 2012, respectively. Recommending code changes typically requires enlisting interest and support from around the country, including documentation of impacts including expected costs and energy and other benefits. While state-level building energy code upgrades can also be made, change at the national level would have a larger market-based impact.

Impacts on Market Barriers Table 4 shows how the market barriers will be addressed by program features. Table 4. Program Impacts on Market Barriers Market Barriers Program Feature/ Intervention Strategy Customers Lack of Information Marketing and outreach Lack of Understanding Use ENERGY STAR Brand where

applicable and incentives to send message, piggy back on other efficiency programs

Inability to Differentiate Contractors Establish Preferred contractor program with requirements for participation in incentive programs

Up -front Investment Required Incentives Contractors Lack of Training and Certification Work with trade allies to design and offer

training on techniques; Installation Skills not applied Provide in the field training; quality

assurance component; building code change; measurable criteria

Quality not Assured Require third party inspection, verification; impose performance requirements that are measurable standards

Lack of Profit Motive Tiered incentives; penalties for failed performance; provide for training; change building code to level playing field

Lack of Utility Program Consistency Encourage consistency in approaches with

neighboring utilities. Evaluate pilot efforts early to refine

incentives, messaging, savings estimates. Leveraging national efforts including the

ACCA quality installation specifications and Energy Star Homes Programs.

Evaluation and Tracking: Indicators, Outcomes

14

Measurable progress in the following areas can be tracked. In the first two to three years, the program will attempt to:

• Increase the number of HVAC contractors with good skills by promoting in-depth training on equipment, sealing products, and key issues related to design and repair;

• Increase the quality of duct installations and repairs by including measurable performance standards and third party verification of workmanship into the practice of duct sealing.

• Raise the market penetration of duct sealing services in conjunction with other efficiency services available to single family residential homes, including new construction, remodeling/replacement, and existing homes.

• Increase customer awareness by providing customer incentives for proper duct sealing practices in conjunction with other energy efficiency services.

• Increase customer and contractor perception of value. • Prepare for future building energy code update by documenting regional baselines

and duct sealing program results, as the next opportunity to update ICC code will be in 2009.

The program should be judged according to its ability to meet these objectives over the next three years. Longer-term objectives of the program are to

• Identify and make use of appropriate mechanisms for permanently institutionalizing demand for and supply of duct sealing practices in the residential HVAC market.

• Reduce the costs of duct sealing practices. • Establish consistent duct sealing requirements in the region. • Update national building energy code concerning duct sealing. • Facilitate or support efforts of regional and national stakeholders to modify ICC

Building Code to establish performance standards and a third party inspection process for duct sealing for consideration in the 2009 or 2012 update.

• Increase the regional baseline energy efficiency of new HVAC installations by changes to building energy codes related to duct sealing in some Northeast states.

Program Integration Many of the program features can be added on to existing programs that promote high efficiency heating and cooling equipment and to programs that offer home audits and weatherization services. To maximize participation, gas and electric efficiency programs should share in benefits and costs of the program features, as well as providing coordinated training, marketing and outreach to appropriate customers9.

9 If/when oil energy efficiency programs are developed, these should also share in benefits and costs of developing a market for duct sealing.

15

Program administrators should leverage other opportunities to communicate the duct sealing message to homeowners and contractors, such as outreach about equipment operation and maintenance or health benefits related to indoor air quality.

16

APPENDIX F 03-STAC-01

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