Tankless Hot Water Heaters Finally Catching On

January 29th, 2012

Tankless water heater sales are beginning to show big gains, according to a report released by the American Council for an Energy-Efficient Economy earlier this month.

Their market share of the hot water market has doubled in the last few years to 5 to 7 percent from 3 percent thanks to sales gains of 40 percent annually. The marketing campaign used – “endless” hot water – appears to be working.

Tankless hot water heater sales heating up

The trend is expected to continue too. According to the ACEEE report, tankless water heaters are projected to reach 10 percent of the hot water market by 2015. (They are, not surprisingly, most popular in the northeast where energy efficiency products have done well and less popular in the midwest where they haven’t.) Other efficient hot water technologies, like solar and heat pump, are growing too, but at a much slower rate.

The report goes on to discuss the efficiency of the gas and condensing gas tankless hot water heater. A number of studies have shown that they are about 28 percent and 36 percent, respectively, more efficient than storage hot water systems, though they also say that the results are not conclusive.

Little is said about electric tankless hot water heaters. The electric versions are seen as having less potential because, according to the report, most residential wiring is not suitable for whole house models, only point of use units.

However, in general, electricity is becoming more the power of choice for heating hot water in homes. Rising to 41 percent from 39 percent in the past decade versus 55 percent for gas. Also, electric heating is more cost effective than gas.

The leading marketers for hot water heaters of all types are A.O. Smith (half the market), Rheem (a third) and Bradford White (13 percent). All three make gas tankless heaters, but only Rheem also makes the electric models as well.

Solar hot water is reported to be 50 percent more efficient than standard storage hot water heating systems, while heat pump water heaters are said to be 55 percent more efficient.

The report is titled Market Transformation Efforts for Water Heating Efficiency.

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State Renewable Heating Rebates Survive 2011

January 14th, 2012

State solar thermal and geothermal heat pump rebates did no worse or, at least, not much worse, than solar electric did in 2011. There were some casualties and delays, but on the whole most programs made it through the year.

To be sure, there was nothing new other than a Massachusetts solar thermal rebate pilot program that ends next month. That means, as has always been the case, that the east and west dominate the lists of states – 14 solar hot water and 7 geothermal heat pump – that offer these rebates.

Solar thermal panels in upstate New York

Only one midwest state and two southern states crack the rankings. Wisconsin has a solar thermal rebate and Virginia has one of the better geothermal heat pump rebates, while Kentucty has one program that offers rebates for both.

The states were all over the map on one score though. They had many different ways of awarding the solar hot water rebates, including by the amount of heat the system provided and as a percentage of the system’s cost. (My source for all the information is the DSIRE web site.)

You’ll need to know how big a system you’re going to get before you’ll know how good your rebate will be. For a family of four, expect to pay $4,000 to $7,000 for a solar hot water system. It’ll occupy about 40 to 50 square feet, have an 80 to 120 gallon tank and use about 3,000 kWhr annually.

The heat pump is generally a bit simpler. Mostly, it’s measured by the ton and six tons would surely be the maximum for most homes.

Here are this year’s ranking:

2012 State Solar Hot Water Rebate Rankings

1. New York – $1.50/kWhr up to $4,000
2. Wisconsin – $2,400 maximum
3. Connecticut – $275/MMBtu*
4. Vermont – $1.50 100 BTU/day
5. Kentucky – 20 percent of cost up $2,000
6. New Hampshire – $1,900 maximum
7. California – $1,850 (replace gas); $1,250 (electric)
8. Illinois – 30% of cost**
9. Pennsylvania – 25% of cost***
10. Oregon – $1,500
11. Delaware – 20% of cost
12. New Jersey – $1,200
13. Maine – 25% of cost up to $1,000
14. Hawaii – $750

2012 State Geothermal Heat Pump Rebate Rankings

1. Oregon – $8,400
2. Connecticut – $1,050/ton
3. Delaware – $700/ton to $800/ton
4. Maryland – $500/ton
5. Kentucky – $2,000
6. New Jersey – $300 to $600
7. Virginia – $300 to $600

* Taking applications only for customers of one utility.
** Ends in July
*** Waiting list

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State Solar Rebates In 2011 Showing Slippage

January 8th, 2012

Another year of sparse state solar installation rebates and as with most state government programs it has gotten worse. Two states are out, several are offering lower rebates and one is temporarily shut down.

There is one piece of good news. New Hampshire added $500,000 to its renewable energy rebate program. The bad news is that Colorado and Arkansas no longer offer solar rebates. Maryland, Nevada, Oregon, Vermont and Wisconsin are offering lower rebates, while the Illinois solar rebate program isn’t taking any more applications until July 1 after shutting down last year because it was out of money.

Solar panels on a new house in New Hampshire

The elimination of the rather modest rebates in Arkansas leaves the south without any rebates. The midwest has in Wisconsin only one until Illinois starts taking applications again. What’s left is the not unsurprising fact that all the other states offering solar rebates are in the Northeast and the West. (Delaware’s rebates are through a utility that covers the state; so too in Oregon where two utilities offer rebates at different rates.)

California remains atop the list, which is only fitting. The state has by far the most solar capacity with over 50 percent of the U.S. total. It’s likely to stay on top too because of 10-year program to fund solar installations enacted in 2009.

Not to be too downcast, there are other ways to get solar rebates. Utilities throughout the country offer them to their customers and they can be just as generous or as cheap as the states. There are too many to list here however. Check the DSIRE web site for complete listings for every utility offering rebates in every state.

The Federal government also offers a financial incentive. It gives individuals a 30 percent tax credit for any solar installation purchased by 2016.

The state programs cover every residence in the state. Most states offering rebates do it on a per watt basis and many of them put caps on how much a homeowner can receive.

2012 State Solar Rebate Ranking

1. California – $2.50 per watt
2. New York – $1.75 ($12,250 maximum)
3. Connecticut – $1.75 (first 5 kW; $1.25, next 5)
4. Nevada – $1.70 (maximum $17,000)
5. Oregon – $1.25 ($5,000 or $15,000 maximum)
6. Delaware – $1.25 (up to 5 kW; .$75 next 5 kW)
7. New Hampshire – $1.25 (up to 5 kW)
8. Massachusetts – $.75 ($8,500 maximum)
9. Pennsylvania – $.75 ($7,500 maximum)
10. Vermont $.75 ($7,500)
11. Wisconsin – $.60 ($11,500 maximum)
12. Maine – $2 ($2,000 maximum)
13. Maryland – $1,000

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