(1/22/01 – from ICF)
Air conditioning demand drives the peak for summer-peaking utilities, particularly in warmer regions of the West. On the order of one hundred thousand small commercial central air conditioning systems (under 10 tons of cooling capacity) are replaced in the West each year. The vast majority of these replacements are made at the minimum efficiency level allowed by regulation (10 SEER and/or 8.7 EER)[1]. More efficient equipment is available in the marketplace, with SEER values of 12 to 13 and EER values of 10.3 to 11. Each unit that is installed at the minimum efficiency level creates approximately 1 kW of additional peak demand when compared to the more efficient options. Significant reductions in peak demand can be achieved by a well-conceived, and targeted campaign to ensure that central air conditioner replacements, as well as new installations, use high-efficiency equipment. Promoting this efficiency measure through a combination of focused sales training for installation contractors and financial incentives can deliver hard savings quickly.
Each high-efficiency unit that is installed yields between 0.5 and over 1 kW of peak demand saving relative to a standard installation, depending on building type, size of the unit, and climate zone. Assuming a 1 kW savings per unit, each 1,000 units replaced yields 1 MW of load reduction. Energy savings (kWh) are significant as well, depending on the hours of operation for the unit. Average conditions may yield on the order of 600 to 1000 kWh of savings per year compared to units with minimum efficiency. The incremental cost of a high efficiency unit is approximately $100/ton. Therefore, for an average 4 ton rooftop packaged HVAC unit, the incremental cost per unit is on the order of $400.[2]
Efforts to promote this high-efficiency measure can be organized and implemented quickly. Most replacements occur as the result of equipment failure, while some take place according to planned replacement schedules. While replacements occur throughout the year, the spring and summer are typically the busiest seasons. Consequently, it is best to announce the promotion of the equipment and to involve contractors and distributors prior to the start of the summer cooling season. Recent improvements in manufacturing practices by major manufacturers allow high-efficiency products to be produced quickly and essentially on-demand as the products are promoted in the marketplace. For maximum effectiveness, the measure should be promoted through distributors and contractors, with several months lead time allowed for ramp-up and planning.
To promote the use of this high-efficiency measure to
produce energy savings and reduce peak electric demand, the following
initiative elements are required:
· Recruitment: Installation contractors and equipment distributors must be recruited to participate in the initiative. The initiative should be structured so that their participation allows them to receive financial incentives for selling and installing high-efficiency HVAC equipment. Additionally, it allows them to receive sales training to improve their ability to sell the equipment in the marketplace.
· Sales Training: Experience has shown that sales training can help increase the penetration of high-efficiency commercial HVAC systems. In particular, contractors should to be provided with methods and tools for presenting the savings associated with installing high-efficiency equipment. The preferred method for working with contractors is to reach them through equipment distributors.
· Financial Incentives: To achieve increased market penetration quickly, financial incentives should be provided to promote the sale and installation of the high-efficiency equipment.
California utilities have embarked on similar programs, both in the commercial and the residential markets. A number of utilities across the country have operated similar programs, though often not in conjunction with sales training for installation contractors.
[1] The electric energy efficiency of air conditioners is measured in terms of Seasonal Energy Efficiency Ratio (SEER) (for units of 5 tons and under) and Energy Efficiency Ratio (EER). Higher SEER and EER values mean higher efficiency.
[2] This incremental cost includes equipment only. In some cases, incremental installation costs may be incurred as well.