Rheem Ruud National Geothermal Sales Meeting Presentation 2010

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2010 National Geothermal
Meeting
November 2-3, 2010
Atlanta,GA
Tony Landers
Director of Marketing
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State of the Industry
John Bailey, Jr.
Sr. Vice President of Sales and
Marketing
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2007Master
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• AC and Heat Pumps shipments decreased by
over 23%
• GSHP shipments increased by 45%
This has created an opportunity for all of us
Buildings Dominate U.S. Energy Use and Carbon Emissions
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with Heating, Cooling, and Water Heating being the Largest Contributors
Thermal Loads
Heating
9.2%
Cooling
4.3%
Hot Water
3.8%
Total
17.3%
~ 20% of all U.S. Carbon Emissions
Levelized
Energy Comparison
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to Cost
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Average price for U.S. Grid Electricity is $114
LCEO Data Source:
Heat Pump
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Residential Tax Incentives
• Federal Income Tax Credit
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–
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30% of total GHP system cost
No cap on maximum credit
Can be used to offset AMT tax
Can be combined with other tax credits
Can be used in more than one year
• Eligibility
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–
–
–
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Home must be located in the U.S.
Includes houses, cooperatives, condos, mobile homes
Does not have to be your main home
GHP must meet Energy Star requirements
Placed in service before 2017
Cost need to be reasonable and necessary for the installation
Heat Pump
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Business Tax Incentives
• Federal Income Tax Credit:
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–
–
–
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10% of total GHP system cost
No cap on maximum credit
Can be used to offset AMT tax
Can be used in combination with subsidized financing
Can be used in more than one year
• Accelerated Depreciation:
–
5 year MACR depreciation for entire GHP system
• Eligibility:
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Building located in the U.S.
Original use begins with taxpayer
Placed in service before 2017
Can be used by regulated utilities
Must be claimed by the owner of the property (effects non-taxable)
Heat Pump
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Energy Star 3.0 Specification
• SUCCESS: New Specification Effective December
1, 2009
• New Manufacturer Commitments
– Use trained loop installers that offer 2 yr warranty
– 2 yr all parts and 5 yr major parts warranty with labor
– Promote use of GHP hot water heating capabilities
• but no longer a mandatory requirement
• New Definitions
– Broad and clear definition of a GHP
– Broad and clear definition of loop configurations
– Water-to-water added
Heat Pump
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Energy Star 3.0 Specification
• GHP Definition
–
–
–
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Provides space conditioning and/or water heating
Water-to-air, water-to-water, GDX
Provided in one or more assemblies
Can incorporate pumping, storage, air cleaning, humidity
controls
– System consists of GHPs, GHX, distribution system,
controls, storage
• GHX Definition
– Horizontal, Vertical, or surface water closed loops
– Ground water, surface water, or reclaimed water open
loops
– GDX loops buried or submerged in surface water
Heat Pump
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Energy Star 3.0 Specification
Current
Policy title
Initiatives
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Jobs Bills
• Home Star (Cash for Caulkers)
– Silver Star would provide up to $4,000 in instant rebates
• Currently GHPs are left out – working hard to correct
• Does fund many envelope upgrades that complement GHP retrofits
– Gold Star would provide up to $8,000 in instant rebates
• GHPs are eligible
– These rebates are in addition to current tax credits
• Rural Energy Savings Program
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–
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–
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Administered through electric co-ops
10 year very low interest (max 3%) financing for EE retrofits
Paid on electric bill
Strong bipartisan and bicameral support
GHPs eligible
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Example
GHPtitle
Economics
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Geothermal HVAC Cost:
Conventional HVAC Cost:
Additional Cost:
Income Tax Rate:
Energy Credit:
Utility Rebate
$
Annual Energy Cost Savings:
Energy Inflation:
Year
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
$
$
$
$
300,000 50 tons at $6000 per ton
125,000 50 tons at $2500 per ton
175,000
35%
10%
15,000 50 tons
20,000 $1 per sq ft per year
3%
Added Cash Energy Credit
Outlay
Tax Benefit
$ (160,000) $
30,000
Depreciation
Tax Benefit
$
52,369
$
18,953
$
11,372
$
6,823
$
5,456
$
4,778
$
$
$
$
$
-
Depreciation reduces 7 yr payback to 1.5 yrs!
Energy
Cost Saved
$
20,000
$
20,600
$
21,218
$
21,855
$
22,510
$
23,185
$
23,881
$
24,597
$
25,335
$
26,095
$
26,878
Annual
Cash Flow
$
(57,631)
$
39,553
$
32,590
$
28,677
$
27,967
$
27,964
$
23,881
$
24,597
$
25,335
$
26,095
$
26,878
Simple Payback:
IRR:
Cumulative
Cash Flow
$
(57,631)
$
(18,079)
$
14,511
$
43,188
$
71,155
$
99,118
$
122,999
$
147,597
$
172,932
$
199,028
$
225,906
1.5 yr
57%
Heat Pump
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State Incentives
• 37 States have Financial Incentives for GHPs
– Many are new
– Sales tax and property tax exemptions, income tax credits,
grants
– 17 States have tax credits or grants
• 28 States have Regulatory Incentives for GHPs
– Green public building requirements
• 36 States have Utility Incentives for GHPs
–
–
–
–
Voluntary DSM
Mandated RES and EES
loans and rebates
Utility support is coming back!
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www.dsireusa.org
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Geothermal Heat Pump
Market Perspective
100,000
North to
American
Industry
Shipments
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90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0,000
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
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New
Adoption
Heat Pump
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USA:
4% of US new single-family home HVAC tons in 2008
and projected to reach 7% or more in 2010
Heat Pump
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DOE Industry Roadmap Growth Goal
• 1 million GHPs annually by 2017 (39% CAGR)
• Results in 3.3 million cumulative GHP installations by
2017
– 26 MMT annual CO2 reduction
– 520 MMT lifecycle CO2 reduction over 20 yr GHP life
• Creates 100,000 new jobs
• Conventional A/C and heat pump market is 6 to 8 million
units annually
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Geothermal
Heat Pumps
1300 Sq. Ft. Low Energy Habitat for Humanity Homes
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Site Energy Consumption by End Use – Std and Low Energy
Homes
100
95
Std Home - GAS
Std Home - GHP
LE Home - GHP
LE Home - GHP + PV
80
55% to 80% Reduction in Total Energy Use
MMBtu / year
60
45
42
40
30
19
20
18
16 15
12 12
10
9
5
5
6
4 4
6 7
7
6 6
2
2
0
0
0
0
-11
-20
Total
Heating
Cooling
Hot Water
Lighting
Appliance
Solar PV
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for Humanity title style
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Total Energy Consumption and Carbon Emissions
250
30,000
Site Energy
Source Energy
Carbon Emissions
25,460
200
24,000
MMBtu / year
150
18,000
140
15,562
102
100
95
12,000
9,825
64
50
6,000
42
30
19
0
0
Std Home - GAS
Std Home - GHP
LE Home - GHP
LE Home - GHP + PV
CO2 Emissions lbs / year
21,432
174
Geothermal
Heat Pumps
aretitle
everywhere!
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Statue of Liberty Gift
Shop
Alta Condos, Washington DC
Yale Art Bld. – New Haven, CT
ASHRAE Headquarters - Atlanta, GA
Galt House Hotel - Louisville, KY
Harvard Library – Cambridge, MA
Gaillardia Offices – Okla. City
French Laundry Rest.- Napa, CA
California University of PA
Commercial Buildings
Black Point Inn - Prouts Neck, ME
Whistler Village - BC, Canada
Hirschfeld Towers – Denver, CO
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Existing
Housing
Stock
-2005
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Existing
Housing
Stocktitle
- 2005
Gas – 5.3 million
Electric – 1.0 million
Propane – 800k
Heat Pump – 400k
Oil – 200k
Other – 200k
EIA 2005 Residential
Energy Consumption Survey
Gas – 13.1million
Electric – 1.3 million
Propane – 1.1 million
Heat Pump – 800k
Oil – 700k
Other – 700k
Gas – 5.7 million
Electric – 4.3 million
Propane – 800k
Heat Pump – 900k
Other – 400k
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Drilling Developments
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Drilling
Developments
• Goal:
– Have 1,200 rigs doing geo loops by 2013
– Target markets by need and potential
– Involve distributors in the process so you can build
business for you and your dealers
• Assumptions
– 1 rig = 100 residential units/year
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Drilling
Developments
• Strategic Partnerships
– American Ground Water Trust
– National Ground Water Association
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Drilling
Developments
• Strategic Partnerships
• International Association of Foundation
Drilling
• Geo Drill Manufacturers
• Drilling Schools, Universities, Trade Schools
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Drilling
Developments
• Again working with the
American Ground
Water Trust on a series
of general market
development 1-day
workshops that also
serve as a loop
contractor recruiting
effort
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Drilling
Developments
• Completed 2010:
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Austin, TX
Atlanta, GA
Jacksonville, FL
Tampa, FL
Asheville, NC
Columbia, SC
• Scheduled 2010:
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Chicago, IL
Louisville, KY
Minneapolis, MN
White Plains, NY
Seattle, WA
Richmond, VA
Los Angeles, CA
Nashville, KY
Salt Lake, UT
Philadelphia, PA
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Drilling
Developments
• In 2009 we made an agreement with the
American Ground Water Trust to provide back
office support for a series of 2-day Driller Geo
classes designed to introduce local drillers to
the opportunities available in the residential
geothermal industry.
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Drilling
Developments
• The drillers who pass the end of class test will
letter of completion
– We are averaging over 15 drillers per class and
expect to have over 300 attendees by year end
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Drilling
Developments
• Baroid / Halliburton is providing grout training
segment
• We are in discussions to add the our geo
drilling class to their “mud school” effort
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Drilling
Developments
• Drilling training with universities & trade
schools
– Early Discussions
• Texas Tech
• Oregon Institute of Technology
• Humboldt State University
– The stimulus bill has $10,000,000 for geothermal
work force development
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Utility Industry Update
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Programs
• Demand side management (DSM) is back
– The 2010 -2011 White House budget removed
$2.5 billion from the Rural Utility Service (RUS)
budget
– As they have disallowed funding for coal plant
construction and for operating and maintenance
expenses
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Programs
• Increasing interest in:
– Consumer education
– Rebates and higher rebates
– Loop leasing/tariffs
– One-Bill financing
– Marketing programs
– PACE financing
• Property assured clean energy
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CreatetoOpportunities
• Are you having a dialog
with your local Allies?
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Basic Geothermal 101
Titian Burris
Residential Product ManagerGeothermal Products
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Earth
a Vast
Solar Collector
100%
17% reflected
by clouds.
6% reflected
by surface.
19% absorbed by
water vapor, dust
4% absorbed
by clouds.
46% absorbed
by ground
Earth
Solar energy maintains a nearly constant temperature throughout
the year just below ground
The Earth
is aMaster
Source of
Heat
in
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Winter…
Outdoor air
design temperature:
-5°F
72°F
50°F
Geothermal heat pumps transfer underground heat
into buildings to provide heating
…and
Place totitle
Reject
Heat
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in Summer…
Outdoor air
design temperature:
95°F
74°F
50°F
Geothermal heat pumps transfer heat from
buildings into the ground to provide cooling
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…using
Pump Technology
Geothermal heat pumps circulate
water through a sealed underground
piping loop where it is naturally
warmed (or cooled) by the Earth
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Heat Pumps
All Around
Us…
Site Energy
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Conventional System
• Over 70% of the energy
consumed by a typical
home is used to meet
thermal loads
Site Energy
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Geothermal Heat Pump System
• Total site energy
consumption is cut in
half
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System Basics
Parts and Pieces
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Applications
Vertical Unit- mechanical
closets, basements and
attics
Horizontal UnitAttics, crawl spaces
and dropped ceilings
Outdoor Splits- true
condenser retrofit
applications
Indoor Splits-Ideal for
retrofit mechanical
closets, crawl spaces
and attics
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Accessories
Auxiliary Heaters
•
Recommend use of our Auxiliary
Heater packages for easy
installation/compatibility
Pumping Slave Modules
•
Application for multiple units and
one flow controller
Unit Sound Isolation Pads
•
Recommended on any packaged
vertical units or indoor split
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Accessory
Closed
Loop Applications
Flow Controller Pump Selection
•
Up to 3 ton size units - typically single pump AFCGI
•
3.5 to 6 ton size units - typically two pump AFCG2
•
Choose Composite or Brass 3-way Valve option Flow
Controller style
•
Choose either UP26-99 or UP26-116 motor size
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Flush
/ Closed
Loop
Flushing
Vertical Loops
Horizontal Loop = Closed Loop System under Pressure
Pond Loops
Critical
• Cleans any debris from the loop
• Flushes air from the system
• Mixes antifreeze solution in loop
• Pressurizes loop
We recommend you have
these available to your
dealers for rent
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Accessory
- Open
Loop Applications
Ground Water Open Loop (well water pump and dump) Accessories :
•
•
•
•
•
•
Solenoid/Motorized valves - to be located in Leaving water side piping
Flow Regulators- to be located after Solenoid/Motorized valve
Pressure/Temperature Ports (P/T fittings) should always be located on unit
water coax inlet/outlet to provide unit performance data access
P/T fittings - choose either .25” or .50” diameter
Typically 1.5 to 2 GPM per ton on open loop systems
Cupro-Nickel Heat Exchangers are recommended Depending on water
quality
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Pipe
and Fittings
Loop Pipe and Fittings
Each loop configuration/job is custom
designed, Rules of Thumb should
NOT BE used. See a qualified
person for assistance in
Design/Sizing/Selection and Fusion
Welding.
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Install/Service
Install/Service Tools – Ask if the Technicians
have these water source specific tools (1 set
min. needed).
- Gauge Probe Adapter APTGA P/T
(Pressure/Temperature) Port Adapter for use with
APG100
- Pressure Gauge APTGA 0 – 100 psi for use with
APTGA P/T Port Adapter
- Anti-Freeze Tester/Hydrometer AHYDA for Alcohol
or AHYDG for Food-grade Propylene Glycol
We recommend you have
these available to your
dealers to purchase
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Where
I find
all of this
•
•
•
•
•
EASY!
Price List - Tab 6
Dealer Marketing Manual
www.rheemgeo.com
www.ruudgeo.com
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Thank You
Questions?
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Geothermal Products
Dee Brower
Product Manager- Geothermal
Products
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Rheem
RuudMaster
Product title
Overview
Prestige/Ultra
Packaged
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Units
Prestige/Ultra
Packaged
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Units
• 025, 036, 048, 062 & 069
models
• Upflow, horizontal, and
downflow configurations
• Copeland Ultra-Tech twostage unloading scroll
compressor
• Variable speed ECM fan
motor
– 025-036 ½ hp max esp =
0.5”
– 048-069 1 hp max esp =
0.75”
• Tin-plated coil
for corrosion resistance
• Stainless steel drain pan
Prestige/Ultra
Packaged
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Units
• Dual-level compressor
isolation
• Internally trapped
condensate (upflow)
• 20oF – 120oF extended
range operation
• Circuit breaker
protection for loop and
HWG pumps
• Two inch full filter frame
with MERV 11 filter
Prestige/Ultra
Packaged
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Units
• Field-selectable
low temperature
protection
• Hot Water Generator
with intelligent logic
• Foil-backed insulation
in blower compartment
• Optional internal
electric heat
• Optional cupro-nickel
heat exchanger
Prestige/Ultra
Packaged
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Units
Prestige/Ultra
Packaged
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Units
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Prestige/Ultra
Indoor Split
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Prestige/Ultra
Indoor Split
• 025, 036, 048, & 062
models
• Copeland Ultra-Tech
two-stage unloading
scroll compressor
• Dual level compressor
isolation
• 20oF – 120oF extended
range operation
• Circuit breaker
protection for loop and
HWG pumps
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Prestige/Ultra
Indoor Split
• Field-selectable low
temperature protection
• Built-in Hot Water
Generator with
intelligent logic
• Brass swivel connectors
• AHRI matched with the
RHPL-HM air handler
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MasterSplit
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Prestige/Ultra
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MasterSplit
title(RPVE)
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Prestige/Ultra
• 025, 036, 048, & 062
models
• Copeland Ultra-Tech
two-stage unloading
scroll compressor
• Dual level compressor
isolation
• 20oF – 120oF extended
range operation
• Circuit breaker
protection
for loop pump(s)
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MasterSplit
title(RPVE)
style
Prestige/Ultra
• Field-selectable
low temperature
protection
• AHRI matched
with the RHPL-HM
• Fully insulated water
and refrigerant lines
• Optional external
Hot Water Generator
• Low temperature pump
switch
• Crankcase heater
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MasterSplit
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Prestige/Ultra
• Built-in Loop pump(s)
with stainless steel
hoses and flushing
valves
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MasterSplit
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Prestige/Ultra
• Built-in expansion tank
for more stable loop
pressures
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Water-to-Water
Heattitle
Pumps
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Water-to-Water
Heattitle
Pumps
• 3, 5, & 10 ton models
• High efficiency scroll
compressor
• Fully insulated water and
refrigerant lines
• Dual level compressor
mounting
• System operating LEDs
• 1” swivel connections (3
& 5 ton)
• Extended range operation
(20oF-120oF)
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Water-to-Water
Heattitle
Pumps
• Dual refrigerant circuits
on 10 ton model
• Flush securely mounted
corner post water
connections (10 ton)
• Optional Hot Water
Generator with
internal pump
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Desuperheater
Controller
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Desuperheater
Controller
• Intelligent logic
• Monitors two temperatures
– Compressor discharge line temp
– HWG “water in” temp
• Pump sampling
• HWG pump test (SW10)
• HWG temp (SW11)
– 125°F setpoint
– 150°F (requires anti-scald valve)
• HWG status (SW12)
• Fault LEDs
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Desuperheater
Controller
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Controllertitle style
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Controllertitle style
• Double O-ring
connections
• 230 vac
• Single pump or dual
pump
• Bronze or composite
valves
• UP26-99 or UP26-116
pumps
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• Double O-ring
connection fittings
• Socket fusion, barb,
cam lever, or MPT
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Secure
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Secure
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• Reduces starting current by up to 75%
• Improves compressor starting characteristics
• Reduces nuisances such as light flicker
caused by current variations
• Protects compressor from voltage sags
• Short cycle protection
• Compatible with all Premier/Prestige
residential equipment with Copeland scroll
compressors
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Thank You
Questions?
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Marketing Materials
Website Information
Software Programs
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All Systems Brochure
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Different Application Methods
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All Systems Brochure Inside
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All Systems Brochure Inside
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Packaged Unit Brochure
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Packaged Unit Brochure
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Packaged Unit Brochure
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Indoor Unit Brochure
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Indoor Unit Brochure
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Outdoor Unit Brochure
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Outdoor Unit Brochure
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RheemGeo.com and RuudGeo.com
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Literature Link
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Software Link
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Training Link
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Tax Credit Info Link
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Tax Certificate
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Geothermal Incentives
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Business
Center
BC Log In Procedure
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Business
Center
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• GeoDesigner for Operating Costs and Loop
Info
• Sales Proposal for ROI and Total Monthly
Payment
• Pressure Drop to Confirm Loop Design and
Pump Selection
• Electronic “Pitch Book”
All Free Software Programs
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• Load From Respective Website or Can Be
Loaded From CD
• Select Weather City and Input Building
Loads and Utility Rates
• Select Geo Unit, Options and Loop Type
Plus any Comparative Systems
• Obtain Operating Costs for up to 3 Systems
Plus Loop Requirements
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• Click
Sales Proposal
• Input Operating and Installed Costs for
Systems to Perform Comparison
• Select # of Years for Loan, Credits/Rebates
and Input Inflation Rates for Fuel Costs
• Obtain Financial Results for a Replacement
or New Construction Project
• Program Will Provide ROI or Total Monthly
Payment
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Master
Pitch
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Power Point or Hard Copy
Helps Dealers “Tell the Geothermal Story”
and Sell More Systems!!
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Your District Region Manager is Here to
Support Your Company in All Your
Geothermal Efforts!!
Training, Marketing and Sales
Let Us Help You GROW Your
Geothermal Business
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Thank You
Questions?
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Business Center
Review
Cindy Perry
Director of Customer Service
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Click to edit Login
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No Account
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Registration
Form
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Homepage
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Homepage
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Technical Training 101 and 202
Review
Steve Johnson- Training and
Utility Program Development
Manager
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Technical
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The future of GSHP is Bright
It is ours to lose – How?
• Bad installs
• Poor service
• Inferior equipment
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Technical
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New Institutional Requirements Ahead
• States and cities are requiring IGSHPA certification
• Utilities are requiring IGSHPA or factory certifications
• Federal Government is considering requiring certification
for rebates and tax credits.
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Technical
Training
The Response:
– Increased the trainers from one part time to three full time
– Achieved NATE and IGSHPA “Training Organization” status
– Expanded our training program offerings
– Instituted a Train-the-Trainer program
Result: In excess of 1,400 individual trained in the last 16
months
Training
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Our Goal
To develop and maintain the most
technically competent distributor and
dealer network in the industry
Training
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Factory Training
• 303 Advanced Service and Install
– Three day intense training on loop design and equipment
installation and servicing
• Service and Install/IGSHPA
– Four day intense training including IGSHPA certification
• Train-the-Trainer
– The Key program in developing network competence
Training
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Train-the-Trainer
Distributors must have at least one factory trained Trainer
– Individual should be a senior technical personnel
– Must have been factory accredited
– Must hold a trainer session within 120 days accreditation
– Training must be audited by trainer or DM
Training
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Field Training
• 202 Service and Install
• IGSHPA
• Train-the-Trainer support and review
• Vertical Installation – IGSHPA
Training
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New for 2011
• NATE CEU’s awarded for all training
• Increased TtT support visitations
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Validating
Peak Shaving
Peaks Without Ground Source Heat Pumps
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Peakto
Shaving
Impact of GSHP
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QuestMaster
Modeling
• Developed by Department of Energy
• All Analysis Reviewed by Oak Ridge NL
Quest
Modeling
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Goal:
• Compare GSHP vs Conventional Systems
• Evaluate GSHP on Utility Demand Curve
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Modeled
•
•
•
•
•
•
•
Albany, NY
Atlanta, GA
Baltimore, MD
Boston, MA
Charolette, NC
Denver, CO
Houston, TX
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Kansas City, MO
Knoxville, TN
Milwaukee, WI
Phoenix, AZ
Sacramento, CA
Salt Lake, UT
Seattle, WA
Baseline
2,400 ft 2 – Four
GHP
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Building
Building Type
Building Area (ft2)
Space
Building Conditioned Space (ft2)
Number of Floors
Floor Height (ft)
Ceiling Height (ft)
Exterior Wall Construction
Roof Construction
Floor/Slab Construction
Window-to-gross wall ratio
Fenestration U-factor
Fenestration Shading Coefficient
Fenestration Visual Light Transmittance
Residential
2,400
Living Room
2,400
2
8
8
Uroom=0.077,Ugrade=0.372
Uattic=0.465
Uroom=0.001
18%
0.613
0.75
0.7
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Baseline HVAC System
HVAC System
GSHP with Desuperheater
Packaged Single Zone Unit with
Gas Furnace
DX
DX
EER=17.9
SEER=10
Water-Cooled
Air-Cooled
Central Heating Source
DX
Gas Furnace
COP/AFUE
4.0
78%
1
1
50%
50%
Variable Volume
Variable Volume
76%
76%
HVAC System Name
Central Cooling Source
Cooling EER/SEER
Condenser
Supply Fan Static in WG
Supply Fan Efficiency
Fan Control
DHW Heater Efficiency
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Initial Findings
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Sacramento, CA
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Monthly Electric Peak Demand Comparison at Same Peak Time
8.00
7.00
6.00
Max kw
5.00
4.00
3.00
2.00
1.00
0.00
1
2
3
4
5
6
7
Month
Proposed EER 17.9
Baseline SEER 10
8
9
10
11
12
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Atlanta, GA
Monthly Electric Peak Demand Comparison at Same Peak Time
8.00
7.00
6.00
Max kw
5.00
4.00
3.00
2.00
1.00
0.00
1
2
3
4
5
6
7
Month
Proposed EER 17.9
Baseline SEER 10
8
9
10
11
12
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Electrical Demand Reductions
Sacramento
• Electric Demand Saving (kw) – 2.5
• Electric Demand Saving (kw/ton) – 0.7
Atlanta
• Electric Demand Saving (kW) – 2.6
• Electric Demand Saving (kw/ton) – 0.7
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FutureMaster
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• GSHP vs 14 SEER AC
• GSHP vs. Air Source vs 14 SEER HP
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Thank You
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Where do we go from here?
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