ENERGY STAR®
WATER
HEATER
MARKET
PROFILE
EFFICIENCY SELLS
U.S. DEPARTMENT OF ENERGY
September 2010

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/////////////////////////////////////////////////^^^^
Prepared for
Oak Ridge National Laboratory under contract BOA#4200000327
Prepared by
D&R International, Ltd.
1300 Spring Street, Suite 500
Silver Spring, MD 20910
Authors
David Ryan
Ray Long
Daniel Lauf
Meredith Ledbetter
Ari Reeves
Acknowledgements
The authors are grateful to the following individuals who provided data and analysis support for this report:
•	Dennis Rominger, Puget Sound Energy
•	Sarah Moore and Kacie Bedney, Bonneville Power Administration
•	Pradeep Vitta, Southern Company
•	Alexis Allan, Northwest Energy Efficiency Alliance
•	Doug Kirk, Green Plumbers USA
•	Larry Weingarten, Independent
•	Terry Cagle, Shelton & Shelton Plumbing, L.R
•	Linda Delponte, DELPO Plumbing & Heating
•	Steve Hartman,Thos E. Clark, Inc.

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TABLE OF CONTENTS
EXECUTIVE SUMMARY.	1
INTRODUCTION	2
MARKET SIZE	2
INSTALLED BASE	4
ENERGY STAR CRITERIA AND FEDERAL STANDARDS	6
ENERGY DEMAND, AND COST SAVINGS	10
ENERGY STAR TECHNOLOGIES	13
MANUFACTURE, DISTRIBUTION, AND PURCHASE	17
GETTING STARTED	22
APPENDIX	27

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EXECUTIVE SUMMARY
The market for energy-efficient water
heaters has grown rapidly in recent years
—from 625,000 units shipped in 2006 to 1 million units in 2009—even though the
water heater market as a whole was shrinking over this time period. The ENERGY
STAR® water heater program has helped fuel this growth. Since its launch in 2009,
the program has given consumers independent validation of water heater efficiency
claims and has helped manufacturers, distributors, plumbers, and retailers promote
these products.
Water heating is the second largest energy use in homes, accounting for 17 percent of
residential energy consumption. Although most water heater sales are replacements, efficient
water heater shipments rose in the midst of plunging new home starts in 2007-2009.This
growth in shipments is even more remarkable placed in the context of a dramatic decline in
overall water heater shipments during the same period.
We have the recipe for enormous potential energy savings. Approximately 37 million
residential water heaters will be replaced in the next five years. Because most of these water
heaters just meet the original 1990 federal regulations, this is an opportunity for substantial
energy savings. ENERGY STAR qualified water heaters consume 14 to 55 percent less energy
than the standard-efficiency models available today, and can save a household $40 to $285
a year on its energy bills. Switching to solar and heat pump water heaters nationwide could
reduce annual energy consumption by 1.85 quadrillion Btu per year, or 2 percent of the nation's
total energy consumption. New water heaters also have the potential to lower peak demand,
making them particularly attractive to most utilities.
ENERGY STAR qualified water heaters are widely available. As of September 1, 2010,1,155 gas
storage, gas tankless, heat pump, and solar water heater models had qualified for the ENERGY
STAR label.They are available from major national retailers and from professional installers
(plumbers).These outlets are also the primary points of influence and often the sole source of
advice for many purchasers and decision-makers.
Utilities and other program sponsors are gaining experience in developing strategies to
promote energy-efficient water heaters. More than two dozen utility-sponsored programs and
37 state programs are promoting ENERGY STAR qualified water heaters.Their experience,
combined with market data, suggest that consumer needs, expert advice, information at
point of purchase, and price are key factors to induce energy-efficient water heater sales.
Opportunities abound.
ENERGY STAR Water Heater Market Profile | PaQe 1

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INTRODUCTION
Water heating is the second largest energy use in homes, behind space heating and cooling. It
accounts for 17 percent of residential energy consumption and can cost a household anywhere
from $200 to $600 a year.1 A total of 8 million residential water heaters were sold in the United
States in 2009.2 Storage water heaters are the most common type, with a 96 percent market
share.Tankless water heaters, which serve a whole home or heat water at the point of use,
accounted for the remaining 4 percent of sales, but are increasing in popularity.3
MARKET SIZE
The water heater market has risen and fallen over the last decade.The market declined
steadily beginning in 2007, as new home construction plunged from mid-2007 through 2009.
Shipments of efficient water heaters, however, grew dramatically in the midst of this decline.
In 2009, manufacturers shipped just under 8 million water heaters, down 18 percent from the
peak in 2004. Compared to gas water heaters, electric water heaters accounted for more of
both the expansion of shipments through 2004 and the contraction of shipments thereafter.
This was largely due to new home construction being greatest in the South during that time,
where building practice favors electric water heating.
Figure 1 | Water Heater Shipments, 2000 - 2009
10
2 8
S 6
(/>
** 4
ffl **
« 3
llllllllll
2000 2001 2002 2003 2004
Gas
2005 2006 2007 2008 2009
Electric
| ENERGY STAR
' Equivalent/Qualified
Non-Qualified
"ENERGY STAR
Equivalent/Qualified
Non-Qualified
ENERGY STAR Water Heater Market Profile | Pacje 2

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The recent growth in shipments of energy-efficient water heaters is all the more remarkable in
the context of the dramatic decline in overall water heater shipments during the same period.
Of the products shipped in 2006, approximately 7 percent (625,000 units) would have met the
ENERGY STAR criteria.4 In 2009, the first full year of the ENERGY STAR program, 13 percent
of shipments (1.0 million units) were ENERGY STAR qualified units.5The vast majority were in
the gas storage category. As the minimum required energy factor3 (EF) for gas storage water
heaters was raised on September 1, 2010, from 0.62 to 0.67, it is expected that ENERGY STAR
market share will decline somewhat in the last quarter of 2010 from the reported 2009 levels.
Three of the four water heater types covered by the ENERGY STAR program, and which were
available in 2006, posted higher shipments in 2009 than in 2006. Shipments of high-efficiency
gas storage products increased 80 percent between 2006 and 2009, while the tankless water
heater category grew by more than 30 percent. Heat pump water heaters shot up 630 percent
from the 2006 baseline of 2,000 units. Of the eligible categories, only solar saw a decrease,
though this is more likely due to an overestimation of products that would have qualified in
2006 and a lack of engagement from some solar manufacturers in becoming active within
ENERGY STAR, rather than a reflection of declining sales of eligible products.
Figure 2 | ENERGY STAR	Figure 3 | ENERGY STAR
Water Heater Market Share, 2006-2009	Water Heater Shipments, 2006 and 2009
9.45 million units in 2006	goo
7%
ENERGY STAR
Equivalent
Gas Storage
GasTankless
7.89 million units in 2009
Heat Pump	Solar
2006 (ENERGY m 2009 (ENERGY
STAR Equivalent) ™ STAR Qualified)
a Energy factor (EF) is a measure of a water heater's overall energy efficiency, based on the amount of hot water produced
per unit of fuel consumed over a typical day. The higher the energy factor, the more efficient the water heater. The ENERGY
STAR criteria specify a different minimum energy factor for each qualified technology except solar, for which a minimum solar
fraction of 0.50 is required.
ENERGY STAR Water Heater Market Profile | Page 3
13%
ENERGY
Qualified

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INSTALLED BASE
The 18 percent decline in water heater sales from 2006 to 2009, while substantial, is much
smaller than the 75 percent decline in new housing starts because most water heater sales are
replacements. Existing homes contain just over 100 million residential water heaters, 7 to 8
percent of which are replaced each year.
Residential water heaters are used in single-family, manufactured, and multifamily homes.
Most are located in the 87 million single-family and manufactured homes, with 14 million in
multifamily homes. Commercial water heaters provide hot water to the remaining 10 million
multifamily units.6
Generally, residential water heaters use one of three fuels: natural gas, fuel oil, or electricity.
Nationally, more than half of residential water heaters are gas water heaters, with most
burning piped natural gas (53 percent) and a small proportion using bottled propane gas (4
percent). Most of the remaining water heaters are electric (39 percent). Regionally, however,
the split between gas and electric can vary. Gas is the predominant water heating fuel in the
West, Midwest, and Middle Atlantic, while in the Pacific Northwest and the South (with the
exception ofTexas) most water heaters are electric.7 A minority of homes in New England and
the Middle Atlantic continue to use fuel oil. Figure 4 provides more detail.
Figure 4 | Water Heating Fuel by Census Division, 2005
Pacific
Mountain
West North Central
East North Central
West South Central
East South Central
South Atlantic
Middle Atlantic
New England
United States
10
20
30 40
|Gas
50 60 70
Electric	Other
80
90
100
Note: "Gas" includes piped natural gas and bottled propane gas. "Other" includes primarily fuel oil, but also
wood and solar. A map of census divisions is provided in the appendix.
ENERGY STAR Water Heater Market Profile | Pacje 4

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Roughly half of residential water heaters in place today were installed between 1990 and 2003
and were designed to meet the 1990 federal efficiency standards.The other half was designed
to meet the 2004 federal standards. An estimated 5 million units were built before federal
standards took effect (Figure 5).
Figure 5 | Installed Base byYear of Manufacture
30
Before 1990	1990 - 2003	2004 - 2010
| Gas ¦ Electric
Note: Secondary water heaters are not included in the installed base in this analysis
Water heaters are replaced on average every 13 years, although product lifetime depends on
a variety of factors including the type of unit, the hardness of the water, and how the water
heater is maintained.8 Considering the age of water heaters in the installed base and their
average lifetime, approximately 37 million residential water heaters will be replaced in the
next five years. Most of these water heaters just meet the original federal standards that took
effect in 1990, creating an opportunity for large savings compared to the installed base of water
heaters today.
ENERGY STAR Water Heater Market Profile | PaQe 5

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ENERGY STAR CRITERIA AND FEDERAL STANDARDS
Traditionally, water heaters have been designed to only meet the federal standard. Congress
first established efficiency standards for water heaters in 1987 that took effect in 1990. Updated
federal standards that took effect in 2004 require higher minimum energy factors.The standard
for the common 50-gallon tank size was set at 0.575 for gas water heaters and 0.904 for electric
water heaters.
The initial ENERGY STAR criteria for water heaters took effect in January 2009. Five types of
water heaters are eligible: gas storage, gas condensing, gas tankless, heat pump, and solar.
Models meeting the criteria offer a range of energy performance improvement over standard
water heaters, from 14 percent with relatively inexpensive improved gas storage products to
more than 50 percent with heat pump and solar products.The criteria extend beyond basic
energy efficiency to include minimum hot water delivery requirements, warranties, and
safety standards.
Table 1 I ENERGY STAR Water Heater Criteria
Type
Minimum
Energy
Factor
Minimum First-
Hour Rating**
(gallons/hour)
Minimum Warranty
Safety
High-Efficiency
Gas Storage
0.67
67
6 years on sealed system
Compliance with ANSI +
Z21.10.1/CSA 4.1
Whole-Home
GasTankless
0.82
2.5 gallons per
minute at a 77°F
rise***
10 years on heat exchanger
and 5 years on parts
Compliance with ANSI +
Z21.10.1/CSA 4.1 or
ANSI Z21.10.3/CSA 4.3,
depending on burner size
Gas
Condensing
0.8
67
8 years on sealed system
Compliance with ANSI +
Z21.10.1/CSA 4.1
Heat Pump
2.0
50
6 years on sealed system
Compliance with ULn 174
and UL1995
Solar
0.50 Solar
Fraction*
-
10 years on solar collector,
6 years on storage tank,
2 years on controls, and 1
year on piping and parts
OG-300 certification from
SRCCm
Notes:
* Based on the Solar Rating and Certification Corporation's (SRCC) conversion formula: Solar Fraction = 1 - (Energy Factor/
Solar Energy Factor), assuming a 0.6 or 0.9 energy factor for gas or electric backup, respectively.
**The first-hour rating is the amount of hot water in gallons the heater can supply in the first hour starting with a tank full of
hot water.
*** Hot water delivery from tankless water heaters is not measured by first-hour rating, but rather by the maximum flow rate
that the heater can achieve while maintaining a particular temperature rise.
fThe American National Standards Institute (ANSI) assists other organizations in developing safety standards for many different
appliances, including gas water heaters. The Z21.10.1/CSA 4.1 standard applies to water heaters that burn at 75,000 Btu per
hour or less and sets guidelines for safe operation. Gas water heaters with burners that operate at more than 75,000 Btu per
hour must comply with the Z21.10.3/CSA 4.3 standard.
ft Electric water heaters, such as heat pump water heaters, are tested under Underwriters Laboratories (UL) 174. This standard
is a set of guidelines for proper functioning and design of electric water heaters.
m SRCC's OG-300 standard outlines minimum quality and operational requirements for solar water heaters.
ENERGY STAR Water Heater Market Profile | Pacje 6

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As of September 1, 2010, 59 manufacturers had registered 1,155 ENERGY STAR qualified water
heater models (Figure 6). An additional 352 models were disqualified on this date when the
minimum energy factor for gas storage models increased from 0.62 to 0.67. There are not yet
any gas condensing models that meet the ENERGY STAR criteria.
Figure 6 | ENERGY STAR Qualified Water Heater Models as of September 1, 2010
700
« 600
0
500
400
300
200
100
600
High-Efficiency
Gas Storage
Whole-Home
GasTankless
Heat Pump
Solar
In April 2010, the U.S. Department of Energy (DOE) announced new, more stringent, federal
standards to take effect in 2015.9 The minimum energy factor required by the new standards
depends on fuel type and tank volume. For gas-fired and electric models under 55 gallons,
the amended standards represent a 4- to 5-percent improvement in efficiency over the current
federal standards.
ENERGY STAR Water Heater Market Profile | Pacje 7

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For models with volumes larger than 55 gallons, the amended standards are significantly
more aggressive. Larger gas-fired heaters will be required to be more than 30 percent more
efficient than those manufactured today, while the efficiency of larger electric water heaters
will increase by more than 120 percent. Heat pumps are the only current technology capable
of meeting these electric water heater efficiency levels. Gas tankless water heaters will have to
meet a new federal standard set at the current ENERGY STAR level, which is 32 percent above
the current standard.
Table 2 | Federal Water Heater Standards Effective April 16, 2015
Type
Volume < 55 Gallons
Volume > 55 Gallons
Gas Storage
EF = 0.675 -(0.0015 xVolume)
EF = 0.8012 - (0.00078 xVolume)
Electric Storage
EF = 0.960-(0.0003 xVolume)
EF = 2.057 - (0.00113 xVolume)
GasTankless
EF = 0.82 - (0.0019 xVolume)
Note: Gas tankless water heaters may store up to two gallons of water. In these cases, the minimum
required energy factor is slightly lower than 0.82.
Figure 7 | Gas Storage Water Heater Efficiency Requirements
0.80
0.75
0.70
o
+4
o
IS
u.
0.65
0.60
>
2>
0)
0.55
c
LU
0.50
0.45
0.40
30
40
45
50
55 60 65
Volume in Gallons
75
80
85
cuciirvcTAD — Federal Standard	Federal Standard	Federal Standard
bNtnuY b I Art	2Q15	2QQ4	1990
ENERGY STAR Water Heater Market Profile | Pacje 8

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Figure 8 | Electric Storage Water Heater Efficiency Requirements
o
tj
a>
c
LU
2.1
1.9
1.7
1.5
1.3
1.1
0.9
0.7
30 35 40 45 50 55 60 65
Volume in Gallons
70
75
80
85
90
ENERGY STAR
HPWH
Federal Standard
2015
Federal Standard
2004
Federal Standard
1990
Figure 9 | GasTankless Water Heater Efficiency Requirements
0.87
0.82
0.77
0.72
0.67
0.62
0.57
Federal Standard 2015
and ENERGY STAR
Federal Standard
1990 and 2004
Table 3 | Minimum Energy Factor for Some Common Water Heater Sizes

Past
Present
Future
Type
Storage
Volume
Federal Standard
(1990)
Federal Standard
(2004)
ENERGY
STAR Criteria
Federal Standard
(2015)
Gas Storage
40 Gallons
0.544
0.594
0.67
0.62
50 Gallons
0.525
0.575
0.67
0.60
60 Gallons
0.506
0.556
0.67
0.75
Electric
Storage
40 Gallons
0.877
0.917
2.0
0.95
50 Gallons
0.864
0.904
2.0
0.95
60 Gallons
0.851
0.891
2.0
1.99
70 Gallons
0.838
0.878
2.0
1.98
80 Gallons
0.824
0.864
2.0
1.97
GasTankless

0.62
0.62
0.82
0.82
ENERGY STAR Water Heater Market Profile | PaQe 9

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ENERGY, DEMAND, AND COST SAVINGS
A relatively inefficient installed base, steady product turnover, new super-efficient water
heaters, and an ENERGY STAR program that ensures quality and helps drive sales are a recipe
for enormous potential energy savings. ENERGY STAR qualified water heaters accounted for
just 13 percent of sales in 2009 and currently constitute less than 1 percent of the installed
base.10 However, if all homes had ENERGY STAR qualified models, the United States could
save 1.9 billion to 6.8 billion therms, 98 billion to 107 billion kWh, and $13 billion to $19 billion
per year, depending on technology choices.13 This is 1.26 to 1.85 quadrillion Btu per year of
primary energy, a 44- to 64-percent savings.11
Figure 10 | Annual Energy Savings Potential from ENERGY STAR Qualified Water Heaters
3.0
Status Quo	Low Savings Scenario	High Savings Scenario
Note: Assumes 52.5 million gas homes acquire high-efficiency gas storage units (EF=0.67) in the low savings scenario and
solar water heaters with gas backup in the high savings scenario. Assumes 40.3 million electric homes acquire solar water
heaters with electric backup in the low savings scenario and heat pump water heaters in the high savings scenario. Estimates
of primary energy savings potential assume a 3.18 site-to-source conversion factor for electricity.
b Assumes 52.5 million gas homes and 40.3 million electric homes acquire ENERGY STAR models, no fuel switching, and
national average utility rates of $1.10/therm and $0.1068/kWh.
• ENERGY STAR Water Heater Market Profile | Pacje 10 »

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An ENERGY STAR qualified water heater can save a household $40 to $285 a year on its
energy bills compared to a new, non-qualified model (Figure 11). Consumers replacing pre-
2004 models will see even greater savings. Qualified tankless and solar models can last up to
20 years, making them also more durable than their less efficient counterparts. Even though
installation costs are higher in most cases, the simple payback period can be as short as
three years for a heat pump water heater.The payback periods shown here do not account
for consumer incentives such as tax credits and rebates. Consumers' actual payback periods
could be considerably shorter in some cases, depending on fuel prices and the availability of
financial incentives (discussed on p. 25).c
Figure 11 | Annual Energy Expenditures for Different Water HeatingTechnologies
Approximate
Simple Payback
(years)
Solar with
Gas Backup
Whole-Home
GasTankless
High-Efficiency
Gas Storage
Standard
Gas Storage
Heat Pump
Solar with
Electric Backup
Standard
Electric Storage
$287
$234
$259
$519
Note: All technologies analyzed here are ENERGY STAR qualified except Standard Gas Storage and Standard Electric Storage.
Assumes national average utility rates of $1.10/therm and $0.1068/kWh.
c See appendix for more information on energy consumption, costs, and savings for each water heater type.
ENERGY STAR Water Heater Market Profile | Page 11

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New water heaters not only offer absolute energy savings, but also have the potential to lower
peak demand (demand savings). Utility capacity requirements, particularly for electricity,
are determined by peak demand, not overall energy savings, making measures that lower
peak demand particularly valuable to most utilities.There are three ways that water heater
replacement might affect peak demand:
1.	Selection of an ENERGY STAR qualified electric water heater, which consumes less
energy and is likely to draw less power during peak hours.
2.	Selection of a "Smart Grid-ready" heat pump water heater, which switches to operating
in heat pump-only mode in response to a signal from the utility.
3.	Selection of a "Smart Grid-ready" standard water heater (not yet available), which can
monitor and react to pricing information and turn itself off during some or all of a peak
period with no likely impact on occupant comfort or convenience.12
Existing electric water heaters can also be retrofitted with load control switches.This could
become an attractive option for utilities if consumers become disenchanted with current
central air conditioning demand response programs, which cut off air conditioning on the
hottest days of the year.
• ENERGY STAR Water Heater Market Profile | Pacje 12 »

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ENERGY STAR TECHNOLOGIES
HIGH-EFFICIENCY GAS STORAGE
1«1

Innovations
Improved insulation, more effective heat traps,
less burner waste, less fuel in the combustion
reaction

w





Energy Use
224 therms/year, 14% less than standard
storage models



Advantages
Easy and inexpensive upgrade from standard-
efficiency units; same methods, size, hook-ups
d 14
1










Higher operating costs relative to other ENERGY
STAR qualified models


Disadvantages
WHOLE-HOME GASTAIMKLESS
I-
innovations
How-sensor-activated heating mechanism,
improved venting, no standby losses
Energy Use
183 therms/year, 30% less than standard
storage models
Advantages
Provides continuous delivery of hot water; takes
up less space because there is no storage tank
Disadvantages
Higher installation costs (two to four times
greater than for conventional storage models);
often requires a larger gas supply line and a larger
vent than a typical gas storage model, which can
make switching from a tank to a tankless system
in an existing home difficult; requires more
maintenance than storage models, particularly
where water is hard
ENERGY STAR Water Heater Market Profile | Page 13

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GAS CONDENSING
¥
Wl
Innovations
Captures more heat from combustion
Energy Use
187 therms/year, almost 30% less than standard
storage models
Advantages
Similar size as conventional storage models
Disadvantages
May require the installation of a powered vent
and/or a condensate drain, making emergency
replacement of a standard model with this type
difficult in some cases
HEAT PUMP
IW
lltr1
Innovations
Energy Use
Advantages
Disadvantages
Instead of generating heat, uses electricity to
move heat from surrounding air to the water
2,195 kWh/year, 55% less than standard storage
models
Cools and dehumidifies the space in which it's
installed, a benefit during the cooling season,
especially in more humid climates
Installation is complicated and requires a
trained professional; requires a condensate
drain and periodic air filter cleanings; cools and
dehumidifies the space in which it's installed,
a disadvantage during the heating season if
installed in conditioned space; generates noise
similar to that of a dishwasher
ENERGY STAR Water Heater Market Profile | Page 14

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SOLAR
Innovations
Uses the sun's energy to heat water
Energy Use
130 therms/year or 2,429 kWh/year for backup,
both 50% less than standard storage models
Advantages
Some models .can work well in overcast
conditions and operate In temperatures as low as
-40°F; potential for "Prius effect" as a visible signal
of green/energy security commitment
Disadvantages
High initial cost; requires the use of a backup gas
or electric water heater, usually a conventional
storage model; may require more frequent
maintenance
Recent Innovations
Advanced Flue Technology in Gas Storage
In September 2010, the ENERGY STAR criteria for gas storage water heaters changed to require a minimum energy
factor of 0.67, up from 0.62. As of September 1, 60 models met the criteria. Ten of those models have an energy
factor of 0.70, and all are based on the patented pressurized combustion system by A.O. Smith. These models
push air into the combustion chamber to create a pressurized environment. This effect slows down the hot gas as it
travels through the water heater, allowing for greater heat transfer and less energy waste.
GasTankless (with Condensing Technology)
An ENERGY STAR qualified gas tankless water heater must have an energy factor of 0.82 or higher. Of 600 qualified
models, 88 have an energy factor of 0.90 or higher. Almost all of these models use "condensing" technology, which
involves a second heat exchanger to capture and use heat that would otherwise be lost. Although these tankless
water heaters use condensing technology, they are classified simply as "tankless" water heaters by ENERGY STAR,
and should not be confused with ENERGY STAR qualified "gas condensing" water heaters, which are storage
water heaters.
Gas Condensing Storage
The ENERGY STAR label is available only for residential gas condensing storage water heaters that have a heat
input up to 75,000 Btu per hour Manufacturers have not yet released any water heater models that qualify under
the ENERGY STAR gas condensing criteria.Though there are many gas condensing models marketed for use inside
homes, they are all considered commercial water heaters due to their high heat input. Manufacturers are working to
develop gas condensing storage water heaters that meet the ENERGY STAR criteria.
An easy way to distinguish between residential and commercial models is by the energy efficiency metric: energy
factor is used for residential models, while thermal efficiency is used for commercial models.The eligibility
requirements for the federal tax credit specify a minimum energy factor of 0.82 or a thermal efficiency of 90
percent. Thus,, tax credits are available for both residential and commercial gas condensing water heaters.
ENERGY STAR Water Heater Market Profile | Page 15

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::
Spotlight on
Heat Pump Water Heaters
Over the past year, the number of ENERGY STAR qualified heat pump water heater
models has increased from 2 to 23. Heat pump water heaters are produced by several	,l7iJ
manufacturers, including A.O. Smith, Air Generate, GE, Rheem, and Stiebel Eltron. Only
integrated models—where the tank and heat pump form a single unit—can qualify for the
ENERGY STAR. Add-on models, which attach to an existing water heater, do not qualify.
Here are several factors to consider regarding heat pump water heaters:
•	Payback period is dependent on the conditions in each home. Consumers want to
know how long it will take to recoup the higher cost of a heat pump water heater. w
Unfortunately, payback period depends on the specific circumstances: installation
location, air temperatures in that location, usage, and electricity prices. A heat
pump water heater can pay back its price premium in as little as two years, but in
some circumstances can take twice that long. In nearly all cases, however, a new
product will repay its price premium within its operating lifetime.
•	Heat pump water heaters are best installed where there is sufficient vertical clearance and at least
1,000 cubic feet of surrounding air, they will not be exposed to weather, and the noise won't bother
occupants. In many homes, these conditions are met in the garage or an unheated basement. Water
heaters commonly are installed in garages, basements, crawlspaces, or inside the house. Of those
homes with electric water heaters, more than 18 million have a garage, basement, or both. Further, in
most of these homes the water heater is located in either the garage or basement.Thus, these homes
represent potential targets for heat pump water heaters.13
•	The Northwest Energy Efficiency Alliance (NEEA) has taken a special interest in ensuring
successful installations in northern climates. In October 2009, NEEA released its "Northern Climate
Specification for Heat Pump Water Heaters," which draws upon past experience with add-on water
heaters to provide suggestions to manufacturers and consumers on the proper use of heat pump
water heaters in the Northwest.14 To educate consumers about these products, NEEA developed a
website that provides a description of the technology, instructions for proper use, and installation
recommendations. NEEA is also partnering with top retailers to install point-of-purchase signage about
heat pump water heaters. For more information, visit www.SmartWaterHeat.org.
There remain several important unanswered questions about heat pump water heaters:
1.	Are garages, attics, or basements the most appropriate installation locations?
2.	How do installations in conditioned spaces compare with those in unconditioned spaces?
3.	Will residents detect and object to the cooling effect?
4.	Will the heat pump water heater increase space heating costs?
The last two questions arise because heat pump water heaters cool and dehumidify ambient air in the
process of extracting its heat. While some models can duct the cooler air outdoors, others cannot.The general
consensus is that this cooling effect is a net benefit to residents in hot, humid climates and they will welcome
this feature, but the impacts and reactions in cooler and drier climates are unknown.
To address these questions, the Electric Power Research Institute partnered with utilities across the country
to conduct heat pump water heater demonstration projects in 200 single-family residential homes in various
climates and with various types of installation. Installations began in April 2010, and the project is scheduled
to end in December 2011.
ENERGY STAR Water Heater Market Profile | PaQe 16

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MANUFACTURE, DISTRIBUTION, AND PURCHASE
Manufacture
As of 2008, A.O. Smith, Rheem Manufacturing, and Bradford White made 96 percent of all
residential water heaters,15 with the remainder manufactured by dozens of smaller companies.
Many of these smaller companies are solar water heater manufacturers.16 A complete list of
ENERGY STAR manufacturer partners can be downloaded from the ENERGY STAR website.17
Figure 12 | Water Heater Manufacturer Market Share, 2008
4%
Others
13%
Bradford White
37%
Rheem
46%
O. Smith
ENERGY STAR Water Heater Market Profile | PaQe 17

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Distribution
Once manufactured, water heaters make their way into homes through several routes.
Half pass through wholesalers and distributors, with most of these (87 percent) through
plumbers to homeowners.The other half are sold through retailers, with most of these (85
percent) to homeowners or plumbers. Plumbers install at least 60 percent of all water heaters;
homeowners install 25 percent.The remaining 15 percent are installed in remodels, new
homes, and in multifamily residences, possibly in many cases by plumbers.18
The top three water heater retailers are Sears,The Home Depot, and Lowe's.There are also
thousands of plumbing supply stores and other wholesalers and distributors nationwide.The
three largest are Ferguson, Johnstone Supply, and Winnelson. Some manufacturers (such as
Bradford White) sell only to wholesalers, while others (including A.O. Smith and Rheem) sell to
wholesalers and retailers.19
Manufacturers have indicated that retail sales are weighted towards electric water heaters
while wholesale/distributor sales are weighted towards gas, with a roughly 60-40 split in both
cases.This is consistent with the data on who buys water heaters through each channel, as it
is reasonable to expect that homeowners purchasing and installing a water heater themselves
are more likely to install an electric water heater than a gas water heater.
« ENERGY STAR Water Heater Market Profile | Pacje 18 »

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Figure 13 | Water Heater Distribution Channels
50%
50%
43%
17%
26%
5%
4%
1%
2%
2%
Plumbers
Property Owners
(9%)
Homeowners
(60%)
Plumber Installation
Builders
(2%)
Remodelers
(3%)
Homeowners
(26%)
DIY Installation
Wholesalers/Distributors
Retailers
Manufacturers
ENERGY STAR Water Heater Market Profile | Page 19

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The Purchasing Decision
The ultimate question for program managers and policy makers interested in growing sales
of energy-efficient water heaters is, "What are the best strategies for inducing more people
to purchase them?" While there is no definitive answer yet, market data and initial program
experience suggest that key influences are consumer needs, expert advice, information at
point of purchase, and price.
Figure 14
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Note: Installed cost is equal to cost of equipment plus installation.
« ENERGY STAR Water Heater Market Profile | Pacje 20 «
|Typical Installed Costs
$3,200
Standard	High-Efficiency	Heat Pump	GasTankless	Solar
Gas Storage	Gas Storage

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Speed and price are the critical decision factors in most water heater replacement sales. Half
of water heater sales are emergency replacements caused by the complete or partial failure
of the existing unit. As a result, few consumers have the time or interest to research product
options.Their product options are thus entirely defined by what their plumber or retailer offers.
In addition, their decisions will be strongly influenced by their plumber's recommendation or
retailer's positioning and signage at point of purchase.
Figure 15 | Water Heater Purchase Motivators
ALL WATER
HEATER SALES
Poor
^Performance
l"l ^3ter He3ter	¦> Unit Failure
18%	W
Emergency
V	*
New Construction	Planned Replacement
Note: The market share shown for new construction is a historical average. New homes accounted for only 11
percent of water heater sales in 2009.
Programs experiencing early success have partnered with retailers, plumbers, distributors,
and manufacturers. Retailers and plumbers directly influence consumers. Distributors
determine what products are available to plumbers and are an efficient way to reach plumbers.
Manufacturers provide most of the in-store signage and collateral materials found in national
retailers.
ENERGY STAR Water Heater Market Profile | PaQe 21

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GETTING STARTED
Program sponsors that are already promoting energy efficiency through appliance, new home,
home improvement, or weatherization programs can significantly boost savings by promoting
ENERGY STAR qualified water heaters. For gas savings, program sponsors can begin
promoting readily available solar, gas tankless, and high-efficiency gas storage systems. With
their special installation requirements, gas tankless might best be targeted at new construction.
For electricity savings, program sponsors can begin promoting solar water heaters and add
heat pump systems if they are a viable option in the service territory.
Table 4 | Adding Water Heaters to Existing Programs
Program
Key Considerations
Program Design Options
Appliances
•	Develop a rebate or upstream incentive program
similar to existing appliance programs offered
at retail.
•	Consider tiered rebates for higher-efficiency
models if consumers can easily identify such
models through labeling, signage, or other means.
•	Encourage retailers to expand the types of
water heaters for sale. Place point-of-purchase
advertising at retail locations.
•	Encourage plumbers and distributors to stock
ENERGY STAR qualified water heaters. Provide
plumbers with savings estimates, brochures, and
other tools needed to sell efficient water heaters.
•	About one-third of water
heaters are purchased
because of an emergency.
•	Half of all sales are through
wholesalers/distributors and
half are through retailers.
•	Plumbers influence
approximately 60 percent
of all water heater sales.
New Homes
•	Include requirements or incentives to include
ENERGY STAR qualified water heaters in new
home programs.
•	Increase savings by encouraging installation
closest to where hot water is required (e.g.,
in the kitchen or master bathroom). A garage
or basement is not always the most efficient
location.
• The efficiency requirements
of some new home
programs are more
stringent than ENERGY
STAR's. These programs
need to incorporate a
wide variety of products,
including water heaters,
to meet aggressive
savings targets.
Continued >
ENERGY STAR Wat©r H63t6r Mark©t Pr of i I © | PaQ6 22

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Program
Program Design Options
Key Considerations
Home
Improvement
or Home
Performance
with ENERGY
STAR
•	Allow ENERGY STAR qualified water heaters in
whole-home rebate or loan programs.
•	Educate consumers on the energy and dollar
savings associated with ENERGY STAR qualified
water heaters.
•	Encourage planned, rather than emergency,
replacement.
•	Partner with retailers and plumbers to reach
consumers planning home renovations and
provide incentives for the purchase of ENERGY
STAR qualified water heaters.
•	Major renovation provides
an opportunity for a
comprehensive, whole-
home approach to lowering
energy usage and improving
comfort.
•	The most frequent
recommendations are HVAC
upgrade or tune-up, home
sealing, and insulation.
Water heaters are typically
outside the scope of most
retrofit programs.
Weatherization
for Low-Income
Customers
•	Educate contractors, community action agencies,
and state regulators on the new ENERGY STAR
options.
•	Require ENERGY STAR qualified water heaters as
the only replacement option.
• Weatherization practices
include a wide range of
energy efficiency measures
and technologies for
retrofitting homes and
apartment buildings,
including water heater
replacement.
Partnering with Plumbers
Plumbers can be strategic partners for water heater rebate programs because they directly
purchase or influence the purchase of about 60 percent of all water heaters. While plumbers
may be ideal influencers in theory, in practice, recruiting wide participation may prove
challenging. Water heater replacements typically make up only 10 to 20 percent of a plumber's
business, and most plumbers work independently or in small businesses and are fiercely
independent. It is unclear whether there is a strong business case for a plumber to try to sell
efficient water heaters. Many do not mark up the price of equipment and would rather avoid
an involved sales process. It is easiest to persuade a consumer to simply replace a broken unit
with a comparable new unit.20
ENERGY STAR Water Heater Market Profile | PaQe 23

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$50 REBATE
from Puget Sound Energy on this
ENERGY STAR qualified natural gas storage
water heater.
Available to qualifying PSE
residential natural gas customers
See associate for details.
PSE.com/Rebates
PUGET
PSE SOUND
ENERGY
Table 5 | Puget Sound Energy's
Water Heater Rebate Levels
Water Heater Type
Rebate Level ($)
Gas Storage
50
GasTankless
150
GasTankless
(Condensing)
200
Heat Pump
Water Heater
250
Spotlight on
Puget Sound Energy
Puget Sound Energy (PSE) is a utility that serves 750,000 gas and
1,000,000 electric customers in Washington State. PSE's efficient water
heater program began in 2005 with rebates for efficient gas storage water
heaters and has since expanded to include rebates for ENERGY STAR
qualified heat pump, gas storage, and gas tankless water heaters.
Speed and price are the driving factors for many water heater
replacements. PSE quickly learned the importance of communicating the
benefits of efficient water heaters concisely at the time and point of sale.
It found that the best way to do this is to partner directly with plumbers,
retailers, and manufacturers:
•	Plumbers were invited to webinars and meetings at which PSE
provided savings estimates and lifetime costs of efficient models
and suggested strategies to increase sales. PSE also distributed
brochures that plumbers then presented to customers.
•	Point-of-purchase signage (pictured) was displayed at big-box retail
stores to attract attention to efficient units at the time of purchase.
•	Manufacturers of efficient water heaters paid for the opportunity
to display their logos on bill inserts. The proceeds were used to
buy radio and print ads.
For more information on PSE's program, visit www.pse.com/solutions/
forvourhome/paaes rebatesQnWaterHeatina.aspx.
ENERGY STAR Water Heater Market Profile | Page 24

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Consumer Incentives
Financial incentives are available from several sources for the purchase of energy-efficient
water heaters.
Federal income tax credits cover ENERGY STAR qualified gas tankless, heat pump, and
solar water heaters. However, unless extended by Congress, the tax credit for the first two
technologies will expire at the end of 2010.The solar water heater incentive will remain
available through 2016.
The 2009 American Recovery and Reinvestment Act supports state-sponsored appliance rebate
programs, most of which began in the first half of 2010 and conclude in the second half of
2010 or early 2011. Water heaters are included in 37 of these programs. Most states offered
flat rebates, ranging from $25 in New Jersey for a gas storage water heater with an energy
factor greater than or equal to 0.62, to $2,500 in Michigan for a solar water heater. A few states
offered rebates equal to 20 to 30 percent of the price of a qualified unit.Table 6 summarizes
these rebates.
Table 6 | State Energy Efficient Appliance Rebate Program Water Heater Rebates
Type
States/Territories
Providing Incentives
Average and Range of
Incentive Amounts
Gas Storage
(EF > 0.62)
22
$181 ($25-$1,400)
(EF > 0.67)
11
$196 ($99-$300)
GasTankless
32
$265 ($100-$1,200)
Heat Pump
26
$288 ($50-$1,400)
Solar
18
$587 ($100-$2,500)
Notes: Required efficiency levels match those of the ENERGY STAR program. Reported rebate levels are current
as of July 2010. More states may offer water heater rebates and rebate levels may change over time.
ENERGY STAR Water Heater Market Profile | PaQe 25

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In addition to the Recovery Act-funded rebates administered by state energy offices, more
than 50 water heater rebates are available from at least 30 utilities and energy efficiency
organizations across the country. Many of these rebates are cataloged on the ENERGY STAR
Water Heater Coalition's website, www.eswaterheaters.org. Additional incentives can be found
in the Database of State Incentives for Renewables and Efficiency, www.dsireusa.org.
Lastly, Congress may enact legislation that provides further incentives for water heaters.
For example, energy legislation passed by the U.S. House of Representatives in May 2009
included provisions for a new national program known as Home Star.This program would
provide financial incentives for the purchase and installation of energy-efficient water heaters
in existing homes, among other provisions.21 This legislation has not yet been voted on by the
Senate as of the date of this report.
ENERGY STAR Resources
DOE and the U.S. Environmental Protection Agency offer a number of resources to help
partners design an effective water heater program:
The ENERGY STAR Water Heater Partner Resource Guide features consumer messaging,
profiles of the five water heater technologies, and tips for selecting the right one.This
document is available in the Partner Resources section of the ENERGY STAR website.
ENERGY STAR Residential Water Heaters: Industry Guidelines provides water heater
manufacturers with direction for partnering with ENERGY STAR.
Partner support includes assistance contacting other ENERGY STAR partners (i.e.,
manufacturers, retailers, and efficiency program sponsors) to coordinate promotional
efforts and learn from the experience of others. Contact an ENERGY STAR account manager
for details.
For more information, visit www.energvstar.gov/Droducts or e-mail waterheaters@drintl.com.
« ENERGY STAR Water Heater Market Profile | Pacje 26 «

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APPENDIX
Figure 16 | U.S. Census Regions and Divisions
MIDWEST
West	East
North Central North Central
Pacific
WEST
New England
Middle Atlantic
NORTHEAST
South Atlantic
Mountain
East
West	South Central
South Central
SOUTH
ENERGY STAR Water Heater Market Profile | Page 27

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///////////////////////////////////////////////^^^^
Table 7 | Energy and Cost Comparison for Gas Water Heating Options (50-gallon capacity)

Non-Qualified
ENERGY STAR Qualified

Standard Gas
High-Efficiency
Whole- Flome
Solar with

Storage
Gas Storage
GasTankless
Gas Backup
Energy Factor
0.575
0.67
0.82
1.2*
Annual Consumption (therms)
261
224
183
131
Annual Savings (therms)
-
37
78
130
Annual Operating Cost ($)
287
246
201
143
Annual Savings ($)
-
41
86
143
Life Expectancy (years)
1322
13
2023
20
Lifetime Savings (therms)
-
481
1,560
2,610
Lifetime Savings ($)
-
528
1,713
2,866
Approximate Cost of Unit +
Installation ($)
86524
1,265
1,470-2,50 026
3,200**
Approximate Price
Premium ($)
-
400
605-1,635
2,335
Approximate Simple Payback
Period (years)
-
10
7-19
16
Approximate Units Sold
in 200926
3.15 Million
650,000***
333,000
7000
Notes: Annual energy use estimates are based on the DOE test procedure, which assumes an inlet water
temperature of 58°F, a set point of 135°F, daily hot water demand of 64.3 gallons, and 365 days of use per year.
Thus, annual energy consumption in therms = (41,045 Btu/EF x 3651/100,000. Energy cost estimates assume a
national average gas price of $1.10 per therm.
* Solar energy factor is based on the Solar Rating and Certification Corporation's conversion formula: Solar
fraction = 1 - (energy factor/solar energy factor), assuming a 0.6 energy factor for gas backup.
** Cost varies widely because most installations are custom. The average cost is reported here.
*** Includes gas storage models that are ENERGY STAR qualified with an energy factor of 0.67 and models that
met the previous criteria level of 0.62.
« ENERGY STAR Water Heater Market Profile | Pacje 28 «

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////////////////////////////////////////////////^^^^
Table 8 | Energy and Cost Comparison for Electric Water Heating Options (50-gallon capacity)

Non-Qualified
ENERGY STAR Qualified

Federal
Standard
High Efficiency
Heat Pump
Solar with
Electric Backup
Energy Factor
0.904
0.95
2.0
1.8*
Annual Consumption (kWh)
4,857
4,622
2,195
2,429
Annual Savings (kWh)
-
235
2,662
2,428
Annual Operating Cost ($)
519
494
234
259
Annual Savings ($)
-
25
284
259
Life Expectancy (years)
1327
13
1028
20
Lifetime Savings (kWh)
-
3,055
26,620
48,570
Lifetime Savings ($)
-
327
2,843
5,188
Approximate Cost of Unit +
Installation ($)
650
700
1,50029
3,200?°**
Approximate Price Premium ($)
-
50
850
2,550
Approximate Simple Payback
Period (years)
-
2
3
9.5
Approximate Units Sold in 200931
3.75 million
14,730
7000
Notes: Annual energy use estimates are based on the DOE test procedure, which assumes an inlet water
temperature of 58°F, a set point of 135°F, daily hot water demand of 64.3 gallons, and 365 days of use per year.
Thus, annual energy consumption in kWh = (12.03/EF) x 365. Energy cost estimates assume a national average
electricity price of $0.1068 per kWh.
* Solar energy factor is based on the Solar Rating and Certification Corporation's conversion formula: Solar
fraction = 1 - (energy factor/solar energy factor), assuming a 0.9 energy factor for electric backup.
** Cost varies widely because most installations are custom. The average cost is reported here.
ENERGY STAR Water Heater Market Profile | PaQe 29

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ENDNOTES
FIGURE SOURCES
1	Energy Information Administration, Annual Energy Outlook 2009, Table 4, and Energy
Information Administration, "Residential Energy Consumption Survey 2005,"Table WH8.
2	Presentation by Jim Lutz, Lawrence Berkeley National Laboratory (LBNL), at2010ACEEE Hot
Water Forum.
3	ENERGY STAR shipment data collected by D&R International, Ltd. from ENERGY STAR
partners.
4	"ENERGY STAR Residential Water Heaters: Final Criteria Analysis," April 1, 2008. Prepared by
D&R International, Ltd. for the U.S. Department of Energy.
5	ENERGY STAR Shipment Data collected from ENERGY STAR partners. Total market from
presentation by Jim Lutz, LBNL, at 2010ACEEE Hot Water Forum.
6	Energy Information Administration, "Residential Energy Consumption Survey 2005," Table
HC2.8.
7	Energy Information Administration, "Residential Energy Consumption Survey 2005," Table
HC2.8, and analysis of micro data conducted by D&R International, Ltd.
8	Northwest Energy Efficiency Alliance, "Assessment of the Residential Water Heater Market in
the Northwest," Report #E06-158, July 13, 2006.
9	Federal Register, Vol. 75, No. 73. Announced Friday, April 16, 2010. 10CFR430.
10	Analysis by D&R International, Ltd. of sales data for 2006 from Air-Conditioning, Heating, and
Refrigeration Institute and water heater manufacturers.
11	Analysis by D&R International, Ltd. of Energy Information Administration, Annual Energy
Outlook 2009, Table 4.
12	Portland General Electric Company, "Direct Load Control Pilot for Electric Water Heat,"
October 2004.
13	Analysis by D&R International, Ltd. of micro data from Energy Information Administration,
"Residential Energy Consumption Survey 2005," and U.S. Department of Energy, "Heating
Products Final Rule Technical Support Document," Chapter 7
14	Northwest Energy Efficiency Alliance, "Northern Climate Specification for Heat Pump Water
Heaters," www.nwalliance.ora/ourwork/documents/HPWHNorthernTierSpecFinal.pdf.
15	"32 Annual Portrait of the U.S. Appliance Industry," Appliance Magazine, September 2009.
16	Air-Conditioning, Heating, and Refrigeration Institute.
17The ENERGY STAR Partner Directory can be accessed from the Partner Resources webpage:
www, e n e raysta r. a ov/pa rtn e rs.
18	Analysis by D&R International, Ltd. with input from water heater manufacturers.
19	D&R International, Ltd. Based on interviews with manufacturers.
20	D&R International, Ltd. Based on interviews with plumbers and experts in the plumbing
industry.
21	Home Star Energy Retrofit Act of 2010 (H.R.5019) and Clean Energy Jobs and Oil Company
Accountability Act of 2010 (S. 3663).
22	Federal Energy Management Program, "How to Buy an Energy-Efficient Gas Water Heater,"
September 2004.
23	Energy Trust of Oregon, "Tankless Gas Water Heaters: Oregon Market Status," December
2005.
24	Based on survey data collected for the Super Efficient Water Heating Appliance Initiative:
California Energy Commission, "PIER Draft Final Project Report," March 2007 (CEC-500-05-010).
25	Based on information in Energy Trust of Oregon, "Tankless Gas Water Heaters: Oregon
Market Status," December 2005, and survey data collected for the Super Efficient Water
Heating Appliance Initiative: California Energy Commission, "PIER Draft Final Project Report,"
March 2007 (CEC-500-05-010).
26	D&R International, Ltd. communications with water heater manufacturers and a presentation
by Jim Lutz, LBNL, at the 2010ACEEE Hot Water Forum.
27	Federal Energy Management Program, "How to Buy an Energy-Efficient Electric Water
Heater," September 2004.
28	Oak Ridge National Laboratory, "Durability Testing of a Drop-In Heat Pump Water Heater,"
April 2004.
29	Vermont Energy Investment Corporation, "Residential Heat Pump Water Heaters: Energy
Efficiency Potential and Industry Status," November 2005.
30	Energy Information Administration, "The National Energy Modeling System: An Overview
2003," April 2003.
31	D&R International, Ltd. communications with water heater manufacturers and a presentation
by Jim Lutz, LBNL, at the 2010ACEEE Hot Water Forum.
Figure 1 | Page 2: Analysis by D&R International, Ltd. of data from "56th Annual Report:
Statistical Review," Appliance Magazine, May 2009; "2009: Hope for Recovery," Appliance
Magazine, January 2009; "ENERGY STAR Residential Water Heaters: Final Criteria Analysis,"
April 1, 2008, prepared by D&R International, Ltd. for the U.S. Department of Energy; and from
ENERGY STAR manufacturer partners.
Figure 2 | Page 3: Analysis by D&R International, Ltd. of data from "56th Annual Report:
Statistical Review," Appliance Magazine, May 2009; "2009: Hope for Recovery," Appliance
Magazine, January 2009; "ENERGY STAR Residential Water Heaters: Final Criteria Analysis,"
April 1, 2008, prepared by D&R International, Ltd. for the U.S. Department of Energy; and from
ENERGY STAR manufacturer partners.
Figure 3 | Page 3: Analysis by D&R International, Ltd. of data from ENERGY STAR manufacturer
partners and from "ENERGY STAR Residential Water Heaters: Final Criteria Analysis," April 1,
2008, prepared by D&R International, Ltd. for the U.S. Department of Energy.
Figure 4 | Page 4: Analysis by D&R International, Ltd. of micro data from Energy Information
Administration, "Residential Energy Consumption Survey 2005."
Figure 5 | Page 5: Analysis by D&R International, Ltd. of data from Energy Information
Administration, "Residential Energy Consumption Survey 2005," Table HC2.8.
Figure 6 | Page 7: Analysis by D&R International, Ltd. of data from the lists of ENERGY STAR
qualified water heaters available on www.eneraystar.aov.
Figure 7 | Page 8: Analysis by D&R International, Ltd. of data from 10 CFR 430.32(d); U.S. Dept.
of Energy, "ENERGY STAR Program Requirements for Residential Water Heaters," January 5,
2009; and Federal Register, Volume 66, No 11, Section I.C, January 17, 2001, p. 4476.
Figure 8 | Page 9: Analysis by D&R International, Ltd. of data from 10 CFR 430.32(d); U.S. Dept.
of Energy, "ENERGY STAR Program Requirements for Residential Water Heaters," January 5,
2009; and Federal Register, Volume 66, No 11, Section I.C, January 17, 2001, p. 4476.
Figure 9 | Page 9: Analysis by D&R International, Ltd. of data from 10 CFR 430.32(d); U.S. Dept.
of Energy, "ENERGY STAR Program Requirements for Residential Water Heaters," January 5,
2009; and Federal Register, Volume 66, No 11, Section I.C, January 17, 2001, p. 4476.
Figure 10 | Page 10: Analysis by D&R International, Ltd. using data from Energy Information
Administration, "Residential Energy Consumption Survey 2005," Table HC2.8, and Energy
Information Administration, Annual Energy Outlook2009,Table 4.
Figure 11 | Page 11: Analysis by D&R International, Ltd.
Figure 12 | Page 17: "A Portrait of the U.S. Appliance Industry," Appliance Magazine, Sept. 2007,
and A.O. Smith Water Products Company website.
Figure 13 | Page 19: D&R International, Ltd. based on interviews with water heater
manufacturers.
Figure 14 | Page 20: "ENERGY STAR Residential Water Heaters: Final Criteria Analysis," April 1,
2008. Prepared by D&R International, Ltd. for the U.S. Department of Energy.
Figure 15 | Page 21: D&R International, Ltd. based on interviews with water heater
manufacturers, and Northwest Energy Efficiency Alliance, "Assessment of the Residential Water
Heater Market in the Northwest," Report #E06-158, July 13, 2006
TABLE SOURCES
Table 1 | Page 6: U.S. Dept. of Energy, "ENERGY STAR Program Requirements for Residential
Water Heaters," January 5, 2009.
Table 2 | Page 8: 10 CFR 430.32(d).
Table 3 | Page 9: Analysis by D&R International, Ltd. of data from 10 CFR 430.32(d); U.S. Dept.
of Energy, "ENERGY STAR Program Requirements for Residential Water Heaters," January 5,
2009; and Federal Register, Volume 66, No 11, Section I.C, January 17, 2001, p. 4476.
Table 4 | Page 22: D&R International, Ltd.
Table 5 | Page 24: Puget Sound Energy
Table 6 | Page 25: Analysis by D&R International, Ltd. of data from the State Energy Efficient
Appliance Rebate Program.
Table 7 | Page 28: D&R International, Ltd. except where noted otherwise.
Table 8 | Page 29: D&R International, Ltd. except where noted otherwise.
ENERGY STAR Wat©r H63t6r Mark©t Pr of i I © | PaQ6 30

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U.S. DEPARTMENT OF
© ENERGY
www.energystar.gov | 1.888.STAR.YES (1.888.782.7937)

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