Heat Pump. Using Propane Heating Systems

Transcription

1 Battle The Electric Heat Pump And Win Using Propane Heating Systems to ooupe Outperform the ecompetition o

2 Trivia In what year was the first propane stove introduced for cooking food in the home? 1912 What year was the first propane-powered vehicle introduced? d? 1913

3 Trivia About 56% of the energy consumed in most About 56% of the energy consumed in most American homes is used for heating and cooling.

4 Facts What percentage of the United States propane p supply is produced domestically? 90% What percentage of the remaining supply is imported from Canada and Mexico? 70% What is readily available and is a secure energy source? Propane

5 Residential Propane Uses Heating and Cooling Homes Heating Water Cooking Drying Clothes Fireplace Barbecuing Outdoor Lighting Refrigeration Combined Heat and Power Vehicles

6 MARKET POTENTIAL

7 Terminology Air Source Heat Pump p( (ASHP): most common electric heat pump application Ground Source Heat Pump (GSHP): sometimes referred to as geothermal or geoexchange Hybrid Heating System: ASHP or GSHP combined in same system with high h efficiency i gas furnace Combi-System: general term for an integrated space and water heating system. A hot water source (boiler, tankless) provides both the domestic hot water and hot water for space heating

8 The Time is Now! Situation Typical Service Lifetimes Housing boom of the late 90s HVAC Systems (12-15). 15) and 2000s. High Efficiency was an afterthought. th ht Age of Main Heating System in Contractor grade, minimum Residence (Years) efficiencies were common Opportunity Homeowners are already replacing original heat pumps, furnaces, & water heaters from homes built in the 1990s & early 2000s. Plus $150 Tax Credit on 95% AFUE gas furnace. ts Millio ons of Housing Unit < Don't Know 8.0

9 Life Expectancy Propane furnaces have a life expectancy of 20 years according to RESNET. Air Source Heat Pumps are estimated to have a life expectancy of 12 years according to ENERGY STAR. Life Expectancy Propane Furnace Air Source Heat Pump

10 Propane Offers: Options, Performance, and Value Replace and upgrade air-source heat pumps (ASHPs) with high efficiency propane systems. ENERGY STAR Propane Furnaces. Hybrid Heating Systems. Propane Tankless Combi Systems. Value Propositions. Lower energy costs. A more comfortable home. Competitive/equal first costs (including tax credits). Direct vented furnace systems are ideal and typically y offer higher performance. Many propane furnaces achieve AFUE Ratings, with several 98 AFUE.

11 Propane Use Housing starts in 2012 were up 24% from the previous year. About 5% of these homes will heat with propane. In existing homes across the United States, more than 14 million families use propane in their homes. About 5% of these homes heat with propane. 2,000 Housing Starts By Year (number of housing units in thousands) 1,750 1, Years Old 1,250 1,

12 New Construction Propane is a great alternative if natural gas is not available in the area of fthe new home. It is very energy efficient based upon the many options of furnaces and water heaters that can be chosen for a new house.

13 EFFICIENCY BENEFITS

14 Heating Efficiency of ASHP s in Colder Regions HSPF (Heating Seasonal Performance Factor) is the most common measure of the heating efficiency for heat pumps. HSPF is a heat pump's estimated seasonal heating output in BTUs divided by the amount of energy that t it consumes in watt-hours. HSPF ratings are based on testing in a moderate climate condition. Seasonal performance will vary depending on climate zone.

15 Question: An ASHP rated at 9.25 HSPF was installed at a new house in Chicago, which is located in Climate Zone 5. According to a US DOE/Energy Information Administration adjustment calculator, what is the real HSPF for this cold climate heat pump? Is it: What is the efficiency rating of a 90% AFUE Propane Furnace in: Always Chicago, IL y Bangor, ME Atlanta, GA 90%

16 Actual ASHP Efficiency in Mixed and Cold Climates Implications ASHP: Not only do efficiency ratings decline when ASHPs are located in colder climates, but an increase of auxiliary (electric) heat comes on during the 2-10 minute defrost cycle. Better Alternatives: High-efficiency propane furnaces are very economical, and were found to be the most affordable to purchase and install compared with alternative systems. Tankless combi systems that use high efficiency propane furnaces. Hybrid heating systems including high efficiency propane furnace Source: Performance Comparison of Residential Heating Systems: Energy, Economics, and Emissions 2011 Analysis Update.

17 Adjusting ASHP Heating Efficiency Based on Climate The actual heating efficiency and seasonal performance of an air-source heat pump that uses electric resistance heating as the auxiliary heat source may vary significantly from the rating it receives when tested under the standard procedures and conditions that manufacturers use to determine heat pump efficiency. U S Energy Information Administration; U.S. Energy Information Administration; Heating Fuel Comparison Calculator.

18 Adjusted Efficiency Adjusted efficiency of a 7.7 hspf (nominal) heat pump with electric back-up.

19 How Efficient are Heating Systems Over Time? ASHP Efficiency levels degrade over time. Field evaluations have shown efficiency fall-off is greater in ASHPs than furnaces. US DOE Building America program has established efficiency de-rating formulae based on type of system, age, and level of maintenance

20 Adjusted Efficiency Estimates, Over Time, for ASHP and Propane Furnace AGE ASHP:7.7 7 HSPF (NEW) Propane Furnace: 80 AFUE (NEW) % Reduction from New to 15 Years 36.7% 20.3% *Efficiency De Rating Formulae Source: US DOE Building America Performance Analysis Procedures for Existing Homes *Calculations for both systems included a maintenance factor within the calculations, which assumed little/no system maintenance.

21 High Efficiency Propane Furnaces: The Best of Both Worlds $14,500 $14,000 $13,500 $13,000 $12,500 $12,000 $11,500 Average First Costs of System High eff. (95 AFUE) propane forced-air furnace & 13 SEER A/C High eff. (15 SEER; 8.5 HSPF) ASHP w/ electric resistance backup 90+ Propane furnaces are cost-effective. Installation is cost effective with the use of PVC as the sidewall venting material. Side-wall venting also provides floor plan flexibility (no vertical flue). Upfront savings when a high h efficiency i furnace is paired with a standard central-air conditioning system. Source: Performance Comparison of Residential Heating Systems: Energy, Economics, and Emissions 2011 Analysis Update.

22 Most Efficient ENERGY STAR Most Efficient is the upper tier of all ENERGY STAR qualified furnaces. Very stringent efficiency requirement: AFUE 97. Nearly all of the energy from the propane is capture as heat. Heating oil furnaces are not eligible for the Most Efficient category.

23 Most Efficient Propane Furnaces Over 20 different brands are listed on ENERGY STAR s Most Efficient website.

24 INSTALLED PERFORMANCE

25 Field Performance Considerations Installation Reliability Furnaces: Mostly plug and play. ASHPs: Potential for incorrect refrigerant charge.* Improper charge affects efficiency, but sometimes not enough to call attention to the problem so inefficiencies can be longterm. Customer Satisfaction Air delivery temperatures and comfort levels. Air delivered from ASHP can be around F. Air delivered from propane furnace can be F. * Energy.gov: Air-Source Heat Pumps,

26 ALTERNATIVE SYSTEMS Did you know?

27 Integration Heat pumps will typically switch to electric resistance back up when temperatures reach low 40s - high 30s. Great opportunity to introduce a propane furnace that will switch on at those temperatures to provide the needed heat in the home. Known as dual-fuel or hybrid heating systems. Hybrid heating systems also help with proper sizing of Hybrid heating systems also help with proper sizing of heating and cooling systems.

28 Hybrid Heating Systems ASHP s In some areas of the country ASHPs are the dominant choice for heating (milder climates). ASHP s use the difference between outdoor air temperatures t and indoor air temperatures to cool and heat the home. Propane Furnace Can be integrated in with ASHPs as the heating choice for the colder months of the year. Such a system provides hedge against energy price volatility. Permits the home owner to switch between fuel sources when financially i beneficial. Warmer air delivery during cold spells = better comfort. Better for the environment

29 Payback of Upgrading to a Hybrid Heating System The marginal first cost tfor upgrading from an air-source heat pump to an air-source heat pump with a high efficiency propane furnace is modest, at about 14%. The simple payback of this system is less then 3 years when compared with an all electric system For an existing, cold climate home facing an ASHP replacement, what is the payback forvariousheating & cooling systemalternatives assuming that the main system under consideration is a new, standard efficiency air source heat pump? J M N O J GSHP closed dl loop system with electric resistance backup M High Eff ASHP with electric resistance backup N Std Eff ASHP with High Eff propane furnace backup O High Eff ASHP system with High Eff propane furnace backup Based on the average of 20 new home sites referenced in PERC s Performance Comparison of Residential Heating Systems: Energy, Economics, and Emissions 2011 Analysis Update.

30 How the Hybrid Heating System Delivers Performance and Comfort 40 F* can produce enough heat to maintain comfort in the home. Propane 40 F* cost effectively and comfortably heats the home when the ASHP loses capacity and/or relies on very inefficient/costly electric back-up heat. The propane furnace also helps the system during cooling. heat Hybrid System Because the ASHP in a Hybrid System is sized based on the cooling load, it is right-sized and will cycle to control humidity. ASHPs that are sized on the larger heating load (to try to handle the periods of cold outdoor temps) p) are over-sized for cooling; they short- cycle and can t control indoor humidity. *Outdoor Temperature.

31 Home Heating Systems: Primary Energy Sources Number of homes by primary space heating fuel and Census Region, winter Source: EIA Short-Term Energy Outlook, October 2012

32 Combi Systems: Heating and Hot Water Market Potential New homes have very efficient envelopes thanks to new energy code provisions. This means much lower heating loads. This opens the door for combined space & water heating systems. Reasons to Switch Life cycle cost show gas water heaters ahead of their electric counterparts. Home heating and hot water all in one system. High efficiency. High domestic water output in some cases over 200 gallons in the first hour. Multiple venting options. Zero clearance. Compact designs fit almost anywhere in the house. Allows for the installation of ducted air conditioning systems.

33 Combi Systems Offer Energy Savings Over Existing Systems in Recently Built Homes Combi systems provide an average 25% energy savings compared with a 10-year old ASHP + electric water heater. Based on modeling of a 10 year old home in multiple locations in CZs 2-5. Greater savings in colder climates. Replacement Opportunity! Modeling Details. 3 BR / 2BA prototype homes. Based on specs of 2003 building codes. Energy prices for propane and electricity based on US Energy Information Administration 2012 CY data.

34 Combi System Compared with Existing and New All-Electric Options CZ4 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 ANNUAL HEATING AND HW COST FOR A TEN YEAR OLD HOME CZ4 Original: Standard Efficency ASHP and Electric Water Storage Tank New: Standard Efficency ASHP and Electric Water Storage Tank New: Propane "Combi" System Combi System offers 28% energy cost reduction over the original all-electric system. Combi System offers 5% lower energy cost compared with a new all-electric configuration. Energy savings compliment space savings & hot water delivery rate/capacity.

35 Combi System Decrease the Home s Carbon Footprint ns/yr) CO2 EMIS SSIONS (to Combi Systems ANNUAL CO2 EMISSIONS FOR have reduced CO HEATING & HOT WATER IN A TEN emissions compared 2 YEAR OLD HOME CZ4 with the all-electric systems. Original: Standard Across CZs 2-5, Efficency ASHP and Combi Systems offer Electric Water an average of nearly Storage Tank 60% reduction in New: Standard CO2 emissions Efficency ASHP and compared to a new Electric Water ASHP + electric WH Storage Tank heater. New: Propane For CZ 4, the all- "Combi" System electric systems (Electric) have x3 3or geae greater CO 2 emissions.

36 GROUND SOURCE HEAT PUMPS

37 GSHP and Field Size Loop fields are a series of piping that is placed underground. A larger loop field may mean deeper wells, more wells, or more trenches. Loop field size follows the heating/cooling load for the home. Larger loops can transfer more thermal energy from the loop to/from the ground. Different types of soil have different abilities to absorb energy. Image Source:

38 GSHP Simple Payback The average modeled cost of a closed loop GSHP system in a typical new home was about $30,000. The higher costs are driven by higher ground loop drilling and materials. Modeled energy costs to operate the GSHP were lower than all other systems so what is the payback? Source: Performance Comparison of Residential Heating Systems: Energy, Economics, and Emissions 2011 Analysis Update.

39 High Efficiency Propane Furnaces Compared with Ground Source Heat Pumps years payback, before GSHP energy savings can make up for initial added cost, compared with a 95 AFUE propane furnace with 13 SEER central A/C. Including the potential use of 30% federal tax credit, GSHP payback is 8-14 years. Source: Performance Comparison of Residential Heating Systems: Energy, Economics, and Emissions 2011 Analysis Update.

40 GSHP Combined with Propane Furnace GSHP In colder climates, not ALL of the heating load needs to be met with the GSHP (and its loop). Sizing the GSHP loop to meet some, but not all, heating load can better balance out GSHP first cost with cost-effectiveness. The Propane Furnace Modeling and cost-estimating of a GSHP w/ Furnace system resulted in a net ~ $5200 cost reduction driven by smaller loop field (including added furnace cost). A GSHP system without a furnace would have higher first costs (+$5,200 in this example) and lower utility bills. loop will generally still be Payback for the GSHP compared adequate to cover all cooling to GSHP with Propane Furnace: load years, including 30% federal tax credit years, not including 30% federal tax credit. Source: Performance Comparison of Residential Heating Systems: Energy, Economics, and Emissions 2011 Analysis Update.

41 THE BIG PICTURE

42 Environmental Impact Emissions Propane emits less than half the greenhouse gases of electricity to produce the same amount of energy. Carbon footprint increases with electric heat pumps typically having CO 2 emissions which are about double those of high efficiency propane furnaces. The large difference in environmental performance is driven by heat pump s use of electric resistance back-up heating during times of cold ambient temperatures. Source Energy Nearly half of the electricity in the United States is produced by coalfired power plants. Implications ASHP s use electricity. Carbon dioxide id increased by the use of ASHP vs. furnace

43 The Switch Is Electric to Propane p Home Heating Hot Water Cooking Clothes Drying Fireplace Fi l Generator

44 Propane Applications in the Home Even if an economic analysis isn t in favor of propane consider other positives. Getting into the electric home. Getting into the house with heating oil.

45 The Future Looks Bright According to EIA s website the average cost of propane has 2.90 dropped $0.38/gallon 2.80 since February The table to the right shows the average 2.40 cost of propane for 2.30 the months of 2.20 February for the past 3 years Propane Cost (Dollars Per Gallon) 2011-Feb 2012-Feb 2013-Feb Source:

46 Electric Prices EIA data shows a continued climb in the average electricity rates over the last 10 years Average Electric Retail Price for Residential End-Use (Cents per Kilowatthour) Source:

47 Online Tool to Explore Energy Cost & Carbon Calculator Compares heating systems or water heating energy cost and CO ²

48 Ultimately Propane Furnaces Provide: First cost are at or below that of an ASHP. Maintains heating capacity and very warm air delivery temperatures without the need for a back-up system. Efficiency ratings that do not decrease depending on climate zone placement. Very favorable operation costs and paybacks. Reduced CO ² emissions.

49 What do I do Next? Keep Learning: Educate your propane p MTST customers. Propane Training Academy Educate prospective BuildWithPropane.com customers. Join your local l HBA and meet and educate builders. Partner with and educate HVAC and plumbing contractors. Incentivize good behavior. Be patient, but persistent.

50 Beat the Heat Pump! Remember this: Our Propane gas is energy produced right here in the United States and Canada.