Energy Factor and water heating technologies

A different sort of green home

According to the US Dept of Energy's website, energy factor (EF) indicates a water heater's overall energy efficiency based on the amount of hot water produced per unit of fuel consumed over a typical day. This rating applies to a variety of water heater equipment: tank-style (storage), tankless/on-demand, and heat pump water heaters (HPWH).


Solar water heating has a very similar rating called the Solar Energy Factor (SEF).  Solar equipment is evaluated for thermal performance efficiency by an organization called the Solar Rating & Certification Corporation (SRCC).  The federal tax incentives for the installation of solar equipment are contingent on the solar water heating equipment having been evaluated by the SRCC.  The SRCC developed the SEF for the purpose of comparing solar water heating systems to a standard 50 gallon residential water heater in an apples-to-apples sort of way. Many natural gas utilities use the industry standard EF rating system to award rebates for high performing water heating equipment.  Since SEF is the solar equivalent of EF for a standard water heater, my view is that solar water heating systems that meet EF ratings for high performance equipment should qualify at a minimum for the existing utility rebate programs.


So how do different water heating technologies measure up with respect to energy efficiency?


Tank storage water heaters

Bradford White 40 gallon gas water heater

Typical residential storage water heaters range in size between 40 and 80 gallons.  This volume of water is heated up to the desired temperature (120 degrees F); the heating element or burner cycles on and off as a thermostat in the top portion of the tank detects adequate heat or not.  This is usually the least expensive water heating technology to install but is also normally the most expensive to operate. Recovery of the heat in the tank during and after use can be slower than with other water heaters which leads to the cold showers in high use situations.


EF rating for gas heated tank water heaters:

• Low efficiency -- < 0.62
• Medium efficiency -- 0.62 to 0.67
• High efficiency -- 0.67 to 0.82

EF rating for electric heated tank water heaters:

• Low efficiency -- <0.90
• High efficiency -- up to 0.95

Keep in mind that EF rating is only with respect to the energy efficiency of the appliance.  The electricity that heats the water in an electric tank model could be coming from sources with varying degrees of efficiency and environmental impact.

Tankless

Tankless water heater (top right) in conjunction with a solar water heater

Also called on-demand water heaters, these units heat water as it flows through the device.  They are capable of reducing water heating costs 10-20% due to the elimination of standby losses (constantly heating a tank of water even when no hot water is needed).  Tankless units come in electric, natural gas, and propane versions for different markets.  Not only are these a bit more energy efficient than tank style water heaters, they are also compact, wall mounted devices to save space in the mechanical room and they can provide almost unlimited amounts of hot water.


The EF rating for gas-fired tankless units ranges between 0.82 and 0.96. 


Heat Pump Water Heaters

From DOE

In a heat pump water heater, electricity is used to move heat from the air around the HPWH into the water tank versus directly heating the water with resistance coils.  Since the heat pump cycle can take a significant amount of time to heat or reheat a tank of water, electric resistance coils are included in HPWHs to augment the recovery of the water heating and thus minimize cold shower scenarios.  HPWHs can be very energy efficient and cost effective when the HPWH is operating in the heat pump mode; they revert to EF ratings of electric water heaters when the resistance coils kick in however.  Like with many things in the sustainable building world, efficient design is only part of the total picture.  How something is used in the real world effects its overall efficiency. 


EF ratings of HPWH in hybrid mode is 2.20 and fall off towards 0.93 in electric mode (average ~1.60).


Solar Water Heaters

In solar water heaters (SWH), the heat from the sun's radiation is transferred to drinking water during the day and stored in a tank of water for use throughout the day and night.  In homes where a 40 gallon tank water heater is appropriate, you'll find a 60 gallon solar storage tank. Because the amount of energy to move the heat from the solar collectors to the drinking water is minimal and the sun's energy is free, the operating costs of SWHs are the lowest of any water heating technology today. They are also the lowest carbon option when the system offsets fuel from gas appliances or electricity from coal-fired plants. SWHs have the highest upfront cost in the water heating space, but federal and state incentives exist to encourage their adoption since they provide a benefit to both the system owner and society as a whole.


Calculating EF from the SEF rating developed at the SRCC is done with the following equation: SEF x (1 - SF) = EF. SEF and SF (Solar Fraction) are calculations from the OG-300 report on each system found at www.solar-rating.org. EF ratings on SWHs range from 0.93 up to over 5.70 depending on the size of the system, location, and back up fuel option.


Summary
The less you pay upfront for a water heater, the more you pay over time.  As fuel prices of all sorts rise in the future, an investment in efficiency today will pay increasing dividends over time.

How to sell a solar water heater in a market with cheap natural gas

With the price of natural gas at a historically low point, selling a solar water heating system in natural gas water heater markets is a tough proposition. While we have to address return on investment as solar professionals, there are many other factors that go into a customer's decision making process about going solar. Solar water heating isn't for everyone so broad brush approaches won't work. The key is to target the right audience with the right message before you spend much time or money. The following is a guide to help you do this.

What to talk about

John Cole Cartoons

People are interested in distributed solar energy for a number of reasons.  Residential solar water heating continues to be an exceptional option in the portfolio of clean energy choices a homeowner has.  Energy cost savings is just one aspect of a clean energy purchase.  Make sure that you are talking about all the other reasons for pursuing solar.  Here are some good ones to start with and expand upon:

• Solar water heating (SWH) is a cost effective way to reduce home energy consumption by over 10%.
• Like electric vehicle purchases, SWH is a visible commitment to clean energy for a much lower sticker price than any car.
• When built into a new home, the net cost of a SWH is on par with the cost of a tankless water heater yet SWH outperforms tankless units in energy savings (EF of 0.82 for tankless vs 1.4 for SWH)
• While low now, the price of natural gas is set to rise with growing demand from electrical generation and transportation as well as with increasing scrutiny of hydraulic fracturing (fracking) practices. A SWH installed today is a hedge against rising fuel prices.
• Talk about the avoided costs & externalities of fossil fuels. Natural gas may be cleaner than coal, but it's hardly clean in comparison to solar water heating.
• Solar water heating creates local jobs--engineering, installation & service, sales & marketing, and distribution.

Tell the story to the right people

You need to maximize the impact of your messaging by positioning them in front of the right audience. The right audience is one that is both receptive and responsive to your point of view. To encourage a conversation and spur interest in SWH, the best approach is a combination of Facebook and blogging. Articles that address your messaging can't be neutral. You have to make a point either with your own blog posts or with comments on articles written by others. Your opinions may alienate some people, but those people are probably not receptive or responsive to clean energy issues in the first place--your target customer is. There are people out there who are concerned, knowledgeable, angry, and ready to act if they find a leader in their community with a solution that resonates with them. Solar is part of the solution and you are that solution provider.  Don't make any assumptions about who a receptive and responsive customer might be; stirring up a conversation about the issues that got you into the solar business in the first place will bring them to you.

Where to tell the story

Web marketing is a hot topic with lots of nuance.  It is an essential part of modern business and is redefining the fields of public relations, promotion, sales, and general marketing.  In the interests of getting you started today, I suggest working with the steps below.  Expand and modify as you get more comfortable and learn more.

1. Find an article that resonates with you and your team.  Get your friends, family or co-workers to suggest an article to post and select one.
2. Post the article to your Facebook business page (make a Facebook business page if you don't have one and encourage people to "Like" it).
3. Make comments on this post that tell your target audience why this article is important to you. 
4. Get all your friends, family, and co-workers to "Like" the article so their network sees it too.
5. Directly ask people to read and comment on your post (via email, phone, twitter, FilterTweeps,  etc).  
6. Repeat every workday.

Once you get comfortable with this daily effort, you can branch out a bit by writing your own blog articles.  Post it to your company website or some other website (Tumblr, Blogger, etc).  Use this as your Facebook link of the day and encourage the comments as suggested above.  Also while Facebook is the current dominant player in social media, explore using other sites like Twitter, LinkedIn, Google+, or any of the other growing number of websites to expand the reach of your effort.

Keep at it

Cheap natural gas makes for a difficult sales process for solar water heating. Difficult but not impossible. Continually remind yourself why you got into this business in the first place and find creative ways to connect with like-minded people. Tell people about your company and its goals.  Keep people continuously aware of your projects to build on successes. Help people connect their daily behavior to greater social trends. Be consistent, be informative, and be real. You'll begin to find that the right people will find you.

Talking solar at the CCGT

I spoke for the second time at the Chicago Center for Green Technology last Tuesday night.  The first time was last September and it went well enough for them to invite me back for another go at it.  My presentation covered solar water heating technologies in a broad way and has been set up to be a continuing education course for AIA architects.  Despite it being Valentine's Day, we had a rather large turn out with over 40 people in the audience.  The CCGT has been seeing strong attendance with all the their courses in this winter session.  I feel the general awareness level of the public is continuing to grow with respect to sustainable building practices and with solar technologies in particular.  The questions from the audience were more technical and specifically focused for projects that people are seriously considering.  I have even had 2 subsequent site evaluations from my talk for solar projects in Chicago from people interested in solar for their particular buildings.

 
I speak all the time about solar water heating and solar technologies in general so feel free to reach out to me about arranging a talk with your group!

The Atlantic's The Most Important Graphs of 2011 (Energy)

From The Atlantic's The Most Important Graphs of 2011

4. ENERGY, ENERGY, ENERGY

Oil Profits v. Oil Prices

"Big oil companies make larger profits when oil and gasoline prices are high.  These revenues come from the pockets of everyday Americans.  The five biggest oil companies - BP, Chevron, ConocoPhillips, ExxonMobil and Shell - have already made $100 billion in profits during the first three quarters of 2011 due to high oil prices. Yet they and other big oil companies have fought tooth and nail this year to retain tax breaks worth $4 billion annually." -- Daniel J. Weiss, senior fellow, Center for American Progress

The Most Disastrous Year Ever

"The National Oceanic and Atmospheric Administration reports that the United States set a record with 12 separate billion dollar weather/climate disasters in 2011.  Total damages were approximately $52 billion.  NOAA Chief Jane Lubchenco noted that "what we are seeing this year is not just an anomalous year, but a harbinger of things to come for at least a subset of those extreme events that we are tallying."  She noted that some of the increase is driven by climate change." -- Dr. Joe Romm, Senior Fellow and Editor of Climate Progress

A Century of Love for Oil and Gas

"Many conservatives have attacked the Obama administration's effort to invest in emerging clean energy technologies, including wind and solar electricity generation. Yet they defend longstanding tax breaks for the mature oil and gas (O&G), and nuclear industries. However, the federal government annually spends an average of thirteen times more money on the oil and gas industry compared to investments in renewable energy." -- Richard Caperton, Director of Clean Energy Investment, Center for American Progress

Our Competitors' Green Investments

"On the two-year anniversary of the American Recovery and Reinvestment Act, we should look back with satisfaction that we have seen the American clean energy industry through a rough period in the global economy. However, the United States risks ceding its gains and falling dangerously behind its competitors without continuing investment.  Many conservatives oppose such investments.   Without it, the United States will see an exodus of firms and capital to countries that  are growing their clean tech industries, particularly China and Germany. U.S. private-sector firms lament a lack of clear and consistent policy on clean energy. This stymies investment and slows job creation." -- Bracken Hendricks, Senior Fellow, Center for American Progress

Where the Green Jobs Are

"The failure of several clean energy companies that received loan guarantees have many conservatives increasing their opposition to such investments.  However, clean energy has been a bright spot in the sluggish economy.  The clean economy sector focused on clean energy--especially wind, solar, fuel cell, smart grid, biofuel, and battery companies--grew far more quickly than the economy as a whole. A Brookings Institution report found major job growth in clean energy between 2003 and 2010: Solar thermal and wind grew by 18.4 percent and 14.9 percent, respectively." -- Kate Gordon, Vice President for Energy Policy, Center for American Progress

Solar isn't a new idea

We are like tenant farmers chopping down the fence around our house for fuel when we should be using Nature's inexhaustible sources of energy — sun, wind and tide. ... I'd put my money on the sun and solar energy. What a source of power! I hope we don't have to wait until oil and coal run out before we tackle that.
                  - Thomas Edison

Renewables face stiff competition in the energy PR war

Companies selling legacy energy products (oil, natgas, coal) are winning the public relations war over climate change.  This makes sense in a way since they have a lot more to lose than the clean energy companies have to gain.  Fossil fuel centered companies have an elaborate (and expensive) strategy to undercut the value proposition that solar & wind companies have been trying to make in the court of public opinion.  Front and center in this fight is to deny that humans have any impact on the climate and that any changes that might be occurring have nothing to do with burning carbon based fuels.

As you'll see in the chart produced by Riley Dunlap and Aaron McCright, two university sociologists, climate change denial is a well-organized, comprehensive affair.  Regardless of how you feel about this issue, I find it very interesting that so much money, human energy, and legislative time is being committed to refuting something that has an objective answer.  This tells me that the parties in the matrix below are more savvy to the fact that how we feel about an issue matters more in spurring action than whether the something is true or not. Deceptive messengers typically jaundice common sense people to the message however, and truth has a tendency of coming out in the end regardless of obfuscation efforts.

Idealism doesn't drive sustainable energy development

Northern Iowa Wind Farm - (Going Green In Orange)

A recent article on Renewable Energy World asks the question how did the US grow an energy consciousness.  I can't say that I agree with the implicit assumption the title makes.  I don't think most Americans really think about energy all that much or how important our current existence is on inexpensive, readily available, easily stored energy.  The United States is blessed (or cursed) with abundant natural resources.  This has clouded our collective long term thinking with respect to energy.  We are able to look at availability of energy on a very short term basis because we've had such a consistent supply of all forms of it for so long.  When was the last time anyone pulled into a gas station and found the filling tanks were empty?  How often do blackouts occur on the power grid? When either of these disruptions happen, big challenges ensue but fortunately they haven't occurred that often.  We get the power we want, when we want it, and it doesn't really cost us that much.

Compare this to energy situation of other countries around the world.  Island nations typically have very limited energy options. Their geographic separation from adjacent countries forces them to generate electricity locally and import petroleum via tanker ship--very costly and risky for their national security.  Japan, the world #2 for installed solar, has also resorted to massive reliance on nuclear which is now showing it's flaws in the most catastrophic way possible.  Faced with limited options, people take risks that they otherwise may not have taken.

Island of renewable energy (Michaelis Energy Island)

Germany is another story as well.  As the global leader in renewable energy development with 17% of its electric power capacity coming from renewables, outsiders may think that the Germans have a particularly strong commitment to clean energy.  While environmental reasons are now one of the arguments that Germans make for continuing their current energy policy, national security issues regarding supply of natural gas were the real spark for their dramatic shift towards wind and solar.  Since the fall of the Soviet Union, Russian natural gas companies have periodically played games with the supply of natural gas flowing to western Europe.  The spark that woke up the German populace was a disruption of gas during the peak heating season over the winter of 1992-93.  Cold homes in the winter are a strong motivating force for spending more on local energy.

The main message that Americans have heard regarding renewable energy is that it's good for the environment.  This is an idealistic message that has been both polarizing and lacking in teeth to drive tangible action by even those who believe the message.  Many people immediately think Quixotic farce when they hear anything about solar or wind development--overly idealistic and impractical.  Focusing on the environmental component to renewable energy makes this a political discussion where there are perceived good guys and bad guys.  We also get a lot less personal satisfaction from an effort to conserve energy while a neighbor continues to be profligate with his consumption and waste.  Our environmental savings are easily erased by people not of the same mindset.  None of this serves the purpose of a steady state energy system where we all have access to reasonably priced energy without the negative externalities of fossil fuels.

My read on the US energy situation is that we have about 10 years or so to make some dramatic changes in our mix of energy options to avoid disruption issues that other countries have already had.  10 years is a long time in the sense that we could (and probably will) chose to continue procrastinating on making the spending decisions that we need to make.  10 years is a short time in the sense that the capital improvements we need to make could take that much time or longer to actually complete.

The RE World article I reference above makes the case that governmental policy has been the most effective change mechanism in the US.  Maybe so but our current energy mix has very little renewable energy in it other than hydroelectric.  I honestly can't tell what the spark will be to awaken the sleeping giant once again and unite our efforts behind a common cause.  Hopefully, it will be something much less dramatic than Pearl Harbor was.

The worst kind of wake up call

- Let's use our brains people and get ahead of these very foreseeable future energy challenges.

Seducing your solar customer

Great link for more tips from Don Draper on how to woo women, I mean solar customers

As I prepare to head up to Custer, WI this weekend for the MREA Energy Fair, I started thinking of a different approaches to solar sales and marketing.  Many of the people involved with solar energy are so enthusiastic about it that it lead me to the conclusion that green energy fairs are a lot like a singles bar for environmentalists. It's the place renewable energy enthusiasts go to be seen and meet new sustainable products.  So continuing down this line of thought, I realized that the art of meeting members of the opposite sex is merely a very personal sales process.  Just as there are no "10 easy steps" to meeting someone interesting, there is no checklist that will guarantee that you to close more solar business.  That being said, there are some effective strategies to consider, re-consider, apply, and refine in both venues before you set off to woo.  Take some time to think about your "game" and put some of these strategies into action. 

Pay attention.  Focus all your attention on your customer to learn their true solar motivations.  Look at them in the eyes.  Smile at them.  Be enthusiastic about their enthusiasm.

Warm them up.  Be friendly and make it fun for your customer to work with you.  Suggest things to them--don't tell or push them.

Let them talk.  Dominating the conversation is a big turnoff for almost everyone.  Probing questions that give them room to talk are key.  Talk too much and you'll come off as a pushy salesperson.

Take a little care of yourself.  You need to take a shower but the point here is to have a consistent message and corporate appearance that reflects your commitment to providing a professional product.  Bad business cards, logos, company names, and inconsistent solar messaging are the equivalent of long nose hairs or bad breath to a solar business.  Don't Jersey Shore your corporate image though as the sustainable energy community is about doing more with less.  Simple yet consistent is the way to go.

VELUX solar systems only need a 3-person crew to install although it might take all 7 of the Jersey Shore.

Be persistent.  Don't let a rejection get you down.  No matter how good your game might be, not all people are going to click with each other.  The key is to stay in the fight and keep working the crowd.  Have the confidence that renewable energy is the key to a stable future and that there are other like-minded people who you will click with just around the corner.

Don't be too serious.  Despite the many negatives surrounding our current energy situation, don't dwell on the gloom & doom.  Seduction is about making people feel better about themselves.  Turn negatives into positives and draw solar customers to you.  Lighten things up with a natural humor.

Play hard to get.  Solar isn't for everyone.  A subtle cockiness about the exclusivity of joining the solar club will pique interest.  Even though solar is expensive for many, it's not for all.  Those are the people we want to find and they typically don't make buying decisions solely on price.

Time to perform once the deal is closed.  Meeting new people is hard but once they say yes, you aren't home free yet.  You have to remember that the way your installation goes will be a huge factor in repeat business to that customer's peer group.  Neighbors will ask about your customer's system and will be curious about the installation company.  You'd be surprised how many new solar people drag their friends and family to their basements to show off their solar heat or electricity so dress up the balance of system components to impress.  Satisfied customers are your biggest marketing ally.