western region conference - trends and drivers in hvacr energy efficiency incentive programs
DESCRIPTION
Talbot Gee, HARDI's EVP & COO discusses drivers and trends being seen in the world of energy efficiency incentive programs at the 2011 HARDI Western Region Conference.TRANSCRIPT
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Trends and Drivers in HVACR Energy Efficiency Incentive Programs
Presented by:Talbot H. Gee, HARDI
Prepared Exclusively for:HARDI Western Regional Conference
Las Vegas, NVMarch 21, 2011
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• Curbing the high-efficiency equipment slide• Update on the U.S. energy efficiency market• Why the Western Region is especially important• How to capitalize on EE incentives
Objectives: Maximizing $6+bil1. Market and EE overview2. SCE Program Highlights3. Discussion with Dale Gustavson, Better Buildings4. NV Power: Program Specifics with Tom Downey5. Q&A
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19901991
19921993
19941995
19961997
19981999
20002001
20022003
20042005
20062007
20082009
20100.0001.0002.0003.0004.0005.0006.0007.0008.0009.000
A/C & HP Units (in millions)
A New Normal?
Ten year avg: 6.35 million unitsSource: AHRI, JP Morgan
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U.S. Factory Shipments of Central A/C and Air-Source HeatPumps to HARDI Member Sales
12/12 Rates-of-Change
-20
-15
-10
-5
0
5
10
15
20
'05 '06 '07 '08 '09 '10 '11 '12
Shipments
-20
-15
-10
-5
0
5
10
15
20HARDI
Shipments
HARDI
AHRI Shipments in 2010 were 0.2% above the 2009 level. HARDI Member Sales were up 10.5% in 2010.
The peak in the 12/12 business cycle for AHRI is a potential sign of weaker HARDI Member Sales growth in the coming months.
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U.S. Factory Shipments of Central A/C and Air-Source HeatPumps to U.S. Housing Starts
12/12 Rates-of-Change
-20
-15
-10
-5
0
5
10
15
20
'05 '06 '07 '08 '09 '10 '11 '12
Shipments
-60
-45
-30
-15
0
15
30
45
60Housing
Shipments
Housing Starts
ITR predicts a 1.5% decline in 2011 housing starts from 2010, forecasting 579,000 units. This does not bode well for 2011 unitary shipments given this historical correlation.
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2011’s Efficiency Mix
Source: JP Morgan 2011 HVAC Outlook, CEE 2010 Annual Report
Since 2006:
Nearly 5x increase in >15 SEER unit shipments
Over 2.5x increase in >13 SEER unit shipments
2010 record $5.4 bil in US electric efficiency funds
…but 27% drop in total unitary volume (7 mil to just over 5 mil)
HARDI est. 78% 13 SEER in 2011
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System Replacement Rates Plummet
Source: JP Morgan
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• “It is important to keep in mind, that the economics of energy efficiency, even with the help of the government, are generally not attractive enough, in our view, to drive discretionary replacements without a “green” incentive, as most consumers tend to focus on the upfront costs of replacing a new system. This is best exemplified by the significant pre-buy seen when the industry transitioned to 13 SEER in 2006- distributors clearly saw that the value delivered by higher efficiency was not commensurate with the higher price.”– JP Morgan 2010 HVAC Market Review & Outlook
The Appliance Standards Effect
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• $5.4b is electric• 39% C&I• 31% Resi & low
income• 75% in West for
EE
All of This Despite…
Source: CEE 2010 Annual Report
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Source: CEE 2010 Annual Report
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• CA, NY, FL, MA accounted for 50% ($2.7b) of 2010 budgets
While Leading, CA is Not Alone
Source: CEE 2010 Annual Report
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Simpler to design, implement, and justify+
Cheaper to design, implement, and justify+
More effective (i.e. better uptake) =
Better prescriptive OR performance based
Utility Efficiency Program Needs
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• 2010 Program Highlights– Added incentives for water-cooled chillers and variable
refrigerant flow equipment (VRF)– 10 GWH energy savings and 4 MW demand reduction– Incented over 42,000 Tons with 31% annual growth rate
Southern Cal Edison Distributor Incentives
Source: CEE 2010 Annual Report
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Snapshot of Others in CA
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Other Notable Western Region Programs
Source: 2010 CEE Annual Report
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And a few more…
Source: 2010 CEE Annual Report
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• HARDI Foundation to form:
Center for Energy Efficiency Optimization– Will study how wholesale distribution can best drive
and influence energy efficiency
Support Your HARDI Foundation!
Maximizing EE $$
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• Better Buildings Inc. www.betterbuildings.com• Staff for Western HVAC Performance Alliance• SCE and PG&E program support
Q&A w/ Dale Gustavson
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• Tom Downey, Field Manager, Proctor Engineering
• Anne Marie Blankenship, Program Manager, Resource Solutions Group
Nevada Energy Program
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Questions